Hedonic Pricing Method: A study in Jagiroad, ...

Hedonic Pricing Method: A study in Jagiroad, Morigaon District of Assam

Author Name : Dr Bhupen Kr Sarma

INTRODUCTION

The Hedonic Price Method is used in determination of the economic value for an ecosystem service or external factor that they may influence the market price of a good or asset. This method is generally applied in the valuation of properties , such as houses , accounts for economic costs or benefits which may influence oveall value of the asset or house rent. The pollution from industries has different negative externalities.

The impact of the Nagaon paper mill’s pollution on the property is investigated by using the Hedonic Price Method. In the study only the residential housing properties are considered.

Objective: The objective of the study is to investigate the impact of pollution on value of property in Jagiroad of Morigaon district of Assam

Methodology: The Hedonic Price Method is used to investigate the effect of pollution on property. Statistical tool regression analysis is carried out from the collected primary data. Primay data are collected

Hedonic Price Method: Different methods are used to value the environmental goods and services. These methods may be classified into revealed preference and stated preference techniques. In the reveal preference methods individuals indirectly reveal the willingness to pay for environmental goods through market and surrogate market prices. In stated preference, individuals are directly asked what their willingness to pay is. (G Haripriya, 2001)