Description:
Disposal of municipal solid waste in open dumpsites remains widespread throughout the developing world. While harm to local environments and public health may seem apparent, the lack of credible estimates of damages from open dumpsites is a major reason for their continued use. This paper estimates the disamenity damages imposed by an open dumpsite in Colombo, Sri Lanka on nearby property owners using hedonic regression methods and a novel data set collected for the purpose. We find that property values increase by 10% for every additional 100 meters of distance from the edge of the dumpsite, and thus provide the first credible estimate of costs imposed by open dumping in a developing country. As open dumpsites are often sited in less affluent areas, our results suggest that such sites are likely exacerbating urban inequities in urban agglomerations across the developing world