The case of the shrinking Palliikaranai marsh, Chennai, India: Environmental economics to the rescue?

Abstract

The intangible benefits provided by water bodies and wetlands in urban areas often tend to go unnoticed. In order to assess the true values of welfares and benefits to society, social benefit cost analysis (SBCA) presents itself as a useful tool. In this paper, hedonic pricing method (HPM) has been used in apprehending the environmental and aesthetic benefits of Pallikaranai marsh, Chennai, India, and the results are used in analysis of costs versus benefits. We attempt to quantify the impact of the presence of water bodies in urban settings and distance from the Pallikaranai marsh has been found to be the significant variable, and the price rate of residential land decreases by .367/m2 for every metre distance away from the marsh. Many other smaller water bodies surround the marsh. Another variable, denoted by the component of interaction of distance from the marsh and distance of other smaller water bodies is found to be a significant variable, while the distance from other smaller water bodies is found to be not a significant variable. The results of the analysis describe and demonstrate the role of water bodies in the urban context and provide data for land planners and water managers to make informed decisions in the planning and management agenda.