Willingness to pay for intangible environmental amenities in Anguwan Rogo-Anguwan RIMI, JOS, Nigeria

Abstract

Real estate is a package that extend beyond dwelling home but encompasses social, neighbourhood and environmental amenities and characteristics. The provision of basic amenities and services to accommodate the increasing population is among the major challenge of successive government in Nigeria. The property or rental values are influenced by residents’ willingness to pay (WTP) for both neighbourhood and environmental amenities or characteristics. The aim of this dissertation is to evaluate the tenant willingness to pay for intangible environmental amenities in Anguwan Rogo-Anguwan Rimi Jos, Nigeria. A questionnaire survey was used with 389 household as total respondents, only 369 questionnaire were return and used for analysis. Among the 11 environmental variable, only 4 are found as amenities to be improved in the study area. Correlation analysis was used to find the relationship between monthly income and the willingness to pay for environmental variables. Among the 11 variables, only 3 seem to have significant relationship with the monthly income. This are electricity, household size and educational standard. The rental model was developed of willingness to pay environmental amenities using hedonic pricing concept, were the R value is 0.98 and the adjusted R2 value is 0.96 meaning that 96% of variance in WTP is predicted by all the 12 variables. The F value is 749.71 which is statistically significant. Out of the 12 independent variable, 7 variables are statistically significant. These includes improved drainage, air quality, water supply, waste dump site, accessibility, natural lightening as well as improved security with t value of 14.69, 7.43, 2.28, 23.61, 22.85, 26.94 and 9.72 respectively. It was recommended that the model can be used to evaluate tenant’s willingness to pay for environmental amenities in Anguwan Rogo-Anguwan Rimi Jos, Nigeria.