Examination of the effects of industrial air pollution on real estate investment in Warri, Delta state

Fidelis I. Emoh^* and Ilechukwu, Ihuoma Stella

Department of Estate Management, Faculty of Environmental Sciences, Nnamdi Azikiwe University, Awka, Nigeria

Abstract

This study was necessitated by the need to improve measures for controlling industrial air pollution on real estate investments. It examined the effect of industrial air pollution on real estate investment in Warri, Delta State. Four research questions guided the study and one null hypothesis was tested at 0.05 level of significance. Descriptive survey research design was employed for the study. The population consisted of 205 industrial workers, designated staff in the Federal and State Ministries of Health and Environment, Estate Surveying and Valuation firms and occupiers and owners of commercial properties in the industrial air polluted areas of Warri Delta State. A sample of 135 was drawn from population of 205 using Taro Yamane’s formula. The instrument for data collection was a structured questionnaire. The instrument was validated by three experts. Cronbach Alpha method was used to determine the reliability of the instrument. The hypotheses were tested using Pearson Correlation Coefficient.  Findings of the study revealed that major causes of industrial air pollution in Warri among others are burning coal; burning fossil fuels like oil, natural gas, and petroleum. It was also revealed that the effects of industrial air pollution on the value of properties are: increase in maintenance cost; decrease in real gross income; poor infrastructure or territorial development system; high tax rate and local payment; interest rate applied to a credit; and difficulties for construction investment. The study concluded that air pollution results to less competition on the property and rent market which reduces property value and price. High maintenance cost; poor management of the pollution affects the profitability of properties in the area. Industry Site Selection and Planning; Proper Treatment of Industrial Waste; Stricter environmental Laws and Enforcement; adopting new technology for industrial waste management; regular environmental impact assessments; rebuilding habitats and afforestation; modern recycling and drainage system, are the measures for proper controlling of industrial air pollution. It was recommended among others that Industry Site Selection consideration of location of the sites and the potential impact on the surrounding environment and proper treatment of industrial waste by developing and implementing adequate treatment facilities for handling industrial waste and proper habits can reduce air pollution thereby improving property values in the area.

Keywords

industrial air pollution; real estate investment.

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