Evaluating environmental effects : the Malta Drydocks and the three cities : a case study

Abstract

This dissertation examines the environmental impact of the Malta Drydocks' activity on the Three Cities, i.e. Cospicua, Senglea and Vittoriosa (often referred to as the Cottonera region). A monetary evaluation of the environmental damage caused by the Drydocks' operations is undertaken. The contingent valuation method and the hedonic pricing technique are used for such economic valuation. In the former, a survey is carried out among the Cottonera residents to elicit the respondents' willingness to pay and willingness to accept values for the preservation of the environment. In the latter, data on the property market is used to examine how property prices are being negatively affected by the grim environment of the Three Cities. In spite of their limitations, both studies illustrate that the environmental impact of the Drydocks' operations is significant. Thus, immediate action should be taken to minimize such environmental degradation.