Kamath explained on X that pricing properties based on environmental quality could motivate homeowners to take ownership of their surroundings
As Delhi grapples with its escalating air pollution crisis, Nithin Kamath, co-founder and CEO of Zerodha, has proposed an intriguing idea: linking property prices to the quality of air and water in the area. Kamath’s suggestion highlights the need for aligning economic incentives with environmental quality, a move that could encourage better urban planning.
In a post on X, Kamath wrote, "Maybe a property price discount for the quality of air and water is the solution." He argued that incorporating environmental factors into property prices would compel collective action to improve localities.
Beyond physical amenities, properties should also account for the quality of life it promises. Access to clean air and water, fundamental to an individual’s quality of life, should play a pivotal role in determining a property's worth.
Kamath explained that pricing properties based on environmental quality could motivate homeowners to take ownership of their surroundings. “If I went from owning a property in JP Nagar and caring for it to caring for my layout in JP Nagar and then the whole of JP Nagar, it could have a better outcome,” he wrote. This shift from individual to community-driven care could lead to improvements in better planning.
His remarks come at a time when Delhi's air quality index (AQI) continues to oscillate between "very poor" and "severe" categories. Since the onset of winters, smog has engulfed the entire city of Delhi. The air quality in the national capital has reached hazardous levels, posing severe health risks even to healthy individuals, let alone those with pre-existing illnesses. AQI stood at 412 on Sunday, with Anand Vihar recording 473.
While temporary measures are in place—such as halting construction, closing schools and enforcing remote work for 50 per cent of government employees—these steps provide only short-term relief. The Supreme Court has also extended Stage 4 of the Graded Response Action Plan. But Delhi needs a permanent solution to the problem of worsening air quality in winters. While the implementation of Kamath's proposal is questionable, it could be a start.