 Assessing the price effects of flood hazard disclosure under the California natural hazard disclosure law (AB 1195)Austin Troy and Jeff Romm Journal of Environmental Planning and Management, 2004, vol. 47, issue 1, 137-162 Abstract: This study uses hedonic analysis to estimate the effects of flood hazard disclosure under the 1998 California Natural Hazard Disclosure Law (AB 1195) on property values throughout California. It finds that the average floodplain home sold for 4.2% less than a comparable non-floodplain home following AB 1195 while before that law there was no significant price differential. The introduction of interaction terms indicates that the magnitude of the price reduction due to AB 1195 varies positively with Hispanic population share. An average floodplain home in a half-Hispanic neighbourhood saw a $12 324 negative capitalization due to AB 1195, while that amount was only $2191 for a neighbourhood with 10% Hispanic residents. Results suggest that, in particular, homebuyers in Hispanic communities are better disclosed to under AB 1195 than they were under the National Flood Insurance Program (NFIP), which was the primary policy regulating flood disclosure in California prior to passage of AB 1195. Date: 2004 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:taf:jenpmg:v:47:y:2004:i:1:p:137-162 Ordering information: This journal article can be ordered from DOI: 10.1080/0964056042000189844 Access Statistics for this article Journal of Environmental Planning and Management is currently edited by Dr Neil Powe, Dr Ken Willis and George Bill Page More articles in Journal of Environmental Planning and Management from Taylor & Francis Journals |
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