Housing Shadow Prices in an Inundation-prone Suburb
Alicia Rambaldi (),
Cameron S. Fletcher,
Kerry Collins and
Ryan McAllister ()
Urban Studies, 2013, vol. 50, issue 9, 1889-1905
For flood-prone urban areas, the prospect of increasing population densities and more frequent extreme weather associated with climate change is alarming. Proactive adaptation can reduce potential flood risks in theory. However, there is limited empirical economics exploring this issue, without which convincing residents within exposed areas to participate in adaptation is challenging. In this paper, a hedonic model is presented of property prices for a flood-prone inner-city suburb of Brisbane, Australia. The study defines a continuous flood-risk variable based on the vertical distances of properties relative to a flood level that occurs on average once every 100 years. The results show significant property-price discounting of 5.5 per cent per metre below the defined flood level. Detailed hedonic characteristics also provided shadow price estimates of housing characteristics and distances to amenities (such as bus-stops, train-stations, parks and bikeways) and these hedonics need to be considered when holistically assessing the dynamics of suburbs for adaptation planning.
References: Add references at CitEc
Citations: View citations in EconPapers (7) Track citations by RSS feed
Downloads: (external link)
Working Paper: Housing shadow prices in an inundation prone suburb (2011)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:sae:urbstu:v:50:y:2013:i:9:p:1889-1905
Access Statistics for this article
More articles in Urban Studies from Urban Studies Journal Limited
Bibliographic data for series maintained by SAGE Publications ().