Flood prone risk and amenity values: a spatial hedonic analysis
AbstractThis study examines the impact of flood hazard zone location on residential property values. The study utilises data from over 2,000 private residential property sales occurred during 2006 in North Shore City, New Zealand. A spatial autoregressive hedonic model is developed to provide efficient estimates of the marginal effect of flood prone risks on property values. Our results suggest that a property located within a flood hazard zone sells for 4.3% less than an equivalent property located outside the flood hazard zone. Given the median house price, estimated discount associated with flood risks is approximately NZ$22,000.
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Bibliographic InfoPaper provided by Australian Agricultural and Resource Economics Society in its series 2008 Conference (52nd), February 5-8, 2008, Canberra, Australia with number 6013.
Date of creation: 2008
Date of revision:
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More information through EDIRC
Flood hazard; Spatial hedonic; Amenity value; Land Economics/Use; Q15; Q51;
Find related papers by JEL classification:
- Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
- Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-11-18 (All new papers)
- NEP-GEO-2008-11-18 (Economic Geography)
- NEP-URE-2008-11-18 (Urban & Real Estate Economics)
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