The impact of flood dynamics on property values

• Autores: Darshana Rajapaksa, Min Zhu, Boon Lee, Viet-Ngu Hoang, Clevo Wilson, Shunsuke Managi
• Localización: Land use policy: The International Journal Covering All Aspects of Land Use, ISSN 0264-8377, ISSN-e 1873-5754, Nº. 69, 2017, págs. 317-325
• Idioma: inglés
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• Dialnet Métricas: 2 Citas
• Resumen

  • There is evidence that environmental amenities and dis-amenities may be nonlinearly related to property valuation. This would bring inconsistency in estimating environmental variables of the hedonic price model. To explore the linearity of the relationship this study analyses spatial and temporal variation impacts of the 2011 Brisbane flood on property markets using semi-parametric estimation. The results show that most environmental variables impacts on property values nonlinearly, and in particularly distance to the river, indicating that the amenity value of being close to a river outweighs the flood risks. The estimation of the combined impact of elapsed time and neighbourhood income indicates that the flood risk impact on property markets disappears over time.