Flood prone risk and amenity values: a spatial hedonic analysis

This study examines the impact of flood-hazard zone location on residential property prices. The study utilises data from over 2000 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 prices. Results suggest that the sale price of a residential property within a flood prone area is lower than an equivalent property outside the flood prone area. The flood plain location discount is reduced by the release of public information regarding flood risk.


Issue Date:
2010
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/162020
Published in:
Australian Journal of Agricultural and Resource Economics, Volume 54, Issue 4
Page range:
457-475
Total Pages:
19




 Record created 2017-04-01, last modified 2017-08-27

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