Housing shadow prices in an inundation-prone suburb

Rambaldi, Alicia N., Fletcher, Cameron S., Collins, Kerry and McAllister, Ryan R. J. (2013) Housing shadow prices in an inundation-prone suburb. Urban Studies, 50 9: 1889-1905. doi:10.1177/0042098012465904

Author Rambaldi, Alicia N.
Fletcher, Cameron S.
Collins, Kerry
McAllister, Ryan R. J.
Title Housing shadow prices in an inundation-prone suburb
Journal name Urban Studies   Check publisher's open access policy
ISSN 0042-0980
Publication date 2013-07
Year available 2012
Sub-type Article (original research)
DOI 10.1177/0042098012465904
Volume 50
Issue 9
Start page 1889
End page 1905
Total pages 17
Place of publication London, United Kingdom
Publisher Sage Publications
Collection year 2013
Language eng
Formatted abstract
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.
Q-Index Code C1
Q-Index Status Confirmed Code
Institutional Status UQ
Additional Notes Published online before print November 28, 2012

Document type: Journal Article
Sub-type: Article (original research)
Collections: Official 2013 Collection
School of Economics Publications
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Created: Fri, 30 Nov 2012, 09:42:48 EST by Alys Hohnen on behalf of School of Economics