Flooding risk and housing values: An economic assessment of environmental hazard

Ecological Economics

Volumn 69, Issue 2, 2009, Pages 355-365

  Daniel, Vanessa E ^a   Florax, Raymond J G M ^a,b   Rietveld, Piet ^a,c  

^a VU UNIVERSITY AMSTERDAM   (Netherlands)

^b PURDUE UNIVERSITY   (United States)

^c TINBERGEN INSTITUTE   (Netherlands)

Author keywords

Environmental risk; Hedonic pricing; Meta analysis; Valuation

Indexed keywords

CLIMATE CHANGE; ECONOMIC ANALYSIS; ENVIRONMENTAL HAZARD; FLOODING; HEDONIC ANALYSIS; HOUSING MARKET; MANAGEMENT PRACTICE; META-ANALYSIS; PRICE DYNAMICS; SPATIAL DISTRIBUTION; WATER RESOURCE; WILLINGNESS TO PAY;

NORTH AMERICA; UNITED STATES;

EID: 70449515418     PISSN: 09218009     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.ecolecon.2009.08.018     Document Type: Article

References (65)

1. Abreu M., de Groot H.L.F., and Florax R.J.G.M. A meta-analysis of β-convergence: the legendary two-percent. Journal of Economic Surveys 19 3 (2005) 389-420
2. Abrevaya J. Computing marginal effects in the Box-Cox model. Econometric Reviews 21 3 (2002) 383-393
3. Akerlof G.A. The market for "lemons": quality uncertainty and the market mechanism. The Quarterly Journal of Economics 84 3 (1970) 488-500
4. Barnard J.R. Externalities from urban growth: the case of increased storm runoff and flooding. Land Economics 54 3 (1978) 298-315
5. Bartosova A., Clark D.E., Novotny V., and Taylor K.S. Using GIS to Evaluate the Effects of Flood Risk on Residential Property Values (1999), Marquette University, Milwaukee Institute for Urban Environmental, Risk Management, Technical Reports
6. Begg C.B., and Mazumdar M. Operating Characteristics of a Rank Correlation Test for Publication Bias. Biometrics 50 (1994) 1088-1101
7. Beron K.J., Murdoch J.C., Thayer M.A., and Vijverberg W.P.M. An analysis of the housing market before and after the 1989 Loma Prieta earthquake. Land Economics 73 1 (1997) 101-113
8. Bialaszewski D., and Newsome B.A. Adjusting comparable sales for floodplain location: the case of Homewood, Alabama. The Appraisal Journal 58 1 (1990) 114-118
9. Bin O., and Polasky S. Effects of flood hazards on property values: Evidence before and after Hurricane Floyd. Land Economics 80 4 (2004) 490-500
10. Bin O., and Kruse J.B. Real estate market response to coastal flood hazards. Natural Hazards Review 7 4 (2006) 137-144
11. Bin O., Crawford T.W., Kruse J.B., and Landry C.E. Viewscapes and flood hazard: Coastal housing market response to amenities and risk. Land Economics 84 3 (2008) 434-448
12. Bin O., Kruse J.B., and Landry C.E. Flood hazards, insurance rates, and amenities: Evidence from the coastal housing market. Journal of Risk and Insurance 75 1 (2008) 63-82
13. Brander L., Florax R.J.G.M., and Vermaat J. The empirics of wetland valuation: a comprehensive summary and a meta-analysis of the literature. Environmental and Resource Economics 33 2 (2006) 223-250
14. Browne M.J., and Hoyt R.E. The demand for flood insurance: empirical evidence. Journal of Risk and Uncertainty 20 3 (2000) 291-306
15. Card D., and Krueger A. Time-series minimum-wage studies: a meta-analysis. American Economic Review 85 (1995) 238-243
16. de Blaeij A., Florax R.J.G.M., Rietveld P., and Verhoef E. The value of statistical life in road safety: a meta-analysis. Accident, Analysis and Prevention 35 6 (2000) 973-986
17. Dei Tutu V.A., and Bin O. Flood hazards, insurance, and house prices - a hedonic property price analysis (2002), Research Paper, East Carolina University, East Carolina Economic Review, M.S
18. Donnelly W.A. Hedonic price analysis of the effect of a floodplain on property values. Water Resources Bulletin 25 3 (1989) 581-586
19. Egger M., Smith G.D., Schneider M., and Minder C. Bias in meta-analysis detected by a simple, graphical test. British Medical Journal 315 (1997) 629-634
20. Florax R.J.G.M. Methodological pitfalls in meta-analysis: publication bias. In: Florax R.J.G.M., Nijkamp P., and Willis K. (Eds). Comparative Environmental Economic Assessment (2002), Edward Elgar 177-207
21. Florax R.J.G.M., Travisi C.M., and Nijkamp P. A meta-analysis of the willingness to pay for reductions in pesticide risk exposure. European Review of Agricultural Economics 32 4 (2005) 441-467
22. Freeman III A.M. The measurements of environmental and resource values: theory and methods (2003), Resources for the Future, Washington D.C.
23. Fridgen P.M., and Shultz S.D. The influence of the threat of flooding on housing values in Fargo, North Dakota and Moorhead (1999), Minnesota, Department of Agricultural Economics, North Dakota State University, Agricultural Economics Report 417
24. Greene W. Econometric Analysis. 5th edition (2003), Prentice Hall Publisher
25. Gurevitch J., and Hedges L.V. Statistical issues in ecological meta-analyses. Ecology 80 4 (1999) 1142-1149
26. Hallstrom D.G., and Smith V.K. Market responses to hurricanes. Journal of Environmental Economics and Management 50 (2005) 541-561
27. Halvorsen R., and Palmquist R. The interpretation of dummy variables in semilogarithmic equations. American Economic Review 70 (1980) 474-475
28. Harrison D.M., Smersh G.T., and Schwartz Jr. A.L. Environmental determinants of housing prices: the impact of flood zone status. The Journal of Real Estate Research 21 1/2 (2001) 3-20
29. Holway J.M., and Burby R.J. The effects of floodplain development controls on residential land values. Land Economics 66 3 (1990) 259-271
30. IPCC. Climate Change 2007: The Physical Science Basis - Summary for Policymakers - IPCC WGI Fourth Assessment Report (2007)
31. Kahneman D., and Tversky. A., Prospect theory: an analysis of decision under risk. Econometrica 47 2 (1979) 263-292
32. Kim C.W., Phipps T.T., and Anselin L. Measuring the benefits of air quality improvement: a spatial hedonic approach. Journal of Environmental Economics and Management 45 (2003) 24-39
33. Kriesel W., and Friedman R. Coastal hazards and economic externality: implications for beach management policies in the American South East (2002), H. John Heinz III Center for Science, Economics and the Environment, Washington DC
34. Kron W. Flood risk = hazard × exposure × vulnerability. Journal of Lake Sciences 15 (2003) 185-204
35. Kunreuther H., and Slovic P. Science, values, and risk. Annals of the American Academy of Political and Social Science 545 1 (1996) 116-125
36. Lewis J.B., and Linzer D.A. Estimating regression models in which the dependent variable is based on estimates. Political Analysis 13 (2005) 345-364
37. List J.A., and Gallet C.A. What experimental protocol influence disparities between actual and hypothetical stated values?. Environmental and Resource Economics 20 3 (2001) 241-254
38. Macaskill P., Walter S.D., and Irwig L. A comparison of methods to detect publication bias in meta-analysis. Statistics in Medicine 20 (2001) 641-654
39. MacDonald D.N., Murdoch J.C., and White H.L. Uncertain hazards, insurance, and consumer choice: evidence from housing markets. Land Economics 63 4 (1987) 361-371
40. MacDonald D.N., White H.L., Taube P.M., and Huth W.L. Flood hazard pricing and insurance premium differentials: evidence from the housing market. Journal of Risk and Insurance 57 4 (1990) 654-663
41. Paklina N. Flood insurance (2003), OECD, Paris
42. Pope, J.C., 2006. Asymmetric information and the hedonic model: the impact of a flood zone disclosure on house prices, Working Paper.
43. Roberts C.J., and Stanley T.D. Meta-regression analysis: issues of publication bias in economics (2005), Blackwell Publishing, Oxford
44. Rosen S. Hedonic prices and implicit markets: product differentiation in pure competition. Journal of Political Economy 82 1 (1974) 34-55
45. Rothstein A., Sutton A.J., and Borenstein M. Publication Bias in Meta-Analysis: Prevention, Assessment and Adjustments (2005), Wiley Publishing
46. Shabman L.A., and Damianos D.I. Flood hazard effects on residential property values. Journal of the Water Resources Planning and Management Division 102 1 (1976) 151-162
47. Shilling J.D., Sirmans C.F., and Benjamin J.D. Flood insurance, wealth redistribution, and urban property values. Journal of Urban Economics 26 1 (1989) 43-53
48. Shrubsole D., Green M., and Scherer J. The actual and perceived effects of floodplain land-use regulations on residential property values in London, Ontario. The Canadian Geographer 41 2 (1997) 166-178
49. Skantz T.R., and Strickland T.H. House prices and a flood event: an empirical investigation of market efficiency. The Journal of Real Estate Research 2 2 (1987) 75-83
50. Smith V.K., and Huang J.C. Can markets value air quality? A meta-analysis of hedonic property value models. Journal of Political Economy 103 1 (1995) 209-227
51. Speyrer J.F., and Ragas W.R. Housing prices and flood risk: an examination using spline regression. Journal of Real Estate Finance and Economics 4 4 (1991) 395-407
52. Stanley T.D. Beyond publication bias. Journal of Economic Surveys 19 3 (2005) 309-345
53. Sutton A.J., Abrams K.R., Jones D.R., Sheldon T.A., and Song F. Methods for Meta-Analysis in Medical Research (2000), John Wiley
54. Thompson E., and Stoenever H.H. Estimating residential flood control benefits using implicit equations. Water Resources Bulletin 19 6 (1983) 889-895
55. Tobin G.A., and Montz B.E. The flood hazard and dynamics of the urban residential land market. Water Resources Bulletin 30 4 (1994) 673-685
56. Troy A., and Romm J. Assessing the price effects of flood hazard disclosure under the California Natural Hazard Disclosure Law (AB 1195). Journal of Environmental Planning and Management 47 1 (2004) 137-162
57. US Army Corps of Engineers. Empirical studies of the effect of flood risk on housing prices (1998), Alexandria, Virginia, Water Resources Support Center Institute for Water Resources
58. van Dantzig D. Economic decision problems for flood prevention. Econometrica 24 3 (1956) 276-287
59. Viscusi K.W. Economic theories of decision making under uncertainty: implications for policy analysis. In: Weimer D.L. (Ed). Policy Analysis and Economics. Developments, Tensions, Prospects (1991), Kluwer Academic 85-109
60. Viscusi K.W., and Zeckhauser R.J. Hazard communication: warnings and risks. Annals of the American Academy of Political and Social Science 545 1 (1996) 106-115
61. Williams R.L. A note on robust variance estimation for cluster-correlated data. Biometrics 56 (2000) 645-646
62. Wooldridge J.M. Some alternatives to the Box-Cox regression model. International Economic Review 33 (1992) 935-955
63. Wright J.M. In: Hessler WendyL. (Ed). The Nation's Responses To Flood Disasters: A Historical Account (2000), Association of State Floodplain Managers
64. Zhai G., Fukuzono T., and Ikeda S. Effect of flooding on megalopolitan land prices: a case study of the 2000 Tokai flood in Japan. Journal of Natural Disaster Science 25 1 (2003) 23-36
65. Zimmerman R. The effect of flood plain location on property values: three towns in Northeastern New Jersey. Water Resources Bulletin 15 6 (1979) 1653-1665