IDEAS home Printed from https://ideas.repec.org/a/ibn/assjnl/v12y2016i5p84.html
   My bibliography  Save this article

Flood and Land Property Values

Author

Listed:
  • Nur Hafizah Ismail
  • Mohd Zaini Abd Karim
  • Bakti Basri

Abstract

Flood disaster has become a natural concern to the land owners where it raised a critical issue in term of land value depreciation. Previous studies have discussed the issue of potential decline in the value of land which are located on the flood-liable area. However, in Malaysia, current studies on flood impact are considered limited and do not focus on the effects of flood on land property. With the Hedonic Pricing Model (HPM) approach, we investigate the effect of flood on agricultural and industrial land property values in the urban and rural areas in Malaysia. The analysis indicates that the agricultural and industrial land values in the urban and rural areas have significantly decreased due to flood events. This study will benefit the land owners to understand the flood impact on land value and also the factors that contribute to the loss in the land value. It becomes the responsibility of the land owner to put the asset and property to its best use, given the presence of the flood. In addition, this study will help the policy maker to design and allocate land development efficiently in the urban or rural areas for agricultural and industrial project to ensure depreciation value of the land is minimized in the case of flood.

Suggested Citation

  • Nur Hafizah Ismail & Mohd Zaini Abd Karim & Bakti Basri, 2016. "Flood and Land Property Values," Asian Social Science, Canadian Center of Science and Education, vol. 12(5), pages 1-84, May.
    • Handle: RePEc:ibn:assjnl:v:12:y:2016:i:5:p:84
    as

    Download full text from publisher

    File URL: https://ccsenet.org/journal/index.php/ass/article/download/55728/31680
    Download Restriction: no
    File URL: https://ccsenet.org/journal/index.php/ass/article/view/55728
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Baldwin, Richard E., 2001. "Core-periphery model with forward-looking expectations," Regional Science and Urban Economics, Elsevier, vol. 31(1), pages 21-49, February.
    2. Jean-Francois Gautrin, 1975. "An Evaluation of the Impact of Aircraft Noise on Property Values with a Simple Model of Urban Land Rent," Land Economics, University of Wisconsin Press, vol. 51(1), pages 80-86.
    3. Miranowski, John & Hammes, B., 1984. "Implicit Prices of Soil Characteristics for Farmland in Iowa," Staff General Research Papers Archive 10706, Iowa State University, Department of Economics.
    4. repec:bla:scandj:v:81:y:1979:i:2:p:154-73 is not listed on IDEAS
    5. Molly Espey & Hilary Lopez, 2000. "The Impact of Airport Noise and Proximity on Residential Property Values," Growth and Change, Wiley Blackwell, vol. 31(3), pages 408-419.
    6. Raymond B. Palmquist & Leon E. Danielson, 1989. "A Hedonic Study of the Effects of Erosion Control and Drainage on Farmland Values," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 71(1), pages 55-62.
    7. Basu, Sabyasachi & Thibodeau, Thomas G, 1998. "Analysis of Spatial Autocorrelation in House Prices," The Journal of Real Estate Finance and Economics, Springer, vol. 17(1), pages 61-85, July.
    8. John A. Miranowski & Brian D. Hammes, 1984. "Implicit Prices of Soil Characteristics for Farmland in Iowa," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 66(5), pages 745-749.
    9. Okmyung Biny & Stephen Polasky, 2004. "Effects of Flood Hazards on Property Values: Evidence Before and After Hurricane Floyd," Land Economics, University of Wisconsin Press, vol. 80(4).
    10. McCann, Philip, 2001. "Urban and Regional Economics," OUP Catalogue, Oxford University Press, number 9780198776451.
    11. J. Tomkins & N. Topham & J. Twomey & R. Ward, 1998. "Noise versus Access: The Impact of an Airport in an Urban Property Market," Urban Studies, Urban Studies Journal Limited, vol. 35(2), pages 243-258, February.
    12. Chihiro Shimizu & Hideoki Takatsuji & Hiroya Ono & Kiyohiko G. Nishimura, 2010. "Structural and temporal changes in the housing market and hedonic housing price indices," International Journal of Housing Markets and Analysis, Emerald Group Publishing Limited, vol. 3(4), pages 351-368, October.
    13. Endah Saptutyningsih & Suryanto, 2011. "Hedonic price approach of flood effect on agricultural land," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 3(1), pages 87-96, April.
    14. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
    15. Palmquist, Raymond B., 1982. "Measuring environmental effects on property values without hedonic regressions," Journal of Urban Economics, Elsevier, vol. 11(3), pages 333-347, May.
    16. Karl E. Case, 1994. "Land Prices and House Prices in the United States," NBER Chapters, in: Housing Markets in the United States and Japan, pages 29-48, National Bureau of Economic Research, Inc.
    17. Jack Triplett, 2004. "Handbook on Hedonic Indexes and Quality Adjustments in Price Indexes: Special Application to Information Technology Products," OECD Science, Technology and Industry Working Papers 2004/9, OECD Publishing.
    18. Dorsey, Robert E. & Hu, Haixin & Mayer, Walter J. & Wang, Hui-chen, 2010. "Hedonic versus repeat-sales housing price indexes for measuring the recent boom-bust cycle," Journal of Housing Economics, Elsevier, vol. 19(2), pages 75-93, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Pei-Ing Wu & Yi Chen & Je-Liang Liou, 2021. "Housing property along riverbanks in Taipei, Taiwan: a spatial quantile modelling of landscape benefits and flooding losses," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(2), pages 2404-2438, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Xu, Feng & Mittelhammer, Ron C. & Barkley, Paul W., 1991. "The Effects Of Parcel Characteristics On The Value Of Agricultural Land In Washington State," 1991 Annual Meeting, August 4-7, Manhattan, Kansas 271078, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Marcelo Caffera & Felipe Vásquez & Daniel Rodríguez & Leonidas Carrasco-Letelier & José Ignacio Hernández & Mariela Buonomo, 2019. "Spatial Spillovers in the Implicit Market Price of Soil Erosion: An Estimation using a Spatio-temporal Hedonic Model," Documentos de Trabajo/Working Papers 1909, Facultad de Ciencias Empresariales y Economia. Universidad de Montevideo..
    3. Choumert, Johanna & Phélinas, Pascale, 2015. "Determinants of agricultural land values in Argentina," Ecological Economics, Elsevier, vol. 110(C), pages 134-140.
    4. Lautrup, M. & Panduro, T.E. & Olsen, J.V. & Pedersen, M.F. & Jacobsen, J.B., 2023. "Is there more to trees than timber? Estimating the private amenity value of forests using a hedonic land model for combined agricultural properties," Forest Policy and Economics, Elsevier, vol. 146(C).
    5. Palmquist, Raymond B. & Danielson, Leon E., 1987. "An Hedonic Study Of The Effects Of Erosion Control And Drainage On Farmland Values," Department of Economics and Business - Archive 259424, North Carolina State University, Department of Economics.
    6. David Maddison, 2009. "A Spatio‐temporal Model of Farmland Values," Journal of Agricultural Economics, Wiley Blackwell, vol. 60(1), pages 171-189, February.
    7. Hussain, Anwar & Munn, Ian A. & Loden, Emily K. & Grado, Stephen C. & Jones, Daryl W., 2005. "Factors Influencing Lease Revenue and Non-industrial Landowners' Willingness to allow Hunting Access," 2005 Annual meeting, July 24-27, Providence, RI 19326, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    8. Walpole, Sandra C. & Lockwood, Michael, 1999. "Influence of remnant native vegetation on rural land values: a hedonic pricing application," 1999 Conference (43th), January 20-22, 1999, Christchurch, New Zealand 125032, Australian Agricultural and Resource Economics Society.
    9. Allan Beltrán & David Maddison & Robert J. R. Elliott, 2018. "Assessing the Economic Benefits of Flood Defenses: A Repeat‐Sales Approach," Risk Analysis, John Wiley & Sons, vol. 38(11), pages 2340-2367, November.
    10. José Armando Cobián Álvarez & Budy P. Resosudarmo, 2019. "The cost of floods in developing countries’ megacities: a hedonic price analysis of the Jakarta housing market, Indonesia," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 21(4), pages 555-577, October.
    11. Choumert, Johanna & Phélinas, Pascale, 2014. "A Hedonic Analysis Of Agricultural Land Values In A Gm Soybean Area Of Argentina," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182750, European Association of Agricultural Economists.
    12. Victor Ginsburgh & Jianping Mei & Michael Moses, 2006. "On the computation of art indices in art," ULB Institutional Repository 2013/7290, ULB -- Universite Libre de Bruxelles.
    13. Phoebe Koundouri, 2004. "Current Issues in the Economics of Groundwater Resource Management," Journal of Economic Surveys, Wiley Blackwell, vol. 18(5), pages 703-740, December.
    14. Jeffrey P. Cohen & Cletus C. Coughlin, 2008. "Spatial Hedonic Models Of Airport Noise, Proximity, And Housing Prices," Journal of Regional Science, Wiley Blackwell, vol. 48(5), pages 859-878, December.
    15. Levente Timar & Arthur Grimes & Richard Fabling, 2014. "That Sinking Feeling: The Changing Price of Disaster Risk Following an Earthquake," Working Papers 14_13, Motu Economic and Public Policy Research.
    16. Livy, Mitchell R., 2017. "Catastrophe Capitalization: Estimating Changes in Perceptions of Extreme Natural Events over Time," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258251, Agricultural and Applied Economics Association.
    17. Abdulla, Majd, 2009. "The impact of ownership on Iowa land owners' decisions to adopt conservation practices," ISU General Staff Papers 200901010800001913, Iowa State University, Department of Economics.
    18. Jean-Sauveur Ay & Jean-Marc Brayer & Jean Cavailhès & Pierre Curmi & Mohamed Hilal & Marjorie Ubertosi, 2012. "La valeur des attributs naturels des terres agricoles de Côte-d'Or," INRA UMR CESAER Working Papers 2012/1, INRA UMR CESAER, Centre d'’Economie et Sociologie appliquées à l'’Agriculture et aux Espaces Ruraux.
    19. Ottensmann, John R. & Payton, Seth & Man, Joyce, 2008. "Urban Location and Housing Prices within a Hedonic Model," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 38(1), pages 1-17.
    20. Jean-Sauveur Ay & Laure Latruffe, 2013. "The empirical content of the present value model: a survey of the instrumental uses of farmland prices," Working Papers hal-01208917, HAL.

    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ibn:assjnl:v:12:y:2016:i:5:p:84. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Canadian Center of Science and Education (email available below). General contact details of provider: https://edirc.repec.org/data/cepflch.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.