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Hedonic price approach of flood effect on agricultural land

Author

Listed:
  • Endah Saptutyningsih
  • Suryanto

    (Faculty of Economics, Universitas Muhammadiyah Yogyakarta
    Faculty of Economics, Universitas Sebelas Maret)

Abstract

The natural disasters that took place in many parts of Indonesia in the last 10 years have caused an enormous losses, including agricultural sector. The objective of this paper is to estimate the magnitude of the influence of flood disaster on land price changes in Yogyakarta, using a hedonic price approach. The sample are is choosen from the vulnerable flood area mapped by Geographical Information Systems (GIS), from which farmers and land owner are selected as the respondents. The paper finds the evidence of a high level of flood stream coefficient, indicating that the flood significantly reduces the land price. The average of household?s marginal willingness to pay for the decrease in flood stream level is estimated to be Rp 2.175.

Suggested Citation

  • 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.
    • Handle: RePEc:uii:journl:v:3:y:2011:i:1:p:87-96
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    References listed on IDEAS

    as
    1. Mr. David J Hofman & Ms. Patricia A Brukoff, 2006. "Insuring Public Finances Against Natural Disasters: A Survey of Options and Recent Initiatives," IMF Working Papers 2006/199, International Monetary Fund.
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    Cited by:

    1. 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.
    2. Fang Wei & Lvwang Zhao, 2022. "The Effect of Flood Risk on Residential Land Prices," Land, MDPI, vol. 11(10), pages 1-18, September.

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    More about this item

    Keywords

    A gricultural land; marginal willingness to pay (MWTP); hedonic price;
    All these keywords.

    JEL classification:

    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q19 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Other

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