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The Impact of Earthquake/Tsunami Threat on Land Prices in Padang, West Sumatera, Indonesia

Author

Listed:
  • Budi Eko Soetjipto

    (Universitas Negeri Malang, Indonesia. Author-2-Name: Indra Maipita Author-2-Workplace-Name: Faculty of Economics, State University of Medan, Indonesia Author-3-Name: Idris Author-3-Workplace-Name: Faculty of Economics, State University of Padang, Indonesia Author-4-Name: Haikal Rahman Author-4-Workplace-Name: Faculty of Economics, State University of Medan, Indonesia)

Abstract

"Objective � In this study, the impact of earthquake/tsunami threat on land prices is measured using the Hedonic Price Method (HPM). The location of the research is in Padang, West Sumatra. The subject of study is land owners who purchased their land later than September 30, 2009. Methodology/Technique � The linear model and Double-log model with Ordinary Least Square (OLS) are used to estimate variable. Findings � The findings reveal that the Linear model have five variables with a significant effect. Those variables are: (1) Environmental quality, (2) Distance to the seafront, (3) Distance to educational facilities, (4) Availability of clean water and (5) Position of the land, whereas the double-log model also have 5 variables: (1) Distance to the seafront, (2) Distance to educational facilities, (3) Access to evacuation routes, (4) Availability of clean water and (5) Position of the land. Novelty � The possibility of earthquake and tsunami threat in the future has raised a new parameter associated with the environment in the city of Padang, namely land distance towards the seafront. The findings of the study contribute the understanding in land pricing."

Suggested Citation

  • Budi Eko Soetjipto, 2017. "The Impact of Earthquake/Tsunami Threat on Land Prices in Padang, West Sumatera, Indonesia," GATR Journals jber141, Global Academy of Training and Research (GATR) Enterprise.
    • Handle: RePEc:gtr:gatrjs:jber141
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    References listed on IDEAS

    as
    1. Stephen Malpezzi, "undated". "Hedonic Pricing Models: A Selective and Applied Review," Wisconsin-Madison CULER working papers 02-05, University of Wisconsin Center for Urban Land Economic Research.
    2. Michio Naoi & Kazuto Sumita & Miki Seko, 2010. "Estimating Consumer Valuation of Earthquake Risk: Evidence from Japanese Housing Markets," International Real Estate Review, Global Social Science Institute, vol. 13(2), pages 117-133.
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    More about this item

    Keywords

    Earthquake/Tsunami; Environmental Quality; Land Prices; Padang.;
    All these keywords.

    JEL classification:

    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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