An integrated model of real estate market responses to coastal flooding

chandra putra, handi An integrated model of real estate market responses to coastal flooding. Journal of Industrial Ecology.

Text JURNAL 1 GENAP 2019-2020-HANDI CHANDRA PUTRA-Thn 2020.pdf Download (2MB)

Abstract

Understanding and improving how humans adapt to climate change are priorities in our research
community, and coastal settlements are good places to study adaptation. Severe storm events
and sea-level rise are threatening coastal communities with increasing levels of flood damage.
Because ownership of coastal assets is distributed among many private and public actors, both
individual property owners and public officials must take adaptive actions. This paper introduces
an integrated agent-based and hedonic pricing modeling system to simulate coastal real estate
market performance under non-equilibrium conditions that reflect the effects of storm events.
The modeling system, which is used for policy analysis, is calibrated to conditions in two towns in
Monmouth County, New Jersey, USA, which were badly damaged by Hurricane Sandy in 2012.
The key findings are that (a) coastal real estate markets capitalize flood risk into property values
but this discount diminishes rapidly as time passes between storm events, and (b) there is a distinct
equity versus efficiency tradeoff in designing public policies to reduce the cost to society of
coastal flooding. Stringent regulation of building practices reduces flood damage but drives away
poorer home buyers and owners, whereas informational and incentive-based policies are fairer
but less effective. Hands-off, market-based retreat from risky areas is socially costly but allows
less wealthy people to remain at the shore, albeit in vulnerable situations. Managed retreat should
emphasize improved recreational access to coastal amenities while discouraging people from living
there.

Item Type:	Article
Subjects:	Artikel
Divisions:	Fakultas Teknik > Teknik Perencanaan Wilayah dan Kota
Depositing User:	admin FT UNTAR
Date Deposited:	23 Oct 2021 00:05
Last Modified:	23 Oct 2021 00:05
URI:	https://repotest.untar.ac.id/id/eprint/32845

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