No abstract

No abstract

Information gaps and asymmetries are common in the housing market and this is frequently the case with the risks of natural processes, especially in coastal areas where the amenity dimension may dominate the risk aspect. Flood risk disclosure through maps is a policy instrument aimed at addressing this situation. We assess its effectiveness by identifying whether such maps induce a price differential for single family coastal dwellings in three Finnish cities, and by estimating the discount per square meter for various flooding probabilities (return times). The estimations indicate a significant price drop after the information disclosure for properties located in floodprone areas as indicated by the maps. In the case of sea flooding information in Helsinki, the price effect is sensitive to the communicated probability of flooding. Overall, the discussed policy instrument appears to have functioned as intended, correcting information gaps and asymmetries related to flood risk. The identified effect is spatially selective; it caused a short-term localized shock in market prices in conjunction with some reorientation of demand from risky coastal properties towards ones that represent a similar level of coastal amenity, but are less risky in terms of flooding. This hints at the potential for incorporating the shocks associated with flood events or risk information into broader-scoped urban modelling and simulation. Similarly, the reasonable accuracy with which the housing market processes the additional information shows a potential for wider use of the disclosure of nonobvious risks in real estate markets. In the case of adapting to climate change risks, additional uncertainties may make the disclosure instrument less effective, if used as a single tool.

No abstract

No abstract

No abstract

Take-down policy If you believe that this document breaches copyright please contact us providing details, and we will remove access to the work immediately and investigate your claim.

This article presents a green roof cost-benefit analysis (CBA). Green roofs are roofs which are partially or completely covered by vegetation. We discuss the benefits and costs of light self-sustaining vegetated roofs. The benefits of the ecosystem services (ES) provided by green roofs can be classified into private and public benefits. We apply the selected valuation methods first in Helsinki, Finland and subsequently explain how results can be transferred to other urban locations. Past research and this study show that private benefits are usually not high enough to justify the expensive investment for a private decision maker. However, when the public benefits are added to the private benefits, social benefits are higher than the costs of green roofs in most cases.Past research quantified most types of the benefits, excluding scenic and biodiversity benefits. Scenic benefits denote the intangible benefits that people derive from the presence of green space, including at least aesthetic and psychological ones. In this article, special emphasis is placed on the valuation of the scenic benefits; these are among the most challenging benefits to valuate in monetary terms. We employ hedonic pricing theory, implemented via spatial regression models, and green roof implementation scenarios in order to estimate the aggregate willingness to pay for a “unit” of green roof. The results show that the scenic benefits can be a significant attribute in cost-benefit calculations. Yet, the amount of benefits strongly depends on the green roof design.