We analyze how direct and indirect effects (spatial spillovers) matter when estimating price effects for a property located in a flood zone. Using a spatial Durbin error model, we show the importance of indirect effects which amount to-6.5% for houses and-4.8% for condominiums in the flood-prone city of Dresden (Germany). Direct effects diminish when controlling for spatial spillovers. Our results are generally robust across different model specifications, urban areas, and riskadjusted prices that include insurance costs. Thus, ignoring indirect flood effects can lead to flood management that is inefficient and cost-ineffective, as the economic consequences are underestimated.

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In this study, we analyze whether additional payments for energy efficiency are induced by either tenants' willingness to pay, the market power of landlords, or both. With a German housing dataset from 2011 to 2016, we identify price discrimination for the energy performance certificate using hedonic regressions in a single and double sort setting. Results indicate that a high willingness to payindicated by purchasing power and environmental awarenessleads to price discrimination effects of 7-8%. These potential extra profits can stimulate investments in energy-based refurbishments by landlords. However, additional market power of landlordsindicated by housing market conditionsdoes not amplify these discrimination effects and is therefore not exploited against tenants.

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