The Price of Coastal Erosion and Flood Risk: A Hedonic Pricing Approach

Catma, Serkan

doi:10.3390/oceans2010009

Cited by 9 publications

(3 citation statements)

References 22 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…In tackling these issues, revealed preference methods such as the hedonic pricing method, which is one of the revealed preferences in non-market valuations and assumes that house prices might be affected by environmental attributes and neighborhood environments, will be useful. They usually focus on coastal erosion, beaches, and their impacts on recreation and tourism [58][59][60][61][62]. For instance, coastal residents in Mexico placed their importance on proximity to waterfronts as one of the attributes when deciding a settlement and higher prices were paid for houses located near most waterfront types [63].…”

Section: Discussionmentioning

confidence: 99%

Preference Heterogeneity of Coastal Gray, Green, and Hybrid Infrastructure against Sea-Level Rise: A Choice Experiment Application in Japan

Omori

2021

Sustainability

View full text Add to dashboard Cite

Coastal zones are bearing the brunt of an increase in the likelihood of extreme events, coupled with sea-level rise (SLR). Conventionally, gray infrastructures, such as seawalls, have been constructed to reduce risks in limited coastal zone spaces. Nature-based approaches, known as green infrastructure, have been used in coastal defense, and their ecosystem-based disaster risk reduction functions (Eco-DRR) have received growing attention. However, both gray and green infrastructure alone have limitations in responding to an ongoing increase in the intensity and frequency of natural hazards. To overcome these issues, hybrid infrastructure, which combine gray and green components, is needed, and they have been receiving growing attention. Meanwhile, a large-scale coastal development requires stakeholder agreement; thus, it is imperative to understand people’s demands and build a consensus between municipalities and coastal citizens in coastal development for long-term resilience. The author administered the online survey across Japan, applying it to the choice experiment, and obtained 840 valid responses. Therefore, this paper clarified the heterogeneities in coastal people’s preferences for coastal ecosystem services provided by gray, green, and hybrid structures in intertidal zones in Japan, recognizing seawalls as gray and coastal pine forests as green infrastructure. Consequently, while coastal citizens acknowledged gray’s coastal defense function, the diverse perceptions toward seawalls for SLR preparation were notable as its scenarios became severe. Another remarkable finding is that nearly 60% of respondents preferred Eco-DRR functions provided by coastal forests with JPY 695 in willingness-to-pay for expanding 100 m in width, even though there are uncertainties in their performances.

show abstract

Section: Discussionmentioning

confidence: 99%

Preference Heterogeneity of Coastal Gray, Green, and Hybrid Infrastructure against Sea-Level Rise: A Choice Experiment Application in Japan

Omori

2021

Sustainability

View full text Add to dashboard Cite

show abstract

“…This approach is often used to compare the resultant submarkets delineated by clustering algorithms [42]. The price is estimated using the well-established hedonic pricing model, as follows [43][44][45]:…”

Section: Silhouette Scorementioning

confidence: 99%

Clustering Analysis with Embedding Vectors: An Application to Real Estate Market Delineation

Lee

2021

Adv. technol. innov.

View full text Add to dashboard Cite

Although clustering analysis is a popular tool in unsupervised learning, it is inefficient for the datasets dominated by categorical variables, e.g., real estate datasets. To apply clustering analysis to real estate datasets, this study proposes an entity embedding approach that transforms categorical variables into vector representations. Three variants of a clustering algorithm, i.e., the clustering based on the traditional Euclidean distance, the Gower distance, and the embedding vectors, are applied to the land sales records to delineate the real estate market in Gwacheon-si, Gyeonggi province, South Korea. Then, the relevance of the resultant submarkets is evaluated using the root mean squared errors (RMSE) obtained from a hedonic pricing model. The results show that the RMSE in the embedding vector-based algorithm decreases substantially from 0.076-0.077 to 0.069. This study shows that the clustering algorithm empowered by embedding vectors outperforms the conventional algorithms, thereby enhancing the relevance of the delineated submarkets.

show abstract

“…Subsequently, the coastal region hosts significant economic activity and is located with some of the highest property values in many countries and is vital to be protected and sustained. According to Catma (2021), local governments, businesses, and people are concerned about lost commercial activity and lower tax income as a result of coastal erosion's detrimental impacts on the tourism and hospitality industries. Furthermore, the loss of coastline due to erosion posed a hazard to surrounding properties because it served as a buffer zone against storm surges.…”

Section: Introductionmentioning

confidence: 99%

A Coastal Erosion Derivation Formula for Valuing the Coastal Land Values in Malaysia

Hamid

Darwin

Mohsen

et al. 2023

View full text Add to dashboard Cite

The coastal area hosts significant economic activity with some of the highest property values, which the government and private investors aim to maintain and secure their interests. Yet, this area presented a growing risk to coastal properties' value because the land and structural attributes are vulnerable to erosion. Few empirical studies have included erosion rate besides the land attribute and reclamation in analysing its impact on the value of coastal land, especially in Malaysia. Hence, this study aims to derive a coastal erosion formula for valuing the coastal land values in Malaysia. Taman Alai Perdana (Crystal Bay), Melaka, was selected as a case study area for investigating formula derivation. Based on the formula derivation, the findings have determined that significant property values were affected by erosion in the study area. Using property One (1) in Crystal Bay Alai, Melaka, as an example, with a land area of 632m2, it was valued at RM163286.26 or RM236.81/m2 before formula application. Then, by applying the formula for the same property, considering the identified area erosion rate of -1.41m required a reclamation width of 2.5m to rectify the erosion. So, a value of RM163,286.26 with a difference of RM13,625.00 was determined. Hence, the study has determined reclamation and erosion rate should be included in the coastal land valuation.

show abstract

The Price of Coastal Erosion and Flood Risk: A Hedonic Pricing Approach

Cited by 9 publications

References 22 publications

Preference Heterogeneity of Coastal Gray, Green, and Hybrid Infrastructure against Sea-Level Rise: A Choice Experiment Application in Japan

Preference Heterogeneity of Coastal Gray, Green, and Hybrid Infrastructure against Sea-Level Rise: A Choice Experiment Application in Japan

Clustering Analysis with Embedding Vectors: An Application to Real Estate Market Delineation

A Coastal Erosion Derivation Formula for Valuing the Coastal Land Values in Malaysia

Contact Info

Product

Resources

About