Publication:
Putting a Price on Safety: A Hedonic Price Approach to Flood Risk in African Cities

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dc.contributor.authorErman, Alvina
dc.contributor.authorDallmann, Ingrid
dc.date.accessioned2022-07-25T16:32:26Z
dc.date.available2022-07-25T16:32:26Z
dc.date.issued2022-07
dc.description.abstractThis paper uses a hedonic property price function to estimate the relationship between flood risk and rents in four Sub-Saharan Africa cities: Accra, Antananarivo, Dar es Salaam, and Addis Ababa. The analysis relies on household survey data collected after flood events in the cities. Flood risk is measured with self-reported data on past flood exposure and perception of future risk of flooding of households. The study finds that flood risk is associated with lower rents in Accra, Antananarivo, Dar es Salaam, and Addis Ababa, ranging from 14 to 56 percent lower. In contrast, risk is associated with higher rent in Dar es Salaam, which could be potentially attributed to a combination of lack of awareness of flood risk among renters, high transaction costs and omitted variable bias. For example, only 12 percent of households living in flood-prone areas were aware of the flood risk when they moved in. In Antananarivo, job density is associated with higher rents while in Accra and Addis Ababa, higher job density is associated with lower rents. Results are negative but not significant in Dar es Salaam. When interacting job density with flood risk for each city, the negative effect of job density on rents is higher (in absolute value) when flood risk is high in Accra and Addis Ababa, and the positive effect of job density on rents becomes negative when flood risk is high in Antananarivo. This relationship is not found in Dar es Salaam. The finding seems to suggest that access to jobs is an important factor driving people to settle in flood-prone areas.en
dc.identifierhttp://documents.worldbank.org/curated/en/099947307212239604/IDU0b6fb06980cadc0453908efb0daf3293b3149
dc.identifier.urihttps://hdl.handle.net/10986/37754
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Papers;10127
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectNATURAL DISASTERS
dc.subjectDISASTER RISK MANAGEMENT
dc.subjectHEDONIC REGRESSION
dc.subjectPOVERTY
dc.subjectRESILIENCE
dc.subjectURBAN HOUSING
dc.subjectSUSTAINABLE CITIES
dc.subjectURBANIZATION
dc.subjectURBAN FLOODS
dc.subjectACCESS TO JOBS
dc.subjectFLOOD RISK MANAGEMENT
dc.subjectACCRA
dc.subjectANTANANARIVO
dc.subjectDAR ES SALAAM
dc.subjectADDIS ABABA
dc.subjectHOUSING SECURITY
dc.subjectRENT PRICES
dc.titlePutting a Price on Safetyen
dc.title.subtitleA Hedonic Price Approach to Flood Risk in African Citiesen
dc.typeWorking Paperen
dc.typeDocument de travailfr
dc.typeDocumento de trabajoes
dspace.entity.typePublication
okr.date.disclosure2022-07-21
okr.date.lastmodified2022-07-21T00:00:00Zen
okr.doctypePolicy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/099947307212239604/IDU0b6fb06980cadc0453908efb0daf3293b3149
okr.guid099947307212239604
okr.identifier.doi10.1596/1813-9450-10127
okr.identifier.externaldocumentum33871604
okr.identifier.internaldocumentum33871604
okr.identifier.reportWPS10127
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/099947307212239604/pdf/IDU0b6fb06980cadc0453908efb0daf3293b3149.pdfen
okr.region.administrativeAfrica
okr.region.administrativeAfrica Eastern and Southern (AFE)
okr.region.countryEthiopia
okr.region.countryGhana
okr.region.countryMadagascar
okr.region.countryTanzania
okr.region.geographicalAfrica
okr.topicCommunities and Human Settlements::Urban Housing and Land Settlements
okr.topicUrban Development::Hazard Risk Management
okr.topicUrban Development::Urban Housing
okr.topicPoverty Reduction::Employment and Shared Growth
okr.topicPoverty Reduction::Access of Poor to Social Services
okr.unitIEG Infra/Sus Dev Proj Eval Unit (IEGSD)
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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