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A THEORETICAL FRAMEWORK OF FLOOD INDUCED CHANGES IN URBAN LAND VALUES 1
Author(s) -
Tobin Graham A.,
Newton Thomas G.
Publication year - 1986
Publication title -
jawra journal of the american water resources association
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.957
H-Index - 105
eISSN - 1752-1688
pISSN - 1093-474X
DOI - 10.1111/j.1752-1688.1986.tb01861.x
Subject(s) - floodplain , flood myth , capitalization , land values , hazard , 100 year flood , land use , property value , environmental science , geography , hydrology (agriculture) , econometrics , real estate , mathematics , economics , civil engineering , geology , cartography , engineering , philosophy , linguistics , chemistry , archaeology , organic chemistry , geotechnical engineering , finance
ABSTRACT: By integrating literature from flood hazard research and urban economics a theoretical structure is developed to explain changes in residential land values following flood events. The negative aspects of the flood hazard are shown to be capitalized in the value of the property. It is further suggested that land values (i.e., capitalization) will vary both spatially across the floodplain and temporally depending on the frequency, severity and spatial characteristics of the flood event. Previous work in this area has not addressed the capitalization process explicitly and has not specifically examined the ability of the land market to recover. This may account for the contradictory findings in the published literature.