[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/taf/jpropr/v30y2013i4p298-323.html
   My bibliography  Save this article

Implications of rising flood-risk for employment location: a GMM spatial model with agglomeration and endogenous house price effects

Author

Listed:
  • Yu Chen
  • Bernard Fingleton
  • Gwilym Pryce
  • Albert S. Chen
  • Slobodan Djordjević
Abstract
The impact of flood-risk on local employment has been almost entirely neglected in the empirical urban economics literature. This omission is particularly anomalous in the context of climate change. We extend the literature in four ways. First, we argue that competition for land between firms and households will generate an endogenous role for house prices, which we estimate using a generalised method of moments two-stage least squares spatial econometric model. Second, we model interaction effects between agglomeration and flood-risk using a gravity-based agglomeration measure. Third, we utilise a high-resolution flood-risk measure which incorporates both flood frequency and severity. Fourth, we use a high-resolution measure of employment to capture local effects. We find that agglomeration economies have a significant mitigating effect on flood-risk. This is potentially important because it suggests that flood-risk may have a more deleterious effect on employment in areas where economic agglomeration is weak. Policy-makers, insurers and planners cannot, therefore, assume a uniform effect of future changes to flood-risk as a result of climate change, and this needs to be taken into account when estimating the costs and benefits of interventions to reduce or underwrite flood-risk at particular locations. Our model offers a robust methodological basis for such estimation.

Suggested Citation

  • Yu Chen & Bernard Fingleton & Gwilym Pryce & Albert S. Chen & Slobodan Djordjević, 2013. "Implications of rising flood-risk for employment location: a GMM spatial model with agglomeration and endogenous house price effects," Journal of Property Research, Taylor & Francis Journals, vol. 30(4), pages 298-323, December.
    • Handle: RePEc:taf:jpropr:v:30:y:2013:i:4:p:298-323
    DOI: 10.1080/09599916.2013.765499
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/09599916.2013.765499
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/09599916.2013.765499?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Geoffrey Meen, 2016. "Spatial housing economics: A survey," Urban Studies, Urban Studies Journal Limited, vol. 53(10), pages 1987-2003, August.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:jpropr:v:30:y:2013:i:4:p:298-323. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RJPR20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.