Cyclonic storm-surge risk: a hedonic case study of residential property in Exmouth, Western Australia

Roberts, R., Beckley, L.E. and Tull, M. (2014) Cyclonic storm-surge risk: a hedonic case study of residential property in Exmouth, Western Australia. In: Coastal risks : Hazard, Issues, Representations Management Conference, 3 - 4 July, Brest, France pp. 164-175.

Abstract

Australia is particularly vulnerable to coastal hazards as 85% of the population lives along the coast and there is growing demand for coastal development. The town of Exmouth in north-western Australia was used as a case study to investigate economic strategies for coastal disaster risk reduction as it typifies expanding coastal development in areas prone to extreme weather events, such as cyclones. The extent to which perceptions of risk of cyclonic storm-surge inundation and flooding influenced the price buyers paid for residential property from 1988-2013 were examined using a Hedonic Price model. This incorporated dwelling variables, proximity to the coast, Cyclone Vance storm-surge levels {4m} and 1-in-100 year flood levels. The analysis indicated that prices did not reflect the real societal cost of risk and the influence of greater coastal amenity over-rode any sensitivity to potential risk by buyers. This study is highly relevant in view of the expansion of residential settlement and industry along the coast of northern Australia and the predicted effects of extreme weather events under climate change scenarios.

Item Type:	Conference Paper
Murdoch Affiliation(s):	School of Veterinary and Life Sciences
URI:	http://researchrepository.murdoch.edu.au/id/eprint/37210

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