Measuring the economic impact of landslide hazard: hedonic price approach

Abstract

One of the main climate-related disasters in Yogyakarta, Indonesia, is landslides, which result in slope degradation through soil loss. The largest number of landslides was recorded in Kulonprogo regency. In the Samigaluh sub-district, where recent landslides resulted in the biggest number of displaced persons, this study seeks to determine the economic impacts of landslides. For this investigation, we used primary data gathered using a questionnaire. The systematic random sampling was utilized to choose households in the villages. The study uses a total of 300 residential households that were interviewed in landslide prone area of Samigaluh sub-district of Kulonprogo, Indonesia. The age of building, number of rooms, and building size as structural characteristic has correlation with property price, respectively. As shown by the hedonic pricing approach’s finding, there is a positive association between property price and the distance to landslide point as characteristic of neighborhood. The distance to the river was also have impact on the property price. More frequent the landslide, higher the property price. The findings of this study can assist property owners in understanding the elements that contribute to property devaluation as a result of landslides. Since landslides are a serious issue for real property owners, this study also suggests that landslide insurance programs be developed.