Rural residents and choice of building earthquake-resistant house: results of a choice experiment study

Abstract

Rural settlements, especially in developing countries, are disproportionally vulnerable to natural hazards due to both biophysical and social vulnerability. Building hazard-resistant houses requires a thorough understanding of hazards and institutional and financial resources. However, it is equally important for planners and policymakers to know how rural residents make the tradeoff between various housing attributes when provided with the resources such as low-interest housing construction loans. In this study, we use a choice experiment (CE) to examine rural households' preference for earthquake resistance when building houses. A total of 300 households from randomly selected villages in central districts of Guilan Province in Iran were recruited for a CE study in which they had to choose between a number of houses that differed in terms of the required construction loan, resistance to earthquakes, size, and exterior and interior designs. Our results show that the average resident preferred larger houses with better exterior and interior designs to more earthquake-resistant houses, and is willing to spend more on these attributes than earthquake safety. These results indicate that rural households are willing to receive loans to improve their houses but that this does not translate into more earthquake-resistant houses.