Abstract
Abstract. Land subsidence in the Netherlands, mainly occurring in its western and northern peat and clay soils, causes significant damage to houses and infrastructure, estimated at EUR 17 billion until 2050, through differential settlement of shallow foundations, negative skin friction and fungal decay of timber piles. Various studies and reports both in The Netherlands and abroad have addressed the potential economic impacts of subsidence on houses: yet, these studies lack spatially detailed data and instead rely on generic assumptions on expected damage restoration costs. By using a hedonic pricing model, this study examines the impact of subsidence on housing prices in the Dutch cities of Rotterdam and Gouda. In contrast to earlier studies, subsidence and its impact on property values are examined at house level. We test for the effect of subsidence with data related to (i) general (uniform) subsidence (mm yr−1), (ii) differential subsidence of a building and (iii) subsidence of the surrounding area in relation to the house. Results show that uniform subsidence has the largest impact on property values with approximately −6 %, while “differential” and “surrounding” subsidence show respectively −2 % and no effect. These results could prove useful to policymakers, homeowners and housing corporations by generating a better understanding of the impact of subsidence on property values and subsequently to create awareness and spur investments in measures to mitigate damage. It should be noted that these results are specific to the research area are therefore not immediately scalable to other cities as local conditions differ.
Highlights
Land subsidence is a substantial problem affecting many cities worldwide
It potentially causes damage to houses, businesses, agriculture and public infrastructure (Reddish and Whittaker, 2012). These consequences are observed in the Netherlands, which is prone to land subsidence due to artificial drainage of clay and peat soils, which leads to clay settlement and peat oxidation (Nieuwenhuis and Schokking, 1997; Schothorst, 1977)
Where previous hedonic pricing studies have assessed subsidence effects on a larger spatial scale, this study investigates the economic effects of land subsidence on the housing market at the building level
Summary
Land subsidence is a substantial problem affecting many cities worldwide. It potentially causes damage to houses, businesses, agriculture and public infrastructure (Reddish and Whittaker, 2012). Subsidence in the Netherlands is estimated to cause around EUR 20 billion in damage up until 2050, of which at least EUR 17 billion in expected repair costs of structural damage – e.g. restoring foundations, cracked walls, sloping floors – to buildings (Van den Born et al, 2016). This restoration costs approach does not fully represent socio-economic impact, as individual preferences such as risk aversion are not accounted for
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: Proceedings of the International Association of Hydrological Sciences
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
