Working Paper BETA #2024-22

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Title : A discrete choice experiment to measure the impact of flood risk information on residential location choices

Author(s) : Serge Garcia, Katrin Erdlenbruch, Boniface Derrick Mbarga

Abstract : This article investigates residential choice in flood-prone areas with attractive natural amenities. In a discrete choice experiment involving 472 French homeowners, we analyse the effects of flood risk information disclosure. Respondents make trade-offs between house characteristics, amenities and location in flood-prone areas, with two information treatments about the consequences of flooding and protection measures. We also examine the influence of existing information tools. The econometric models reveal a general aversion to flood-prone areas and a negative effect of information about the consequences of flooding. Buyer-tenant information influences the decision to leave flood-prone areas, while zoning influences the decision to stay.

Key-words : choice experiment; flood risk-amenity trade-off; information treatment; mixed logit; attribute willingness to pay; residential choice

JEL Classification : Q54; Q51; C25.