- Hedonic price analysis of the flood-prone housing market in Limburg, the Netherlands.
- Forthcoming in Ecological Economics
- Download the Stata code
Nature-based solutions (NbS) are a cornerstone of climate change adaptation worldwide. Yet, evidence on their economic benefits is scarce, especially since the provided environmental amenities usually spatially correlate with climate-induced hazards, effects of which NbS aim to curb. We provide empirical evidence on the economic impacts of nature-based solutions using house transactions and also explore the temporal effects of flood risk on flood-prone house prices.
This Stata Do-file provides the hedonic price models used to analyze the effect of temporal dynamics of flood risk (Model 1) and nature-based solutions (Model 2) on the flood-prone housing market. The models adopt a quasi-experimental approach and use a generalized difference-in-differences method. Both models use spatial and time fixed effects to control for location-specific time-invariant unobserved components and the temporal dynamics in the housing market.
The data used in our research cannot be shared due to the European General Data Protection Regulation and the non-disclosure agreement signed with the data provider – the Dutch Association of Real Estate Agents (NVM, https://www.nvm.nl/). Researchers interested in this data could contact NVM directly.