| Project/Area Number |
20K22091
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| Research Category |
Grant-in-Aid for Research Activity Start-up
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| Allocation Type | Multi-year Fund |
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| Review Section |
0107:Economics, business administration, and related fields
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| Research Institution | Kobe University |
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Principal Investigator |
Wolf David 神戸大学, 経済学研究科, 講師 (60878271)
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| Project Period (FY) |
2020-09-11 – 2022-03-31
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| Project Status |
Completed (Fiscal Year 2021)
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| Budget Amount *help |
¥1,040,000 (Direct Cost: ¥800,000、Indirect Cost: ¥240,000)
Fiscal Year 2021: ¥390,000 (Direct Cost: ¥300,000、Indirect Cost: ¥90,000)
Fiscal Year 2020: ¥650,000 (Direct Cost: ¥500,000、Indirect Cost: ¥150,000)
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| Keywords | Housing Price / Hedonic / Apartment Rentals / Flood Risk / Water Quality / Housing Prices / Apartment Rental Values / Water Quality Valuation / Housing Market / Nonmarket Valuation / Duration Analysis / Hedonic Price |
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| Outline of Research at the Start |
Water quality improvements are reflected in higher housing prices and increased development, though this effect differs across countries. I will examine how water quality influences housing market outcomes in the United States and Japan and how these differences alter lake management strategies.
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| Outline of Final Research Achievements |
I make two advancements which helps us to better understand how people value changes in public goods. I first implement a new econometric method that allows for the recovery of demand functions of public goods, which are better suited for non-marginal welfare analysis relative to MWTP. Using water quality as an application, I find traditional MWTP estimates undercount the benefits from water quality improvement by at least 22% or $1,500 per household in comparison to the benefits derived from a demand function.In subsequent research, I examine a new topic by looking at how downstream rental prices in Fukuoka, Japan responded to the completion of an upstream dam. I find apartment prices rose by 1.8% if they were protected by the recently completed Gokayama Dam. This premium is only observed after a natural disaster hit western Japan in 2018, causing residents to update their perceptions of flood risk.
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| Academic Significance and Societal Importance of the Research Achievements |
Policy interventions often have non-marginal goals in mind. Current methods to value these changes are, however, typically ill-suited for non-marginal analysis. I overcome this problem by developing a method to recover demand curves for public goods, which are valid even for non-marginal analysis.
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