The Impact of Earthquake/Tsunami Threat on Land Prices in Padang, West Sumatera, Indonesia

Journal of Business and Economics Review (JBER), Vol. 2(3), p. 39-45, 2017

7 Pages Posted: 31 Jul 2017

See all articles by Budi Soetjipto

Budi Soetjipto

State University of Malang

Indra Maipita

State University of Medan

Idris

Padang State University

Haikal Rahman

State University of Medan

Date Written: June 29, 2017

Abstract

Objective – In this study, the impact of earthquake/tsunami threat on land prices is measured using the Hedonic Price Method (HPM). The location of the research is in Padang, West Sumatra. The subject of study is land owners who purchased their land later than September 30, 2009.

Methodology/Technique – The linear model and Double-log model with Ordinary Least Square (OLS) are used to estimate variable.

Findings – The findings reveal that the Linear model have five variables with a significant effect. Those variables are: (1) Environmental quality, (2) Distance to the seafront, (3) Distance to educational facilities, (4) Availability of clean water and (5) Position of the land, whereas the double-log model also have 5 variables: (1) Distance to the seafront, (2) Distance to educational facilities, (3) Access to evacuation routes, (4) Availability of clean water and (5) Position of the land.

Novelty – The possibility of earthquake and tsunami threat in the future has raised a new parameter associated with the environment in the city of Padang, namely land distance towards the seafront. The findings of the study contribute the understanding in land pricing.

Type of Paper: Empirical.

Keywords: Earthquake/Tsunami; Environmental Quality; Land Prices; Padang

JEL Classification: Q24; Q54

Suggested Citation

Soetjipto, Budi and Maipita, Indra and Idris and Rahman, Haikal, The Impact of Earthquake/Tsunami Threat on Land Prices in Padang, West Sumatera, Indonesia (June 29, 2017). Journal of Business and Economics Review (JBER), Vol. 2(3), p. 39-45, 2017. Available at SSRN: https://ssrn.com/abstract=3010065

Budi Soetjipto (Contact Author)

State University of Malang ( email )

Jl. Semarang 5
Malang, East Java 65145
Indonesia

Indra Maipita

State University of Medan

jl. W. Iskandar PS V Medan
medan, ME north sumatra 20221
Indonesia

Idris

Padang State University ( email )

Jalan Professor Dokter Hamka
Air Tawar Barat, Padang Utara
Sumatera Barat 25171
Indonesia

Haikal Rahman

State University of Medan ( email )

jl. W. Iskandar PS V Medan
medan, ME north sumatra 20221
Indonesia

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