ECONOMIC EVALUATION OF POTENTIAL FLOOD RISK WITH THE RESIDENTIAL BEHAVIOR MODEL

We evaluate an economic effect of potential flood risk which is defined by height difference between high water level and ground level with the two-regional residential location model. The model describes residential behavior of households which choose one of the two regions to maximize their utilities. First we get a parameter in a utility curve which shows a preference rate of the risk. Second we examine the risk-mitigation benefit under a variety of condition. Finally we discuss that a relationship of beneficiaries or a total benefit depends on an extent of influence which we set.