Property values and infrastructure provision: A conceptual model of risk perception, amplification and worsenment

Authors

• Peter Elliott

Keywords:

Conceptual model, infrastructure hazards, risk perception, stigma of place, property value

Abstract

There are numerous conflicts between stakeholders and suppliers in Australia and elsewhere about the placement of infrastructure. The general aim of suppliers involved in land acquisition and infrastructure provision is to be more effective, efficient and equitable. Hence, a better knowledge of the impact of externalities on people and communities as stakeholders is required if public concern about threats to their financial and general wellbeing, perceived or otherwise, is to be ameliorated. To this end, this paper develops a conceptual model that facilitates understanding of the attitudinal component of stakeholder concern in terms of risk perception which is ultimately seen to govern outcomes involving the stigma of place and depreciation in property value. An important input into the conceptual model is the externality of property interference and the land acquisition process itself. Individuals react to coercion and will resent the intrusion of an authority for fear of falling property values. In addition, the land acquisition process itself is crucial to risk perceptions of affected land owners since, from previous studies, the severity of risk and its impact are accentuated in cases where measures are involuntary and imposed. It is proposed that the model as outlined above can be applied to many types of infrastructure provision. The provision of High Voltage Overhead Electricity Lines (HVOTL) is analysed within the model provided.