Social recognition towards active fault risks and its impact on land pricing : A case of the Uemachi active fault line in Japan

limited attention

R31

In this paper, we explore how social recognition toward active fault risks is reflected in asset pricing using the officially appraised prices of the land that is situated in the neighborhood of the Uemachi active fault line, lying along a north-south axis in the eastern part of Osaka prefecture. The presence of the Uemachi active fault line has been well recognized among scientific researchers since the 1970s. However, these active fault risks have been registered significantly in land pricing, only since ordinary citizens and even policymakers first realized considerable earthquake risks involved in the land along active fault lines by observing that in January 1995, the earthquake driven by the Rokko-Awaji active fault line had catastrophic damages on the southern part of Hyogo prefecture, which is adjoining at the west of Osaka prefecture.