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How would you work out the change in number of new homes bought on floodplains? 1. New homes built on floodplains each year Income quintile

How would you work out the change in number of new homes bought on floodplains?

1. New homes built on floodplains each year Income quintile
Bottom Second Middle Fourth Top Total
Baseline
New home planned to be built on floodplains by income quintile, number pa 8000 7200 4500 2300 3000 25000
Average price of new homes built on floodplains, 120000 180000 232000 315000 820000 259380
Option X
Climate Change Levy (% of baseline price) 5% 5% 5% 5% 5%
Average price including Levy, 126000 189000 243600 330750 861000 272349
Price elasticity of demand (PED) -0.90 -0.70 -0.20 -0.10 0.00
Change in number of new homes bought on floodplains 0
Remaining new homes built and sold on floodplains 8000 7200 4500 2300 3000 25000

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