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Abstract
This article applies a stated preference choice model to assess trade-offs that residents of two squatter settlements in Dhaka, Bangladesh might consider if they were given choices for relocation to flood-free areas. The respondents were asked to choose repeatedly from a set of choice cards, which displayed different configurations of financial incentives for relocation, such as free or inexpensive land, loans or nonrepayable grants, and provisions for temporary or permanent employment opportunities. The survey results indicated that despite extensive experience with flood problems, many residents of Mirpur and Vasantek found that certain configurations of economic incentives were not attractive enough for them to relocate to flood-free areas. At the same time, they would prefer a reduction in the risk of flooding at their current location. The economic incentives that would best assist in increasing voluntary relocation of residents from their current locations included free land, nonrepayable grants (Taka 20,000), and long-term employment opportunities. Further, differences in geographic location (i.e., Mirpur vs. Vasantek), income levels, and membership in neighborhood communities were linked with the tendency of residents to stay at their current location.[PUBLICATION ABSTRACT]