How far do you agree that place identity at a local scale is shaped by natural characteristics

It certainly has an impact.

Explanation:

The physical characteristics of a locale affect the collective psyche of the residents, especially those who are born there and have never lived anywhere else.

Even in modern urban areas that are not all isolated, the identity forged by proximity to the sea in the case of a Floridian or snow-capped mountains in the case of a Canadian from Vancouver is not irrelevant.

The topography and climate of a location could lead to a preference (or aversion) to these types of natural surroundings for an entire lifetime, but do no necessarily have any correlation with personality or culture.