Does Climate Change Affect Real Estate Prices? Only If You Believe In It

• 成果类型: Article
• 署名作者: Baldauf, Markus; Garlappi, Lorenzo; Yannelis, Constantine
• 署名单位: University of British Columbia; University of Chicago
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhz073
• 发表日期: 2020
• 页码: 1256
• 关键词: SPECULATIVE INVESTOR BEHAVIOR; stock-market; rents

摘要

This paper studies whether house prices reflect belief differences about climate change. We show that in an equilibrium model of housing choice in which agents derive utility from ownership in a neighborhood of similar agents, prices exhibit different elasticities to climate risk. We use comprehensive transaction data to relate prices to inundation projections of individual homes and measures of beliefs about climate change. We find that houses projected to be underwater in believer neighborhoods sell at a discount compared to houses in denier neighborhoods. Our results suggest that house prices reflect heterogeneity in beliefs about long-run climate change risks.