Disaster on the horizon: The price effect of sea level rise

• 成果类型: Article
• 署名作者: Bernstein, Asaf; Gustafson, Matthew T.; Lewis, Ryan
• 署名单位: University of Colorado System; University of Colorado Boulder; Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2019.03.013
• 发表日期: 2019
• 页码: 253-272
• 关键词: climate change; asset prices; beliefs; Sea level rise; Real estate

摘要

Homes exposed to sea level rise (SLR) sell for approximately 7% less than observably equivalent unexposed properties equidistant from the beach. This discount has grown over time and is driven by sophisticated buyers and communities worried about global warming. Consistent with causal identification of long-horizon SLR costs, we find no relation between SLR exposure and rental rates and a 4% discount among properties not projected to be flooded for almost a century. Our findings contribute to the literature on the pricing of long-run risky cash flows and provide insights for optimal climate change policy. (C) 2019 Published by Elsevier B.V.