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Climate change and asset prices: hedonic estimates for North American ski resorts

Author

Listed:
  • Van Butsic
  • Ellen Hanak
  • Robert G. Valletta

Abstract

We use a hedonic framework to estimate and simulate the impact of global warming on real estate prices at North American ski resorts. To do so, we combine data on resort-area housing prices from two sources--data on average prices for U.S. Census tracts across a broad swath of the western U.S. and data on individual home sales for four markets in the western U.S. and Canada, each available over multiple decades--with detailed weather data and characteristics of ski resorts in those areas. Our OLS and fixed-effects models of changes in house prices with respect to medium-run changes in the share of snowfall in winter precipitation yield precise and consistent estimates of positive snowfall effects on housing values in both data sources. We use our estimates to simulate the impact of likely climate shifts on house prices in coming decades and find substantial variation across resort areas based on climatic characteristics such as longitude, elevation, and proximity to the Pacific Ocean. Resorts that are unfavorably located face likely large negative effects on home prices due to warming, unless adaptive measures are able to compensate for the deterioration of conditions in the ski industry.

Suggested Citation

  • Van Butsic & Ellen Hanak & Robert G. Valletta, 2008. "Climate change and asset prices: hedonic estimates for North American ski resorts," Working Paper Series 2008-12, Federal Reserve Bank of San Francisco.
    • Handle: RePEc:fip:fedfwp:2008-12
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    File URL: http://www.frbsf.org/publications/economics/papers/2008/wp08-12bk.pdf
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    References listed on IDEAS

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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Skiing and Climate Change Adaptation
      by Matthew Kahn in Environmental and Urban Economics on 2012-12-13 03:24:00

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    Cited by:

    1. Falk, Martin, 2010. "A dynamic panel data analysis of snow depth and winter tourism," Tourism Management, Elsevier, vol. 31(6), pages 912-924.
    2. Van Butsic & Ellen Hanak & Robert G. Valletta, 2011. "Climate Change and Housing Prices: Hedonic Estimates for Ski Resorts in Western North America," Land Economics, University of Wisconsin Press, vol. 87(1), pages 75-91.

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    Keywords

    Environmental protection; Housing - Prices; Skis and skiing;
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