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The Uneven Distribution of Climate Risks and Discounts

Author

Listed:
  • John Heilbron
  • Kevin Zhao

Abstract

This brief documents the uneven distribution of climate risk and risk pricing in real estate at the property-level (Brief no. 24-01).

Suggested Citation

  • John Heilbron & Kevin Zhao, 2024. "The Uneven Distribution of Climate Risks and Discounts," Briefs 24-01, Office of Financial Research, US Department of the Treasury.
    • Handle: RePEc:ofr:briefs:24-01
    as

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    File URL: https://www.financialresearch.gov/briefs/files/OFRBrief-24-01-climate-risks-discounts.pdf
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    References listed on IDEAS

    as
    1. Bernstein, Asaf & Billings, Stephen B. & Gustafson, Matthew T. & Lewis, Ryan, 2022. "Partisan residential sorting on climate change risk," Journal of Financial Economics, Elsevier, vol. 146(3), pages 989-1015.
    2. Bernstein, Asaf & Gustafson, Matthew T. & Lewis, Ryan, 2019. "Disaster on the horizon: The price effect of sea level rise," Journal of Financial Economics, Elsevier, vol. 134(2), pages 253-272.
    3. Markus Baldauf & Lorenzo Garlappi & Constantine Yannelis & José Scheinkman, 2020. "Does Climate Change Affect Real Estate Prices? Only If You Believe In It," The Review of Financial Studies, Society for Financial Studies, vol. 33(3), pages 1256-1295.
    4. Bakkensen, Laura A. & Ma, Lala, 2020. "Sorting over flood risk and implications for policy reform," Journal of Environmental Economics and Management, Elsevier, vol. 104(C).
    5. Jesse D. Gourevitch & Carolyn Kousky & Yanjun (Penny) Liao & Christoph Nolte & Adam B. Pollack & Jeremy R. Porter & Joakim A. Weill, 2023. "Unpriced climate risk and the potential consequences of overvaluation in US housing markets," Nature Climate Change, Nature, vol. 13(3), pages 250-257, March.
    Full references (including those not matched with items on IDEAS)

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