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Exposures to climate change’s physical risks in Chile

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  • Magdalena Cortina
  • Carlos Madeira

Abstract

We estimate real estate's exposure in Chile to five weather risks, including labor productivity loss due to heat, fires, floods, drought coastal deterioration as measured by the Chilean Climatic Risk Atlas (ARCLIM) and Climate Impact Explorer (CIE) sources. According to our joint ARCLIM-CIE indicator, we measure risk exposure for the appraisal value of all properties of 39% for Chile and 51%, 36%, 36% and 27% for the Central, North, Metropolitan and South macrozones, respectively. flooding is the greatest risk for Chile, followed by drought. We find that the CIE source underestimates the climate exposures in Chile relative to the ARCLIM measures, particularly for the flooding and drought risks.

Suggested Citation

  • Magdalena Cortina & Carlos Madeira, 2023. "Exposures to climate change’s physical risks in Chile," Working Papers Central Bank of Chile 976, Central Bank of Chile.
    • Handle: RePEc:chb:bcchwp:976
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    File URL: https://www.bcentral.cl/documents/33528/133326/DTBC_976.pdf
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    Cited by:

    1. Felipe Beltrán & Luigi Durand & Mario González-Frugone & Javier Moreno, 2023. "A Preliminary Assessment of the Economic Effects of Climate Change in Chile," Working Papers Central Bank of Chile 997, Central Bank of Chile.

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    More about this item

    JEL classification:

    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q59 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Other
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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