Abstract

ABSTRACT:

Sea level rise is a consequence of climate change. Using evidence from a coastal community, we pose a question: Do people factor in warnings by scientists and governments about sea level rise when making their investment decisions? Using a difference-in-differences framework, we examine if disclosure of future risks affects coastal property prices. New Zealand's Kapiti Coast published detailed projections of coastal erosion in 2012 and was forced to remove them by the courts in 2014. Results indicate posting of this information had an insignificant impact on prices, suggesting people do not factor in long-term risks of sea level rise, as future risks are not capitalized in prices. (JEL Q54, R38)

pdf

Additional Information

ISSN
1543-8325
Print ISSN
0023-7639
Pages
pp. 207-224
Launched on MUSE
2020-04-08
Open Access
No
Back To Top

This website uses cookies to ensure you get the best experience on our website. Without cookies your experience may not be seamless.