@article{ref1,
title="Optimal real estate capital durability and localized climate change disaster risk",
journal="J Hous Econ",
year="2017",
author="Bunten, Devin and Kahn, Matthew E.",
volume="36",
number="",
pages="1-7",
abstract="The durability of the real estate capital stock could hinder climate change adaptation because past construction anchors the population in beautiful and productive but increasingly-risky coastal areas. However, coastal developers anticipate that their assets face increasing risk and this creates an incentive to seek adaptation strategies. This paper models climate change as a joint process of (1) increasingly destructive storms and (2) a risk of sea-level rise that submerges coastal property. We study how forward-looking developers and real estate investors respond to the new risks along a number of dimensions including their choices of location, capital durability, capital mobility (modular real estate), and maintenance of existing properties. The net effect of such investments is a more resilient urban population.<p /> <p>Language: en</p>",
language="en",
issn="1051-1377",
doi="10.1016/j.jhe.2017.01.004",
url="http://dx.doi.org/10.1016/j.jhe.2017.01.004"
}