Adaptation, Sea Level Rise, and Property Prices in the Chesapeake Bay Watershed

Walsh, Patrick J.; Griffiths, Charles; Guignet, Dennis; Klemick, Heather

doi:10.3368/le.95.1.19

Cited by 34 publications

(16 citation statements)

References 9 publications

(10 reference statements)

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“…They find a very small but statistically significant difference. Walsh et al (2019) focus on the property value of protection from SLR in Chesapeake Bay in the United States. They find a significant and consistent loss in value associated with SLR risk, using a similar method to Hidano et al (2015).…”

Section: Quantifying the Damage From Slrmentioning

confidence: 99%

Who Cares? Future Sea Level Rise and House Prices

2020

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Globally, the single-most observable, predictable, and certain impact of climate change is sea level rise. Using a case study from the Kapiti Coast District in New Zealand, we pose a simple question: Do people factor in the warnings provided by scientists and governments about the risk of sea-level rise when making their investment decisions? We examine the single most important financial decision that most people make-purchasing a home, to see whether prices of coastal property change when more/less information becomes available about propertyspecific consequences of future sea level rise. The Kapiti Coast District Council published detailed projected erosion risk maps for the district's coastline in 2012 and was forced to remove them by the courts in 2014. About 1,800 properties were affected. We estimate the impact of this information on home prices using data from all real estate transactions in the district with a difference-indifferences framework embedded in a hedonic pricing model. We find that the posting of this information had a very small and statistically insignificant impact on house prices, suggesting people do not care much about the long-term risks of sea-level rise as they do not incorporate these risks in their investment decisions. JEL-Codes: Q540, R380.

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Section: Quantifying the Damage From Slrmentioning

confidence: 99%

Who Cares? Future Sea Level Rise and House Prices

2020

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“…In a sample of Georgia oceanfront parcels, Landry et al (2003) find erosion to be a significant driver of home values but find insignificant effects of erosion protection structures. Recently, Walsh et al (2019) evaluate the waterfront housing market along the Chesapeake Bay in Maryland and show that different types of hardened structures increase housing values up to 22%.…”

Section: Estimating Option Values and Spillover Damagesmentioning

confidence: 99%

Estimating Option Values and Spillover Damages for Coastal Protection: Evidence from Oregon’s Planning Goal 18

Dundas¹,

Lewis²

2020

Journal of the Association of Environmental and Resource Econom

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Estimating nonmarket benefits for erosion protection can help inform better decision making and policies for communities to adapt to climate change. We estimate private values for a coastal protection option in an empirical setting subject to irreversible loss from coastal erosion and a land-use policy that provides identifying variation in the parcel-level option to invest in protection. Using postmatching regressions and accounting for potential spillovers, we find evidence that the value of the erosion protection option is between 13% and 22% of land price for parcels vulnerable to coastal hazards, implying that owners of oceanfront parcels have a subjective annual probability that they will experience an irreversible loss absent the option to protect between 0.7% and 1.3%. We also find that, because of altered shoreline wave dynamics, a parcel with a private protection option generates a spillover effect on protectionineligible neighbors, lowering the value of neighboring land by 8%.

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“…Third, qualitative changes in provision of affected ecosystem services are specified in quantitative terms. Last, these quantitative changes in ecosystem service provision can be valued using existing methods [38,59].…”

Section: Current Status Of Coastal and Marine Ecosystem (Cme) Valuationmentioning

confidence: 99%

The Elusive Quest for Valuation of Coastal and Marine Ecosystem Services

Milon

Álvarez

2019

Water

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Coastal and marine ecosystem (CME) services provide benefits to people through direct goods and services that may be harvested or enjoyed in situ and indirect services that regulate and support biological and geophysical processes now and in the future. In the past two decades, there has been an increase in the number of studies and journal articles designed to measure the economic value of the world’s CME services, although there is significantly less published research than for terrestrial ecosystems. This article provides a review of the literature on valuation of CME services along with a discussion of the theoretical and practical challenges that must be overcome to utilize valuation results in CME policy and planning at local, regional, and global scales. The review reveals that significant gaps exist in research and understanding of the broad range of CME services and their economic values. It also raises questions about the validity of aggregating ecosystem services as independent components to determine the value of a biome when there is little understanding of the relationships and feedbacks between ecosystems and the services they produce. Finally, the review indicates that economic valuation of CME services has had a negligible impact on the policy process in four main regions around the world. An alternative direction for CME services research would focus on valuing the world’s CME services in a wealth accounting framework.

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Adaptation, Sea Level Rise, and Property Prices in the Chesapeake Bay Watershed

Cited by 34 publications

References 9 publications

Who Cares? Future Sea Level Rise and House Prices

Who Cares? Future Sea Level Rise and House Prices

Estimating Option Values and Spillover Damages for Coastal Protection: Evidence from Oregon’s Planning Goal 18

The Elusive Quest for Valuation of Coastal and Marine Ecosystem Services

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