scholarly journals Climate Change and Long-Run Discount Rates: Evidence from Real Estate

2015 ◽  
Author(s):  
Stefano Giglio ◽  
Matteo Maggiori ◽  
Johannes Stroebel ◽  
Andreas Weber

2015 ◽  
Author(s):  
Stefano Giglio ◽  
Matteo Maggiori ◽  
Johannes Stroebel ◽  
Andreas Weber


Author(s):  
Stefano W. Giglio ◽  
Matteo Maggiori ◽  
Johannes Stroebel ◽  
Andreas Weber
Keyword(s):  


2020 ◽  
Vol 33 (3) ◽  
pp. 1256-1295 ◽  
Author(s):  
Markus Baldauf ◽  
Lorenzo Garlappi ◽  
Constantine Yannelis

Abstract This paper studies whether house prices reflect belief differences about climate change. We show that in an equilibrium model of housing choice in which agents derive utility from ownership in a neighborhood of similar agents, prices exhibit different elasticities to climate risk. We use comprehensive transaction data to relate prices to inundation projections of individual homes and measures of beliefs about climate change. We find that houses projected to be underwater in believer neighborhoods sell at a discount compared to houses in denier neighborhoods. Our results suggest that house prices reflect heterogeneity in beliefs about long-run climate change risks.



Energies ◽  
2018 ◽  
Vol 11 (7) ◽  
pp. 1847 ◽  
Author(s):  
K. Chau ◽  
Gaolu Zou

A majority of energy is consumed to control the indoor environment for human activities and industrial production. The demand for energies for these two uses are reflected in demand for different types of real estate and the volume of industrial outputs. The purpose of this study is to examine the long-run equilibrium and short-run dynamics between real energy prices and demand for different types of real estate and industrial output in China. Energy prices are measured in the real price of fuels and power. Demand for different types of real estate is measured in their sales volume in the first hand market, that is, floor areas of new real estate sold by developers. Industrial output is measured by the net output (value added) of the industrial sector. All data series were tested for stationarity (i.e., the existence of a unit root) before testing for a co-integration relationship. We found no long-term equilibrium relationship between energy prices and the demand for real estate and industrial output as predicted by theory, probably due to increased supply of energy efficient buildings. There is also no short-run relationship between energy prices and demand for housing due to the increase in vacancy rate resulting from speculative demand for housing. However, demand for commercial properties appeared to lead energy prices. Finally, there is strong evidence suggesting that an increase in energy prices will significantly reduce industrial output but not vice versa.



Author(s):  
. Neha ◽  
Mohammad Aslam Ansari

Climate change has emerged as a potent threat disrupting the development process and is hurting several sectors of Indian economy, especially the agriculture sector. Knowledge about these disruptive factors can enable the farmers to mitigate the negative impact of climate change on agriculture. Therefore, the understanding of location-specific farmers’ perceptions and their adaptive behaviors can provide a better insight to design appropriate policy measures and guidelines to address these challenges effectively. The present study was aimed at determining farmers’ perceptions about climate change on agriculture. The study sample comprised 180 farmers selected using simple random sampling. The findings indicate that all the farmers (100%) were aware of climate change. All of them reported “increase in temperature” and “erratic rainfall” and “shortening of winter season” as the major indicators of climate change as experienced by them. Besides, 85.55 percent famers reported that “peak time of winter” has changed in Uttarakhand, a hilly state. Such perceptions about climate change can be seen as a precursor mediating the adoption of recommended practices and adaptation measures. Thus, the results of the study will enlighten the policy makers and agriculture scientists in preparing a roadmap for policy formulation regarding adaptation measures (short run initiatives) as well as undertaking mitigation measures (long run initiatives) of climate change besides helping the agriculture extension agencies to design and plan locale-specific adaptation strategies and agriculture development programs.



Author(s):  
Hildegart Ahumada ◽  
Magdalena Cornejo

Soybean yields are often indicated as an interesting case of climate change mitigation due to the beneficial effects of CO2 fertilization. In this paper we econometrically study this effect using a time series model of yields in a multivariate framework for a main producer and exporter of this commodity, Argentina. We have to deal with the upward behavior of soybean yields trying to identify which variables are the long-run determinants responsible of its observed trend. With this aim we adopt a partial system approach to estimate subsets of long-run relationships due to climate, technological and economic factors. Using an automatic selection algorithm we evaluate encompassing of the different obtained equilibrium correction models. We found that only technological innovations due to new crop practices and the use of modified seeds explain soybean yield in the long run. Regarding short run determinants we found positive effects associated with the use of standard fertilizers and also from changes in atmospheric CO2 concentration which would suggest a mitigation effect from global warming. However, we also found negative climate effects from periods of droughts associated with La Niña episodes, high temperatures and extreme rainfall events during the growing season of the plant.



Semiotica ◽  
2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Geoffrey Beattie ◽  
Laura McGuire

Abstract Climate change is an anthropogenic existential threat that provokes extreme concern among climate scientists, but not, it seems, among all member of the public. Here, there is considerably more variability in level of concern and, it appears, in everyday sustainable behavior. But how does personality affect this variability in behavior? And how are underlying personality states like dispositional optimism linked to more sustainable everyday practices? Research in clinical psychology has suggested that dispositional optimism is a very positive personality characteristic associated with higher levels of hope and resilience, but applied research from other domains has reported that optimists can, on occasion, bury their heads in the sand and avoid attending to external threats, like climate change, in order to maintain mood state. So are optimists more immune to climate change messaging than non-optimists? And do they make fewer sustainable choices? A series of experimental studies, manipulating signifiers of carbon footprint (Study 1) and eco labels on products (Study 2) found that optimists made more sustainable choices than non-optimists and that both groups were influenced equally by climate change film clips in terms of sustainable choices (Study 1). Optimists also displayed a false consensus effect, overestimating the proportion of people who would behave more sustainably like themselves (Study 3). Given that global problems like climate change need concerted, cooperative effort, these optimistic beliefs about how others behave could be adaptive in the long-run. Designing climate change messages to appeal to optimists might be a critical consideration for the future.



2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yeşim Aliefendioğlu ◽  
Harun Tanrivermis ◽  
Monsurat Ayojimi Salami

Purpose This paper aims to investigate asymmetric pricing behaviour and impact of coronavirus (Covid-19) pandemic shocks on house price index (HPI) of Turkey and Kazakhstan. Design/methodology/approach Monthly HPIs and consumer price index (CPI) data ranges from 2010M1 to 2020M5 are used. This study uses a nonlinear autoregressive distributed lag model for empirical analysis. Findings The findings of this study reveal that the Covid-19 pandemic exerted both long-run and short-run asymmetric relationship on HPI of Turkey while in Kazakhstan, the long-run impact of Covid-19 pandemic shock is symmetrical long-run positive effect is similar in both HPI markets. Research limitations/implications The main limitations of this study are the study scope and data set due to data constraint. Several other macroeconomic variables may affect housing prices; however, variables used in this study satisfy the focus of this study in the presence of data constraint. HPI and CPI variables were made available on monthly basis for a considerably longer period which guaranteed the ranges of data set used in this study. Practical implications Despite the limitation, this study provides necessary information for authorities and prospective investors in HPI to make a sound investment decision. Originality/value This is the first study that rigorously and simultaneously examines the pricing behaviour of Turkey and Kazakhstan HPIs in relation to the Covid-19 pandemic shocks at the regional level. HPI of Kazakhstan is recognized in the global real estate transparency index but the study is rare. The study contributes to regional studies on housing price by bridging this gap in the real estate literature.





Author(s):  
Olusoyi Richard Ashaye ◽  
Husam Helmi Alharahsheh ◽  
Abraham Pius

The chapter is exploring and investigating key definitions and principles of renewable energy highlighting key distinctions between sustainable energy source and renewables, key associated theories of renewable energy such as diffusion theory, and drivers and barriers to renewable energy good practice guidelines. Furthermore, the chapter would focus on strategy, priority and monitoring, and evaluation policies to further provide clarity on how renewable energy is being implemented in practice. The chapter also discusses key dynamic aspects of deployment to further enable success of renewable energy adoption. The chapter is based on reviewing the published literature in the field, as well as other related publications such as professional reports to enhance relatedness to recent updates in policy and practice. The chapter provides key findings and recommendations on the role renewables play in dealing with climate change both in interim and long run, influences on policies, and incentives that would shape its deployment.



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