Lecture 7: From Green Buildings to Green Cities: Pricing Environmental Features and Supporting Decisionmaking [Siqi Zheng]
Estimating the green building premium: hedonic pricing technique
Pricing green amenities:
- Within-city applications
- Cross-city applications
Supporting decision-making: business and policy
Readings
Eichholtz, P., N. Kok, and J.M. Quigley (2013). “The Economics of Green Building.” Review of Economics and Statistics 95(1): 50–63.
Zheng, S., and M.E. Kahn (2008). “Land and Residential Property Markets in a Booming Economy: New Evidence from Beijing.” Journal of Urban Economics 63(2): 743–757.
Lecture 8: Climate Risk and Real Estate Markets: Understanding the Basic Impacts of Climate Change on Real Estate Markets [Siqi Zheng, Juan Palacios]
Physical risks associated with climate change in asset markets:
- Physical risks for different real estate asset classes
- The role of uncertainty and information on climate change in the value of residential and commercial buildings
- Ricardian framework to evaluate changes in real estate asset pricing associated with climate change
Mitigation and adaptation strategies for real estate investors
Transition risks:
- Markets, climate change and real estate markets: preferences for climate amenities
- Transition risks for different real estate asset classes
Data and models to assess climate risk in commercial real estate
The role of insurance markets in shaping physical climate risk
Readings
Burgess, K., and E. Rapoport (2019). “Climate Risk and Real Estate Investment Decision-making” (PDF). Urban Land Institute / Heitman.
Hsiang, S., and R.E. Kopp (2018). “An Economist’s Guide to Climate Change Science.” Journal of Economic Perspectives 32(4): 3–32.
Lecture 9: Quantifying Climate Risks’ Impacts on Real Estate Values [Siqi Zheng, Juan Palacios]
Discounting climate risks: the role of belief
Climate risks in housing markets
Empirical strategies to quantify impacts of climate change on real estate prices: difference-in-difference model
Climate risks in commercial real estate markets
Readings
Clayton, J., J. van de Wetering, S. Sayce, and S. Devaney (2021). “Climate Risk and Commercial Property Values: A Review and Analysis of the Literature.” Report, United Nations Environment Programme Finance Initiative.
Ortega, F., and S. Taṣpınar (2018). “Rising Sea Levels and Sinking Property Values: Hurricane Sandy and New York’s Housing Market.” Journal of Urban Economics 106: 81–100.
