A0234
Title: Have house prices factored in the risks of climate change?
Authors: Patricia Menendez - Monash University (Australia) [presenting]
Maria Jesus Barcena - University of the Basque Country (Spain)
Maria Cristina Gonzalez - University of the Basque Country (Spain)
Fernando Tusell - University of the Basque Country (Spain)
Abstract: Owning a home is often considered one of the most significant and valuable assets for households, comprising a substantial portion of their net worth. However, the latest report by the Intergovernmental Panel on Climate Change warns of the accelerating global mean sea level rise, which could potentially affect homes in coastal areas and near fluvial regions in the Basque Country. The purpose is to investigate whether house prices have taken into account the risk of flooding associated with climate change. Our dataset comprises more than 300,000 observations, including dwelling transaction prices, rental values, and property characteristics. We use geographically weighted regression with tailored neighbourhoods to analyse the differences in house prices between high-risk and low-risk areas. We use visual representations of data and risk areas to facilitate our analysis and enhance our interpretation of results.
