Measuring the Impact of Sea‐Level Rise on Coastal Real Estate: A Hedonic Property Model Approach
17 Pages Posted: 28 Sep 2011
Date Written: October 2011
Abstract
This study estimates the impact of sea‐level rise on coastal real estate in North Carolina using a unique integration of geospatial and hedonic property data. With rates of sea‐level rise approximately double the global average, North Carolina has one of the most vulnerable coastlines in the United States. A range of modest sea‐level rise scenarios based on the IPCC Fourth Assessment Report projections (2007) are considered for four counties of North Carolina - New Hanover, Dare, Carteret, and Bertie - which represent a cross‐section of the state's coastline in geographical distribution and economic development. High‐resolution topographic LIDAR (light detection and ranging) data are used to provide accurate inundation maps for the properties that will be at risk under six different sea‐level rise scenarios. A simulation approach based on spatial hedonic models is used to provide consistent estimates of the property value losses. Considering just four coastal counties in North Carolina, the value of residential property loss without discounting in 2030 (2080) is estimated to be about $179 ($526) million for the mid‐range sea‐level rise scenarios. Low‐lying and heavily developed areas in the northern coastline are comparatively more vulnerable to the effect of sea‐level rise than the other areas.
Suggested Citation: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
Recommended Papers
-
Demand for Environmental Quality: A Spatial Hedonic Analysis
By Diane Hite and David M. Brasington
-
Educational Outcomes and House Values: A Test of the Value Added Approach
-
Airport-Related Noise, Proximity, and Housing Prices in Atlanta
By Jeffrey Cohen and Cletus C. Coughlin
-
Nonlinear Hedonics and the Search for School Quality
By Abbey Chiodo, Ruben Hernandez-murillo, ...
-
Spatial Hedonic Models of Airport Noise, Proximity, and Housing Prices
By Jeffrey Cohen and Cletus C. Coughlin
-
Spatial Hedonic Models of Airport Noise, Proximity, and Housing Prices
By Jeffrey Cohen and Cletus C. Coughlin
-
Size and School District Consolidation: Do Opposites Attract?