Calendrier du 10 octobre 2023
PSI-PSE (Petit Séminaire Informel de la Paris School of Economics) Seminar
Du 10/10/2023 de 17:00 à 18:00
PEREZ Lucas(PSE)
PEREZ Lucas(PSE)
Air Ball and Air Quality: Effects of Air Pollution over Performance under Pressure
Applied Economics Lunch Seminar
Du 10/10/2023 de 12:30 à 13:30
Salle R2.21
BéZY Thomas ()
The Incidence of Floods on Residential Real Estate Wealth
This paper sheds new light on exposure of real estate wealth to flood risks and examines the heterogeneous vulnerability to flooding. Using fine-grained data at the dwelling level in France, I distinguish the exposure of owner-occupied primary residences, rented homes, secondary homes, and vacant units, linking these properties to their owners' disposable incomes and housing wealth. I find that owner-occupied primary residences constitute only 40% of the exposed dwellings and secondary homes represent 20% of the properties at risk. Notably, secondary homes, which make up approximately 10% of the national housing market, are substantially over-represented. The value of at-risk dwellings owned by the top 10% equals the value of exposed dwellings owned by the bottom 45%. While floods can destroy 100% of a household's housing wealth in 30% of cases, most households are left with some remaining housing wealth. In 20% of instances, less than 20% of a household's total housing wealth is exposed to floods, underscoring significant disparities in the impact of natural disasters. I show that these findings have substantial impact on the incidence of three adaptation policies: home buy-back, flood protections and insurance against extreme weather events.