Climate Change and Long-Run Discount Rates: Evidence from Real Estate
نویسندگان
چکیده
Abstract We show that housing markets provide information about the appropriate discount rates for valuing investments in climate change abatement. Real estate is exposed to both consumption and risk its term structure of downward sloping, reaching 2.6% payoffs beyond 100 years. use a tractable asset pricing model incorporates features climate-hedging thus upward sloping but bounded above by risk-free rate. At horizons at which are unavailable, estimated an upper bound.
منابع مشابه
Climate Change and Long-run Discount Rates: Evidence from Real Estate
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ژورنال
عنوان ژورنال: Review of Financial Studies
سال: 2021
ISSN: ['0893-9454', '1465-7368']
DOI: https://doi.org/10.1093/rfs/hhab032