DP19706 Does Climate Change Adaptation Matter? Evidence from the City on the Water

Educatie

This paper leverages the unexpected successful activation of a sea wall built to protect Venice from rising tides to estimate the capitalization into property values of public investment in resilience infrastructure. Using a difference-in-differences hedonic approach with high-frequency microdata on residential and commercial properties, we show that properties above the sea wall activation threshold experience a permanent reduction in flood risk and expected damages, reflected in higher prices.

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