Documentos de trabajo
When market participants do not adequately discount future risks, there may be a reduced willingness to invest in necessary adaptation measures. This lack of foresight can result in under-preparedness for future climate-related events, leading to more severe economic or social impacts. Given that climate risks, particularly flooding, sea level rise, and stormwaters are most tangible on land, land-based financing (LBF) instruments emerge as promising solutions. Yet, their implementation is fraught with complexities, largely influenced by how land and housing markets are pricing those risks. This study provides a thorough analysis of land and real estate markets and the assessment of the pricing of climate risks in diverse urban markets across continents, including North America, Europe, Asia, Africa, and Latin America. A key aspect of the analysis is understanding how these markets are affected by a variety of socio-economic, behavioral, and geographic factors, including information asymmetries, inappropriate land use regulations, insurance market dynamics, public perceptions and biases regarding climate change, the influence of institutional actors, and the impact of social vulnerability on these markets. This inquiry aims to bridge existing knowledge gaps by evaluating the potential of land-based financing (LBF) strategies to meet climate objectives in different land market conditions.
The following papers are of a series of working papers on land-based financing instruments for funding climate action:
Keywords
adaptación, mitigación climática, planicie aluvial, regulación del mercado de suelo, monitoreo de suelo, uso de suelo, valor del suelo, valuación