A neglected climate risk: The price effect of urban waterlogging

With global warming, cities are vulnerable to extreme weather, increasing the climate risk to cities worldwide. Although existing literature has examined the ex-post impacts of extreme weather, it is less clear how climate risk affects cites before extreme weather occur. To lower the risk of urban w...

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Bibliographic Details
Published in:Journal of environmental management 2024-02, Vol.352, p.119851-119851, Article 119851
Main Authors: Xu, Junbing, Zhu, Minling, Zhan, ShaoGuo
Format: Article
Language:English
Subjects:
China
Cities
Climate
Climate Change
Climate risk
Climate risk management
Global Warming
Property values
SCP
Urban waterlogging
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Summary:With global warming, cities are vulnerable to extreme weather, increasing the climate risk to cities worldwide. Although existing literature has examined the ex-post impacts of extreme weather, it is less clear how climate risk affects cites before extreme weather occur. To lower the risk of urban waterlogging, which is caused by extreme weather, and improve the ability of cities to adapt to extreme weather, China launched the Sponge City Project (SCP) in 2013 to manage the urban stormwater and waterlogging. Adopting the SCP pilot in China as a quasi-natural experiment, we examine the impact of the climate risk caused by urban stormwater and waterlogging on the house price with the difference-in-differences (DID) method. We find that after implementing the SCP pilot program, the house price in pilot cities increased significantly because of the improvement in cities’ resilience to climate risk. Additionally, this effect was only demonstrated in cities with a high waterlogging risk. For SCP pilot cities with lower waterlogging risk, the house price is not significantly affected by SCP implementation. This indicates that the house price in China is sensitive to the climate risk caused by the urban stormwater and waterlogging. Our findings also contribute to the understanding of the significance of the climate risk management, and provided theoretical evidence for urban governance. •The Sponge City Project (SCP) provides a quasi-natural experiment.•The house price is sensitive to climate risk in China.•The sensitivity of house price to climate risk is heterogenous in areas with relatively high or low climate risk.•Pilot cities' house price increases after the implementation of SCP because these cities' climate risk caused by urban waterlogging decreases.
ISSN:0301-4797
1095-8630
DOI:10.1016/j.jenvman.2023.119851