1. Climate change and the Dutch housing market: Insights and policy guidance based on a comprehensive literature review
- Author
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Bani, M., Barendregt, E., Blom, M., Burgers, S., Groot, C. de, Hordijk, R., Nobel, A., Phlippen, S., Vendel, B., Bani, M., Barendregt, E., Blom, M., Burgers, S., Groot, C. de, Hordijk, R., Nobel, A., Phlippen, S., and Vendel, B.
- Abstract
Global climate change has local ramifications. This is particularly so in the case of The Netherlands: a considerable coastline, the presence of the Rhine-Meuse-Scheldt river delta, and 59 percent of the land area prone to flooding, all make the country highly exposed to floods from the sea and rivers. The Netherlands also faces other physical climate risks, including waterlogging, heatwaves, and prolonged drought which can cause damage to buildings and other assets. Finally, the Netherlands faces transition risks due to both climate mitigation and adaptation policies, which can shift the value of assets affected by these policies. Climate risks bear implications for the housing market. Some of these implications are hurdles that stand in the way for the housing market to become low-carbon and climate-resilient. And from an economic perspective, these implications are of great importance when designing policies that help the shift towards a low-carbon and climate-resilient housing stock. In this report we provide insight into the impact of climate risks on the Dutch housing market. We focus on the owner-occupied sector, because – in contrast to tenants – homeowners have to act upon climate policies themselves and are also more directly impacted by price effects of climate risks and climate policies. Based on a systematic literature review, we investigated how climate change affects the housing market through three channels of impact: physical climate risks, climate adaptation, and climate mitigation.
- Published
- 2024