Summary

The goal of my PhD project is to quantify the impact of climate risks on the real estate market in the Netherlands. The literature distinguishes between physical and transition climate risks. Physical risk refers to the direct damage from climate change and related extreme weather events such as flooding or storms. Transition risk arises from the policies promoting the transition towards a green economy. The construction of wind parks and solar farms, for example, can reduce the value of nearby houses and higher carbon prices can lower the value of polluting firms. During my PhD, I will explore various dimensions of these risks. 

In the first chapter of my PhD, I investigate the impact of land subsidence, the lowering of the ground surface, on real estate prices. In large areas of the Netherlands, the ground is steadily lowering, which can negatively impact houses either by directly damaging the foundation or by increasing the damage in the event of flooding. Despite the potential negative effects, little is known about how market participants respond to subsidence. By addressing this gap in the literature, I aim to provide guidance to policy makers, mortgage providers and home buyers.