Case Study #2: Real estate losses in the rapid stabilization case

Case Study #2: Real estate losses in the rapid stabilization case

Our estimate of the value of real estate losses from sea-level rise is based on an update of the work of James G. Titus and co-authors (1991), as described in Chapter 2. The same methodology is used for the rapid stabilization case as for business as usual: we assume that the value of U.S. coastal real estate has grown in proportion to GDP, and that annual damages will be proportional to sea level and to GDP. For the rapid stabilization case we repeat the calculation, using the projected 7 inches of sea-level rise by 2100 in place of the business-as-usual projection of 45 inches by 2100. Thus, in the rapid stabilization case, damages rise to $46 billion by 2006 (see Table 13).