“If governments can’t get their act together and do this, insurance companies might do it for them.” – Andy Hoffman, University of Michigan, Ross School of Business
Front page articles in The Washington Post and New York Times in recent weeks underline the realization among business leaders, and increasingly, homeowners, that climate change is not just about polar bears. Insurance, mortgages, and the communities they live in may be at stake.
I predict we’ll see it over and over again: Municipalities will opt for expensive adaptation and mitigation projects which are viable only with a high and healthy tax base, and be stuck with it as the property values (and associated tax revenue) drops. Levee maintenance? Fancy flood-gate maintenance? That takes money.