Research Department Working Papers
Last Resort Insurance: Wildfires and the Regulation of a Crashing Market
An increasing number of people are denied home insurance coverage in the private market and must instead turn to state-sponsored plans known as “Insurers of Last Resort.” This paper examines how insurers of last resort interact with the private market under increasing disaster risks.
March 26, 2025
Globalization Institute Working Paper
Unequal Climate Policy in an Unequal World
This paper studies climate policy in an economy with heterogeneous households, two types of goods (clean and dirty), and a climate externality from the dirty good.
January 31, 2025
Research Department Working Papers
Climate Risk, Insurance Premiums and the Effects on Mortgage and Credit Outcomes
As climate change exacerbates natural disasters, homeowners’ insurance premiums are rising dramatically. This paper examines the impact of premium increases on borrowers’ mortgage and credit outcomes using new data on home insurance policies for 6.7 million borrowers.
January 16, 2025
Research Department Working Papers
Up in Smoke: The Impact of Wildfire Pollution on Healthcare Municipal Finance
Wildfire smoke pollution is associated with significantly higher healthcare municipal borrowing costs, amounting to $250 million in realized interest costs for high-smoke counties in 2010–2019, and an estimated $570 million over the following 10 years.
January 09, 2025
Research Department Working Papers
Air Pollution and Rent Prices: Evidence from Wildfire Smoke Plumes
This paper leverages quasi-experimental wildfire smoke shocks to analyze the causal effect of air pollution (PM2.5) on rent prices, using satellite-based smoke plumes data and ambient air pollution data.
January 08, 2025
Electric reliability concerns spur Texas backup generation boom
Amid growing concerns about reliability of electricity services across power-hungry Texas, deployment of back-up power sources—microgrids and alternative generation—is increasing. These assets, serving customers ranging from college campuses to oilfield operations, help keep the lights on when disaster strikes.
December 06, 2024
Dirty air from wildfires casts a cloud over household finances
Using California's Camp Fire as a natural laboratory, this article examines the effects of both fire and smoke-related air pollution on household credit card spending and repayment.
September 24, 2024
Research Department Working Papers
Do Bill Shocks Induce Energy Efficiency Investments?
This paper studies whether electricity bill shocks draw attention to the benefits of home energy efficiency investments.
September 20, 2024
Old oil fields reimagined as lithium sources
The Smackover Formation, extending broadly from East Texas to Florida, is ground zero in the effort to produce lithium from oilfield brines.
September 20, 2024
Rents, home values depressed in air pollution hotspots
Wildfire smoke pollution may significantly affect housing market activity in locations hundreds or even thousands of miles away from the fires.
August 27, 2024