Climate policy uncertainty and its impact on real estate market dynamics: A sectoral and regional analysis.

Abstract

This study explores the impact of Climate Policy Uncertainty (CPU) on real estate market volatility, utilizing the CPU index to assess how climate policy affects various real estate segments. It highlights the significant impact of CPU on sectors with high energy demand and emissions, such as industrial and residential. A multi-horizon analysis reveals the long-term sensitivity of CPU's influence, with significant sensitivity noted in coastal regions prone to climate risks. The findings provide crucial insights for investors and policymakers, emphasizing the importance of integrating CPU considerations into strategic decision-making for real estate investment.