Effects of Climate Change Hit Home(s)
New research exposes the link between rising tides and coastal real estate values.
Evidence of the threat of rising sea levels and their negative impact on the value of coastal real estate is mounting.* This is particularly noteworthy since, according to the National Oceanic Atmospheric Association, nearly 40% of the U.S. population lives in relatively high-population-density coastal areas, where sea level plays a role in flooding, shoreline erosion and storm hazards, and sea levels are rising globally at about one-eighth of an inch
per year.
Leeds School of Business Assistant Professors Asaf Bernstein and Ryan Lewis, in collaboration with the Pennsylvania State University鈥檚 Professor Matthew Gustafson, recently published 鈥淭he Price Effect of Sea Level Rise鈥� in the Journal of Financial Economics, which indicates concerns about sea level rise (SLR) in the U.S. are already affecting home values. They found that homes vulnerable to the effects of SLR sold for 6.6% less than unexposed homes, and the most vulnerable properties鈥攖hose that stand to be flooded after one foot of SLR鈥攁re selling at a 14.7% discount. These discounts are driven by wealthy investors, who often are buying a second home or rental property and demand a lower price to offset the potential risks. (Conversely, less sophisticated home buyers did not show the same concerns of climate change and SLR affecting real estate.)Earlier this year, Bernstein, Lewis and Gustafson鈥檚 paper was awarded second place and $25,000 from AQR Capital Management for the AQR Insight Award, which honors exceptional academic papers offering innovative, intelligent approaches to investment issues. Their work underscores the distinct relationship between financial markets and effects of climate change on coastal real estate prices, primarily in the gulf region, 
Washington state and along the eastern seaboard. Importantly, these findings also suggest there are benefits to establishing policies now, such as requiring increased transparency in coastal real estate transactions, which may help mitigate future costs of climate change.
Currently, there鈥檚 still a demand for coastal real estate, although the markets have slowed for the more-exposed properties. For many, it appears the allure of owning a beachfront property still outweighs the potential risks associated with SLR. Ultimately, the more climate change intersects with economics, the more tangible these costs will become for consumers to grapple with and policy makers to address.
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*As corroborated by the latest federal climate assessment (NCA4, Vol. 2, released Nov. 2018).
Liz Stapp:
Leeds鈥� 2019 Frascona Award Winner
280 nominations of 95 faculty: Senior Instructor Liz Stapp rose to the top.
Students describe her as inspiring, dedicated to her students and wildly passionate about teaching business ethics. Liz Stapp, who is also Leeds鈥� faculty director of First- and Second-Year Curriculum, uses real examples from her connections with industry in the classroom to bring concepts to life for her students. That鈥檚 just one of the reasons out of the three finalists (including Professors Rob Dam and Don Oest), Stapp received the 2019 Frascona Teaching Excellence Award, which is presented to one Leeds faculty member at the end of each school year.
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Stapp is humble when she speaks about receiving the award. 鈥淭his is a huge honor because it factors in both student nominations and faculty evaluations,鈥� she says. 鈥淭he award also highlights how much teaching matters at this university.鈥�
We couldn鈥檛 agree more. From all of us at Leeds, congratulations, Liz Stapp!
Think Quality Over Quantity When It Comes
to Team Communication
What you say to your teammates goes a long way toward your group鈥檚 success.
Teamwork and the ability to communicate effectively in teams are skills highly valued and sought out by today鈥檚 employers. 听
New research published by Assistant Professor of Organizational Behavior Christina N. Lacerenza and colleagues from Rice University and the University of Central Florida analyzes the relationship between team communication and performance, and provides practical insights for organizations relying on the work of effective teams. Their paper, 鈥淒oes team communication represent a one-size-fits-all approach,鈥� published in the journal Organizational Behavior and Human Decision Processes, details their meta-analytic* review of 150 primary studies with data from over 9,700 teams.
鈥淲ith technology, we generally have 24/7 access to our team members, which has led to the assumption that more communication is always better,鈥� says Lacerenza. 鈥淭his is not the case for teamwork. In teams, the quality of communication is what matters most for performance鈥攏ot the frequency by which members communicate.鈥�
In effective, high-performing teams, members openly share their specialized knowledge, discuss task-related issues and expand upon their ideas and opinions, explains Lacerenza. Accordingly, organizations should ensure their teams know how valuable communication is to their success and provide support to teams who struggle to develop these skills. In the case of teams who communicate primarily through virtual tools, the opportunity for in-person meetings, occasionally or at the outset, may also improve their overall group performance. The key takeaway: Getting to know your teammates and including a bit of face time into your group activities will positively influence your collective communication and, in turn, your team鈥檚 success.
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*A meta-analysis is a statistical approach that combines data from multiple studies to increase validity and, therefore, the reliability of information.
