After a hurricane, according to a new study, wealthier people tend to sweep into impacted communities, purchasing homes even at the increased purchase price following a storm.
The study, "How Hurricanes Sweep Up Housing Markets: Evidence from Florida," uses data from county tax assessments, the National Oceanic and Atmospheric Administration and the real-estate marketplace website Zillow to assess housing-market conditions and population turnover in the Sunshine State from 2000 to 2016.
Study co-author and Resources for for the Future fellow Yanjun "Penny" Liao said they found home prices in hurricane-ravaged areas are 5% higher on average than unaffected ones, which attracts people who could afford them.
"These people are more able to afford or absorb the higher prices that comes with it," she said, "and if you think abut getting a mortgage, there is usually a 20% down payment you need to put down, so you need higher income to be able to absorb that price impact."
Liao said the temporary increase in home prices are likely due to the sudden decrease in housing supply from storm losses. In areas where hurricanes frequent, the impact is compounded. Florida lawmakers recently passed a slate of reform measures to save its beleaguered property insurance market following an onslaught of hurricanes and litigation.
Liao said the study could prove helpful in many ways including helping decision makers in charge of disaster assistance programs, and pointing a spotlight on the long-term impacts of gentrification.
"What's the equity implications for ongoing hurricanes or in the recovery process," she said.
Liao noted that some hurricanes are milder than others and catastrophic hurricanes such as Andrew or Katrina induce different dynamics. But overall, their findings show housing demand didn't decrease, it simply attracted wealthier inhabitants. They have called for future research on how that also could impact low-income buyers and renters following a storm.
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New funding from the federal Empowering Rural America program will allow the East Kentucky Power Cooperative to add more than 750 megawatts of solar energy to rural portions of Kentucky.
Co-op officials are currently seeking regulatory approval for a pair of solar installations in Fayette County, which would generate renewable energy for co-op members.
Nick Comer, external affairs manager for the co-op, said the project will cut emissions from the grid equivalent to the annual pollution from 554,000 gasoline-powered cars.
"Solar facilities will produce electricity when the sun is shining; that's no associated greenhouse gas emissions," Comer pointed out. "We estimate this will reduce carbon dioxide emissions by 3 million tons annually."
The co-op will receive additional funding in the form of tax credits on top of the $1.4 billion from the U.S. Department of Agriculture-sponsored program. The East Kentucky Power Cooperative generates electricity for 16 power distribution cooperatives across the state.
The project has generated some controversy, as some Kentucky agriculture advocates claim building the solar farms on 400 acres of prime agricultural land would not be the best use of the resource. Comer countered the installation will not harm the land long-term.
"It will have minimal impact on the land," Comer explained. "Once the solar facility has been used for 20 or 30 years and is no longer used for that, it could be returned to agricultural purposes at that point."
The funding is part of a $7.3 billion USDA program made available through the Inflation Reduction Act. The program specifically targets rural member-owned electric cooperatives in a move to eliminate greenhouse gasses produced by burning coal and natural gas contributing to climate change.
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As people head to the polls tomorrow, groups are working to ensure Georgia's Black and brown communities understand the energy saving benefits of the Inflation Reduction Act.
The Payback Campaign is a public awareness initiative led by creative firm AB and supported by Georgia Interfaith Power and Light. It is helping educate congregations and communities on Inflation Reduction Act incentives, including solar energy tax credits to lower utility costs, reduce carbon emissions and build resilience.
Jay Horton, communications manager for Georgia Interfaith Power and Light, explained access to resources is especially meaningful for congregations in underserved areas.
"One of the main advantages of the Inflation Reduction Act was that congregations and faith communities, houses of worship, can now benefit from the tax credits available for solar and battery storage," Horton explained. "Especially low wealth communities."
The group helps congregations with low-cost solar assessments, connections to vetted installers, and a zero-interest loan through its Solar Wise program. To date, the initiative has completed 23 installations in Georgia, totaling 540 kilowatts and offsetting more than 3,200 metric tons of carbon emissions annually.
Horton pointed out Georgia power bills will increase by an average of $44 over two years and solar installations can help mitigate rising energy costs. Beyond saving money, he noted solar power also reduces reliance on fossil fuels, leading to cleaner air and a smaller carbon footprint. He added congregations would be able to redirect the savings into community services, all while making a positive environmental impact.
"For example, Trinity Episcopal Church in Statesboro, they had a 30-kilowatt system through the Georgia Bright program but their utility bill savings over next 20 years, $196,000, net savings of $60,000," Horton outlined. "That's equivalent to 705 tons of CO2 offset. "
He emphasized the offset is equivalent to 1.5 million miles driven in a car, or 10,000 trees planted. The Payback Campaign also highlighted how environmental and economic benefits can inform voter choices, encouraging support for leaders who prioritize clean energy initiatives.
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On this year's California ballot, Proposition 4 has not received much attention but it could have a huge effect on the Golden State.
The $10 billion bond measure would be the largest conservation investment in state history. Opponents argued the state cannot afford to take on billions more dollars in debt.
Pamela Flick, California program director for the nonprofit Defenders of Wildlife, said the measure would be an effective way to address some of California's biggest problems.
"California faces devastating wildfires, vulnerable drinking water supplies, extreme summer heat and other major threats from a changing climate," Flick pointed out. "Proposition 4 tackles our most urgent climate needs today, before the damage becomes too costly and unimaginable."
Prop 4 would dedicate $3.8 billion for ensuring drinking water and increasing water supplies. It earmarks $1.5 billion for wildfire prevention, $1.2 billion to protect important wildlife habitat, and $1.2 billion to protect the coastline and prepare for rising sea levels. The rest of the money would go toward energy infrastructure, parks and programs to help farmers combat extreme heat.
Flick acknowledged California's ecosystems have evolved with fire for millennia but a series of megafires over the past decade have devastated some forest ecosystems.
"Severe fires pose the biggest impact to wildlife and its habitat," Flick asserted. "Because it's so much harder for those areas that were burned severely to bounce back and provide important habitat for species."
The heightened wildfire risk in California has already led some insurance companies to raise rates steeply or stop insuring homes altogether in certain areas. Backers said Prop 4 is an important step to protect the value of people's homes.
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