Government is incentivizing development in areas vulnerable to climate change


As the effects of climate change grow more apparent, the question of where to build is due to become a significantly more complicated affair. 

A case in point comes from a recent report in The New York Times highlighting the ties between financing, land-use, and climate vulnerability.

The report delves into a paper studying the ways in which financial lenders are already shielding themselves from exposure to climate-vulnerable real estate investments by shifting risky mortgages over to the American federal government. According to The New York Times, because the two entities cannot include risk of natural disaster as part of their mortgage pricing strategy, the move effectively allows the mortgage companies to receive full-rate for investments that might otherwise be worth less than stated. According to the report, the increasing number of mortgages tied up held under this arrangement raises "troubling questions about who will bear the financial cost of climate change in the United ...

Antonio Pacheco via Archinect - News http://bit.ly/2nVj745

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