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Incorporating climate risks into the value of property assets

An R&D programme conducted in partnership with the Climate Economics Chair (University of Paris Dauphine PSL)


Real estate is vulnerable to a wide range of climate risks (physical, regulatory, and economic) that can significantly reduce its value. This depreciation may go so far as to generate ‘stranded assets’.


To identify assets exposed to climatic stranding and quantify their potential depreciation in the face of the diversity and increased magnitude of the risks.


On the one hand, we measure the empirical depreciation linked to climate risks using an econometric model and, on the other, we estimate their theoretical depreciation using a forward-looking model of their future costs. By comparing these two estimates, we can determine which assets are likely to become stranded assets.


Banks, property insurers, property managers, and public-sector property owners.


Doctor Édouard Civel

Doctor Édouard Civel

Édouard Civel is an economist specialising in sustainable property issues. His research focuses on energy efficiency, low-carbon innovation and environmental pricing. He holds an engineering degree from ESPCI Paris and a Master’s degree in Economics and Financial Engineering from Paris Dauphine University.
Édouard then completed a PhD in economics at the University of Paris Nanterre in partnership with a major industrial group, followed by a post-doctorate at the École Polytechnique. Édouard is also a research associate at the Climate Economics Chair and a lecturer at Sciences Po Paris.

  • Civel, E. and C. De Perthuis (2023). Why we won’t be able to prevent climate breakdown without changing our relationship to the rest of the living world. The Conversation.
  • Civel, E. and E. Raineau. (2023). Prix du carbone, théorie et applications. Économie Urbaine et Environnementale, De Boeck Supérieur, 281–298.
  • Drobinsky, P., et al. (2021). Climate and Environmental Change in the Mediterranean Basin Current Situation and Risks for the Future, Energy chapter, MEDECC Report.
  • Civel, E. (2019) The Red and the Green : Essays on the Economics of Information in the Sustainable Habitat Market. PhD Thesis.


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