Climate Change

While there are many points of view regarding policy responses to climate change, there is almost universal agreement that climate change is real, that the planet was in a warming trend throughout the 20th century (see here). Furthermore, warming is likely to well into the 21st century. Carbon emissions policy is likely to impact the severity of the warming, but some warming is likely to occur under all scenarios (see Table 3.1 of the IPCC 2007 report, here).

The impact of global warming is likely to vary by region. While it is difficult to predict how much warming will occur in specific locations, one can make generalizations about whether such warming is likely to be helpful or hurtful. From an agricultural perspective, a study by the U.S. Department of Agriculture (see here) puts it bluntly: "In general, this study finds that climate change favors northern areas." From a forestry perspective, a Pew Center study (see here) concludes: "Northern states may gain from climate change if productivity increases and if southern species move North, while southern states may lose production." Global warming is likely to affect a wide range of other areas, with winners (town snow removal budgets, and lobstermen) and losers (snowplowing contractors). There is also the potential for winners and losers in different property types; one analysis speaks of a coming "dramatic drop in coastal property values" as a result of global warming and the attendant rising sea levels.

All of this should have an impact on the property investment decisions of farsighted buyers. Forest Green Properties focuses on properties in the northern United States (especially New York and Maine), and avoids waterfront property. Climate change is one of the reasons for this.