Intrinsic and rational speculative bubbles in the U.S. housing market 1960-2011

This paper examines the dynamics of the residential property market in the United States between 1960 and 2011. Given the cyclically and apparent overvaluation of the market over this period, we determine whether deviations of real estate prices from their fundamentals were caused by the existence of two genres of bubbles: intrinsic bubbles and rational speculative bubbles. We find evidence of an intrinsic bubble in the market pre-2000, implying that overreaction to changes in rents contributed to the overvaluation of real estate prices. However, using a regime-switching model, we find evidence of periodically collapsing rational bubbles in the post-2000 market

Tropical Cyclones in a hieararchy of climate models of increasing resolution

Tropical Cyclone (TC) is normally not studied at the individual level with Global Climate Models (GCMs), because the coarse grid spacing is often deemed insufficient for a realistic representation of the basic underlying processes. GCMs are indeed routinely deployed at low resolution, in order to enable sufficiently long integrations, which means that only large-scale TC proxies are diagnosed. A new class of GCMs is emerging, however, which is capable of simulating TC-type vortexes by retaining a horizontal resolution similar to that of operational NWP GCMs; their integration on the latest supercomputers enables the completion of long-term integrations. The UK-Japan Climate Collaboration and the UK-HiGEM projects have developed climate GCMs which can be run routinely for decades (with grid spacing of 60 km) or centuries (with grid spacing of 90 km); when coupled to the ocean GCM, a mesh of 1/3 degrees provides eddy-permitting resolution. The 90 km resolution model has been developed entirely by the UK-HiGEM consortium (together with its 1/3 degree ocean component); the 60 km atmospheric GCM has been developed by UJCC, in collaboration with the Met Office Hadley Centre.

Field study on thermal comfort and adaptive strategies in residential buildings in China

This paper fully describes a nation-wide field study on building thermal environment and thermal comfort of occupant, which was carried out in summer 2005 and in winter 2006 respectively in China, illustrating the adaptive strategies adopted by occupants in domestic buildings in China. According to the climate division in China, the buildings in Beijing (BJ), Shanghai (SH), Wuhan (WH) and Chongqing (CQ), Guangzhou (GZ), Kunming (KM), were selected as targets which are corresponding to cold zone, hot summer and cold winter zone (SWC-SH, WH, CQ), hot summer and warm winter zone and temperate zone, respectively. The methodology used in the field study is the combination of subjective questionnaire regarding thermal sensation and adaptive approaches and physical environmental monitoring including indoor air temperature and relative humidity. A total of 1671 subjects participate in this investigation with more than 80% response rate in all surveyed cities. Both physiological and non-physiological factors (behavioural and psychological adaptations) have been analysed.

Eco-labeling, rents, sales prices and occupancy rates: do LEED and Energy Star labeled offices obtain multiple premiums?

Drawing upon an updated and expanded dataset of Energy Star and LEED labeled commercial offices, this paper investigates the effect of eco-labeling on rental rates, sale prices and occupancy rates. Using OLS and robust regression procedures, hedonic modeling is used to test whether the presence of an eco-label has a significant positive effect on rental rates, sale prices and occupancy rates. The study suggests that estimated coefficients can be sensitive to outlier treatment. For sale prices and occupancy rates, there are notable differences between estimated coefficients for OLS and robust regressions. The results suggest that both Energy Star and LEED offices obtain rental premiums of approximately 3%. A 17% sale price premium is estimated for Energy Star labeled offices but no significant sale price premium is estimated for LEED labeled offices. Surprisingly, no significant occupancy premium is estimated for Energy Star labeled offices and a negative occupancy premium is estimated for LEED labeled offices.

Long run relationships between City office rents and the economy in the UK: creating a database for research

This paper sets out progress during the first eighteen months of doctoral research into the City of London office market. The overall aim of the research is to explore relationships between office rents and the economy in the UK over the last 150 years. To do this, a database of lettings has been created from which a long run index of City office rents can be constructed. With this index, it should then be possible to analyse trends in rents and relationships with their long run determinants. The focus of this paper is on the creation of the rent database. First, it considers the existing secondary sources of long run rental data for the UK. This highlights a lack of information for years prior to 1970 and the need for primary data collection if earlier periods are to be studied. The paper then discusses the selection of the City of London and of the time period chosen for research. After this, it describes how a dataset covering the period 1860-1960 has been assembled using the records of property companies active in the City office market. It is hoped that, if successful, this research will contribute to existing knowledge on the long run characteristics of commercial real estate. In particular, it should add a price dimension (rents) to the existing long run information on stock/supply and investment. Hence, it should enable a more complete picture of the development and performance of commercial real estate through time to be gained.

Marriage value and scarcity in agricultural rents: a discussion of the findings in Childers v Ankers

Formal statutory guidance to arbitrators involved in settling disputes over rents for agricultural holdings is contained in the Agricultural Holdings Act 1986. The particular features of the agricultural letting market raise valuation problems which the Act itself has failed to satisfactorily address, most notably the degree to which marriage value and scarcity should be taken into account. The 1995 Court of Appeal case of Childers v Anker addresses several of the key issues. This paper seeks to explore the findings and practical implications of the case for rental valuers and arbitrators. It argues that sitting tenants may be seriously disadvantaged by the court's judgements, not least by having to pay rents on review which reflect elements of marriage value and possibly scarcity value.

PPG13 and the residential developer

This paper reviews the evidence in favour of the compact city and considers whether it is a viable policy option. Environmentalists, acadenics and politicians have all expressed strong support for the compact city as a basis for sustainable development. A review of the literature broadly confirms the claims made on its behalf, in particular that it is energy efficient and that it plays a crucial role in preventing rural land loss. It is further shown i) that there is nothing inevitable about the established pattern of urban dispersal, and ii) that although urban land is charaterised by a number of contstraints on development,it could in principle satisfy much of the projected demand for housing. Yet urban sprawl continues. Some of the reasons for this in the case of residential development are examined by comparing the residential development process with the principles of sustainable development. The general conclusion of the paper is that proposals for urban containment are likely to be strongly resisted by housebuilders.

The compact city and the residential developer

Although the compact city is widely promoted as a sustainable form of urban development, little attention has been paid to the feasilibity of its implementation in practice. This paper addresses this isse by presenting the findings of a questionnaire study into the viability of the compact city from the perspective of the volume housebuilder. The study shows that, although well aware of the inherent problems witht the compact city, most were generally positive about the need to redirect more development back into urban areas. In addition, they suggested a large number of strategies for change, including i) a role for public sector agencies in overcoming the condstraints on urban sites; ii) the need for an upward reveision of acceptable densities in local plans and design guides; and iii) the creation of a separate, or revised, Use Class Order to enable mixed use development to compete on a level playing field. It is concluded that the residential developer could be engaged in the process of urban containment provided proposals for implementing the compact city of devised. The need for continuing research to test the actual effects of specific schemes is emphasised.

Price-based demand side management: Assessing the impacts of time-of-use tariffs on residential electricity demand and peak shifting in Northern Italy

One of the most common Demand Side Management programs consists of Time-of-Use (TOU) tariffs, where consumers are charged differently depending on the time of the day when they make use of energy services. This paper assesses the impacts of TOU tariffs on a dataset of residential users from the Province of Trento in Northern Italy in terms of changes in electricity demand, price savings, peak load shifting and peak electricity demand at substation level. Findings highlight that TOU tariffs bring about higher average electricity consumption and lower payments by consumers. A significant level of load shifting takes place for morning peaks. However, issues with evening peaks are not resolved. Finally, TOU tariffs lead to increases in electricity demand for substations at peak time.

The role of increasing temperature variability in European summer heatwaves

Instrumental observations1, 2 and reconstructions3, 4 of global and hemispheric temperature evolution reveal a pronounced warming during the past 150 years. One expression of this warming is the observed increase in the occurrence of heatwaves5, 6. Conceptually this increase is understood as a shift of the statistical distribution towards warmer temperatures, while changes in the width of the distribution are often considered small7. Here we show that this framework fails to explain the record-breaking central European summer temperatures in 2003, although it is consistent with observations from previous years. We find that an event like that of summer 2003 is statistically extremely unlikely, even when the observed warming is taken into account. We propose that a regime with an increased variability of temperatures (in addition to increases in mean temperature) may be able to account for summer 2003. To test this proposal, we simulate possible future European climate with a regional climate model in a scenario with increased atmospheric greenhouse-gas concentrations, and find that temperature variability increases by up to 100%, with maximum changes in central and eastern Europe.

A comparative study of the main mechanisms controlling indoor air pollution in residential flats

The relative contribution of the main mechanisms that control indoor air quality in residential flats was examined. Indoor and outdoor concentration measurements of different type pollutants (black carbon, SO2, O3, NO, NO2,) were monitored in three naturally ventilated residential flats in Athens, Greece. At each apartment, experiments were conducted during the cold as well as during the warm period of the year. The controlling parameters of transport and deposition mechanisms were calculated from the experimental data. Deposition rates of the same pollutant differ according to the site (different construction characteristics) and to the measuring period for the same site (variations in relative humidity and differences in furnishing). Differences in the black carbon deposition rates were attributed to different black carbon size distributions. The highest deposition rates were observed for O3 in the residential flats with the older construction and the highest humidity levels. The calculated parameters as well as the measured outdoor concentrations were used as input data of a one-compartment indoor air quality model, and the indoor concentrations, the production, and loss rates of the different pollutants were calculated. The model calculated concentrations are in good agreement with the measured values. Model simulations revealed that the mechanism that mainly affected the change rate of indoor black carbon concentrations was the transport from the outdoor environment, while the removal due to deposition was insignificant. During model simulations, it was also established that that the change rate of SO2 concentrations was governed by the interaction between the transport and the deposition mechanisms while NOX concentrations were mainly controlled through photochemical reactions and the transport from outdoors.