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.

A new report argued Enbridge's plan to build a tunnel for Line 5 between Lake Michigan and Lake Huron is too expensive and unnecessary.

The report from the Institute for Energy Economics and Financial Analysis stated the aging pipeline, which transports crude oil and natural gas liquids from Canada to the U.S., serves fewer customers and is harder to maintain. The report also pointed out the tunnel project will likely cost much more than Enbridge has admitted.

Suzanne Mattei, energy policy analyst at the Institute for Energy Economics and Financial Analysis, was the main author of the report.

"In our report, I would say conservatively, estimated that it would cost at least $500 million before it's through," Mattei reported. "But it could be more. We don't know."

The report noted Enbridge has not publicly confirmed a new cost figure and emphasized Enbridge should reconsider investing in an outdated pipeline, which could prolong the "carbon lock-in" effect, as markets for its products decline.

In 2018, Enbridge estimated the project at $500 million but according to the report, by 2022, the company revealed in a corporate earnings call costs had increased to $750 million and rising. Mattei argued aside from the project's high cost, maintaining the 70-year-old pipeline could present further challenges, despite Enbridge's claim the pipe is in excellent condition based on its assessment.

"How true is that when the underwater dual pipeline had the anchor strike in 2018 and the ship's cable snafu in 2020?" Mattei asked.

Another controversy involving the Line 5 project is the tribal claim of trespass. Some Native American tribes in Michigan and Wisconsin have argued the pipeline threatens their sacred lands and water rights, potentially violating protective treaties.

Dams on the lower Snake River in Washington state are losing water to evaporation at a rapid rate, according to a new study. The reservoirs created by the four lower Snake River dams lose more than 30,000 acre feet of water each year. That's enough water for the household needs of 240,000 people, the Stockholm Environment Institute estimates.

Miles Johnson, legal director of Columbia Riverkeeper, said this is another drawback of the dams.

"This study showed that there is a hidden cost to the existence of the lower Snake River dams, and that's not to take away from any of the other well understood costs of the lower Snake River dams, which are the compromise of tribal treaty rights, impeding salmon recovery," he said.

The reservoirs from the dams have a surface area of about 30,000 acres in total. Columbia Riverkeeper and other organizations are calling for the dams to be removed to ensure the recovery of endangered species like salmon, which also impacts tribal nations. Critics argue that dams are often taken down without the input of nearby communities.

Groups opposed to removing the dams point out that they're important for irrigating farmland in the region. However, Johnson says this hurdle can be overcome.

"We can have those things alongside the services that the lower Snake River dams currently provide if we plan carefully and invest wisely in replacing those services," Johnson explained.

The study also found that the water that's lost to evaporation from the reservoirs each year could grow more than 8,000 acres of apples, or generate $3.7 million in revenue for farms in southeast Washington.

Larger livestock operations can be a thorny issue in rural areas and South Dakota lawmakers are proposing restricting feedlot details with more communities poised to debate the projects.

A Senate bill calls for updating language dealing with concentrated animal feeding operations. A provision tucked inside would bar a key state agency from providing a list to the public of existing operations already issued a permit, unless federal law said it has to be turned over. Local governments seeking information might also encounter difficulty.

Jay Gilbertson, manager of the East Dakota Water Development District, does not view the sites as a big environmental risk but still questions the move.

"It creates an impression that there's something to hide," Gilbertson contended.

The number of concentrated animal feeding operations in South Dakota has swelled to nearly 440. In the U.S., feedlots with large animal herds are under scrutiny over air and water quality concerns. Under the bill, a resident researching environmental effects would have to travel to the state Capitol to secure site records.

The bill's sponsor said it is in response to requests from national media and others seeking specific site details and to protect sensitive information from getting in the hands of "bad actors."

But policy experts tracking the movement noted local organizing is often at the center of opposition to the projects, regardless of whether an out-of-state environmental group is assisting. Gilbertson pointed out the state offers accessible databases for other facilities subject to permits, such as wastewater treatment plants, and large feedlots should not be given extra cover.

"Suddenly, when cows and farmers are involved, if you're interested, you're a terrorist," Gilbertson observed. "I think that's kind of silly."

Gilbertson is referring to the term "agro-terrorism" used by the South Dakota Department of Agriculture and Natural Resources when describing the denial of past records requests. The department noted while it doesn't prefer to share lists of existing operations online or over the phone, the public can access information when a new project is seeking a permit.


get more stories like this via email