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Climate Change Adaptation: Lessons from Urban Economics

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  • Kahn, Matthew E.

Abstract

In an urbanizing world economy featuring thousands of cities, households and firms have strong incentives to make locational investments and self protection choices to reduce their exposure to new climate change induced risks. This pursuit of self interest reduces the costs imposed by climate change. This paper develops a dynamic compensating differentials model to explore how the "menu" offered by a system of cities insures us against emerging risks. Insights from urban economics offer a series of testable hypotheses concerning the economic incidence of spatially tied climate change risk.

Suggested Citation

  • Kahn, Matthew E., 2015. "Climate Change Adaptation: Lessons from Urban Economics," Strategic Behavior and the Environment, now publishers, vol. 5(1), pages 1-30, June.
  • Handle: RePEc:now:jnlsbe:102.00000055
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    Full references (including those not matched with items on IDEAS)

    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Forecasting and Adapting to Climate Change Fire Risk
      by Matthew Kahn in Environmental and Urban Economics on 2015-09-09 18:18:00
    2. Calm and Sensible Climate Adaptation Discussion in the NY Times
      by Matthew Kahn in Environmental and Urban Economics on 2015-11-04 20:49:00
    3. Adapting to St. Louis Flood Risk
      by Matthew Kahn in Environmental and Urban Economics on 2016-01-01 22:15:00
    4. The New Economics of Coastal City Adaptation to Climate Change
      by Matthew Kahn in Environmental and Urban Economics on 2016-01-21 03:56:00
    5. Marty Weitzman on Climate Change Economics
      by Matthew Kahn in Environmental and Urban Economics on 2016-02-13 09:52:00
    6. Nick Stern's Recent Science Piece on the Social Cost of Carbon
      by Matthew Kahn in Environmental and Urban Economics on 2016-02-26 03:45:00
    7. American Weather: Household Demand and Mother Nature's Changing "Supply"
      by Matthew Kahn in Environmental and Urban Economics on 2016-04-22 02:13:00
    8. Partisan Climate Politics Continues
      by Matthew Kahn in Environmental and Urban Economics on 2016-05-28 00:51:00
    9. Singapore Offers a Preview of Our Future Adaptation to the Heat
      by Matthew Kahn in Environmental and Urban Economics on 2016-06-09 20:59:00
    10. Creatures Adapt to Climate Change by Migrating
      by Matthew Kahn in Environmental and Urban Economics on 2016-06-15 20:42:00
    11. Can NYC Handle the Heat?
      by Matthew Kahn in Environmental and Urban Economics on 2016-07-29 20:02:00
    12. President-Elect Trump Will Address the Climate Change Adaptation Challenge
      by Matthew Kahn in Environmental and Urban Economics on 2016-11-10 09:52:00
    13. Some Comments on Nordhaus (2016)
      by Matthew Kahn in Environmental and Urban Economics on 2017-01-31 20:51:00
    14. Will Pollution Increase During Mr. Trump's Presidency?
      by Matthew Kahn in Environmental and Urban Economics on 2017-02-06 21:40:00
    15. How Do Environmental Economists Know that the Social Cost of Carbon is $42 a Ton?
      by Matthew Kahn in Environmental and Urban Economics on 2017-02-19 23:43:00
    16. Should Hollywood Make More Movies About Climate Change?
      by Matthew Kahn in Environmental and Urban Economics on 2017-04-29 09:01:00
    17. A Quick Economic Evaluation of Jim Hansen's Predictions About Our Urban Future
      by Matthew Kahn in Environmental and Urban Economics on 2017-07-15 18:34:00
    18. Sane Discussion of Disaster Adaptation in the NY Times
      by Matthew Kahn in Environmental and Urban Economics on 2017-09-30 22:55:00

    Citations

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    Cited by:

    1. Mark C. Freeman & Ben Groom & Richard Zeckhauser, 2015. "Better Predictions, Better Allocations: Scientific Advances and Adaptation to Climate Change," NBER Working Papers 21463, National Bureau of Economic Research, Inc.
    2. Matthew E. Kahn, 2015. "A Review of The Age of Sustainable Development by Jeffrey Sachs," Journal of Economic Literature, American Economic Association, vol. 53(3), pages 654-666, September.
    3. repec:aea:aecrev:v:107:y:2017:i:5:p:451-55 is not listed on IDEAS
    4. Mark D. Partridge & Bo Feng & Mark Rembert, 2017. "Improving Climate-Change Modeling of US Migration," American Economic Review, American Economic Association, vol. 107(5), pages 451-455, May.

    More about this item

    Keywords

    climate change adaptation; cities; competition;

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • P25 - Economic Systems - - Socialist Systems and Transition Economies - - - Urban, Rural, and Regional Economics

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