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Effects of Sea Level Rise on Economy of the United States

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  • Monika Novackova
  • Richard S. J. Tol

Abstract

We report the first ex post study of the economic impact of sea level rise. We apply two econometric approaches to estimate the past effects of sea level rise on the economy of the USA, viz. Barro type growth regressions adjusted for spatial patterns and a matching estimator. Unit of analysis is 3063 counties of the USA. We fit growth regressions for 13 time periods and we estimated numerous varieties and robustness tests for both growth regressions and matching estimator. Although there is some evidence that sea level rise has a positive effect on economic growth, in most specifications the estimated effects are insignificant. We therefore conclude that there is no stable, significant effect of sea level rise on economic growth. This finding contradicts previous ex ante studies.

Suggested Citation

  • Monika Novackova & Richard S. J. Tol, 2016. "Effects of Sea Level Rise on Economy of the United States," Papers 1607.06247, arXiv.org.
    • Handle: RePEc:arx:papers:1607.06247
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    3. Dorian Kessler, 2020. "Economic Gender Equality and the Decline of Alimony in Switzerland," Journal of Empirical Legal Studies, John Wiley & Sons, vol. 17(3), pages 493-518, September.

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    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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