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Flooded cities

Author

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  • Kocornik-Mina, Adriana
  • McDermott, Thomas K.J.
  • Michaels, Guy
  • Rauch, Ferdinand

Abstract

Does economic activity move away from areas that are at high risk of recurring shocks? We examine this question in the context of floods, which displaced more than 650 million people worldwide in the last 35 years. We study large urban floods using spatially detailed inundation maps and night lights data spanning the globe's cities. We find that low-elevation urban areas are flooded more frequently, and yet they concentrate more economic activity per square kilometer. When cities are flooded, low-elevation areas recover as rapidly as those higher up. With the exception of recently populated urban areas, we find little permanent movement of economic activity in response to floods.

Suggested Citation

  • Kocornik-Mina, Adriana & McDermott, Thomas K.J. & Michaels, Guy & Rauch, Ferdinand, 2020. "Flooded cities," LSE Research Online Documents on Economics 100031, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:100031
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    8. Jing Xiao & Ron Boschma & Martin Andersson, 2018. "Resilience in the European Union: the effect of the 2008 crisis on the ability of regions in Europe to develop new industrial specializations," Industrial and Corporate Change, Oxford University Press, vol. 27(1), pages 15-47.
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    11. Sally Owen & Ilan Noy & Jacob Pástor-Paz & David Fleming, 2019. "EQC and extreme weather events (part 2): Measuring the impact of insurance on New Zealand landslip, storm and flood recovery using nightlights," Working Papers 19_19, Motu Economic and Public Policy Research.
    12. John Gibson & Susan Olivia & Geua Boe‐Gibson, 2020. "Night Lights In Economics: Sources And Uses," Journal of Economic Surveys, Wiley Blackwell, vol. 34(5), pages 955-980, December.
    13. Indaco, Agustín & Ortega, Francesc & Taspinar, Süleyman, 2019. "Hurricanes, Flood Risk and the Economic Adaptation of Businesses," IZA Discussion Papers 12474, Institute of Labor Economics (IZA).
    14. Castells-Quintana, David & del Pilar Lopez-Uribe, Maria & McDermott, Thomas K.J., 2018. "A review of adaptation to climate change through a development economics lens," Working Papers 309605, National University of Ireland, Galway, Socio-Economic Marine Research Unit.
    15. Jason Barr & Jeffrey P. Cohen & Eon Kim, 2017. "Storm Surges, Informational Shocks, and the Price of Urban Real Estate:An Application to the Case of Hurricane Sandy," Working Papers Rutgers University, Newark 2017-002, Department of Economics, Rutgers University, Newark.
    16. McDermott, T.K.J. & Surminski, S., 2018. "Normative interpretations of climate risk assessment and how it affects local decision making – a study at the city scale in Cork, Ireland," Working Papers 309607, National University of Ireland, Galway, Socio-Economic Marine Research Unit.
    17. Melissa Chow & Jordan Stanley, 2020. "A Shore Thing: Post-Hurricane Outcomes for Businesses in Coastal Areas," Working Papers 20-27, Center for Economic Studies, U.S. Census Bureau.
    18. John Gibson & Susan Olivia & Geua Boe-Gibson, 2019. "A Test of DMPS and VIIRS Night Lights Data for Estimating GDP and Spatial Inequality for Rural and Urban Areas," Working Papers in Economics 19/11, University of Waikato.
    19. Chalal, Moulay Larbi & Benachir, Medjdoub & White, Michael & Shrahily, Raid, 2016. "Energy planning and forecasting approaches for supporting physical improvement strategies in the building sector: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 64(C), pages 761-776.
    20. Ortega, Francesc & Taṣpınar, Süleyman, 2018. "Rising sea levels and sinking property values: Hurricane Sandy and New York’s housing market," Journal of Urban Economics, Elsevier, vol. 106(C), pages 81-100.
    21. Areendam Chanda & Dachao Ruan, 2017. "Early Urbanization and the Persistence of Regional Disparities within Countries," Departmental Working Papers 2017-01, Department of Economics, Louisiana State University.
    22. Thomas Steinwachs, 2019. "Eine Frage der Geographie: Räumliche Dimensionen von Handel, Migration und Wachstum," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 81, November.
    23. Indaco, Agustín, 2020. "From twitter to GDP: Estimating economic activity from social media," Regional Science and Urban Economics, Elsevier, vol. 85(C).

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    More about this item

    Keywords

    Urbanization; Flooding; Climate change; Urban recovery;
    All these keywords.

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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