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Confronting climate change: Adaptation vs. migration in Small Island Developing States

Author

Listed:
  • Lesly Cassin

    (UP1 - Université Paris 1 Panthéon-Sorbonne)

  • Paolo Melindi-Ghidi

    (EconomiX - EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique, AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique)

  • Fabien Prieur

    (CEE-M - Centre d'Economie de l'Environnement - Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - UM - Université de Montpellier)

Abstract

This paper examines the adaptation policy of Small Island Developing States (SIDS) facing climate change. We consider a dynamic economy with the following ingredients: (i) natural capital is an input in local production that is degraded as a result of climate change; (ii) the government has two instruments to cope with climate-related damages: it can adjust the population size thanks to migration policies and/or it can undertake adaptation measures in order to slow the degradation of natural assets; (iii) expatriates send remittances back home. We identify two critical conditions on the fundamentals of the economy that helps understand the features of the optimal policy. We especially show that in most situations, the migration policy is a valuable instrument. Calibrating the model for Caribbean SIDS, we find that the optimal policy of the Caribbean region displays heterogeneity, that is explained by the different degradation rate, population size, and endowment in natural capital. We also highlight that the higher the climate damages, the higher the incentives to conduct an active adaptation policy, combining conventional adaptation actions and migration..

Suggested Citation

  • Lesly Cassin & Paolo Melindi-Ghidi & Fabien Prieur, 2022. "Confronting climate change: Adaptation vs. migration in Small Island Developing States," Post-Print hal-03641883, HAL.
    • Handle: RePEc:hal:journl:hal-03641883
    DOI: 10.1016/j.reseneeco.2022.101301
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    Cited by:

    1. Francesca Battistelli & Ambra Messina & Laura Tomassetti & Cassandra Montiroli & Eros Manzo & Marco Torre & Patrizio Tratzi & Marco Segreto & Chen-Yeon Chu & Valerio Paolini & Alessandro Corsini & Fra, 2023. "Assessment of Energy, Mobility, Waste, and Water Management on Italian Small Islands," Sustainability, MDPI, vol. 15(15), pages 1-25, July.
    2. Desmond Oklikah Ofori & Elmond Bandauko & Senanu Kwasi Kutor & Amanda Odoi & Akosua Boahemaa Asare & Thelma Akyea & Godwin Arku, 2023. "A Systematic Review of International and Internal Climate-Induced Migration in Africa," Sustainability, MDPI, vol. 15(22), pages 1-18, November.

    More about this item

    Keywords

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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
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

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