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Modeling equilibrium responses to climate-induced migration

Author

Listed:
  • Jared C. Carbone

    (Department of Economics and Business, Colorado School of Mines)

  • Sul-Ki Lee

    (Korean Institute for Industrial Economics and Trade)

  • Yuzhou Shen

    (Department of Economics and Business, Colorado School of Mines)

Abstract

We construct a quantitative model to simulate the impacts of climate change on U.S. domestic migration patterns. The model consists of an equilibrium framework for modeling counterfactual migration responses and their implications for regional welfare, prices and populations. The model's parameters are estimated using an econometric, locational sorting model, the structural equations of which are a key component of the equilibrium framework. The econometric model is estimated from demographically rich data from the U.S. Census. The parismonious structure of the equilibrium model allows us to incorporate much of this demographic richness in the simulation of the predicted migration flows.

Suggested Citation

  • Jared C. Carbone & Sul-Ki Lee & Yuzhou Shen, 2022. "Modeling equilibrium responses to climate-induced migration," Working Papers 2022-01, Colorado School of Mines, Division of Economics and Business.
    • Handle: RePEc:mns:wpaper:wp202201
    as

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    File URL: http://econbus-papers.mines.edu/working-papers/wp202201.pdf
    File Function: First version, 2022
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    References listed on IDEAS

    as
    1. Albert Saiz, 2010. "The Geographic Determinants of Housing Supply," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 125(3), pages 1253-1296.
    2. Jared C. Carbone & Sul-Ki Lee & Yuzhou Shen, 2021. "U.S. Household Preferences For Climate Amenities: Demographic Analysis And Robustness Testing," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 12(01), pages 1-33, February.
    3. David Albouy & Walter Graf & Ryan Kellogg & Hendrik Wolff, 2016. "Climate Amenities, Climate Change, and American Quality of Life," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 3(1), pages 205-246.
    4. Sinha, Paramita & Caulkins, Martha L. & Cropper, Maureen L., 2018. "Household location decisions and the value of climate amenities," Journal of Environmental Economics and Management, Elsevier, vol. 92(C), pages 608-637.
    5. Qin Fan & H. Allen Klaiber & Karen Fisher-Vanden, 2016. "Does Extreme Weather Drive Interregional Brain Drain in the U.S.? Evidence from a Sorting Model," Land Economics, University of Wisconsin Press, vol. 92(2), pages 363-388.
    6. John Kennan & James R. Walker, 2011. "The Effect of Expected Income on Individual Migration Decisions," Econometrica, Econometric Society, vol. 79(1), pages 211-251, January.
    7. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
    8. Phaneuf, Daniel J. & Carbone, Jared C. & Herriges, Joseph A., 2009. "Non-price equilibria for non-marketed goods," Journal of Environmental Economics and Management, Elsevier, vol. 57(1), pages 45-64, January.
    9. Roback, Jennifer, 1982. "Wages, Rents, and the Quality of Life," Journal of Political Economy, University of Chicago Press, vol. 90(6), pages 1257-1278, December.
    10. Rebecca Diamond, 2016. "The Determinants and Welfare Implications of US Workers' Diverging Location Choices by Skill: 1980-2000," American Economic Review, American Economic Association, vol. 106(3), pages 479-524, March.
    11. Bayer, Patrick & Keohane, Nathaniel & Timmins, Christopher, 2009. "Migration and hedonic valuation: The case of air quality," Journal of Environmental Economics and Management, Elsevier, vol. 58(1), pages 1-14, July.
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    Cited by:

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    Keywords

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    JEL classification:

    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies

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