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Climate Change Adaptation: Lessons from Urban Economics

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  • Matthew E. Kahn

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

  • Matthew E. Kahn, 2014. "Climate Change Adaptation: Lessons from Urban Economics," NBER Working Papers 20716, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:20716
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    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. The Sources of Comparative Advantage
      by Matthew Kahn in Environmental and Urban Economics on 2014-12-31 07:26:00
    2. How Will NYC Adapt to Sea Level Rise?
      by Matthew Kahn in Environmental and Urban Economics on 2015-02-21 21:14:00
    3. Adaptation to India's Heat
      by Matthew Kahn in Environmental and Urban Economics on 2015-06-01 03:31:00
    4. Catastrophic Climate Change? Lessons from Urban Economics
      by Matthew Kahn in Environmental and Urban Economics on 2015-07-31 03:02:00
    5. A New Book on the Risks Caused by Climate Change
      by Matthew Kahn in Environmental and Urban Economics on 2015-08-30 02:26:00
    6. How Does Nature Adapt to Climate Change? A Field Experiment
      by Matthew Kahn in Environmental and Urban Economics on 2015-09-01 21:16:00
    7. Can We Adapt to a Worst Case Scenario? Or Will Don Trump Continue to live in NYC in the Year 2400?
      by Matthew Kahn in Environmental and Urban Economics on 2015-09-12 03:51:00
    8. What is New in Climate Change Economics?
      by Matthew Kahn in Environmental and Urban Economics on 2015-10-11 23:41:00
    9. Three Years After Hurricane Sandy: How is the NYC Metro Area Adapting?
      by Matthew Kahn in Environmental and Urban Economics on 2015-10-28 20:09:00
    10. Climate Change and Economic Growth
      by Matthew Kahn in Environmental and Urban Economics on 2015-12-02 22:05:00
    11. Should Economists Be Making Bold Predictions Out to the Year 2100?
      by Matthew Kahn in Environmental and Urban Economics on 2016-04-05 18:06:00
    12. Comments on the Art of Predicting "Assets at Risk" in the Year 2100
      by Matthew Kahn in Environmental and Urban Economics on 2016-04-10 20:01:00
    13. Why the Clinton Campaign Won't Speak About Carbon Taxes
      by Matthew Kahn in Environmental and Urban Economics on 2016-07-20 20:44:00
    14. Urban Economic Growth Causes Climate Change Adaptation
      by Matthew Kahn in Environmental and Urban Economics on 2016-08-08 21:26:00
    15. How Will Boston Adapt to Climate Change Risk?
      by Matthew Kahn in Environmental and Urban Economics on 2016-12-20 04:40:00
    16. Climatopolis on the Radio
      by Matthew Kahn in Environmental and Urban Economics on 2016-12-24 21:04:00
    17. Will Pollution Increase During Mr. Trump's Presidency?
      by Matthew Kahn in Environmental and Urban Economics on 2017-02-06 21:40:00
    18. Summer School 2017 in Paris
      by Matthew Kahn in Environmental and Urban Economics on 2017-06-21 19:18:00
    19. No Mention of General Equilibrium Effects in The Economist Magazine!
      by Matthew Kahn in Environmental and Urban Economics on 2017-07-13 23:43:00

    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

    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

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