Climate Change Adaptation: Lessons from Urban Economics

31 Pages Posted: 1 Dec 2014

See all articles by Matthew E. Kahn

Matthew E. Kahn

University of Southern California; National Bureau of Economic Research (NBER)

Date Written: November 2014

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

Kahn, Matthew E., Climate Change Adaptation: Lessons from Urban Economics (November 2014). NBER Working Paper No. w20716. Available at SSRN: https://ssrn.com/abstract=2532297

Matthew E. Kahn (Contact Author)

University of Southern California ( email )

2250 Alcazar Street
Los Angeles, CA 90089
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
9
Abstract Views
168
PlumX Metrics