Floods & Urban Density

Abstract

This paper examines the effects of floods on urban development dynamics using geolocalized data on the universe of buildings in Spain from 1996 to 2021. We provide empirical evidence that floods foster local urban development and yield taller, more compact urban layouts, attracting populations, increasing property values, and shifting land use away from the agricultural and industrial sectors. We argue that adaptive responses to natural disasters may trigger positive local spillovers strong enough to overcompensate for the flood's destructive nature.

Keywords: Floods, Land Use, Urban Density, Adaptation JEL Classification: Q54, R11, R58

JEL Classification: Q54, R11, R58