Sea Level Rise and Urban Adaptation in Jakarta
Sea level rise poses an existential threat to Jakarta, which faces frequent and worsening flooding. The government has responded with a proposed sea wall. In this setting, I study how government intervention complicates long-run adaptation by creating coastal moral hazard. I quantify this force with a dynamic spatial model in which developers and residents act with flood risk in mind. I find that moral hazard generates severe lock-in and limits migration inland, even over the long run. Inland incentive policies reduce this friction.
Date: 25 October 2023, 12:30 (Wednesday, 3rd week, Michaelmas 2023)
Venue: Manor Road Building, Manor Road OX1 3UQ
Venue Details: Lecture Theatre
Speaker: Allan Hsiao (Princeton University)
Organising department: Department of Economics
Organisers: Alison Andrew (University of Oxford), Dennis Egger (University of Oxford), Niclas Moneke (University of Oxford)
Organiser contact email address:
Part of: CSAE Lunchtime Seminars
Booking required?: Not required
Audience: Public
Editors: Suzanne George, Fiona Morsia, Claire Goode