RT Journal Article
SR Electronic
T1 Household Sorting as Adaptation to Hurricane Risk in the United States
JF Land Economics
JO Land Econ
FD University of Wisconsin Press
SP 111319-0162R1
DO 10.3368/le.98.2.111319-0162R1
A1 Fan, Qin
A1 Bakkensen, Laura A.
YR 2021
UL http://le.uwpress.org/content/early/2021/11/04/le.98.2.111319-0162R1.abstract
AB We employ a structural model of location choice to estimate household sorting across the U.S. in response to hurricane risk. Using spatially detailed projections of future hurricane energy, we simulate regional population shifts and welfare impacts of hurricane risk-induced migration in 2100. We find heterogeneous responses to hurricane risk for households that vary by number of children, age, educational attainment, and prior exposure to hurricane risk. Under future hurricane risk, although changes are small, we find declines in regional population shares along the hurricane-prone coasts and negative overall welfare impact. However, ignoring the spatial heterogeneity of hurricanes underestimates these impacts.