Sustainable Development Seminar: Allan Hsiao (Princeton)


Past Event

Sustainable Development Seminar: Allan Hsiao (Princeton)

February 20, 2023
4:10 PM - 5:40 PM
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801 IAB

Speaker: Allan Hsiao

Title: Sea Level Rise and Urban Adaptation in Jakarta

Abstract: Sea level rise poses an existential threat to Jakarta, which faces frequent and wors- ening flooding. The government has responded with a proposed sea wall. In this setting, I study how government intervention complicates long-run adaptation to cli- mate change. I show that government intervention creates coastal moral hazard, and 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.