Water Economics
Paper Session
Sunday, Jan. 5, 2025 1:00 PM - 3:00 PM (PST)
- Chair: Ishan Nath, Federal Reserve Bank of San Francisco
Dams and Violence in Africa
Abstract
This paper studies the causal relationship between constructing hydropower dams and the incidence of agricultural-output-related conflict and violence in Africa. The presence of hydropower dams reduces precipitation and amplifies droughts in the downstream area, leading to lower output in the agricultural sector. The lower returns from agricultural production diminish the opportunity costs of unproductive activities such as rioting and looting. Using a staggered difference-in-differences framework, we find that the presence of hydropower dams leads to an increase of 1.83 to 2.43 in the annual number of conflicts for downstream areas within 15 km from rivers, and decreases by 0.52 mm to 0.93 mm the annual precipitation for downstream 0.1 degree cells falling within 15 km from rivers. Moreover, heterogeneity exists, and downstream areas with larger cropland cover would face a disproportionate increase in the incidence of output conflicts.Flood Insurance, Disaster Aid, and Economic Recovery after Flood Events in Europe
Abstract
We investigate the role of regulatory rigor on economic recovery dynamics after a flooding event in Europe. We identify four different flood insurance regimes in Europe, ranging from a voluntary private market, semi-voluntary insurance, public-private partnerships, and mandated coverage. Investigating economic recovery utilizing night lights data to measure economic activities, we find evidence that economic recovery is faster when the flooding risk is managed by mandatory insurance compared to an approach with no insurance mandates. Regions with an indirect mandate perform worst after a flooding event with the highest reductions in night light intensity. The findings highlight the effectiveness of a mandatory holistic approach for mitigating flooding risk and offering financial protection particularly in flood prone regions.The impact of reclassification flood insurance on domestic migration
Abstract
In the last decade, the United States has witnessed a surge in billion-dollar non-hurricane inland flooding disasters, surpassing the cumulative occurrences of the past 30 years. With projections from NOAA indicating a potential tripling of high tide flooding frequency by 2030, the urgency to understand and address the implications of these environmental shifts is paramount. This paper explores the complex interplay between environmental hazards, migration dynamics, and self-perception concepts. Long-term environmental degradation not only jeopardizes the livelihoods of affected populations but also undermines their capacity to accumulate essential resources and capital for migration—a crucial adaptation strategy to disperse risks. Focusing on the impact of newly remapped high-risk floodplains, the study investigates whether emerging flood risk signals influence households' decisions to relocate. We use U.S. county-level panel data from 2010 to 2021 and leverage a Staggered Difference-in-Differences (DID) approach to account for variation in treatment timing, our findings reveal a discernible trend: following the reclassification of a county as a high-risk flood zone, a notable increase in migration from the affected area occurs. This research contributes to the broader understanding of the relationship between environmental risk signals and human mobility, shedding light on the intricate factors that drive migration decisions in the face of evolving climate challenges.JEL Classifications
- Q5 - Environmental Economics