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The income consequences of a managed retreat

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  • Hoang, Thoa
  • Noy, Ilan

Abstract

Managed retreat is the relocation of households out of harm's way. After the 2011 Christchurch (New Zealand) earthquake, around 16000 people were thus relocated in a managed retreat program. We use administrative panel data (2004–2018) to identify the effects of this managed retreat on the relocated population. We find that, compared to the non-relocated residents, the relocated population experienced a significant initial decrease in their wages, and in their total income. Wages of those who were relocated were reduced by around $NZ 1900. Women faced greater absolute and relative decreases in wages. This finding has direct implications for the compensation packages that should be proposed for managed retreat programs.

Suggested Citation

  • Hoang, Thoa & Noy, Ilan, 2023. "The income consequences of a managed retreat," Regional Science and Urban Economics, Elsevier, vol. 100(C).
    • Handle: RePEc:eee:regeco:v:100:y:2023:i:c:s0166046223000315
    DOI: 10.1016/j.regsciurbeco.2023.103896
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    More about this item

    Keywords

    Climate change adaptation; Managed retreat; Income; Displacement;
    All these keywords.

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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