IDEAS home Printed from https://ideas.repec.org/a/ucp/jaerec/doi10.1086-697168.html
   My bibliography  Save this article

Climate Change, Migration, and Regional Economic Impacts in the United States

Author

Listed:
  • Qin Fan
  • Karen Fisher-Vanden
  • H. Allen Klaiber

Abstract

Recent studies predict that climate change will lead to a redistribution of population across the United States, as people choose to locate in regions less susceptible to extreme climate. However, these studies ignore the fact that migration will be dampened by changes in wage rates and housing prices as a result of migration. In this study, we apply a novel approach of linking a residential sorting model to an interregional computable general equilibrium model of the United States to capture wage and housing price feedbacks to assess the economic impacts of climate-change-induced migration. We find that endogenizing wages significantly dampens migration patterns. However, there are significant positive impacts on gross regional product and consumption in the Northeast, West, and California at the expense of the South and Midwest. In addition, wage effects are found to dominate housing price and climate effects, which results in larger welfare changes.

Suggested Citation

  • Qin Fan & Karen Fisher-Vanden & H. Allen Klaiber, 2018. "Climate Change, Migration, and Regional Economic Impacts in the United States," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 5(3), pages 643-671.
    • Handle: RePEc:ucp:jaerec:doi:10.1086/697168
    DOI: 10.1086/697168
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1086/697168
    Download Restriction: Access to the online full text or PDF requires a subscription.
    File URL: http://dx.doi.org/10.1086/697168
    Download Restriction: Access to the online full text or PDF requires a subscription.
    File URL: https://libkey.io/10.1086/697168?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mark Colas & John M. Morehouse, 2022. "The environmental cost of land‐use restrictions," Quantitative Economics, Econometric Society, vol. 13(1), pages 179-223, January.
    2. Anqi Xu, 2023. "Spatial Patterns and Determinants of Inter-county Migration in California: A Multilevel Gravity Model Approach," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 42(3), pages 1-33, June.
    3. Yongyang Cai, 2020. "The Role of Uncertainty in Controlling Climate Change," Papers 2003.01615, arXiv.org, revised Oct 2020.
    4. Qin Fan & Meri Davlasheridze, 2019. "Economic Impacts Of Migration And Brain Drain After Major Catastrophe: The Case Of Hurricane Katrina," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 10(01), pages 1-21, February.
    5. Johannes Ziesmer, 2024. "Identifying key sectors of sustainable development: A Bayesian framework estimating policy‐impacts in a general equilibrium," Agribusiness, John Wiley & Sons, Ltd., vol. 40(2), pages 458-483, April.
    6. Hua Zhong & Michael H. Taylor & Kimberly S. Rollins & Dale T. Manning & Christopher G. Goemans, 2019. "Who pays for water scarcity? Evaluating the welfare implications of water infrastructure investments for cities," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 63(3), pages 559-600, December.
    7. Zheng, Yi, 2023. "Community resilience and house prices: A machine learning approach," Finance Research Letters, Elsevier, vol. 58(PB).
    8. Dan S. Rickman & Hongbo Wang, 2020. "Whither the American west economy? Natural amenities, mineral resources and nonmetropolitan county growth," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 65(3), pages 673-701, December.
    9. Byungdoo Kim & David L. Kay & Jonathon P. Schuldt, 2021. "Will I have to move because of climate change? Perceived likelihood of weather- or climate-related relocation among the US public," Climatic Change, Springer, vol. 165(1), pages 1-8, March.
    10. Meri Davlasheridze & Qin Fan & Wesley Highfield & Jiaochen Liang, 2021. "Economic impacts of storm surge events: examining state and national ripple effects," Climatic Change, Springer, vol. 166(1), pages 1-20, May.
    11. Bakkensen, Laura A. & Ma, Lala, 2020. "Sorting over flood risk and implications for policy reform," Journal of Environmental Economics and Management, Elsevier, vol. 104(C).
    12. Wibbenmeyer, Matthew & Joiner, Emily & Lennon, Connor & Walls, Margaret A. & Ma, Lala, 2024. "Sorting Over Wildfire Hazard," RFF Working Paper Series 24-05, Resources for the Future.
    13. Sheldon, Tamara L. & Zhan, Crystal, 2022. "The impact of hurricanes and floods on domestic migration," Journal of Environmental Economics and Management, Elsevier, vol. 115(C).
    14. Mavisakalyan, Astghik & Otrachshenko, Vladimir & Popova, Olga, 2024. "Natural Disasters and Acceptance of Intimate Partner Violence: The Global Evidence," IZA Discussion Papers 17172, Institute of Labor Economics (IZA).
    15. Lu, Jiajun, 2020. "Household residential location choice in retirement: The role of climate amenities," Regional Science and Urban Economics, Elsevier, vol. 84(C).
    16. Johannes Ziesmer & Ding Jin & Sneha D Thube & Christian Henning, 2023. "A Dynamic Baseline Calibration Procedure for CGE models," Computational Economics, Springer;Society for Computational Economics, vol. 61(4), pages 1331-1368, April.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ucp:jaerec:doi:10.1086/697168. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Journals Division (email available below). General contact details of provider: https://www.journals.uchicago.edu/JAERE .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.