In harm's way? Infrastructure investments and the persistence of coastal cities

Balboni, Clare ORCID: 0009-0002-5088-5532 (2025) In harm's way? Infrastructure investments and the persistence of coastal cities. American Economic Review, 115 (1). 77 – 116. ISSN 0002-8282

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Abstract

Coasts contain a disproportionate share of the world's population, reflecting historical advantages, but environmental change threatens a reversal of coastal fortune in the coming decades as natural disasters intensify and sea levels rise. This paper considers whether large infrastructure investments should continue to favor coastal areas. I estimate a dynamic spatial equilibrium framework using detailed geo-referenced data on road investments in Vietnam from 2000 to 2010 and find evidence that coastal favoritism has significant costs. The results highlight the importance of accounting for the dynamic effects of environmental change in deciding where to allocate infrastructure today.

Item Type:	Article
Additional Information:	© 2025 American Economic Association
Divisions:	Economics
Subjects:	H Social Sciences > HC Economic History and Conditions
JEL classification:	J - Labor and Demographic Economics > J6 - Mobility, Unemployment, and Vacancies > J61 - Geographic Labor Mobility; Immigrant Workers O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O18 - Regional, Urban, and Rural Analyses O - Economic Development, Technological Change, and Growth > O5 - Economywide Country Studies > O53 - Asia including Middle East Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q5 - Environmental Economics > Q54 - Climate; Natural Disasters R - Urban, Rural, and Regional Economics > R1 - General Regional Economics > R11 - Regional Economic Activity: Growth, Development, and Changes R - Urban, Rural, and Regional Economics > R1 - General Regional Economics > R12 - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade R - Urban, Rural, and Regional Economics > R1 - General Regional Economics > R13 - General Equilibrium and Welfare Economic Analysis of Regional Economies R - Urban, Rural, and Regional Economics > R4 - Transportation Systems > R42 - Government and Private Investment Analysis
Date Deposited:	12 Dec 2024 15:00
Last Modified:	16 Jan 2025 09:06
URI:	http://eprints.lse.ac.uk/id/eprint/126336

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