Modeling the interaction between flooding events and economic growth

13322 9 62686 2 171581 document 62686 Modeling the interaction between flooding events and economic growth.pdf application/pdf b952b61d3f0901291045a4ad4b6cbfa7 MD5 3681186 2016-06-28 07:18:38 https://pure.iiasa.ac.at/id/eprint/13322/1/Modeling%20the%20interaction%20between%20flooding%20events%20and%20economic%20growth.pdf 13322 1 1 application/pdf text en public cc_by

Modeling the interaction between flooding events and economic growth.pdf

published 62687 1 171588 document 62687 indexcodes.txt text/x-pascal 1b713d65d3c2729ff37f43963be767da MD5 15693 2016-06-28 07:28:02 https://pure.iiasa.ac.at/id/eprint/13322/2/indexcodes.txt 13322 2 2 text/x-pascal other Generate index codes conversion from text to indexcodes en public

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http://eprints.org/relation/isVersionOf https://pure.iiasa.ac.at/id/document/62686 http://eprints.org/relation/isVolatileVersionOf https://pure.iiasa.ac.at/id/document/62686 http://eprints.org/relation/issmallThumbnailVersionOf https://pure.iiasa.ac.at/id/document/62686 archive 353 disk0/00/01/33/22 2016-06-28 07:24:45 2021-08-27 17:41:14 2016-06-28 07:24:45 article show Grames J. Prskawetz A. 2025 Grass D. Viglione A. Blöschl G. Modeling the interaction between flooding events and economic growth pub prog_pop Flood; Socio-hydrology; Dynamic optimization; Investment strategy Recently socio-hydrology models have been proposed to analyze the interplay of community risk-coping culture, flooding damage and economic growth. These models descriptively explain the feedbacks between socio-economic development and natural disasters such as floods. Complementary to these descriptive models, we develop a dynamic optimization model, where the inter-temporal decision of an economic agent interacts with the hydrological system. We assume a standard macro-economic growth model where agents derive utility from consumption and output depends on physical capital that can be accumulated through investment. To this framework we add the occurrence of flooding events which will destroy part of the capital. We identify two specific periodic long term solutions and denote them rich and poor economies. Whereas rich economies can afford to invest in flood defense and therefore avoid flood damage and develop high living standards, poor economies prefer consumption instead of investing in flood defense capital and end up facing flood damages every time the water level rises like e.g. the Mekong delta. Nevertheless, they manage to sustain at least a low level of physical capital. We identify optimal investment strategies and compare simulations with more frequent, more intense and stochastic high water level events. 2016-09 published Elsevier 10.1016/j.ecolecon.2016.06.014 100 public Ecological Economics 129 193-209 TRUE 09218009 FALSE no info:eu-repo/semantics/article