Sea Level Rise and Urban Adaptation in Jakarta

Feb 27, 2023, 12:15 pm1:15 pm
300 Wallace Hall
  • Center for Policy Research on Energy and the Environment
  • High Meadows Environmental Institute
  • Griswold Center for Economic Policy Studies
  • Department of Economics
  • Andlinger Center for Energy and the Environment
In-person attendance for Princeton University ID holders and invited guests; Livestream open to the public on MediaCentral.
Event Description

Abstract: Sea level rise poses an existential threat to Jakarta, which faces frequent and worsening flooding. The government has responded with a proposed sea wall. In this setting, I study how government intervention complicates long-run adaptation to climate change. I show that government intervention creates coastal moral hazard, and I quantify this force with a dynamic spatial model in which developers and residents act with flood risk in mind. I find that moral hazard generates severe lock-in and limits migration inland, even over the long run.

Link to working paper: