2024/12/30 by Clare Balboni · 1 voice · 1 citation
Economics, Econometrics and Finance · Environmental Science · #Coastal and Marine Management #Economic Zones and Regional Development #Regional Economics and Spatial Analysis
paper · doi:10.1257/aer.20191943
openalex publication_date 2024/12/30 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/22
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. (JEL H54, O18, P25, Q54, R11, R42, R58)