Coastal communities and climate change : a dynamic model of risk perception, storms, and adaptation

[摘要] (cont.) Boundedly rational investors and residents perceive storm risk to be higher immediately after a storm event, which can drive down investment, decrease economic 3 growth, and increase economic recovery time, proving that previous studies provide overly optimistic economic predictions. Rationality assumptions are shown to change economic growth and recovery time estimates. Including stochastic storms and variable rationality assumptions will improve adaptation research and, therefore, coastal adaptation and climate change policies.

[发布机构] Massachusetts Institute of Technology