Katrin Millock

PSE Professor and Scientific Director of the Summer School

CV IN ENGLISH
Website RePEc page
  • Senior Researcher
  • CNRS
Research groups
  • Associate researcher at the Economics of International Migration Chair.
Research themes
  • Climate Change Economics
  • Energy Transition
  • Environmental Economics & Natural resources in developing countries
  • Green Taxation
  • Trade/Migration and development
Contact

Address :48 Boulevard Jourdan,
75014 Paris, France

Campus: Campus Jourdan
Floor: 4
Office: 20
Declaration of interest
See the declaration of interest

Tabs

 

 Recent publications

 

 

IDEAS/RePEc

Google Scholar

 

Current  PhD students:

Lucile Dehouck

Thomas Bézy (co-advisor: Lucas Chancel)

Beatriz Hernández Melián

 

Special Issues

“Editorial: Economics of the Environment in the Shadow of Corona Virus“, Environmental and Resource Economics 76(4), 519-523, August 2020 (with Ian Bateman, Astrid Dannenberg, Robert Elliott, Michael Finus, Phoebe Koundouri, Alistair Munro, Elizabeth Robinson, Daniel Rondeau, Ingmar Schumacher, Eric Strobl and Anastasios Xepapadeas).

 

“Climate Change Mitigation and Adaptation in Developing and Transition Countries: Introduction to the special issue“, Environment and Development Economics 20(4), 425-433, August 2015 (with Johanna Choumert and Pascale Combes Motel).

 

Selected Refereed Journal Articles

 

Survey Articles

  • “La taxation énergie-climat en Suède”. Droit de l’Environnement, Numéro spécial Les Entretiens du Conseil d’Etat : La fiscalité environnementale, n° 175 janvier 2010.
  • “Environmental Taxes: A Comparison of French and Swedish Experience from Taxes on Industrial Air Pollution”. CESifo DICE Report – Journal for Institutional Comparisons 2(1), 30-34, Spring 2004 (with Céline Nauges and Thomas Sterner).

 

Selected Book Chapters

  • “The Clean Development Mechanism”, In Encyclopedia of Energy, Natural Resource, and Environmental Economics, 2ndEdition, edited by Tommy Lundgren, Mariah Bostian, and Shunsuke Managi, Elsevier 2024, forthcoming (with Hélène Ollivier). Revision of invited contribution to Encyclopedia of Energy, Natural Resource and Environmental Economics, edited by Jason Shogren, Elsevier, 2013, pp. 15-21.
  • “Climate and Migration”, In Climate and Development, edited by A. Markandya and D. Rübbelke, World Scientific, 2021, pp. 309-349. https://doi.org/10.1142/9789811240553_0010 (with C. Withagen).

  • “Les migrations induites par le changement climatique: une stratégie inévitable?” In Penser le Changement Climatique, edited by J.-M. Bonnisseau, A. Mandel, Y. Toma and F.G. Trébulle, Publications de la Sorbonne, 2015, pp. 85-87.

  • Greening Household Behaviour: the Role of Public Policy, OECD Publishing, 2011. Co-author with O. Beaumais, A. Briand and C. Nauges of one of the technical reports that served as main input.
  • “The Danish Agreements on Industrial Energy Efficiency”, In R. D. Morgenstern and W. A. Pizer, Reality Check: The Nature and Performance of Voluntary Environmental Programs in the United States, Europe and Japan, RFF Press, 2007, pp. 86-104 (with Signe Krarup).
  • “NOx Emissions in France and Sweden: Advanced Fee Schemes versus Regulation”, In Choosing Environmental Policy: Comparing Instruments and Outcomes in the United States and Europe, edited by W. Harrington, R.D. Morgenstern and T. Sterner, RFF Press, 2004, pp. 117-132 (with Thomas Sterner).

 

Unpublished working papers 

  • What are Households Willing to Pay for Better Tap Water Quality? A Cross-Country Valuation Study (with Olivier Beaumais, Anne Briand and Céline Nauges). FEEM Working Paper 24.2014

 

Selected works

Liste complète des publications

 

 

 PAST GRANT-FINANCED RESEARCH:

 

“Flood risk and information policy“, Paris School of Economics seed grant,

with Edwige Dubos-Paillard and Emmanuelle Lavaine.

 

Participant in the GREEN-WIN project, financed by the European Commission Horizon 2020 Programme (PI for PSE: Antoine Mandel), 2015-2018.

Related publication (own publications only):

“Accelerating Diffusion of Climate-Friendly Technologies: A Network Approach” (with Solmaria Halleck Vega and Antoine Mandel), Ecological Economics 152, 235-245, 2018.

 

“Household Behaviour and Environmental Policy”, OECD, 2012-2013.

Related publications:

“Greening Household Behaviour and Food”, OECD Environment Working Papers No. 75, OECD Publishing 2014.

“Household Behaviour and Food Consumption”, In Greening Household Behaviour: Overview from the 2011 Survey, OECD Studies on Environmental Policy and Household Behaviour, OECD Publishing, 2013, pp. 183-217 (with Céline Nauges).

 

“Migration and Environment”, ANR (The French National Research Agency: contract ANR-09-JCJC-0127 ), Principal Investigator,

with Denis Claude, Fabio Mariani, Mathilde Maurel, Eric Strobl and Marie-Anne Valfort, 2010-2013.

Related publications (own publications only):

“Migration and Environment“, Annual Review of Resource Economics 7, 35-60, 2015.

“Climate Variability and Inter-State Migration in India“, CESifo Economic Studies 63(4), 560-594, 2017 (with Ingrid Dallmann).

“Migration as an Adaptation Strategy to Weather Variability: An Instrumental Variables Probit Analysis”, with Yonas Alem and Mathilde Maurel. In Adaptation to Climate Change in Sub Saharan Africa, edited by P. Berck and S. Di Falco, Environment for Development and RFF Press, 2018.

 

“Etude relative à la comparaison d’instruments économiques en vue de réduire les émissions de NOx et de SO2 – Comparison of Economic Instruments to Reduce NOx and SO2 Emissions”, Final Report prepared for the French Ministry of Environment, 157 p.

(with SOGREAH, Adamas and LERNA), December 2010.

 

“Analyse des déterminants des émissions atmosphériques d’oxydes d’azote et des facteurs d’investissement en dépollution dans le secteur de la cimenterie en France – An Analysis of the Determinants of Atmospheric NOx Emissions and Abatement Investments in the French Cement Industry”, Final Report prepared for INERIS

(with Céline Nauges and Alban Thomas), February 2010.

 

“Household Behaviour and Environmental Policy”, OECD

 (PI for the CNRS, with LERNA and University of Rouen), 2008-2009.

Related publications:

“What are Households Willing to Pay for Better Tap Water Quality? A Cross-Country Valuation Study”, FEEM Working Paper 24.2014 (with Olivier Beaumais, Anne Briand and Céline Nauges). 

“Household Adoption of Water-Efficient Equipment: The Role of Socio-economic Factors, Environmental Attitudes and Policy”, Environmental and Resource Economics 46(4), 539-565, 2010 (with Céline Nauges).

Greening Household Behaviour: the Role of Public Policy, OECD Publishing, 2011. Co-author with O. Beaumais, A. Briand and C. Nauges of one of the technical reports that served as main input.

 

“Régulation de la pollution atmosphérique : Analyse théorique des instruments économiques et expériences empiriques comparées”, Aide à Projet Nouveau, CNRS, France

(Principal Investigator, with CIRED, INERIS, LERNA and Gothenburg University), 2001-2003.

Related publications:

“Ex Post Evaluation of an Earmarked Tax on Air Pollution”, Land Economics 82(1), 68-84, 2006 (with Céline Nauges).

“Environmental Taxes: A Comparison of French and Swedish Experience from Taxes on Industrial Air Pollution”. CESifo DICE Report – Journal for Institutional Comparisons 2(1), 30-34, Spring 2004 (with Céline Nauges and Thomas Sterner).

“NOx Emissions in France and Sweden: Advanced Fee Schemes versus Regulation”, In Choosing Environmental Policy: Comparing Instruments and Outcomes in the United States and Europe, edited by W. Harrington, R.D. Morgenstern and T. Sterner, RFF Press, 2004, pp. 117-132 (with Thomas Sterner).

 

“Consumer Demand for Organic Foods: Domestic and Foreign Market Perspectives”, financed by the Danish Agricultural Research Center for Organic Farming – DARCOF

(with AKF and the University of Copenhagen, Principal Investigator: Mette Wier), 2000-2004.

Related publications:

“The Character of Demand in Mature Organic Food Markets: Great Britain and Denmark Compared”, Food Policy 33(5), 406-421, 2008 (with Mette Wier, Katherine O’Doherty Jensen and Laura M. Andersen).

“Information Provision, Consumer Perceptions and Values – the Case of Organic Foods”, In Environment, Information and Consumer Behaviour, edited by C. Russell and S. Krarup, New Horizons in Environmental Economics series, Edward Elgar, 2005, pp. 161-178 (with Mette Wier and Laura M. Andersen).

“Consumer Preferences for Organic Foods”, In Organic Agriculture: Sustainability, Markets and Policies, OECD and CABI Publishing, 2003, pp. 257-271 (with Mette Wier, Lars G. Hansen and Laura M. Andersen).

TEACHING:

Climate change economics, PSE Summer School, 2018 – present.

 

Advanced Environmental Economics (with Mouez Fodha), M2 APE, Paris School of Economics 2016 – present.

 

Environmental Economics, Ecole Polytechnique, 2020 – present.

 

Natural Resource Economics, Master in Environmental Policy, PSIA-SciencesPo, 2014 – 2018.

Environmental Economics, Master in Environmental Policy, PSIA-SciencesPo, 2023 – present.

 

I organised the environmental economics PhD workshop of Paris School of Economics and Université Paris 1 Panthéon-Sorbonne, from the academic year 2010/11 to 2015/16.

Flood risk policy and impacts

 

  • Flood risk information release: Evidence from housing markets around Paris

    (with Edwige Dubos-Paillard and Emmanuelle Lavaine)

    Annals of Economics and Statistics 156, 67-114, 2024.

    The article estimates flood risk perceptions by exploiting the different release dates of flood risk information around Paris from 2003 to 2012, a period characterised by the absence of significant floods since 1955, making flood risk less salient. We apply a stacked event study to detailed property transaction data combined with geo-localised amenities. The results show that transaction prices for similar properties are 3-7% lower following the release of information if they are located in a flood risk zone, and that the effect persists, at least over the period we analyse. The results are robust to varying the control group to a neighbourhood at different distances from the flood risk boundary. The effect is more negative for flats on the ground floor. We find no evidence of sorting among buyers along different characteristics, in particular based on past exposure to flooding in their previous municipality. The results indicate a significant effect of flood risk information in a context where we can isolate it from the financial consequences of insurance cover and from flood damage per se.

     

  • Flood risk and residential mobility in France

    (with Christine Le Thi and Julie Sixou)

The evidence on whether people adapt to climate extreme events by moving out of vulnerable areas is currently mixed. In this article, we analyse residential mobility following floods using comprehensive French data.

 

Climate-induced migration

Climate variability has the potential to affect both international and internal migration profoundly. Earlier work finds that higher temperatures reduce agricultural yields, which in turn reduces migration rates in low-income countries, due to liquidity constraints. We test whether access to irrigation modulates this temperature–migration relationship, since irrigation buffers agricultural incomes from high temperatures. We regress measures of international and internal migration on decadal averages of temperature and rainfall, interacted with country-level data on irrigation and income. We find robust evidence that, for poor countries, irrigation access significantly offsets the negative effect of increasing temperatures on internal migration, as proxied by urbanisation rates. Our results demonstrate the importance of considering access to alternative adaptation strategies when analysing the temperature-migration relationship.

 

Irrigation as mitigator for migration intentions following drought in West Africa

(In revision, with Alix Debray, Lucile Dehouck and Ilse Ruyssen)

This article contributes to the debate on the causal relationship between climate and migration, which often overlooks alternative adaptation mechanisms. Specifically, we examine the role of irrigation in mitigating migration intentions following droughts in 13 West African countries. Using cross-country Gallup World Poll surveys combined with fine-grained geo-local data on irrigation and drought intensity, our findings indicate that irrigation can reduce migration intentions, especially in dry regions. The effect is mainly driven by an agricultural income mechanism, as it disappears when including individuals living in urban areas, highlighting the different dynamics in rural areas. Our results remain robust to the inclusion of additional controls such as conflict and remittances, or to the use of different drought and irrigation measures. These findings highlight the importance of considering alternative adaptation mechanisms in the climate-migration nexus.

 

Migration is a common means of adaptation to weather shocks. Previous research has identified heterogeneous effects according to age, sex, and wealth, but little is still known about how marriage-related institutions affect such migration. Relying on a quasi-experimental identification strategy, we analyze marriage- and work-related migration in Malawi following large droughts, separating the effects for female and male migrants according to different age groups. The analysis based on stated motives of migration reveals marginal decreases in marriage-related migration among girls, but increases in marriage-related migration within districts for women in older age groups. We also find large increases in work-related between-district migration for boys, and to a smaller extent also for girls following severe drought. The results add to the evidence of the potentially adverse effects of migration as a coping mechanism following drought when other means of insurance do not exist.

 

  • Human migration in the era of climate change (with Cristina Cattaneo, Michel Beine, Christiane Froelich, Dominic Kniveton, Inmaculada Martinez-Zarzoso, Marina Mastrorillo, Etienne Piguet and Benjamin Schraven). Review of Environmental Economics and Policy 13(2), 189-206, 2019.

Migration is one response to climatic stress and shocks. In this article we review the recent literature across various disciplines on the effects of climate change on migration. We explore key features of the relationship between climate change and migration, distinguishing between fast-onset and slow-onset climatic events and examining the causes of heterogeneity in migratory responses to climate events. We also seek to shed light on the interactions between different types of adaptations to climate events as well as the mechanisms underlying the relationship between climate change and migration. Based on our review of the existing literature, we identify gaps in the literature and present some general policy recommendations and priorities for research on climate-induced migration.

 

We combine migration data from the 1991 and 2001 Indian Census with climate data to investigate the impact of climate variability on internal migration. The article makes four major contributions to the existing literature on macro-level migration flows. First, the use of the census data enables us to match the observed migration flows with relevant climatic factors prior to migration. Second, we introduce relevant meteorological indicators of climate variability, to measure the frequency, duration and magnitude of drought and excess precipitation based on the Standardized Precipitation Index. Third, we analyse bilateral migration rates in order to fully account for characteristics in both the origin and the destination states. We account for zero observations, which are frequent in bilateral data, by using a Pseudo Poisson Maximum Likelihood Estimator. Finally, we examine three possible channels through which climate variability could induce migration: average income, agriculture and urbanization. The estimation results show a direct effect of drought frequency in the origin state on inter-state migration in India. The magnitude of drought is also important in explaining the indirect effect going through the impact of climate variability on the income from the agricultural sector. The effect of drought frequency is higher for rural out-migration flows compared to the effect on total inter-state migration. The results are robust to alternative specifications with bilateral fixed effects and to the inclusion of irrigation rates. 

 

The concept of environmental migrants occurs frequently in the policy debate, in particular with regard to climate change and the incidence of such migration in low-income countries. This article reviews the economic studies of environmentally induced migration. It includes recent empirical analyses that try to link environmental change to migration flows and the spatial distribution of population. A consensus seems to emerge that there is little likelihood of large increases in international migration flows due to climate variability. The evidence to date shows that regional migration will be affected, however, either on the African continent or internally, within country borders. Theoretically, environmentally induced migration can be analyzed using different frameworks: the classical Harris-Todaro model of rural-urban migration, new economic geography models, models grounded in environmental economics of pollution externalities with free factor mobility, and the new economics of labor migration. I review some of the latest attempts to analyze environmentally induced migration theoretically and the policy-relevant conclusions that can be drawn. 

 

 

Technology adoption and diffusion

 

Accelerating the diffusion of climate-friendly technologies: a network perspective

(with Solmaria Halleck Vega and Antoine Mandel). Ecological Economics 152, 235-245, 2018.

 

We introduce a methodology to estimate the determinants of the formation of technology diffusion networks from the patterns of technology adoption. We apply this methodology to wind energy, which is one of the key technologies in climate change mitigation. Our results emphasize that, in particular, long-term relationships as measured by economic integration are key determinants of technological diffusion. Specific support measures are less relevant, at least to explain the extensive margin of diffusion. Our results also highlight that the scope of technological diffusion is much broader than what is suggested by the consideration of CDM projects alone, which are particularly focused on China and India. Finally, the network of technological diffusion inferred from our approach highlights the central role of European countries in the diffusion process and the absence of large hubs among developing countries.

  

 

 

 

KEYNOTE LECTURES

« Before the Flood », Environmental Protection and Sustainability Forum, Graz, Austria, September 2022.

 

Challenges in modelling migration as adaptation to climate change, Keynote lecture at the Young Economists’ Meeting, Masaryk University, Brno, Czech Republic, September 2021.

 

Green Technology Diffusion: A Network Perspective, Keynote lecture at the Workshop
“Innovation and Sustainable Growth”, Università Cattolica del Sacre Cuore, Milano,
September 2019.

 

Plenary lecture at the EAERE 24th Annual Conference in Manchester, UK:

Human Mobility and Climate Change

 (On demand – please bear in mind that the slides were designed to go with the talk and that they cannot be “read” as such. The technical staff at the event did not capture the sound well, so we had to add the voice-over afterwards to the video… with expected results compared to the original talk! But the video of the talk can be found here.)

 

POLICY CONFERENCES AND SEMINARS

OECD Expert Meeting on Migration, October 2022.


AFSE-Trésor Conference on the Evaluation of Public Policy, Roundtable on Climate Policy,
Paris, December 2016.


Invited speaker OECD Devtalks, “The Economics of Climate-induced Migration”, Paris,
November 2016.


Invited speaker Entretiens du Conseil d’Etat, “La fiscalité environnementale”, Paris, June
2009.


Invited speaker OECD Conference on Household Behaviour and Environmental Policy, Paris,
June 2009.

 

Publications HAL

  • The clean development mechanism Book section

    The Clean Development Mechanism is one of three flexible mechanisms included in the Kyoto Protocol. It enables Annex I countries to finance emission reductions in developing (non-Annex I) countries and use the credits thus obtained to meet their quantified emission reduction commitments under the Kyoto Protocol. The CDM had two objectives: to reduce the costs of compliance of the Annex I countries’ emission reduction commitments, and to assist developing countries in achieving sustainable development and in contributing to the ultimate objective of the UNFCCC. The major part of certified emission reductions (CERs) comes from renewable energy investments, reduction of non-CO2 greenhouse gases (HFCs, PFCs and N2O), and energy efficiency projects. The geographical distribution of projects and emission reductions is concentrated in a few countries: China, India, Brazil, and Mexico. A substantial amount of CERs was created under the CDM, but the uneven geographical distribution of projects and the lack of consistent control of projects’ contribution to sustainable development have been arguments to contend that the CDM did not fulfil its initial objectives. The restriction by the EU in 2013 to use CERs in the EU-ETS brought down prices and the market for CERs has not recovered since. The CDM was discontinued as of 30 June 2022 and requests for exemptions were considered on a case-specific basis. Nevertheless, the CDM has continued to function while parties are waiting for the flexible mechanisms created in the Paris Agreement of 2015 to become operational, in particular the Sustainable Development Mechanism of Article 6.4 which is similar to the CDM in its objectives.
    Editor : Elsevier

    Published in

  • Forthcoming : Flood risk information release: Evidence from housing markets around Paris Journal article

    The article estimates flood risk perceptions by exploiting the different release dates of flood risk information around Paris from 2003 to 2012. This period is characterised by the absence of significant floods since 1955, making flood risk less salient. We apply a stacked event study to detailed property transaction data combined with geo-localised amenities. The results show that transaction prices for similar properties are 3-7% lower following the release of information if they are located in a flood risk zone, and that the effect persists, at least over the period we analyse. The results are robust to varying the control group to a neighbourhood at different distances from the flood risk boundary. The effect is more negative for flats on the ground floor. We find no evidence of sorting among buyers along different characteristics, in particular based on past exposure to flooding in their previous municipality. The results indicate a significant effect of flood risk information in a context where we can isolate it from the financial consequences of insurance cover and from flood damage per se.
    Author : Edwige Dubos-Paillard, Emmanuelle Lavaine Review : Annals of Economics and Statistics

    Published in

  • Long-term migration trends and rising temperatures: the role of irrigation Journal article

    Climate variability has the potential to affect both international and internal migration profoundly. Earlier work finds that higher temperatures reduce agricultural yields, which in turn reduces migration rates in low-income countries, due to liquidity constraints. We test whether access to irrigation modulates this temperature–migration relationship, since irrigation buffers agricultural incomes from high temperatures. We regress measures of international and internal migration on decadal averages of temperature and rainfall, interacted with country-level data on irrigation and income. We find robust evidence that, for poor countries, irrigation access significantly offsets the negative effect of increasing temperatures on internal migration, as proxied by urbanisation rates. Our results demonstrate the importance of considering access to alternative adaptation strategies when analysing the temperature-migration relationship.
    Review : Journal of Environmental Economics and Policy

    Published in

  • Climate and Migration Book section

    We review some of the recent estimates of the effect of weather and climate on migration, and articles examining the historical evidence of such links. We identify four issues that have received less attention in previous reviews on the topic. The first one is general equilibrium effects of climate change and migration. The second one concerns accounting for thresholds in the climate-migration relationship. Some of the articles that we review incorporate non-linear effects, but only in the relation between income and migration, and in the relation between weather, climate and migration. Other thresholds are not yet incorporated into the literature. A third issue where much work remains to be done relates to climate change and conflict, and their influence on migration. Finally, we conclude with some reflections on the implications of the results for economic development.
    Editor : WORLD SCIENTIFIC

    Published in

  • Gendered migration responses to drought in Malawi Journal article

    Migration is a common means of adaptation to weather shocks. Previous research has identified heterogeneous effects according to age, sex, and wealth, but little is still known about how marriage-related institutions affect such migration. Relying on a quasi-experimental identification strategy, we analyze marriage- and work-related migration in Malawi following large droughts, separating the effects for female and male migrants according to different age groups. The analysis based on stated motives of migration reveals marginal decreases in marriage-related migration among girls, but increases in marriage-related migration within districts for women in older age groups. We also find large increases in work-related between-district migration for boys, and to a smaller extent also for girls following severe drought. The results add to the evidence of the potentially adverse effects of migration as a coping mechanism following drought when other means of insurance do not exist.
    Review : Journal of Demographic Economics

    Published in

  • The effect of flood risk on property values around Paris Conference paper

    We examine the effect of flood risk regulation on property prices in the inner suburbs of Paris, France. Increased flood risk is one of the major consequences of climate change, and it is already a current risk for populations in some areas of Southern and Western France. The Ile-de-France region is highly exposed to the risk of a major flood of the Seine River. About 830 000 people and 620 000 jobs would be directly affected if a flood similar to the historic event of 1910 would occur (IAU, 2011; OECD,2013). A large literature has examined the impact of actual floods with a surprisingly large variation in results. Only a few studies have investigated the effect of information about flood risk (Harrison et al., 2001; Troy and Romm, 2004; Hallstrom and Smith, 2005; Pope, 2008; Rajapaksa et al., 2016), as opposed to the direct economic impact of flood damage. It is not easy to separate the effect of information on flood risk, as such, as flood prone areas by definition also are likely to suffer recurrent flooding. Since a major role of flood risk regulation is to inform actors in the real estate markets about the actual risk, it is important for policy purposes to evaluate the reaction to information on flood risk separately from any damage from actual floods. The inner suburbs around Paris offer a unique opportunity to do so, since there is high flood risk, but no major flood occurred during the period analysed in the paper. In this article, we study the impact of information on flood risk released through the implementation of the French regulation on flood risk prevention plans (PPRi). The objective of the paper is to test whether information on flood risk has an impact on the price of the real estate transactions in the inner suburbs of Paris over the period 2003 to 2012. During the period, it can be assumed that past flood events were not salient to buyers and sellers in the region, since the last major flood of the Seine river at the time was the 50-year flood of 1955. The more recent ten-year floods of 2016 and 2018 occurred after the period of the study. This avoids a confounding direct effect on prices of flood itself and permits us to argue that we identify only an effect of flood risk information on price.
    Author : Edwige Dubos-Paillard, Emmanuelle Lavaine

    Published in

  • Editorial: Economics of the Environment in the Shadow of Coronavirus Special issue

    The Coronavirus pandemic is imposing tremendous health impacts around the world. At the time of writing (20th July 2020) there have been nearly 15 million cases worldwide and well over half a million deaths from the Covid-19 disease caused by the virus. The fact that this statement needs to be effectively date-stamped reflects the rapid development of this pernicious virus. While several vaccines are under rapid development, so far it is unclear if any will be truly effective given the ability of the virus to mutate; already the vast majority of Covid-19 cases are caused by a virus which is no longer identical to that which appeared in Wuhan in late 2019.
    Review : Environmental and Resource Economics

    Published in

  • The effect of flood risk on property values around Paris Conference paper

    We examine the effect of flood risk regulation on property prices in the inner suburbs of Paris, France. Increased flood risk is one of the major consequences of climate change, and it is already a current risk for populations in some areas of Southern and Western France. The Ile-de-France region is highly exposed to the risk of a major flood of the Seine River. About 830 000 people and 620 000 jobs would be directly affected if a flood similar to the historic event of 1910 would occur (IAU, 2011; OECD,2013). A large literature has examined the impact of actual floods with a surprisingly large variation in results. Only a few studies have investigated the effect of information about flood risk (Harrison et al., 2001; Troy and Romm, 2004; Hallstrom and Smith, 2005; Pope, 2008; Rajapaksa et al., 2016), as opposed to the direct economic impact of flood damage. It is not easy to separate the effect of information on flood risk, as such, as flood prone areas by definition also are likely to suffer recurrent flooding. Since a major role of flood risk regulation is to inform actors in the real estate markets about the actual risk, it is important for policy purposes to evaluate the reaction to information on flood risk separately from any damage from actual floods. The inner suburbs around Paris offer a unique opportunity to do so, since there is high flood risk, but no major flood occurred during the period analysed in the paper. In this article, we study the impact of information on flood risk released through the implementation of the French regulation on flood risk prevention plans (PPRi). The objective of the paper is to test whether information on flood risk has an impact on the price of the real estate transactions in the inner suburbs of Paris over the period 2003 to 2012. During the period, it can be assumed that past flood events were not salient to buyers and sellers in the region, since the last major flood of the Seine river at the time was the 50-year flood of 1955. The more recent ten-year floods of 2016 and 2018 occurred after the period of the study. This avoids a confounding direct effect on prices of flood itself and permits us to argue that we identify only an effect of flood risk information on price.
    Author : Edwige Dubos-Paillard, Emmanuelle Lavaine

    Published in

  • The effect of flood risk on property values around Paris Conference paper

    We examine the effect of flood risk regulation on property prices in the inner suburbs of Paris, France. Increased flood risk is one of the major consequences of climate change, and it is already a current risk for populations in some areas of Southern and Western France. The Ile-de-France region is highly exposed to the risk of a major flood of the Seine River. About 830 000 people and 620 000 jobs would be directly affected if a flood similar to the historic event of 1910 would occur (IAU, 2011; OECD,2013). A large literature has examined the impact of actual floods with a surprisingly large variation in results. Only a few studies have investigated the effect of information about flood risk (Harrison et al., 2001; Troy and Romm, 2004; Hallstrom and Smith, 2005; Pope, 2008; Rajapaksa et al., 2016), as opposed to the direct economic impact of flood damage. It is not easy to separate the effect of information on flood risk, as such, as flood prone areas by definition also are likely to suffer recurrent flooding. Since a major role of flood risk regulation is to inform actors in the real estate markets about the actual risk, it is important for policy purposes to evaluate the reaction to information on flood risk separately from any damage from actual floods. The inner suburbs around Paris offer a unique opportunity to do so, since there is high flood risk, but no major flood occurred during the period analysed in the paper. In this article, we study the impact of information on flood risk released through the implementation of the French regulation on flood risk prevention plans (PPRi). The objective of the paper is to test whether information on flood risk has an impact on the price of the real estate transactions in the inner suburbs of Paris over the period 2003 to 2012. During the period, it can be assumed that past flood events were not salient to buyers and sellers in the region, since the last major flood of the Seine river at the time was the 50-year flood of 1955. The more recent ten-year floods of 2016 and 2018 occurred after the period of the study. This avoids a confounding direct effect on prices of flood itself and permits us to argue that we identify only an effect of flood risk information on price.
    Author : Edwige Dubos-Paillard, Emmanuelle Lavaine

    Published in

  • The effect of flood risk information on property values around Paris Conference paper

    The paper examines the effect of flood risk regulation on property prices in the inner suburbs of Paris, France, over the period 2003 to 2012. We use unique data on property transactions and geo-localised amenities from a major European city exploiting the different dates of implementation of the flood risk zone regulation. Using an identification strategy based on a difference-in-differences specification, the results indicate that home prices for similar real estate are 3 to 7% lower when located in a flood risk zone, depending on the sub market (flats or houses). The discount is higher, the higher is the flood risk designated by the regulation. Buyers’ previous exposure to floods reduces the price discount.
    Author : Edwige Dubos-Paillard, Emmanuelle Lavaine

    Published in

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