Beiträge zur Jahrestagung des Vereins für Socialpolitik 2017: Alternative Geld- und Finanzarchitekturen - Session: Environmental Economics, Natural Resources and Climate Change II C17-V2
This paper analyses the effect of migration on other adaptation measures and on mitigation from a political economy perspective. Mitigation is represented by an ecotax while adaptation is represented by a dike. In our model, we focus on a coastal region where individuals are heterogeneous in income and location and where flood risk exists. A main result is that the option to move away decreases the political support for mitigation while the effect on adaptation can be positive or negative.