Firm Location Choices After Flood Disasters
Type
conference paper
Date Issued
2026-07
Author(s)
Abstract
Do firms adapt to physical climate risk through location choice? We develop an NPV-based framework in which flood shocks weaken the sunk-cost advantage of remaining in place, thereby increasing the incentive to reconsider establishment locations and reduce future flood exposure. Using establishment-level panel data on 1.6 million U.S. business locations matched to satellite-based flood polygons, we test the model's predictions in a staggered difference-in-differences design.
HSG Classification
contribution to scientific community
Refereed
No
Event Title
American Risk and Insurance Association 2026 Annual Meeting
Event Location
Florida, Orlando
Subject(s)
Division(s)