Removing development incentives in risky areas promotes climate adaptation

This study evaluates one approach to discouraging development in risky areas-eliminating public incentives for development, such as infrastructure investments, disaster assistance and federal flood insurance. Using machine learning and matching techniques, the authors examine the Coastal Barrier Resources System (CBRS), a set of lands where these federal incentives have been removed.

Results indicate that removing federal development incentives can be a cost-effective option for preventing over-development in risky areas while generating co-benefits. Still, programmes like the CBRS are designed to pre-empt development in risky areas, not assist in managed retreat. In areas where strategic relocation of people and capital is deemed necessary, other policy interventions are likely to be required.