Journal article

Publication year: 2023

Pages: 429-448

Journal: Environment and Development Economics

Volume number: 28

Issue number: 5

ISSN: 1355-770X

eISSN: 1469-4395

Open access status: Hybrid

DOI Link: https://doi.org/10.1017/S1355770X23000013

Publisher: Cambridge University Press

Abstract: 
The potential impact of climate change on international migration patterns has recently received considerable attention, yet much of the empirical literature fails to find increases in international migration due to climate change. This paper attempts to resolve this "immobility paradox" by applying a real-options framework to the relationship between climate change and international migration. This framework suggests that individuals may postpone their migration response to climate change in the face of uncertainty and only migrate once impacts of climate change have exceeded certain thresholds. We test this prediction using semiparametric regression methods which allow us to empirically identify the threshold effects implied by the real-options framework. However, the findings are generally inconsistent with such threshold effects. Rather, the results suggest that in low-income countries, individuals' migration response is hampered by the existence of liquidity constraints. These are likely to become more binding due to climate change-induced decreases in agricultural productivity.

Harvard Citation style: Braun, M. (2023) A real-options analysis of climate change and international migration, Environment and Development Economics, 28(5), pp. 429-448. https://doi.org/10.1017/S1355770X23000013

APA Citation style: Braun, M. (2023). A real-options analysis of climate change and international migration. Environment and Development Economics. 28(5), 429-448. https://doi.org/10.1017/S1355770X23000013