Wednesday, March 27, 2013

Winners and Losers from Hurricane Sandy

This article  documents that people seeking a coastal summer vacation along the Atlantic Ocean are substituting away from the New Jersey Shore because so many of the NJ communities have been badly injured by Hurricane Sandy.  These communities will lose tourist $ because of the shock but the tourists' dollars do not end up in a Cyprus bank account. Instead, there are other substitute locations for the tourists to visit instead.

"In nearby Sea Isle City, whose Chamber of Commerce leased the billboard outside the Lincoln Tunnel, a spike in rentals suggests they have succeeded in poaching some vacationers from the New York City area. “We’re going to have a very good summer as a result,” said Christopher Glancey, the chamber president and a real estate broker."
Note how competition protects the households seeking a tourist summer at the beach and this competition provides strong incentives for damaged beach communities to rebuild in smarter ways so that they are more resilient against the next Hurricane.  Note that this is about making $.  This isn't about "saving the whales".  If coastal towns want to survive in this age of climate change, they have strong incentives to be smarter about their design and architecture.  This is the small ball of adaptation at work!