Climate change, urbanization, and optimal long‐term floodplain protection

Abstract

This paper examines levee‐protected floodplains and economic aspects of adaptation to increasing long‐term flood risk due to urbanization and climate change. The lower American River floodplain in the Sacramento, California, metropolitan area is used as an illustration to explore the course of optimal floodplain protection decisions over long periods. A dynamic programming model is developed and suggests economically desirable adaptations for floodplain levee systems given simultaneous changes in flood climate and urban land values. Economic engineering optimization analyses of several climate change and urbanization scenarios are made. Sensitivity analyses consider assumptions about future values of floodplain land and damageable property along with the discount rate. Methodological insights and policy lessons are drawn from modeling results, reflecting the joint effects and relationships that climate, economic costs, and regional economic growth can have on floodplain levee planning decisions.