Job and residential location changes responding to floods and cyclones: an analysis based on a cross-nested logit model

Abstract

With the increasing impacts of climate change, many people in Bangladesh are being forced to move their homes and/or change their jobs. Unfortunately, little is known about how people jointly decide on their jobs and residential location changes in association with the influence of climate change disasters. The main purpose of this paper is to examine how residents in coastal and inland areas may change their jobs and/or residential location under different scenarios of potential impacts of floods and cyclones by comparing socioeconomic and experiential factors. A stated preference survey was conducted in 14 coastal and inland areas of Bangladesh. As a result, 788 respondents provided 3152 valid samples (1948 from coastal areas and 1204 from inland areas). Analysis results based on a cross-nested logit model indicate that flood has no obvious impact on choices of inland people, and flood and cyclone have limited effects on people’s choices in coastal areas, except for cyclone intensity. Income is not significant in the decisions of the coastal people, but it does matter to the inland people. The inland people are more likely to depend on government help during disasters. However, the coastal people’s decisions are driven by different factors in a complicated way. The inland people prefer changing their jobs to changing their residential locations, but the coastal people are slightly more aggressive in deciding to change their residential location in response to flood. Structural differences of choice behaviors under flood and cyclone are also revealed. Finally, policy implications are discussed.