Removing development incentives in risky areas reduces climate damages and yields co-benefits

Eliminating government infrastructure spending, public disaster insurance and post-disaster aid in high-risk coastal areas reduces development there and leads to lower flood damages and higher property values on nearby lands. The strategic withdrawal of development incentives could be used more broadly to reduce climate risks. Recommendations for policy Expanding the CBRS would help curb excessive development and promote resilience in coastal communities at high risk of climate change in the USA. CBRS is more effective at curbing development when the tracts are large and relatively less developed at the time of designation. In the US setting, coordination across different levels of government is critical for the success of any federal policy that removes development incentives. State and local spending also affects land use and development decisions. The USA should explore removal of development incentives in other high-risk areas, such as inland flood plains and high-wildfire-risk zones. The policy could also be replicated in other countries. Natural land conservation resulting from the removal of development incentives generated amenity value and natural hazard protection in surrounding communities.