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In the aftermaths of Hurricanes Irene, in 2011, and Sandy, in 2012, New York City has come to recognize the critical need to better prepare for future storm surges and to anticipate future trends, such as climate change and socio-economic developments. The research presented in this report assesses the costs of six different flood management strategies to anticipate long-term challenges the City will face. The proposed strategies vary from increasing resilience by upgrading building codes and introducing small scale protection measures, to creating green infrastructure as buffer zones and large protective engineering works such as storm surge barriers. The initial investment costs of alternative strategies vary between $11.6 and $23.8 bn, maximally. We show that a hybrid solution, combining protection of critical infrastructure and resilience measures that can be upgraded over time, is less expensive. However, with increasing risk in the future, storm surge barriers may become cost-effective, as they can provide protection to the largest areas in both New York and New Jersey. [ABSTRACT FROM AUTHOR]

Fixed effects panel models are used to estimate how the electricity and gas consumption of various sectors and residents relate to temperature in Mexico, while controlling for the effects of income, manufacturing output per capita, electricity and gas prices and household size. We find non-linear relationships between energy consumption and temperature, which are heterogeneous per state. Electricity consumption increases with temperature, and this effect is stronger in warm states. Liquified petroleum gas consumption declines with temperature, and this effect is slightly stronger in cold states. Extrapolations of electricity and gas consumption under a high warming scenario reveal that electricity consumption by the end of the century for Mexico increases by 12%, while gas consumption declines with 10%, resulting in substantial net economic costs of 43 billion pesos per year. The increase in net energy consumption implies greater efforts to comply with the mitigation commitments of Mexico and requires a much faster energy transition and substantial improvements in energy efficiency. The results suggest that challenges posed by climate change also provide important opportunities for advancing social sustainability goals and the 2030 Agenda for Sustainable Development. This study is part of Mexico's Sixth National Communication to the United Nations Framework Convention on Climate Change. [ABSTRACT FROM AUTHOR]

• We include safe development paradox dynamics in flood risk analysis. • Flood protection by governments can reduce inclination of residents to protect. • Steering households towards rational behaviour can increase protective efforts. With increasing flood risk due to climate change and socioeconomic trends, governments are under pressure to continue implementing flood protection measures, such as dikes, to reduce flood risk. However, research suggests that a sole focus on government-funded flood protection leads to an adverse increase in exposure as people and economic activities tend to concentrate in protected areas. Moreover, governmental flood protection can reduce the incentive for autonomous adaptation by local households, which paradoxically results in more severe consequences if an extreme flood event occurs. This phenomenon is often referred to as the 'safe development paradox' or 'levee effect' and is generally not accounted for in existing flood risk models used to assess developments in future flood risk under climate change. In this study we assess the impact of extreme flood events for the European Union using a large-scale agent-based model (ABM). We quantify how the safe development paradox affects (1) population growth and the increase in exposed property values, (2) the reduction in investments to flood-proof buildings as public protection increases, and (3) the increase in potential damage should a flood occur. For this analysis, we apply an ABM that integrates the dynamic behaviour of governments and residents into a large-scale flood risk assessment framework, in which we include estimates of changing population growth. We find that the impact of extreme flood events increases considerably when governments provide high protection levels, especially in large metropolitan areas. Moreover, we demonstrate how policy that stimulates the flood-proofing of buildings can largely counteract the effects of the safe development paradox. [ABSTRACT FROM AUTHOR]

• Markets need reform to offer financial protection and incentives for risk reduction. • Average risk-based flood insurance premium could double between 2015 and 2055. • Affordability of flood insurance is improved through Public-Private Partnerships. • Support on-going reforms in Europe and abroad that move towards risk-based premiums. Flood risk will increase in many areas around the world due to climate change and increase in economic exposure. This implies that adequate flood insurance schemes are needed to adapt to increasing flood risk and to minimise welfare losses for households in flood-prone areas. Flood insurance markets may need reform to offer sufficient and affordable financial protection and incentives for risk reduction. Here, we present the results of a study that aims to evaluate the ability of flood insurance arrangements in Europe to cope with trends in flood risk, using criteria that encompass common elements of the policy debate on flood insurance reform. We show that the average risk-based flood insurance premium could double between 2015 and 2055 in the absence of more risk reduction by households exposed to flooding. We show that part of the expected future increase in flood risk could be limited by flood insurance mechanisms that better incentivise risk reduction by policyholders, which lowers vulnerability. The affordability of flood insurance can be improved by introducing the key features of public-private partnerships (PPPs), which include public reinsurance, limited premium cross-subsidisation between low- and high-risk households, and incentives for policyholder-level risk reduction. These findings were evaluated in a comprehensive sensitivity analysis and support ongoing reforms in Europe and abroad that move towards risk-based premiums and link insurance with risk reduction, strengthen purchase requirements, and engage in multi-stakeholder partnerships. [ABSTRACT FROM AUTHOR]