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Abstract At the global scale, the warming of the atmosphere will increase the capacity of the atmosphere to hold and accelerate the redistribution of water in the atmosphere. This suggests that flood‐generating processes linked to the atmosphere are likely to increase. However, the I ntergovernmental P anel on C limate C hange projections of future floods involve extremely complex issues that defy simple generalisations. Warming will alter other aspects of the water cycle increasing evaporation, changing precipitation patterns and intensity, and also affecting the processes involved in surface storage of water, including snowpack generation, snowmelt, river ice break‐up, and glacial melt. Many of these are active in flood generation, and changes may cause floods to decrease as well as increase. However, these processes take place not at the global scale but at relatively local scale, making generalisations about flooding in future climates difficult and uncertain. At the global scale, the role of land use is generally unresolved, but at a watershed scale, land‐use effects can be as important as changes in the meteorological processes. This review shows that while meteorologically driven flooding is expected to increase in a changed climate, making a precise pronouncement regarding all floods is unwise, as many types of floods will respond differently to changing climate and that because floods are watershed scale events, these local effects will remain important.
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This paper investigates the link between development, economic growth, and the economic losses from natural disasters in a general analytical framework, with an illustration on hurricane flood risks in New Orleans. It concludes that, where capital accumulates through increased density of capital at risk in a given area, (i) the probability of disaster occurrence decreases with income; (ii) capital at risk and thus economic losses in case of disaster -- increases faster than economic growth; (iii) increasing risk-taking reinforces economic growth. Economic growth and improved protection transfer risks from frequent low-intensity events to rarer high-impact events. In this context, average annual losses from disasters grow with income, and they grow faster than income at low levels of development and slower than income at high levels of development. These findings are robust to a broad range of modeling choices and parameter values, to the inclusion of risk aversion, and to variations in the decision-making framework (including the introduction of prospect theory's decision weights, biases in risk perception and myopic expectations). They show that risk-taking is both a driver and a consequence of economic development, that risk taking should not be indiscriminately suppressed, and that the world is very likely to experience fewer but more costly disasters in the future.