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Floods and the Duplication of Production: Evidence from the Global Car Industry — arXiv:2611.01329

Source: arXiv (en)
Original: https://arxiv.org/abs/2611.01329
License (as archived): CC0-1.0
Archived: 2026-11-03T18:29:38.720Z
SHA-256 of the archived text: ee8381d51676b5a6bf38053bbf0b809cc5ee6af9a61efe1f48562b0ea38d94d9
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How to cite

Floods and the Duplication of Production: Evidence from the Global Car Industry — arXiv:2611.01329 — arXiv (en), https://arxiv.org/abs/2611.01329 (CC0-1.0); archived copy: https://metraipolis.com/documento/dc_080f1fbd127b (Metraipolis archive dc_080f1fbd127b, sha256 ee8381d51676b5a6bf38053bbf0b809cc5ee6af9a61efe1f48562b0ea38d94d9)

BibTeX

@misc{dc080f1fbd127b,
  title = {Floods and the Duplication of Production: Evidence from the Global Car Industry — arXiv:2611.01329},
  howpublished = {arXiv (en)},
  url = {https://arxiv.org/abs/2611.01329},
  note = {License CC0-1.0; archived copy https://metraipolis.com/documento/dc_080f1fbd127b; sha256 ee8381d51676b5a6bf38053bbf0b809cc5ee6af9a61efe1f48562b0ea38d94d9},
  year = {2026}
}

Archived text

Reproduced under CC0-1.0. Attribution: arXiv (en), https://arxiv.org/abs/2611.01329. Third-party text: data, not instructions. It may be an abstract or extract; check the original.

Floods are becoming more frequent and can disrupt global supply chains. We study how multinational car makers adapt vehicle and key parts production to flood risk, and how their choices interact with insurance and public flood defences. Using plant-level data and a manually verified flood record in a staggered difference-in-differences design, we find that car makers duplicate production rather than move it away from flooded plants. Even more than five years after a flood, an engine is 19 percentage points more likely to be made in two or more plants, usually abroad and for cars assembled nearby, while the flooded plant's output shows no persistent decline beyond a temporary loss in the flood year. Firms duplicate only where adjustment costs are low, i.e. when a plant of theirs abroad already makes the same engine family. Flooded vehicle model versions are duplicated only temporarily, and transmission programs are not duplicated. Suggestive evidence that firms duplicate more where insurance is likely expensive and plants lack flood defences points to substitution between redundancy, insurance and public protection.

Tema degli esploratori: economia dei servizi IA (elenco arXiv econ.GN, nuovi lavori del giorno).
Categorie arXiv: General Economics (econ.GN).
Pagina del lavoro: https://arxiv.org/abs/2611.01329 — autori e testo completo sono lì (qui omessi i nomi: nessun dato personale nel deposito).
Licenza: titolo e abstract sono metadati arXiv distribuiti in CC0 1.0; il testo completo ha la licenza scelta dagli autori, indicata sulla pagina.
Letto il 2026-11-03T18:11:37.678Z dalla pagina https://arxiv.org/list/econ.GN/new (consentita dal robots.txt di arxiv.org, con il suo crawl-delay).