Firm relocation as adaptive response to climate change and weather extremes

Linnenluecke, Martina K., Stathakis, Alexander and Griffiths, Andrew (2011) Firm relocation as adaptive response to climate change and weather extremes. Global Environmental Change, 21 1: 123-133. doi:10.1016/j.gloenvcha.2010.09.010


Author Linnenluecke, Martina K.
Stathakis, Alexander
Griffiths, Andrew
Title Firm relocation as adaptive response to climate change and weather extremes
Journal name Global Environmental Change   Check publisher's open access policy
ISSN 0959-3780
1872-9495
Publication date 2011-02
Year available 2010
Sub-type Article (original research)
DOI 10.1016/j.gloenvcha.2010.09.010
Volume 21
Issue 1
Start page 123
End page 133
Total pages 11
Editor Katrina Brown
Neil Adger
Declan Conway
Place of publication Oxford, U.K.
Publisher Pergamon
Collection year 2011
Language eng
Subject 150307 Innovation and Technology Management
150310 Organisation and Management Theory
910402 Management
960301 Climate Change Adaptation Measures
160401 Economic Geography
C1
Abstract Growing scientific evidence suggests that human-induced climate change will bring about large-scale environmental changes such as sea-level rise and coastal flooding, extreme weather events and agricultural disruptions. The speed and extent of these changes and the expected impacts on social and corresponding economic and industrial systems are now moving to the forefront of debates. In this paper, we argue that climate change will lead to significant disruptions to firms which might ultimately create the necessity of a geographical shift of firm and industrial activities away from regions highly affected by climate change. Such a shift might become necessary due to (1) direct disruptions through climate change impacts on firm operations, for instance through droughts, floods, or sea level rise, and due to (2) disruptions in a firm's supplier, buyer or resource base that lead to flow-on effects and adverse consequences for a firm. We propose a framework for integrating firm relocation decisions into firm adaptive responses to climate change. The framework consists of three assessment steps: the level of risk from climate change impacts at a firm's location, the feasibility of relocation, and associated costs and benefits. We apply the framework to two case examples. The first case of electricity distribution firms in Victoria/Australia illustrates how the relocation (undergrounding) of cables could decrease the vulnerability of distribution networks to bushfires and the risk of electricity-caused fires, but would require significant investments. The second case of firms in the Australian pastoral industry points to geographic diversification of pastoral land holdings as possible adaptation option, but also to constraints in form of availability of suitable properties, ties to local communities, and adverse impacts on biodiversity. Implications for adaptation research and practice are outlined. Copyright © 2010 Elsevier Ltd All rights reserved.
Keyword Climate change
Firm strategy
Adaptation
Relocation
Q-Index Code C1
Q-Index Status Confirmed Code
Institutional Status UQ
Additional Notes Available online 20 October 2010

Document type: Journal Article
Sub-type: Article (original research)
Collections: Faculty of Business, Economics and Law -- Publications
Official 2011 Collection
UQ Business School Publications
 
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Citation counts: TR Web of Science Citation Count  Cited 24 times in Thomson Reuters Web of Science Article | Citations
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Created: Thu, 28 Oct 2010, 09:32:44 EST by Karen Morgan on behalf of UQ Business School