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The Economics of Natural Disasters
This timely new collection presents essential readings for those interested in the economics of natural disasters. It features influential articles on the macroeconomic and regional impacts of natural disasters, natural disaster vulnerability, resilience, recovery and adaptation. Topics covered include short-run and long-run economic impacts, poverty and vulnerability, emerging life-saving technologies, the role of government in fostering resilience and adaptation in response to disasters. Together with an original introduction by the editor, this volume will be an invaluable source of reference for researchers and policymakers alike.
More Information
Critical Acclaim
Contributors
Contents
More Information
This timely new collection presents essential readings for those interested in the economics of natural disasters. It features influential articles on the macroeconomic and regional impacts of natural disasters, natural disaster vulnerability, resilience, recovery and adaptation. Topics covered include short-run and long-run economic impacts, poverty and vulnerability, emerging life-saving technologies, the role of government in fostering resilience and adaptation in response to disasters. Together with an original introduction by the editor, this volume will be an invaluable source of reference for researchers and policymakers alike.
Critical Acclaim
‘Economics is both political economy and empirical, and this distinction has not been lost in Professor Skidmore’s edited book on the economics of natural disasters. This collection strikes a good balance between quantitative and non-quantitative studies as well as between the general and the particular. The volume will prove to be a necessary reference source about this controversial and highly relevant area of study.’
– J.M. Albala-Bertrand, Queen Mary University of London
– J.M. Albala-Bertrand, Queen Mary University of London
Contributors
46 articles, dating from 1985 to 2015
Contributors include: E. Cavallo, M. Escaleras, M. Kahn, H. Kunreuther, I. Noy, W.D. Schulze, E. Strobl, D. Strömberg, S.J. Tol, H. Toya
Contributors include: E. Cavallo, M. Escaleras, M. Kahn, H. Kunreuther, I. Noy, W.D. Schulze, E. Strobl, D. Strömberg, S.J. Tol, H. Toya
Contents
Contents:
Introduction Mark Skidmore
PART I MACROECONOMIC AND REGIONAL IMPACTS OF NATURAL DISASTERS
A. Growth Impacts
1. Mark Skidmore and Hideki Toya (2002), ‘Do Natural Disasters Promote Long-Run Growth?’, Economic Inquiry, 40 (4), October, 664–87
2. Jesús Crespo Cuaresma, Jaroslava Hlouskova and Michael Obersteiner (2008), ‘Natural Disasters as Creative Destruction? Evidence from Developing Countries’, Economic Inquiry, 46 (2), April, 214–26
3. Ilan Noy (2009), ‘The Macroeconomic Consequences of Disasters’, Journal of Development Economics, 88 (2), March, 221–31
4. Eric Strobl (2012), ‘The Economic Growth Impact of Natural Disasters in Developing Countries: Evidence from Hurricane Strikes in the Central American and Caribbean Regions’, Journal of Development Economics, 97 (1), January, 130–41
5. Eduardo Cavallo, Sebastian Galiani, Ilan Noy and Juan Pantano (2013), ‘Catastrophic Natural Disasters and Economic Growth’, Review of Economics and Statistics, 95 (5), December, 1549–61
B. Instability, Monetary and Financial Flow Impacts
6. Kerry A. Odell and Marc D. Weidenmier (2004), ‘Real Shock, Monetary Aftershock: The 1906 San Francisco Earthquake and the Panic of 1907’, Journal of Economic History, 64 (4), December, 1002–27
7. Claudio Raddatz (2007), ‘Are External Shocks Responsible for the Instability of Output in Low-Income Countries?’, Journal of Development Economics, 84 (1), September, 155–87
8. Michael R. Carter, Peter D. Little, Tewodaj Mogues and Workneh Negatu (2007), ‘Poverty Traps and Natural Disasters in Ethiopia and Honduras’, World Development, 35 (5), May, 835–56
C. Regional Impacts
9. Adam Rose, Juan Benavides, Stephanie E. Chang, Philip Szczesniak and Dongsoon Lim (1997), ‘The Regional Economic Impact of an Earthquake: Direct and Indirect Effects of Electricity Lifeline Disruptions’, Journal of Regional Science, 37 (3), August, 437–58
10. Stéphane Hallegatte (2008), ‘An Adaptive Regional Input-Output Model and its Application to the Assessment of the Economic Cost of Katrina’, Risk Analysis, 28 (3), June, 779–99
PART II NATURAL DISASTER VULNERABILITY
11. Terry Cannon (1994), ‘Vulnerability Analysis and the Explanation of “Natural” Disasters’, in Ann Varley (ed.), Disasters, Development and Environment, Chapter 2, Chichester, UK: John Wiley and Sons Ltd, 13–30
12. Lino Briguglio (1995), ‘Small Island Developing States and Their Economic Vulnerabilities’, World Development, 23 (9), September, 1615–32
13. Mark Pelling and Juha I. Uitto (2001), ‘Small Island Developing States: Natural Disaster Vulnerability and Global Change’, Global Environmental Change Part B: Environmental Hazards, 3 (2), June, 49–62
14. Irasema Alcántara-Ayala (2002), ‘Geomorphology, Natural Hazards, Vulnerability and Prevention of Natural Disasters in Developing Countries’, Geomorphology: Geomorphology in the Public Eye: Political Issues, Education, and the Public, 47 (2–4), October, 107–24
15. Susan L. Cutter, Bryan J. Boruff and W. Lynn Shirley (2003), ‘Social Vulnerability to Environmental Hazards’, Social Science Quarterly, 84 (2), June, 242–61
16. Michael K. Lindell and Carla S. Prater (2003), ‘Assessing Community Impacts of Natural Disasters’, Natural Hazards Review, 4 (4), November, 176–85
17. Matthew E. Kahn (2005), ‘The Death Toll from Natural Disasters: The Role of Income, Geography, and Institutions’, Review of Economics and Statistics, 87 (2), May, 271–84
18. Nejat Anbarci, Monica Escaleras and Charles A. Register (2005), ‘Earthquake Fatalities: The Interaction of Nature and Political Economy’, Journal of Public Economics, 89 (9–10), September, 1907–33
19. Eric Neumayer and Thomas Plümper (2007), ‘The Gendered Nature of Natural Disasters: The Impact of Catastrophic Events on the Gender Gap in Life Expectancy, 1981–2002’, Annals of the Association of American Geographers, 97 (3), February, 551–66
20. Hideki Toya and Mark Skidmore (2007), ‘Economic Development and the Impacts of Natural Disasters’, Economics Letters, 94 (1), January, 20–25
21. Michel Masozera, Melissa Bailey and Charles Kerchner (2007), ‘Distribution of Impacts of Natural Disasters across Income Groups: A Case Study of New Orleans’, Ecological Economics: Ecological Economics of Coastal Disasters–Coastal Disasters Special Section, 63 (2–3), August, 299–306
22. Derek K. Kellenberg and Ahmed Mushfiq Mobarak (2008), ‘Does Rising Income Increase or Decrease Damage Risk from Natural Disasters?’, Journal of Urban Economics, 63 (3), May, 788–802
23. P.A. Raschky (2008), ‘Institutions and the Losses from Natural Disasters’, Natural Hazards and Earth System Sciences, 8 (4), July, 627–34
24. Roger A. Pielke Jr., Joel Gratz, Christopher W. Landsea, Douglas Collins, Mark A. Saunders and Rade Musulin (2008), ‘Normalized Hurricane Damage in the United States: 1900–2005’, Natural Hazards Review, 9 (1), February, 29–42
25. Alvaro S. Pereira (2009), ‘The Opportunity of a Disaster: The Economic Impact of the 1755 Lisbon Earthquake’, Journal of Economic History, 69 (2), June, 466–99
26. Mark Skidmore and Hideki Toya (2013), ‘Natural Disaster Impacts and Fiscal Decentralization’, Land Economics, 89 (1), February, 101–17
27. Richard Hornbeck and Suresh Naidu (2014), ‘When the Levee Breaks: Black Migration and Economic Development in the American South’, American Economic Review, 104 (3), March, 963–90
28. Daniel P. Aldrich and Yasuyuki Sawada (2015), ‘The Physical and Social Determinants of Mortality in the 3.11 Tsunami’, Social Science and Medicine, 124, January, 66–75
29. Hideki Toya and Mark Skidmore (2015), ‘Information/Communication Technology and Natural Disaster Vulnerability’, Economics Letters, 137, December, 143–5
PART III NATURAL DISASTER RESILIENCE, RECOVERY AND ADAPTATION
A. Resilience
30. David S. Brookshire, Mark A. Thayer, John Tschirhart and William D. Schulze (1985), ‘A Test of the Expected Utility Model: Evidence from Earthquake Risks’, Journal of Political Economy, 93 (2), April, 369–89
31. Howard Kunreuther (1996), ‘Mitigating Disaster Losses through Insurance’, Journal of Risk and Uncertainty, Special Issue: The Stanford University Conference on Social Treatment of Catastrophic Risk, 12 (2–3), May, 171–87
32. Raymond J. Burby, Robert E. Deyle, David R. Godschalk and Robert B. Olshansky (2000), ‘Creating Hazard Resilient Communities through Land-Use Planning’, Natural Hazards Review, 1 (2), May, 99–106
33. Gary Yohe and Richard S.J. Tol (2002), ‘Indicators for Social and Economic Coping Capacity – Moving toward a Working Definition of Adaptive Capacity’, Global Environmental Change, 12 (1), April, 25–40
34. Emmanuel Skoufias (2003), ‘Economic Crises and Natural Disasters: Coping Strategies and Policy Implications’, World Development: Economic Crises, Natural Disasters, and Poverty, 31 (7), July, 1087–102
35. David R. Godschalk (2003), ‘Urban Hazard Mitigation: Creating Resilient Cities’, Natural Hazards Review, 4 (3), August, 136–43
36. Fanny Henriet, Stéphane Hallegatte and Lionel Tabourier (2012), ‘Firm-Network Characteristics and Economic Robustness to Natural Disasters’, Journal of Economic Dynamics and Control, 36 (1), January, 150–67
B. Recovery
37. George Horwich (2000), ‘Economic Lessons of the Kobe Earthquake’, Economic Development and Cultural Change, 48 (3), April, 521–42
38. R.W. Kates, C.E. Colten, S. Laska and S.P. Leatherman (2006), ‘Reconstruction of New Orleans after Hurricane Katrina: A Research Perspective’, Proceedings of the National Academy of Sciences, 103 (40), October, 14653–60
39. David Strömberg (2007), ‘Natural Disasters, Economic Development, and Humanitarian Aid’, Journal of Economic Perspectives, 21 (3), Summer, 199–222
C. Adaptation
40. Timothy Besley and Robin Burgess (2002), ‘The Political Economy of Government Responsiveness: Theory and Evidence from India’, Quarterly Journal of Economics, 117 (4), November, 1415–51
41. Nick Brooks, W. Neil Adger and P. Mick Kelly (2005), ‘The Determinants of Vulnerability and Adaptive Capacity at the National Level and the Implications for Adaptation’, Global Environmental Change: Adaptation to Climate Change: Perspectives across Scales, 15 (2), July, 151–63
42. Raymond J. Burby (2006), ‘Hurricane Katrina and the Paradoxes of Government Disaster Policy: Bringing About Wise Governmental Decisions for Hazardous Areas’, Annals of the American Academy of Political and Social Science, 604 (1), March, 171–91
43. Andrew Healy and Neil Malhotra (2009), ‘Myopic Voters and Natural Disaster Policy’, American Political Science Review, 103 (3), August, 387–406
44. Leah Platt Boustan, Matthew E. Kahn and Paul W. Rhode (2012), ‘Moving to Higher Ground: Migration Response to Natural Disasters in the Early Twentieth Century’, American Economic Review: Papers and Proceedings, 102 (3), May, 238–44
45. Nathalie Francken, Bart Minten and Johan F.M. Swinnen (2012), ‘The Political Economy of Relief Aid Allocation: Evidence from Madagascar’, World Development, 40 (3), March, 486–500
46. Stefan Hochrainer-Stigler, Reinhard Mechler, Georg Pflug and Keith Williges (2014), ‘Funding Public Adaptation to Climate-Related Disasters. Estimates for a Global Fund’, Global Environmental Change, 25, March, 87–96
47. Hideki Toya and Mark Skidmore (2014), ‘Do Natural Disasters Enhance Societal Trust?’, Kyklos, 67 (2), May, 255–79
Index
Introduction Mark Skidmore
PART I MACROECONOMIC AND REGIONAL IMPACTS OF NATURAL DISASTERS
A. Growth Impacts
1. Mark Skidmore and Hideki Toya (2002), ‘Do Natural Disasters Promote Long-Run Growth?’, Economic Inquiry, 40 (4), October, 664–87
2. Jesús Crespo Cuaresma, Jaroslava Hlouskova and Michael Obersteiner (2008), ‘Natural Disasters as Creative Destruction? Evidence from Developing Countries’, Economic Inquiry, 46 (2), April, 214–26
3. Ilan Noy (2009), ‘The Macroeconomic Consequences of Disasters’, Journal of Development Economics, 88 (2), March, 221–31
4. Eric Strobl (2012), ‘The Economic Growth Impact of Natural Disasters in Developing Countries: Evidence from Hurricane Strikes in the Central American and Caribbean Regions’, Journal of Development Economics, 97 (1), January, 130–41
5. Eduardo Cavallo, Sebastian Galiani, Ilan Noy and Juan Pantano (2013), ‘Catastrophic Natural Disasters and Economic Growth’, Review of Economics and Statistics, 95 (5), December, 1549–61
B. Instability, Monetary and Financial Flow Impacts
6. Kerry A. Odell and Marc D. Weidenmier (2004), ‘Real Shock, Monetary Aftershock: The 1906 San Francisco Earthquake and the Panic of 1907’, Journal of Economic History, 64 (4), December, 1002–27
7. Claudio Raddatz (2007), ‘Are External Shocks Responsible for the Instability of Output in Low-Income Countries?’, Journal of Development Economics, 84 (1), September, 155–87
8. Michael R. Carter, Peter D. Little, Tewodaj Mogues and Workneh Negatu (2007), ‘Poverty Traps and Natural Disasters in Ethiopia and Honduras’, World Development, 35 (5), May, 835–56
C. Regional Impacts
9. Adam Rose, Juan Benavides, Stephanie E. Chang, Philip Szczesniak and Dongsoon Lim (1997), ‘The Regional Economic Impact of an Earthquake: Direct and Indirect Effects of Electricity Lifeline Disruptions’, Journal of Regional Science, 37 (3), August, 437–58
10. Stéphane Hallegatte (2008), ‘An Adaptive Regional Input-Output Model and its Application to the Assessment of the Economic Cost of Katrina’, Risk Analysis, 28 (3), June, 779–99
PART II NATURAL DISASTER VULNERABILITY
11. Terry Cannon (1994), ‘Vulnerability Analysis and the Explanation of “Natural” Disasters’, in Ann Varley (ed.), Disasters, Development and Environment, Chapter 2, Chichester, UK: John Wiley and Sons Ltd, 13–30
12. Lino Briguglio (1995), ‘Small Island Developing States and Their Economic Vulnerabilities’, World Development, 23 (9), September, 1615–32
13. Mark Pelling and Juha I. Uitto (2001), ‘Small Island Developing States: Natural Disaster Vulnerability and Global Change’, Global Environmental Change Part B: Environmental Hazards, 3 (2), June, 49–62
14. Irasema Alcántara-Ayala (2002), ‘Geomorphology, Natural Hazards, Vulnerability and Prevention of Natural Disasters in Developing Countries’, Geomorphology: Geomorphology in the Public Eye: Political Issues, Education, and the Public, 47 (2–4), October, 107–24
15. Susan L. Cutter, Bryan J. Boruff and W. Lynn Shirley (2003), ‘Social Vulnerability to Environmental Hazards’, Social Science Quarterly, 84 (2), June, 242–61
16. Michael K. Lindell and Carla S. Prater (2003), ‘Assessing Community Impacts of Natural Disasters’, Natural Hazards Review, 4 (4), November, 176–85
17. Matthew E. Kahn (2005), ‘The Death Toll from Natural Disasters: The Role of Income, Geography, and Institutions’, Review of Economics and Statistics, 87 (2), May, 271–84
18. Nejat Anbarci, Monica Escaleras and Charles A. Register (2005), ‘Earthquake Fatalities: The Interaction of Nature and Political Economy’, Journal of Public Economics, 89 (9–10), September, 1907–33
19. Eric Neumayer and Thomas Plümper (2007), ‘The Gendered Nature of Natural Disasters: The Impact of Catastrophic Events on the Gender Gap in Life Expectancy, 1981–2002’, Annals of the Association of American Geographers, 97 (3), February, 551–66
20. Hideki Toya and Mark Skidmore (2007), ‘Economic Development and the Impacts of Natural Disasters’, Economics Letters, 94 (1), January, 20–25
21. Michel Masozera, Melissa Bailey and Charles Kerchner (2007), ‘Distribution of Impacts of Natural Disasters across Income Groups: A Case Study of New Orleans’, Ecological Economics: Ecological Economics of Coastal Disasters–Coastal Disasters Special Section, 63 (2–3), August, 299–306
22. Derek K. Kellenberg and Ahmed Mushfiq Mobarak (2008), ‘Does Rising Income Increase or Decrease Damage Risk from Natural Disasters?’, Journal of Urban Economics, 63 (3), May, 788–802
23. P.A. Raschky (2008), ‘Institutions and the Losses from Natural Disasters’, Natural Hazards and Earth System Sciences, 8 (4), July, 627–34
24. Roger A. Pielke Jr., Joel Gratz, Christopher W. Landsea, Douglas Collins, Mark A. Saunders and Rade Musulin (2008), ‘Normalized Hurricane Damage in the United States: 1900–2005’, Natural Hazards Review, 9 (1), February, 29–42
25. Alvaro S. Pereira (2009), ‘The Opportunity of a Disaster: The Economic Impact of the 1755 Lisbon Earthquake’, Journal of Economic History, 69 (2), June, 466–99
26. Mark Skidmore and Hideki Toya (2013), ‘Natural Disaster Impacts and Fiscal Decentralization’, Land Economics, 89 (1), February, 101–17
27. Richard Hornbeck and Suresh Naidu (2014), ‘When the Levee Breaks: Black Migration and Economic Development in the American South’, American Economic Review, 104 (3), March, 963–90
28. Daniel P. Aldrich and Yasuyuki Sawada (2015), ‘The Physical and Social Determinants of Mortality in the 3.11 Tsunami’, Social Science and Medicine, 124, January, 66–75
29. Hideki Toya and Mark Skidmore (2015), ‘Information/Communication Technology and Natural Disaster Vulnerability’, Economics Letters, 137, December, 143–5
PART III NATURAL DISASTER RESILIENCE, RECOVERY AND ADAPTATION
A. Resilience
30. David S. Brookshire, Mark A. Thayer, John Tschirhart and William D. Schulze (1985), ‘A Test of the Expected Utility Model: Evidence from Earthquake Risks’, Journal of Political Economy, 93 (2), April, 369–89
31. Howard Kunreuther (1996), ‘Mitigating Disaster Losses through Insurance’, Journal of Risk and Uncertainty, Special Issue: The Stanford University Conference on Social Treatment of Catastrophic Risk, 12 (2–3), May, 171–87
32. Raymond J. Burby, Robert E. Deyle, David R. Godschalk and Robert B. Olshansky (2000), ‘Creating Hazard Resilient Communities through Land-Use Planning’, Natural Hazards Review, 1 (2), May, 99–106
33. Gary Yohe and Richard S.J. Tol (2002), ‘Indicators for Social and Economic Coping Capacity – Moving toward a Working Definition of Adaptive Capacity’, Global Environmental Change, 12 (1), April, 25–40
34. Emmanuel Skoufias (2003), ‘Economic Crises and Natural Disasters: Coping Strategies and Policy Implications’, World Development: Economic Crises, Natural Disasters, and Poverty, 31 (7), July, 1087–102
35. David R. Godschalk (2003), ‘Urban Hazard Mitigation: Creating Resilient Cities’, Natural Hazards Review, 4 (3), August, 136–43
36. Fanny Henriet, Stéphane Hallegatte and Lionel Tabourier (2012), ‘Firm-Network Characteristics and Economic Robustness to Natural Disasters’, Journal of Economic Dynamics and Control, 36 (1), January, 150–67
B. Recovery
37. George Horwich (2000), ‘Economic Lessons of the Kobe Earthquake’, Economic Development and Cultural Change, 48 (3), April, 521–42
38. R.W. Kates, C.E. Colten, S. Laska and S.P. Leatherman (2006), ‘Reconstruction of New Orleans after Hurricane Katrina: A Research Perspective’, Proceedings of the National Academy of Sciences, 103 (40), October, 14653–60
39. David Strömberg (2007), ‘Natural Disasters, Economic Development, and Humanitarian Aid’, Journal of Economic Perspectives, 21 (3), Summer, 199–222
C. Adaptation
40. Timothy Besley and Robin Burgess (2002), ‘The Political Economy of Government Responsiveness: Theory and Evidence from India’, Quarterly Journal of Economics, 117 (4), November, 1415–51
41. Nick Brooks, W. Neil Adger and P. Mick Kelly (2005), ‘The Determinants of Vulnerability and Adaptive Capacity at the National Level and the Implications for Adaptation’, Global Environmental Change: Adaptation to Climate Change: Perspectives across Scales, 15 (2), July, 151–63
42. Raymond J. Burby (2006), ‘Hurricane Katrina and the Paradoxes of Government Disaster Policy: Bringing About Wise Governmental Decisions for Hazardous Areas’, Annals of the American Academy of Political and Social Science, 604 (1), March, 171–91
43. Andrew Healy and Neil Malhotra (2009), ‘Myopic Voters and Natural Disaster Policy’, American Political Science Review, 103 (3), August, 387–406
44. Leah Platt Boustan, Matthew E. Kahn and Paul W. Rhode (2012), ‘Moving to Higher Ground: Migration Response to Natural Disasters in the Early Twentieth Century’, American Economic Review: Papers and Proceedings, 102 (3), May, 238–44
45. Nathalie Francken, Bart Minten and Johan F.M. Swinnen (2012), ‘The Political Economy of Relief Aid Allocation: Evidence from Madagascar’, World Development, 40 (3), March, 486–500
46. Stefan Hochrainer-Stigler, Reinhard Mechler, Georg Pflug and Keith Williges (2014), ‘Funding Public Adaptation to Climate-Related Disasters. Estimates for a Global Fund’, Global Environmental Change, 25, March, 87–96
47. Hideki Toya and Mark Skidmore (2014), ‘Do Natural Disasters Enhance Societal Trust?’, Kyklos, 67 (2), May, 255–79
Index
