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Risk and Adaptation: Evidence from Global Hurricane Damages and Fatalities

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  • Laura A. Bakkensen
  • Robert O. Mendelsohn

Abstract

We examine whether countries adapt to hurricanes. A spatially refined global tropical cyclone data set is created to test for adaptation. We find evidence of adaptation in most of the world by examining the effects of income, population density, and storm frequency on damage and fatalities. In contrast, there is no evidence of adaptation to damage in the United States, leading to a damage function which is 14 times higher than other developed (OECD) countries.

Suggested Citation

  • Laura A. Bakkensen & Robert O. Mendelsohn, 2016. "Risk and Adaptation: Evidence from Global Hurricane Damages and Fatalities," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 3(3), pages 555-587.
    • Handle: RePEc:ucp:jaerec:doi:10.1086/685908
    DOI: 10.1086/685908
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