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In the Eye of the Storm: Coping with Future Natural Disasters in Hawaii

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Author Info
Makena Coffman () (Department of Urban and Regional Planning, University of Hawaii at Manoa, University of Hawaii Economic Research Organization)
Ilan Noy () (Department of Economics, University of Hawaii at Manoa)

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Abstract

Hurricane Iniki, that hit the island of Kauai on September 11th, 1992, was the strongest hurricane that hit the Hawaiian Islands in recorded history, and the one that wrought the most damage, estimated at 7.4 billion (in 2008 US$). We provide an assessment of Hawaii’s vulnerability to disasters using a framework developed for small islands. In addition, we provide an analysis of the ex post impact of Iniki on the economy of Kauai. Using indicators such as visitor arrivals and agricultural production, we show that Kauai’s economy only returned to pre-Iniki levels 7-8 years after the storm. Today, it has yet to recover in terms of population growth. As an island state, Hawaii is particularly susceptible to the occurrence of disasters. Even more worrying, Hawaii’s dependence on tourism, narrow export base, high level of imports and relatively small agricultural sector make Hawaii much more likely to struggle to recover in the aftermath. By thoroughly learning from Kauai’s experience and the state’s vulnerabilities, we hope we can better prepare for likely future disaster events.

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File URL: http://www.economics.hawaii.edu/research/workingpapers/WP_09-4.pdf
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File Function: First version, 2009
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Publisher Info
Paper provided by University of Hawaii at Manoa, Department of Economics in its series Working Papers with number 200904.

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Length: 29 pages
Date of creation: 01 May 2009
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Handle: RePEc:hai:wpaper:200904

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Related research
Keywords: natural disasters; hurricane; Iniki; Kauai; Hawaii; climate change; global warming;

Find related papers by JEL classification:
Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters
R50 - Urban, Rural, and Regional Economics - - Regional Government Analysis - - - General

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Selcuk, F. & Yeldan, E., 2000. "On the Macroeconomic Impact of the August 1999 Earthquake in Turkey: a First Assessment," Papers 2001, Economic Research Forum.
    Other versions:
  2. Anbarci, Nejat & Escaleras, Monica & Register, Charles A., 2005. "Earthquake fatalities: the interaction of nature and political economy," Journal of Public Economics, Elsevier, vol. 89(9-10), pages 1907-1933, September. [Downloadable!] (restricted)
    Other versions:
  3. Eduardo A. Cavallo & Patricio Valenzuela & Eduardo Borensztein, 2008. "Debt Sustainability under Catastrophic Risk: The Case for Government Budget Insurance," IMF Working Papers 08/44, International Monetary Fund. [Downloadable!]
    Other versions:
  4. Heger, Martin & Julca, Alex & Paddison, Oliver, 2008. "Analysing the Impact of Natural Hazards in Small Economies: The Caribbean Case," Working Papers RP2008/25, World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  5. Ilan Noy & Aekkanush Nualsri, 2007. "What do Exogenous Shocks Tell Us about Growth Theories?," Working Papers 200728, University of Hawaii at Manoa, Department of Economics. [Downloadable!]
  6. Crespo Cuaresma & Hlouskova & Obersteiner, 2008. "Natural Disasters As Creative Destruction? Evidence From Developing Countries," Economic Inquiry, Western Economic Association International, vol. 46(2), pages 214-226, 04. [Downloadable!] (restricted)
  7. Ilan Noy & Aekkanush Nualsri, 2008. "Fiscal Storms: Public Spending and Revenues in the Aftermath of Natural Disasters," Working Papers 200809, University of Hawaii at Manoa, Department of Economics. [Downloadable!]
  8. Noy, Ilan, 2009. "The macroeconomic consequences of disasters," Journal of Development Economics, Elsevier, vol. 88(2), pages 221-231, March. [Downloadable!] (restricted)
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  9. Jacob Vigdor, 2008. "The Economic Aftermath of Hurricane Katrina," Journal of Economic Perspectives, American Economic Association, vol. 22(4), pages 135-54, Fall.
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This page was last updated on 2009-11-24.


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