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Density and disasters: economics of urban hazard risk

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  • Lall, Somik V.
  • Deichmann, Uwe

Abstract

Today, 370 million people live in cities in earthquake prone areas and 310 million in cities with high probability of tropical cyclones. By 2050, these numbers are likely to more than double. Mortality risk therefore is highly concentrated in many of the world’s cities and economic risk even more so. This paper discusses what sets hazard risk in urban areas apart, provides estimates of valuation of hazard risk, and discusses implications for individual mitigation and public policy. The main conclusions are that urban agglomeration economies change the cost-benefit calculation of hazard mitigation, that good hazard management is first and foremost good general urban management, and that the public sector must perform better in generating and disseminating credible information on hazard risk in cities.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 5161.

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Date of creation: 01 Dec 2009
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Handle: RePEc:wbk:wbrwps:5161

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Related research

Keywords: Banks&Banking Reform; Environmental Economics&Policies; Hazard Risk Management; Urban Housing; Labor Policies;

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Cited by:
  1. Hallegatte, Stephane, 2012. "An exploration of the link between development, economic growth, and natural risk," Policy Research Working Paper Series 6216, The World Bank.
  2. repec:wbk:wbpubs:15790 is not listed on IDEAS
  3. Fatima Shah & Federica Ranghieri, 2012. "A Workbook on Planning for Urban Resilience in the Face of Disasters : Adapting Experiences from Vietnam’s Cities to Other Cities," World Bank Publications, The World Bank, number 2235, August.
  4. Kousky, Carolyn, 2012. "Informing Climate Adaptation: A Review of the Economic Costs of Natural Disasters, Their Determinants, and Risk Reduction Options," Discussion Papers, Resources For the Future dp-12-28, Resources For the Future.

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