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Natural disasters and regional development – the case of earthquakes

Author

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  • Fabian, Marius
  • Lessmann, Christian
  • Sofke, Tim

Abstract

We analyze the impact of earthquakes on nighttime lights at a sub-national level, i.e., on grids of different size. We argue that existing studies on the impact of natural disasters on economic development have several important limitations, both at the level of the outcome variable as well as at the level of the independent variable, e.g., the timing of an event and the measuring of its intensity. We aim to overcome these limitations by using geophysical event data on earthquakes together with satellite nighttime lights. Using panel fixed effects regressions covering the entire world for the period 1992–2013, we find that earthquakes reduce both light growth rates and light levels significantly. The effects persist for approximately 5 years, but we find no long-run effects. Effects are stronger the smaller the area of a unit of observation. National institutions and economic conditions are relevant moderating factors.

Suggested Citation

  • Fabian, Marius & Lessmann, Christian & Sofke, Tim, 2019. "Natural disasters and regional development – the case of earthquakes," Environment and Development Economics, Cambridge University Press, vol. 24(5), pages 479-505, October.
    • Handle: RePEc:cup:endeec:v:24:y:2019:i:05:p:479-505_00
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    Cited by:

    1. repec:rfh:bbejor:v:13:y:2025:i:3:p:703-718 is not listed on IDEAS
    2. Richard S. J. Tol, 2022. "State capacity and vulnerability to natural disasters," Chapters, in: Mark Skidmore (ed.), Handbook on the Economics of Disasters, chapter 20, pages 434-457, Edward Elgar Publishing.
    3. Sumonkanti Das & Syed Abul Basher & Bernard Baffour & Penny Godwin & Alice Richardson & Salim Rashid, 2024. "Improved estimates of child malnutrition trends in Bangladesh using remote-sensed data," Journal of Population Economics, Springer;European Society for Population Economics, vol. 37(4), pages 1-37, December.
    4. Ilari Määttä & Thomas Ferreira & Christian Leßmann, 2022. "Nighttime lights and wealth in very small areas: [Nachtlichter und Wohlstand in Kleinräumigen Daten:]," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 42(2), pages 161-190, August.
    5. John Gibson & Yi Jiang & Xiaoxuan Zhang & Geua Boe-Gibson, 2024. "Are Disaster Impact Estimates Distorted by Errors in Popular Night-Time Lights Data?," Economics of Disasters and Climate Change, Springer, vol. 8(3), pages 391-416, November.
    6. Dino Collalti, 2024. "The Economic Dynamics After a Flood: Evidence from Satellite Data," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 87(9), pages 2401-2428, September.
    7. Hoang Ha Nguyen Thi & Alfons Weichenrieder, 2023. "Tax Haven Welfare and the Crackdown on Secrecy: Evidence from Night Light Emissions," CESifo Working Paper Series 10721, CESifo.
    8. Dodlova, Marina & Carias, Michelle Escobar & Grimm, Michael, 2023. "The Effects of the 2010 Haiti Earthquake on Children's Nutrition and Education," IZA Discussion Papers 16195, IZA Network @ LISER.
    9. Katarzyna Anna Bilicka & André Seidel, 2022. "Measuring Firm Activity from Outer Space," CESifo Working Paper Series 9701, CESifo.
    10. Mohammad Reza Farzanegan & Sven Fischer, 2025. "The impact of a large-scale natural disaster on local economic activity: evidence from the 2003 Bam earthquake in Iran," Empirical Economics, Springer, vol. 68(3), pages 1409-1428, March.

    More about this item

    JEL classification:

    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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