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Informing climate adaptation: A review of the economic costs of natural disasters

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  • Kousky, Carolyn

Abstract

This paper reviews the empirical literature on the economic impacts of natural disasters to inform both the modeling of potential future climate damages and climate adaptation policy related to extreme events. It covers papers that estimate the short- and/or long-run economic impacts of weather-related extreme events as well as studies identifying the determinants of the magnitude of those damages (including fatalities). The paper also reviews the small number of empirical papers on the potential extent of adaptation in response to changing extreme events.

Suggested Citation

  • Kousky, Carolyn, 2014. "Informing climate adaptation: A review of the economic costs of natural disasters," Energy Economics, Elsevier, vol. 46(C), pages 576-592.
  • Handle: RePEc:eee:eneeco:v:46:y:2014:i:c:p:576-592
    DOI: 10.1016/j.eneco.2013.09.029
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    References listed on IDEAS

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    Cited by:

    1. Matthew Ranson & Lisa Tarquinio & Audrey Lew, 2016. "Modeling the Impact of Climate Change on Extreme Weather Losses," NCEE Working Paper Series 201602, National Center for Environmental Economics, U.S. Environmental Protection Agency, revised May 2016.
    2. repec:eee:dyncon:v:83:y:2017:i:c:p:232-269 is not listed on IDEAS
    3. repec:gam:jsusta:v:10:y:2018:i:9:p:3103-:d:166824 is not listed on IDEAS
    4. Kevin Luo & Tomoko Kinugasa, 2018. "Do natural disasters influence long-term saving?: Assessing the impact of the 2008 Sichuan earthquake on household saving rates using synthetic control," Discussion Papers 1804, Graduate School of Economics, Kobe University.
    5. M. Fratzscher & C. Grosse Steffen & M. Rieth, 2017. "Inflation Targeting as a Shock Absorber," Working papers 655, Banque de France.
    6. repec:spr:ediscc:v:2:y:2018:i:1:d:10.1007_s41885-017-0018-x is not listed on IDEAS
    7. Lazzaroni, Sara & van Bergeijk, Peter A.G., 2014. "Natural disasters' impact, factors of resilience and development: A meta-analysis of the macroeconomic literature," Ecological Economics, Elsevier, vol. 107(C), pages 333-346.
    8. repec:eee:reensy:v:175:y:2018:i:c:p:283-305 is not listed on IDEAS
    9. Kunze, Sven, 2017. "Unraveling the Effects of Tropical Cyclones on Economic Sectors Worldwide," Working Papers 0641, University of Heidelberg, Department of Economics.
    10. repec:spr:ediscc:v:1:y:2017:i:2:d:10.1007_s41885-017-0003-4 is not listed on IDEAS
    11. Arouri, Mohamed & Nguyen, Cuong & Youssef, Adel Ben, 2015. "Natural Disasters, Household Welfare, and Resilience: Evidence from Rural Vietnam," World Development, Elsevier, vol. 70(C), pages 59-77.
    12. Rodolfo Manuelli, 2017. "Natural Disasters and Growth: The Role of Foreign Aid and Disaster Insurance," 2017 Meeting Papers 1118, Society for Economic Dynamics.
    13. Davlasheridze, Meri & Fisher-Vanden, Karen & Allen Klaiber, H., 2017. "The effects of adaptation measures on hurricane induced property losses: Which FEMA investments have the highest returns?," Journal of Environmental Economics and Management, Elsevier, vol. 81(C), pages 93-114.
    14. Leah Platt Boustan & Matthew E. Kahn & Paul W. Rhode & Maria Lucia Yanguas, 2017. "The Effect of Natural Disasters on Economic Activity in US Counties: A Century of Data," NBER Working Papers 23410, National Bureau of Economic Research, Inc.
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    16. Kunze, Sven, 2018. "Unraveling the Effects of Tropical Cyclones on Economic Sectors Worldwide," Working Papers 0653, University of Heidelberg, Department of Economics.
    17. Jianhong E. Mu & Yong Chen, 2016. "Impacts of large natural disasters on regional income," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 83(3), pages 1485-1503, September.
    18. repec:bla:jrinsu:v:84:y:2017:i:3:p:819-850 is not listed on IDEAS
    19. Edmiston, Kelly D., 2017. "Financial Vulnerability and Personal Finance Outcomes of Natural Disasters," Research Working Paper RWP 17-9, Federal Reserve Bank of Kansas City.
    20. repec:wsi:wepxxx:v:03:y:2017:i:01:n:s2382624x17710011 is not listed on IDEAS
    21. Wang, Haoying, 2017. "Market Response to Flood Risk: An Empirical Study of Housing Values Using Boundary Discontinuities," MPRA Paper 85493, University Library of Munich, Germany.
    22. Yusuke Matsuki & Shunsuke Managi, 2016. "The Impact Of Natural Disasters On Manufacturing: Plant-Level Analysis For The Great Hanshin-Awaji Earthquake," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 61(01), pages 1-22, March.

    More about this item

    Keywords

    Natural disaster damages; Climate adaptation; Risk mitigation;

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • D1 - Microeconomics - - Household Behavior
    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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