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A Robust Analysis of the Relationship between Natural Disasters, Electricity and Economic Growth in 41 Countries

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  • Nadia Benali and Kais Saidi

    (University of Sfax)

Abstract

In this paper, our objective is to investigate the relationship between natural disasters (droughts, floods, earthquakes, and storms), electricity and other variables macroeconomic for 41 countries over the period 1990?2014. The Panel data and Granger causality-VECM used in this paper over the period 1990?2014. The analysis finds that, the impact of natural disasters is negative and stronger on developing than on developed countries. Second, the test of causality shows that both in short term and long term there is a unidirectional relationship running from disaster measures to electricity consumption. In the long term, we note the existence of a unidirectional causal relationship ranging from disaster measures to GDP per capita.

Suggested Citation

  • Nadia Benali and Kais Saidi, 2017. "A Robust Analysis of the Relationship between Natural Disasters, Electricity and Economic Growth in 41 Countries," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 42(3), pages 89-109, September.
  • Handle: RePEc:jed:journl:v:42:y:2017:i:3:p:89-109
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    Cited by:

    1. Yan Song & Zhenran Li & Xiao Zhang & Ming Zhang, 2021. "Study on indirect economic impacts and their causes of the 2008 Wenchuan earthquake," 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. 108(2), pages 1971-1995, September.
    2. Lochan Kumar Batala & Wangxing Yu & Anwar Khan & Kalpana Regmi & Xiaoli Wang, 2021. "Natural disasters' influence on industrial growth, foreign direct investment, and export performance in the South Asian region of Belt and road initiative," 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. 108(2), pages 1853-1876, September.
    3. Lee, Chien-Chiang & Wang, Chih-Wei & Ho, Shan-Ju & Wu, Ting-Pin, 2021. "The impact of natural disaster on energy consumption: International evidence," Energy Economics, Elsevier, vol. 97(C).

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    More about this item

    Keywords

    Natural Disaster; Economic Growth; Electricity Consumption; Panel Data; Granger Causality-VECM;
    All these keywords.

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes

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