IDEAS home Printed from https://ideas.repec.org/a/kap/enreec/v58y2014i3p473-490.html
   My bibliography  Save this article

Estimating Tropical Cyclone Damages Under Climate Change in the Southern Hemisphere Using Reported Damages

Author

Listed:
  • S. Seo

Abstract

This paper estimates the damages from tropical cyclones (TCs) in the Southern Hemisphere under future climate change scenarios based on the historical TC records in Australia. From the best-track TC data, we examine the changes in frequency, intensity, and economic damage of the TCs that made landfall since 1970. From the detailed individual TC reports, damage estimates are constructed based on reported damages. We find that the TC frequency has significantly declined over time. The intensity, however, does not show a significant trend. Average damage per TC has declined significantly from 43 million AUD in the 1970s to 11 million in the 1990s. This paper finds that 1 % decrease in minimum central pressure leads to 32.7 % increase in economic damage, which is more than three times larger than that found in the US hurricane study with regards to maximum wind speeds. For future damage projections, characteristics of the 14,000 TCs generated under seven different AOGCM climate models are applied. All seven climate models predict a decrease in TC frequency in the Southern Hemisphere but intensity predictions vary. By the end of the twenty second century, changes in climate are expected to increase the TC damage under the MRI ( $$+$$ + 94 %), the MIROC ( $$+$$ + 73 %), and the CSIRO ( $$+$$ + 66 %) model due to increased intensity. However, TC damage is expected to fall under the GFDL ( $$-$$ - 92 %) and the CNRM ( $$-$$ - 85 %) model due to decreased intensity and frequency. Adaptation will be a key determinant of the future vulnerability to TCs in the Southern Hemisphere. Copyright Springer Science+Business Media Dordrecht 2014

Suggested Citation

  • S. Seo, 2014. "Estimating Tropical Cyclone Damages Under Climate Change in the Southern Hemisphere Using Reported Damages," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 58(3), pages 473-490, July.
  • Handle: RePEc:kap:enreec:v:58:y:2014:i:3:p:473-490
    DOI: 10.1007/s10640-013-9744-x
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s10640-013-9744-x
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1007/s10640-013-9744-x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Mendelsohn, Robert & Emanuel, Kerry & Chonabayashi, Shun, 2011. "The impact of climate change on global tropical storm damages," Policy Research Working Paper Series 5562, The World Bank.
    2. Kerry Emanuel, 2005. "Increasing destructiveness of tropical cyclones over the past 30 years," Nature, Nature, vol. 436(7051), pages 686-688, August.
    3. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-838, May.
    4. William D. Nordhaus, 2010. "The Economics Of Hurricanes And Implications Of Global Warming," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 1(01), pages 1-20.
    5. Robert Mendelsohn & Kerry Emanuel & Shun Chonabayashi & Laura Bakkensen, 2012. "The impact of climate change on global tropical cyclone damage," Nature Climate Change, Nature, vol. 2(3), pages 205-209, March.
    6. James B. Elsner & James P. Kossin & Thomas H. Jagger, 2008. "The increasing intensity of the strongest tropical cyclones," Nature, Nature, vol. 455(7209), pages 92-95, September.
    7. Claudia Tebaldi & Katharine Hayhoe & Julie Arblaster & Gerald Meehl, 2007. "Going to the extremes," Climatic Change, Springer, vol. 82(1), pages 233-234, May.
    8. Koenker, Roger W & Bassett, Gilbert, Jr, 1978. "Regression Quantiles," Econometrica, Econometric Society, vol. 46(1), pages 33-50, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    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. Xiao-Chen Yuan & Xun Sun & Upmanu Lall & Zhi-Fu Mi & Jun He & Yi-Ming Wei, 2016. "China’s socioeconomic risk from extreme events in a changing climate: a hierarchical Bayesian model," Climatic Change, Springer, vol. 139(2), pages 169-181, November.
    3. S. Niggol Seo & Laura A. Bakkensen, 2016. "Did adaptation strategies work? High fatalities from tropical cyclones in the North Indian Ocean and future vulnerability under global warming," 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. 82(2), pages 1341-1355, June.
    4. S. Niggol Seo, 2017. "Measuring Policy Benefits Of The Cyclone Shelter Program In The North Indian Ocean: Protection From Intense Winds Or High Storm Surges?," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 8(04), pages 1-18, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kunze, Sven, 2018. "Unraveling the effects of tropical cyclones on economic sectors worldwide," Working Papers 0653, University of Heidelberg, Department of Economics.
    2. Laura A. Bakkensen & Xiangying Shi & Brianna D. Zurita, 2018. "The Impact of Disaster Data on Estimating Damage Determinants and Climate Costs," Economics of Disasters and Climate Change, Springer, vol. 2(1), pages 49-71, April.
    3. S. Niggol Seo, 2017. "Measuring Policy Benefits Of The Cyclone Shelter Program In The North Indian Ocean: Protection From Intense Winds Or High Storm Surges?," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 8(04), pages 1-18, November.
    4. Pugatch, Todd, 2019. "Tropical storms and mortality under climate change," World Development, Elsevier, vol. 117(C), pages 172-182.
    5. Kunze, Sven, 2017. "Unraveling the Effects of Tropical Cyclones on Economic Sectors Worldwide," Working Papers 0641, University of Heidelberg, Department of Economics.
    6. S. Niggol Seo & Laura A. Bakkensen, 2016. "Did adaptation strategies work? High fatalities from tropical cyclones in the North Indian Ocean and future vulnerability under global warming," 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. 82(2), pages 1341-1355, June.
    7. Matthew Ranson & Carolyn Kousky & Matthias Ruth & Lesley Jantarasami & Allison Crimmins & Lisa Tarquinio, 2014. "Tropical and extratropical cyclone damages under climate change," Climatic Change, Springer, vol. 127(2), pages 227-241, November.
    8. Laura A. Bakkensen & Robert O. Mendelsohn, 2016. "Risk and Adaptation: Evidence from Global Hurricane Damages and Fatalities," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 3(3), pages 555-587.
    9. Matteo Coronese & Francesco Lamperti & Francesca Chiaromonte & Andrea Roventini, 2018. "Natural Disaster Risk and the Distributional Dynamics of Damages," LEM Papers Series 2018/22, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    10. Sven Kunze, 2021. "Unraveling the Effects of Tropical Cyclones on Economic Sectors Worldwide: Direct and Indirect Impacts," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 78(4), pages 545-569, April.
    11. Andrew B. Martinez, 2020. "Forecast Accuracy Matters for Hurricane Damage," Econometrics, MDPI, vol. 8(2), pages 1-24, May.
    12. Hong Wang & Min Xu & Anselem Onyejuruwa & Yanjun Wang & Shanshan Wen & Andrew E. Gao & Yubin Li, 2019. "Tropical cyclone damages in Mainland China over 2005–2016: losses analysis and implications," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 21(6), pages 3077-3092, December.
    13. Juarez-Torres, Miriam & Puigvert, Jonathan E., 2019. "The Effect of Tropical Cyclones in Economic Activities: Micro Level Evidence from Mexico for Secondary and Tertiary Activities," 2019 Annual Meeting, July 21-23, Atlanta, Georgia 291044, Agricultural and Applied Economics Association.
    14. Francesco Bosello & Shouro Dasgupta, 2015. "Development, Climate Change Adaptation, and Maladaptation: Some Econometric Evidence," Working Papers 2015.97, Fondazione Eni Enrico Mattei.
    15. Andrea Staid & Seth Guikema & Roshanak Nateghi & Steven Quiring & Michael Gao, 2014. "Simulation of tropical cyclone impacts to the U.S. power system under climate change scenarios," Climatic Change, Springer, vol. 127(3), pages 535-546, December.
    16. Xiao-Chen Yuan & Xun Sun & Upmanu Lall & Zhi-Fu Mi & Jun He & Yi-Ming Wei, 2016. "China’s socioeconomic risk from extreme events in a changing climate: a hierarchical Bayesian model," Climatic Change, Springer, vol. 139(2), pages 169-181, November.
    17. Elliott, Robert J.R. & Strobl, Eric & Sun, Puyang, 2015. "The local impact of typhoons on economic activity in China: A view from outer space," Journal of Urban Economics, Elsevier, vol. 88(C), pages 50-66.
    18. Ashley C. Freeman & Walker S. Ashley, 2017. "Changes in the US hurricane disaster landscape: the relationship between risk and exposure," 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. 88(2), pages 659-682, September.
    19. Kunze, Sven, 2020. "Unraveling the effects of tropical cyclones on economic sectors worldwide," Working Papers 0685, University of Heidelberg, Department of Economics.
    20. Ramón E. López & Vinod Thomas & Pablo Troncoso, 2015. "Climate Change and Natural Disasters," Working Papers wp414, University of Chile, Department of Economics.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:enreec:v:58:y:2014:i:3:p:473-490. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.