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Disaster Preparedness and Disaster Response: Evidence from Sales of Emergency Supplies Before and After Hurricanes

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  • Timothy K. M. Beatty
  • Jay P. Shimshack
  • Richard J. Volpe

Abstract

Government information warns households to acquire emergency supplies as hurricanes threaten and directs households to stay off roads after hurricanes make landfall. Do households follow this advice? If so, who, when, and how much? We provide novel evidence. We combine forecast and landfall data for US hurricanes between 2002 and 2012 with extensive scanner data on sales of bottled water, batteries, and flashlights. We find that sales of emergency supplies increase when a location is threatened by a hurricane. The bulk of the sales increases occur immediately prior to forecasted landfall. The average increase in sales after landfall is large and statistically significant. Observed emergency preparation as hurricanes threaten is moderately higher in coastal, wealthier, and whiter areas. Ex post emergency responses after hurricanes make landfall are sharply higher in African American, lower-income, and less educated areas. Our results suggest that households do not follow government advice.

Suggested Citation

  • Timothy K. M. Beatty & Jay P. Shimshack & Richard J. Volpe, 2019. "Disaster Preparedness and Disaster Response: Evidence from Sales of Emergency Supplies Before and After Hurricanes," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 6(4), pages 633-668.
    • Handle: RePEc:ucp:jaerec:doi:10.1086/703379
    DOI: 10.1086/703379
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    Cited by:

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    2. Andrew B. Martinez, 2020. "Forecast Accuracy Matters for Hurricane Damage," Econometrics, MDPI, vol. 8(2), pages 1-24, May.
    3. Redentor D. Cardinal & Glenne B. Lagura, DPA, 2023. "The Influence of Knowledge and Practices Towards Emergency and Disaster Preparedness of Tagum City: Input in Developing Intervention Programs," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(2), pages 796-810, February.
    4. Simandjuntak, Daniel P. & Jaenicke, Edward C. & Wrenn, Douglas H., 2022. "Heterogeneity in Consumer Food Stockpiling and Retailer Experiences During Hurricane Sandy," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322183, Agricultural and Applied Economics Association.
    5. Hadachek, Jeffrey, 2022. "The cost of nitrate pollution in drinking water," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322249, Agricultural and Applied Economics Association.
    6. Chin‐Hsien Yu & Bruce A. McCarl & Jian‐Da Zhu, 2022. "Market response to typhoons: The role of information and expectations," Southern Economic Journal, John Wiley & Sons, vol. 89(2), pages 496-521, October.
    7. Faxi Yuan & Amir Esmalian & Bora Oztekin & Ali Mostafavi, 2022. "Unveiling spatial patterns of disaster impacts and recovery using credit card transaction fluctuations," Environment and Planning B, , vol. 49(9), pages 2378-2391, November.
    8. Renato Molina & Ivan Rudik, 2022. "The Social Value of Predicting Hurricanes," CESifo Working Paper Series 10049, CESifo.
    9. Liu, Yanan & Klaiber, Allen, 2022. "The Impact of Harmful Algal Blooms on Household Averting Expenditure," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322117, Agricultural and Applied Economics Association.
    10. Yanan Liu & H. Allen Klaiber, 2023. "Don’t Drink the Water! The Impact of Harmful Algal Blooms on Household Averting Expenditure," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 86(1), pages 29-55, October.

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