Icelanders and Disasters: Economic Perspectives on Risk, Resilience, and Recovery from Iceland

This chapter examines how crises are understood and constructed within Icelandic society, not only through the commonly used lens of natural disasters and their associated risks but also man-made risk. By analyzing public discourse, cultural narratives, and institutional responses, the chapter explores the complex interplay between uncertainty and crisis, emphasizing how crisis is not merely a response to catastrophic events but also a culturally and socially mediated concept. Drawing on Iceland's unique environmental conditions and historical experiences with natural hazards such as volcanic eruptions, earthquakes, extreme weather, and living on the Malthusian frontier for centuries, the chapter reveals how these events are framed as crises within specific socio-political contexts. It situates the discussion within broader theoretical debates on risk to society, uncertainty, and crisis construction, ultimately arguing that crises in Iceland are shaped as much by cultural and political interpretations as by the material events themselves.