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Shining a Light on Resilience: Overcoming Hurricane Odile’s Impact on Electricity and the Economy

Author

Listed:
  • Bagnoli, Lisa

    (Inter-American Development Bank)

  • Delgado, Lucía

    (Inter-American Development Bank)

  • Luza, Jerónimo

    (Inter-American Development Bank)

  • Mitnik, Oscar A.

    (Inter-American Development Bank)

  • Pasman, Clara

    (Bocconi University)

  • Serebrisky, Tomás

    (Inter-American Development Bank)

Abstract

Over the past decades, Latin America and the Caribbean have experienced a significant increase in natural disasters, posing significant threats to infrastructure and economic activity, particularly in regions with poor infrastructure. Understanding the patterns in recovery time after disasters is key to designing accurate responses to natural hazards. In this paper, we develop a methodological approach and use Hurricane Odile, which struck Baja California Sur, Mexico, in September 2014, as a case study to understand the recovery paths following such disasters. We rely on nighttime lights data to capture the initial impact and eventual recovery of electricity service and economic activity in the area of impact of the hurricane. We find that the average luminosity dropped to 78% of pre-hurricane levels immediately after the event and did not fully recover within a year. Impacts are heterogeneous, with localities such as Cabo San Lucas and San José del Cabo experiencing more severe impacts and slower recovery compared to La Paz, which recovered faster. These results suggest that disaster evaluation, mitigation policies, and preventive measures against disaster impacts should be tailored to local realities.

Suggested Citation

  • Bagnoli, Lisa & Delgado, Lucía & Luza, Jerónimo & Mitnik, Oscar A. & Pasman, Clara & Serebrisky, Tomás, 2025. "Shining a Light on Resilience: Overcoming Hurricane Odile’s Impact on Electricity and the Economy," IZA Discussion Papers 17909, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp17909
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    More about this item

    Keywords

    nighttime light; economic activity recovery; electricity service; natural disasters; resilience; hurricane; Mexico;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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