IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp17909.html

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, IZA Network @ LISER.
  • Handle: RePEc:iza:izadps:dp17909
    as

    Download full text from publisher

    File URL: https://docs.iza.org/dp17909.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. John Gibson & Yi Jiang & Xiaoxuan Zhang & Geua Boe-Gibson, 2024. "Are Disaster Impact Estimates Distorted by Errors in Popular Night-Time Lights Data?," Economics of Disasters and Climate Change, Springer, vol. 8(3), pages 391-416, November.
    2. Henderson, Vernon & Squires, Tim & Storeygard, Adam & Weil, David, 2018. "The global distribution of economic activity: nature, history, and the role of trade," LSE Research Online Documents on Economics 79709, London School of Economics and Political Science, LSE Library.
    3. Blackman, Allen & Brichetti, Juan Pablo & Calatayud, Agustina & Cavallo, Eduardo A. & Datshkovsky, Darcia & Estache, Antonio & Guerrero Compeán, Roberto & Carvalho Metanias Hallack, Michelle & Hamaker, 2020. "From Structures to Services: The Path to Better Infrastructure in Latin America and the Caribbean," IDB Publications (Books), Inter-American Development Bank, number 10460, November.
    4. William Nordhaus & Xi Chen, 2015. "A sharper image? Estimates of the precision of nighttime lights as a proxy for economic statistics," Journal of Economic Geography, Oxford University Press, vol. 15(1), pages 217-246.
    5. J. Vernon Henderson & Adam Storeygard & David N. Weil, 2012. "Measuring Economic Growth from Outer Space," American Economic Review, American Economic Association, vol. 102(2), pages 994-1028, April.
    6. 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.
    7. Felbermayr, Gabriel & Gröschl, Jasmin & Sanders, Mark & Schippers, Vincent & Steinwachs, Thomas, 2018. "Shedding Light on the Spatial Diffusion of Disasters," VfS Annual Conference 2018 (Freiburg, Breisgau): Digital Economy 181556, Verein für Socialpolitik / German Economic Association.
    8. Pablo Carballo Chanfón & Preeya Mohan & Eric Strobl & Thomas Tveit, 2023. "The impact of hurricane strikes on cruise ship and airplane tourist arrivals in the Caribbean," Tourism Economics, , vol. 29(1), pages 68-91, February.
    9. Alejos, Luis & Alfonso, Mariana & Alpízar, Francisco & Alvarez, Luis & Balza, Lenin & Bebczuk, Ricardo N. & Blackman, Allen & Blyde, Juan S. & Bos, María Soledad & Cavallo, Eduardo A. & Celis, Carolin, 2025. "Peril and Promise: Tackling Climate Change in Latin America and the Caribbean," IDB Publications (Books), Inter-American Development Bank, number 14001, November.
    10. Gibson, John & Olivia, Susan & Boe-Gibson, Geua & Li, Chao, 2021. "Which night lights data should we use in economics, and where?," Journal of Development Economics, Elsevier, vol. 149(C).
    11. J Vernon Henderson & Tim Squires & Adam Storeygard & David Weil, 2018. "The Global Distribution of Economic Activity: Nature, History, and the Role of Trade1," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 133(1), pages 357-406.
    Full references (including those not matched with items on IDEAS)

    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. Linsenmeier, Manuel, 2023. "Temperature variability and long-run economic development," Journal of Environmental Economics and Management, Elsevier, vol. 121(C).
    2. Shapiro, Daniel & Oh, Chang Hoon & Zhang, Peng, 2023. "Nighttime lights data and their implications for IB research," Journal of International Management, Elsevier, vol. 29(5).
    3. Bortolotti, Luca & Marson, Marta & Saccone, Donatella, 2024. "Food and the forest: A spatial analysis on the nexus between foreign direct investment and deforestation," Forest Policy and Economics, Elsevier, vol. 169(C).
    4. Giorgio Chiovelli & Stelios Michalopoulus & Elias Papaioannou & Tanner Regan, 2025. "Illuminating the Global South," Working Papers 2025-009, The George Washington University, The Center for Economic Research.
    5. Dickinson, Jeffrey, 2020. "Planes, Trains, and Automobiles: What Drives Human-Made Light?," MPRA Paper 103504, University Library of Munich, Germany.
    6. repec:osf:socarx:xvucn_v1 is not listed on IDEAS
    7. Valentin Lindlacher & Moritz Goldbeck, 2025. "Digital Infrastructure and Local Economic Development: Early Internet in Sub-Saharan Africa," ERSA Working Paper Series, Economic Research Southern Africa, vol. 0.
    8. Bluhm, Richard & Krause, Melanie, 2022. "Top lights: Bright cities and their contribution to economic development," Journal of Development Economics, Elsevier, vol. 157(C).
    9. Felbermayr, Gabriel & Gröschl, Jasmin & Sanders, Mark & Schippers, Vincent & Steinwachs, Thomas, 2022. "The economic impact of weather anomalies," World Development, Elsevier, vol. 151(C).
    10. Li, Weijun & Bai, Xiwen & Yang, Dong & Hou, Yao, 2023. "Maritime connectivity, transport infrastructure expansion and economic growth: A global perspective," Transportation Research Part A: Policy and Practice, Elsevier, vol. 170(C).
    11. Jaqueson K Galimberti & Stefan Pichler & Regina Pleninger, 2023. "Measuring Inequality Using Geospatial Data," The World Bank Economic Review, World Bank, vol. 37(4), pages 549-569.
    12. Thomas Steinwachs, 2019. "Geography Matters: Spatial Dimensions of Trade, Migration and Growth," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 81, October.
    13. Chanda, Areendam & Cook, C. Justin, 2022. "Was India’s demonetization redistributive? Insights from satellites and surveys," Journal of Macroeconomics, Elsevier, vol. 73(C).
    14. Beyer, Robert C.M. & Franco-Bedoya, Sebastian & Galdo, Virgilio, 2021. "Examining the economic impact of COVID-19 in India through daily electricity consumption and nighttime light intensity," World Development, Elsevier, vol. 140(C).
    15. Omoniyi Alimi & Geua Boe-Gibson & John Gibson, 2022. "Noisy Night Lights Data: Effects on Research Findings for Developing Countries," Working Papers in Economics 22/12, University of Waikato.
    16. Brülhart, Marius & Desmet, Klaus & Klinke, Gian-Paolo, 2020. "The shrinking advantage of market potential," Journal of Development Economics, Elsevier, vol. 147(C).
    17. Felbermayr, Gabriel & Gröschl, Jasmin & Sanders, Mark & Schippers, Vincent & Steinwachs, Thomas, 2018. "Shedding Light on the Spatial Diffusion of Disasters," VfS Annual Conference 2018 (Freiburg, Breisgau): Digital Economy 181556, Verein für Socialpolitik / German Economic Association.
    18. Baragwanath, Kathryn & Goldblatt, Ran & Hanson, Gordon & Khandelwal, Amit K., 2021. "Detecting urban markets with satellite imagery: An application to India," Journal of Urban Economics, Elsevier, vol. 125(C).
    19. Fabien Candau & Tchapo Gbandi & Geoffroy Guepie, 2022. "Beyond the income effect of international trade on ethnic wars in Africa," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 30(3), pages 517-534, July.
    20. John Gibson & Susan Olivia & Geua Boe‐Gibson, 2020. "Night Lights In Economics: Sources And Uses," Journal of Economic Surveys, Wiley Blackwell, vol. 34(5), pages 955-980, December.
    21. Bluhm, Richard & Dreher, Axel & Fuchs, Andreas & Parks, Bradley C. & Strange, Austin M. & Tierney, Michael J., 2025. "Connective financing: Chinese infrastructure projects and the diffusion of economic activity in developing countries," Journal of Urban Economics, Elsevier, vol. 145(C).

    More about this item

    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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:iza:izadps:dp17909. 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: Mark Fallak (email available below). General contact details of provider: https://edirc.repec.org/data/izaaalu.html .

    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.