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Disaster, Mitigation and Household Welfare in Indonesia

Author

Listed:
  • Teguh Dartanto

    (Researcher, Institute for Economic and Social Research, Faculty of Economics, University of Indonesia, Jakarta)

Abstract

Households in the world as well as in Indonesia have become more exposed to a wide variety of vulnerabilities and risks due to the recent increase in the intensity and scope of global natural disasters. This study aims to comprehensively examine the impact of natural disasters on Indonesian’s household welfare (consumption and poverty) using the Indonesian Family Life Survey (IFLS). This study finds that households in rural areas are the most vulnerable to natural disasters; the average asset losses and medical/funeral costs from natural disasters are roughly USD 2,190/household. Our econometric models confirm that earthquakes are the most destructive disaster to affect household welfare, whereas droughts, forest fires, floods, and other disasters appear to have only moderate effects. Disaster-mitigation preparedness plays a significant role in reducing the devastating impacts of disasters and in lessening households’ vulnerability to becoming impoverished.

Suggested Citation

  • Teguh Dartanto, 2017. "Disaster, Mitigation and Household Welfare in Indonesia," LPEM FEBUI Working Papers 201706, LPEM, Faculty of Economics and Business, University of Indonesia, revised Jun 2017.
    • Handle: RePEc:lpe:wpaper:201706
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    File URL: https://www.lpem.org/repec/lpe/papers/WP201706.pdf
    File Function: First version, 2017
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    More about this item

    Keywords

    Natural Disaster — Welfare — Vulnerability;

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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