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A Storm Between Two Waves: Recovery Processes, Social Dynamics, and Heterogeneous Effects of Typhoon Haiyan on Social Preferences

Author

Listed:
  • Ivo Steimanis

    (University of Marburg)

  • Max Burger

    (University of Marburg)

  • Bernd Hayo

    (University of Marburg)

  • Andreas Landmann

    (Friedrich-Alexander-Universitaet Erlangen-Nuernberg)

  • Bjoern Vollan

    (University of Marburg)

Abstract

The literature regarding the effects of environmental hazards on social preferences is mixed and partially contradictory. The lack of a baseline in these studies is a severe methodological constraint, as it is hard to identify heterogeneous treatment effects through experience in the recovery process. We exploit a panel of incentivized behavioral measures of solidarity conducted before and after the devastating damages caused by Typhoon Haiyan in the Philippines. We find that Haiyan’s impact on individuals’ degree of solidarity was non-linear: solidarity was negatively affected in villages with medium damages, whereas no significant impact was observed in those villages that were most and least affected. A potential explanation for this non-linear effect is differences in people's experiences concerning the aid process and help from other villagers. In villages with medium damages, the quality of the aid process and help from other villagers was perceived to be significantly worse than that received by more and less affected villages. Lastly, survey evidence shows that the non-linear effects persist almost 10 years after the disaster.

Suggested Citation

  • Ivo Steimanis & Max Burger & Bernd Hayo & Andreas Landmann & Bjoern Vollan, 2023. "A Storm Between Two Waves: Recovery Processes, Social Dynamics, and Heterogeneous Effects of Typhoon Haiyan on Social Preferences," MAGKS Papers on Economics 202319, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    • Handle: RePEc:mar:magkse:202319
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    References listed on IDEAS

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    More about this item

    Keywords

    Social preferences; environmental hazard; natural experiment; social dynamics; Typhoon Haiyan; Philippines;
    All these keywords.

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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