IDEAS home Printed from https://ideas.repec.org/p/pas/papers/2025-07.html
   My bibliography  Save this paper

Under the water: flood impacts and economic dynamics in northern Peru

Author

Listed:
  • Jose Cobian Alvarez
  • Budy Resosudarmo

Abstract

This paper assesses the effects of devastating flooding on household welfare in northern Peru. Remote sensing data are used to construct a novel damage index as a proxy for the local economic impact caused by the 2017 coastal El Niño floods. Using 5-year panel data from the Peruvian National Household Survey (ENAHO), we observe that affected households experience a decrease in income and expenditure compared to those in unaffected areas during the period 2015–2019. Additionally, poverty increases as a result of this natural hazard, especially among households in urban areas. Although there is a recovery in income and expenditure in the aftermath of the floods, households mitigate their consumption through donations of food and clothing. We suggest that, in a context where the occurrence of flooding affects the most vulnerable groups, the development of formal risk-coping strategies such as insurance is crucial for boosting their ability to reduce, mitigate, or adapt to future disaster risk.

Suggested Citation

  • Jose Cobian Alvarez & Budy Resosudarmo, 2025. "Under the water: flood impacts and economic dynamics in northern Peru," Departmental Working Papers 2025-07, The Australian National University, Arndt-Corden Department of Economics.
    • Handle: RePEc:pas:papers:2025-07
    as

    Download full text from publisher

    File URL: https://crawford.anu.edu.au/sites/default/files/2025-05/ACDE%20T%26D%20Cobian-Alvarez%20%26%20Resosudarmo%202025%2007_0.pdf
    Download Restriction: no
    ---><---

    More about this item

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

    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:pas:papers:2025-07. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Prema-chandra Athukorala (email available below). General contact details of provider: https://edirc.repec.org/data/asanuau.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.