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Informing Climate Adaptation: A Review of the Economic Costs of Natural Disasters, Their Determinants, and Risk Reduction Options


  • Kousky, Carolyn

    () (Resources for the Future)


This paper reviews the empirical literature on the economic impacts of natural disasters to inform both climate adaptation policy and the estimation of potential climate damages. It covers papers that estimate the short- and long-run economic impacts of weather-related extreme events as well as studies regarding the determinants of the magnitude of those damages (including fatalities). The paper also includes a discussion of risk reduction options and the use of such measures as an adaptation strategy for predicted changes in extreme events with climate change.

Suggested Citation

  • Kousky, Carolyn, 2012. "Informing Climate Adaptation: A Review of the Economic Costs of Natural Disasters, Their Determinants, and Risk Reduction Options," Discussion Papers dp-12-28, Resources For the Future.
  • Handle: RePEc:rff:dpaper:dp-12-28

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    References listed on IDEAS

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    Cited by:

    1. Trond G. Husby & Henri L.F. Groot & Marjan W. Hofkes & Martijn I. Dröes, 2014. "Do Floods Have Permanent Effects? Evidence From The Netherlands," Journal of Regional Science, Wiley Blackwell, vol. 54(3), pages 355-377, June.
    2. Yilin Hou & Qing Miao & Michael Abrigo, 2016. "Measuring the Financial Shocks of Natural Disasters: A Panel Study of U.S. States," Center for Policy Research Working Papers 199, Center for Policy Research, Maxwell School, Syracuse University.

    More about this item


    natural disaster damages; climate adaptation; risk mitigation;

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • D1 - Microeconomics - - Household Behavior
    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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