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

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  • Kousky, Carolyn

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Abstract

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.

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  • Kousky, Carolyn, 2012. "Informing Climate Adaptation: A Review of the Economic Costs of Natural Disasters, Their Determinants, and Risk Reduction Options," RFF Working Paper Series dp-12-28, Resources for the Future.
    • Handle: RePEc:rff:dpaper:dp-12-28
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    Cited by:

    1. Lee H. Endress & James A. Roumasset & Christopher A. Wada, 2020. "Do Natural Disasters Make Sustainable Growth Impossible?," Economics of Disasters and Climate Change, Springer, vol. 4(2), pages 319-345, July.
    2. Xinyu Jiang & Nobuhito Mori & Hirokazu Tatano & Lijiao Yang & Yoko Shibutani, 2016. "Estimation of property loss and business interruption loss caused by storm surge inundation due to climate change: a case of Typhoon Vera revisit," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 84(1), pages 35-49, November.
    3. Tatyana Deryugina, 2017. "The Fiscal Cost of Hurricanes: Disaster Aid versus Social Insurance," American Economic Journal: Economic Policy, American Economic Association, vol. 9(3), pages 168-198, August.
    4. Suwan Shen & Xi Feng & Zhong Ren Peng, 2016. "A framework to analyze vulnerability of critical infrastructure to climate change: the case of a coastal community in Florida," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 84(1), pages 589-609, October.
    5. 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.
    6. Arna Nishita Nithila & Paromita Shome & Ishrat Islam, 2022. "Waterlogging induced loss and damage assessment of urban households in the monsoon period: a case study of Dhaka, Bangladesh," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 110(3), pages 1565-1597, February.
    7. Miao, Qing & Popp, David, 2014. "Necessity as the mother of invention: Innovative responses to natural disasters," Journal of Environmental Economics and Management, Elsevier, vol. 68(2), pages 280-295.
    8. Ning Li & Na Sun & Chunxia Cao & Shike Hou & Yanhua Gong, 2022. "Review on visualization technology in simulation training system for major natural disasters," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 112(3), pages 1851-1882, July.
    9. Malik, Ravinder Paul Singh & Amarnath, Giriraj, 2021. "Economics of Index-based Flood Insurance (IBFI)," IWMI Water Policy Briefings 316618, International Water Management Institute.
    10. Fabio Sánchez Torres & Silvia Calderón Díaz, 2015. "Caracterización de y Vulnerabilidad a los Desastres Naturales en Colombia, 1970-2011," Documentos CEDE 12850, Universidad de los Andes, Facultad de Economía, CEDE.
    11. Qing Miao & Yilin Hou & Michael Abrigo, 2018. "Measuring the Financial Shocks of Natural Disasters: A Panel Study of U.S. States," National Tax Journal, National Tax Association;National Tax Journal, vol. 71(1), pages 11-44, March.
    12. Matthew Ranson & Carolyn Kousky & Matthias Ruth & Lesley Jantarasami & Allison Crimmins & Lisa Tarquinio, 2014. "Tropical and extratropical cyclone damages under climate change," Climatic Change, Springer, vol. 127(2), pages 227-241, November.
    13. Malik, Ravinder Paul Singh & Amarnath, Giriraj, 2021. "Economics of Index-based Flood Insurance (IBFI): scenario analysis and stakeholder perspectives from South Asia," IWMI Working Papers H050736, International Water Management Institute.
    14. Hongxiu Li & Horatiu A. Rus, 2014. "Adaptation to Climate Change and International Mitigation Agreements with Heterogeneous Countries," Working Papers 1408, University of Waterloo, Department of Economics, revised Oct 2014.

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    More about this item

    Keywords

    natural disaster damages; climate adaptation; risk mitigation;
    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
    • 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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