Economic Effects of Natural Disasters

2021 ◽  
2020 ◽  
Author(s):  
Heni Subiyanti ◽  
Moinul Islam ◽  
Masaru Ichihashi

Abstract Indonesia is in one of the disaster-prone points, the ring of fire, which frequently suffer from natural disasters. Mt. Merapi volcanic eruption in 2010 was one of the catastrophic natural disasters, which caused the approximate economic damages of 3,628 trillion Indonesian rupiah. To recover the loss of different sectors of the economy, the central and regional governments allocates special budget for recovery and reconstruction. We assess the induced economic effects of Mt. Merapi eruption recovery fiscal support by using a multiregional input-output (MRIO) model. We utilize the state level data of the 2005 Indonesian interregional input-output table (IRIO) and the 2011–2013 volcano eruption restoration. Our results indicate that the effect of 2010 recovery budget for Mt. Merapi eruption contributed to the economy of the hazard-affected Yogyakarta Special Region. In addition, the forestry sector, other services sector, and construction sectors have a significantly benefited from the induced output by fiscal support.


2020 ◽  
Vol 40 (2) ◽  
pp. 223-249
Author(s):  
Alexandru Bănică ◽  
Karima Kourtit ◽  
Peter Nijkamp

AbstractNatural disasters are usually regarded as damage factors causing high private and social costs. Notwithstanding the incontestable validity of this premise, natural disasters do not necessarily lead to a structural deprivation of the area affected. Recent studies have clearly shown that in the long run one may even observe positive socio-economic effects (‘blessings in disguise’).This paper investigates this challenging proposition by developing a risk-disaster-opportunity framework for a territorial system, and by analysing the socio-economic impacts of natural shocks from a resilience perspective. This is inter alia done by designing a typology of natural disasters, and by presenting a systematic classification of long-range impacts.An empirical test of the above proposition of positive recovery effects of natural disasters is carried out by using, in particular, long-term data from the worldwide EM-DAT database. The attention is then focussed on positive feedback loops in spatial systems that are affected by a natural perturbation. Various case studies (USA, China, Haiti, Chile, Japan) are undertaken in order to test the existence of long-term ‘blessings in disguise’ effects, using in particular the HDI-index. In various cases, such positive effects appear to exist, depending on the effectiveness of public management of natural disaster phenomena.


2011 ◽  
Vol 11 (4) ◽  
pp. 1850243 ◽  
Author(s):  
Antonio C. David

This paper uses multivariate dynamic panel analysis to examine the response of international financial flows to natural disasters. The models estimated for a large sample of developing countries point to differentiated responses of specific types of financial flows. The results show that remittance inflows increase significantly in response to shocks to both climatic and geological disasters, thus confirming their compensatory nature. The models suggest a nuanced role for foreign aid. While the responses of aid flows to natural disaster shocks in general tend not to be statistically significant, international assistance to low income countries increases following geological disaster shocks. Furthermore, the results show that typically, other private capital flows (bank lending and equity) do not attenuate the effects of disasters and in some specifications, even amplify the negative economic effects of these events.


2020 ◽  
Vol 17 (6) ◽  
pp. 38-49
Author(s):  
E. E. Telenkov

Industrial companies have always paid close attention to the continuity of production and technological processes. Technical and production risks, such as equipment damage, accidents, natural disasters can have a significant impact on production processes, lead to injury to people, environmental pollution. Managing these risks means investing substantial funds in upgrading, repairing and reconstructing assets. However, these investments have different economic effects. Proper prioritization of risks and measures for their management, based on the concept of risk-income, proposed in this article, can significantly improve the efficiency of risk management, reduce the degree of uncertainty, protect the organization from catastrophic damage.


2021 ◽  
Vol 6 (1) ◽  
pp. 84-91
Author(s):  
Yousef AlThobaiti

The study aims to identify economic effects of Corona pandemic on Saudi football represented in SPL sector, and precautionary measures to reduce these effects on Saudi football. the researcher used the descriptive approach (survey studies), and the study sample was (75) academics specialists in sports administration and experts in the field of sports economics, and officials in the different sectors of SPL. There are negative effects of the Corona pandemic on the Saudi football sector, but also it has a positive impact that is to try to activate online management and virtual training, while the negative economic effects on players, administrators, clubs and the professional league’s revenues increase as the time of the pandemic continues. The Saudi footballer should have a plan to work online in case of natural disasters, and put a term in the contracts in the sports field In case of natural disasters that lead to the cancellation of a sporting event before its establishment, its postponement or non-completion, the method of termination of the contract shall be determined according to each case, with the activation of the role of online training in the association and sports clubs, and the activation of the role of electronic services.


2013 ◽  
Vol 44 (4) ◽  
pp. 271-277 ◽  
Author(s):  
Simona Sacchi ◽  
Paolo Riva ◽  
Marco Brambilla

Anthropomorphization is the tendency to ascribe humanlike features and mental states, such as free will and consciousness, to nonhuman beings or inanimate agents. Two studies investigated the consequences of the anthropomorphization of nature on people’s willingness to help victims of natural disasters. Study 1 (N = 96) showed that the humanization of nature correlated negatively with willingness to help natural disaster victims. Study 2 (N = 52) tested for causality, showing that the anthropomorphization of nature reduced participants’ intentions to help the victims. Overall, our findings suggest that humanizing nature undermines the tendency to support victims of natural disasters.


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