scholarly journals Essays on Disaster Risk and Economic Development

2021 ◽  
Author(s):  
◽  
Azreen Karim

<p>This thesis consists of four self-contained papers in the areas of disaster risk and economic development. Chapter One provides a qualitative survey of the empirical literature on the nexus among poverty, inequality and natural disasters. The last few years have seen an explosion of economic research on the consequences of natural disasters. This new interest is attributable first and foremost to a growing awareness of the potentially catastrophic nature of these events, but also a result of the increasing awareness that natural disasters are social and economic events. Here, we survey the literature that examines the direct and indirect impact of natural disaster events specifically on the poor and their impact on the distribution of income within affected communities and societies.  With a meta-regression analysis of the existing literature on the impacts of disasters on households in Chapter Two, we observe several general patterns. Incomes are clearly impacted adversely, with the impact observed specifically in per-capita measures. Consumption is also reduced, but to a lesser extent than incomes. Poor households appear to smooth their food consumption by reducing the consumption of non-food items; in particular health and education, and this suggests potentially long-term adverse consequences. Given the limits of our methodology and the paucity of research, we find no consistent patterns in long-term outcomes. We place disaster risk to the poor within the context of sustainable development and future climatic change.  Our objective In Chapter Three is to identify all of the directly observable determinants’ of publicly allocated and realized spending for disaster risk reduction (DRR) at the local government (sub-district) level in Bangladesh. We employ the Heckman two-stage selection model with detailed public finance and other data from 483 sub-districts (Upazilas) across the country. While some of our results conform with our priors, our estimations surprisingly find that government does not respond to the sub-district’s risk exposure as a factor affecting the DRR financing mechanism. This variable is consistently counter-intuitively statistically insignificant. The DRR regional allocations do not seem to be determined by risk and exposure, only weakly by vulnerability, nor even by more transparent political economy motivations.  In Chapter Four, we examine the short-run economic impacts of recurrent flooding on Bangladeshi households surveyed in 2000, 2005 and 2010. In 2010 Household Income and Expenditure Survey (HIES), households answered a set of questions’ on whether they were affected by flood and its likely impacts. We identify two treatment (affected) groups by using the self-reported data and historical rainfall data based flood risk index. We estimate a difference-in-difference (DID) model to quantify the impacts on income, expenditure, asset and labour market outcomes and further extend our analysis to different income and expenditure brackets. Overall, we find robust evidence of negative impacts on agricultural income and expenditure. Intriguingly, the extreme poor (i.e. the bottom 15th quintile) experience significant positive impacts on agricultural income in the self-reported treatment case.</p>

2021 ◽  
Author(s):  
◽  
Azreen Karim

<p>This thesis consists of four self-contained papers in the areas of disaster risk and economic development. Chapter One provides a qualitative survey of the empirical literature on the nexus among poverty, inequality and natural disasters. The last few years have seen an explosion of economic research on the consequences of natural disasters. This new interest is attributable first and foremost to a growing awareness of the potentially catastrophic nature of these events, but also a result of the increasing awareness that natural disasters are social and economic events. Here, we survey the literature that examines the direct and indirect impact of natural disaster events specifically on the poor and their impact on the distribution of income within affected communities and societies.  With a meta-regression analysis of the existing literature on the impacts of disasters on households in Chapter Two, we observe several general patterns. Incomes are clearly impacted adversely, with the impact observed specifically in per-capita measures. Consumption is also reduced, but to a lesser extent than incomes. Poor households appear to smooth their food consumption by reducing the consumption of non-food items; in particular health and education, and this suggests potentially long-term adverse consequences. Given the limits of our methodology and the paucity of research, we find no consistent patterns in long-term outcomes. We place disaster risk to the poor within the context of sustainable development and future climatic change.  Our objective In Chapter Three is to identify all of the directly observable determinants’ of publicly allocated and realized spending for disaster risk reduction (DRR) at the local government (sub-district) level in Bangladesh. We employ the Heckman two-stage selection model with detailed public finance and other data from 483 sub-districts (Upazilas) across the country. While some of our results conform with our priors, our estimations surprisingly find that government does not respond to the sub-district’s risk exposure as a factor affecting the DRR financing mechanism. This variable is consistently counter-intuitively statistically insignificant. The DRR regional allocations do not seem to be determined by risk and exposure, only weakly by vulnerability, nor even by more transparent political economy motivations.  In Chapter Four, we examine the short-run economic impacts of recurrent flooding on Bangladeshi households surveyed in 2000, 2005 and 2010. In 2010 Household Income and Expenditure Survey (HIES), households answered a set of questions’ on whether they were affected by flood and its likely impacts. We identify two treatment (affected) groups by using the self-reported data and historical rainfall data based flood risk index. We estimate a difference-in-difference (DID) model to quantify the impacts on income, expenditure, asset and labour market outcomes and further extend our analysis to different income and expenditure brackets. Overall, we find robust evidence of negative impacts on agricultural income and expenditure. Intriguingly, the extreme poor (i.e. the bottom 15th quintile) experience significant positive impacts on agricultural income in the self-reported treatment case.</p>


2016 ◽  
Vol 61 (01) ◽  
pp. 1640001 ◽  
Author(s):  
AZREEN KARIM ◽  
ILAN NOY

The last few years have seen an explosion of economic research on the consequences of natural disasters. This new interest is attributable first and foremost to a growing awareness of the potentially catastrophic nature of these events, but also a result of the increasing awareness that natural disasters are social and economic events: their impact is shaped as much by the structure and characteristics of the countries they hit as by their physical characteristics. Here, we survey the literature that examines the direct and indirect impact of natural disaster events specifically on the poor and their impact on the distribution of income within affected communities and societies. We also discuss some of the lacunae in this literature and outline a future agenda of investigation.


Author(s):  
Yao Li ◽  
Haoyang Li ◽  
Jianqing Ruan

The natural environment is one of the most critical factors that profoundly influences human races. Natural disasters may have enormous effects on individual psychological characteristics. Using China’s long-term historical natural disaster dataset from 1470 to 2000 and data from a household survey in 2012, we explore whether long-term natural disasters affect social trust. We find that there is a statistically significant positive relationship between long-term natural disaster frequency and social trust. We further examine the impact of long-term natural disaster frequency on social trust in specific groups of people. Social trust in neighbors and doctors is stronger where long-term natural disasters are more frequent. Our results are robust after we considering the geographical difference. The effect of long-term natural disasters remains positively significant after we divide the samples based on geographical location. Interestingly, the impact of long-term flood frequency is only significant in the South and the impact of long-term drought frequency is only significant in the North.


Author(s):  
Antónia Correia ◽  
Alain Decrop

Vulnerable is how we are nowadays. In fact, the impact of the Covid-19 pandemic is neither time limited nor spatially contained. But like many other natural disasters, the pandemic brought calamities and inequalities (Shklar, 1990), threatens the environment and raises a problem of precarity that is no longer limited to the poor and dependent as contagion patterns have no boundaries (Forester & McKibbon, 2020). So even more than revealing the vulnerability wealthy countries are facing, the pandemic forces us to recognize our progressively more interdependent lives in a globalized world and the responsibility to safeguard the planet. Economies all over the world were hindered by Covid-19 but tourism was completely devasted by this pandemic. In the first five months of 2020, international tourism arrivals decreased by more than half and some $320 billion dollars in exports from tourism were lost. Overall, some 120 million direct jobs in tourism are at risk (WTO, 2020). The current situation recalls emergency status for countries that depend on tourism and for minorities that may find in tourism a driver to social integration, empowerment and income. The Covid-19 crisis offers opportunities to rebuild tourism in a safe, equitable and sustainable way. To that end technology, partnerships and sustainable and responsible practices are strategic.


2019 ◽  
Vol 11 (1) ◽  
pp. 125-148
Author(s):  
Andrew Dillon ◽  
Ram Fishman

Hydrological investments, particularly irrigation dams, have multiple potential benefits for economic development. Dams also have financial, environmental, and distributional impacts that can affect their benefits and costs. This article reviews the evidence on the impact of dams on economic development, focusing on the levels and variability of agricultural productivity, and its effect on poverty, health, electricity generation, and flood control. We also review the evidence on irrigation efficiency and collective action of dam maintenance. Throughout the discussion, we highlight the empirical challenges that restrict the body of causally interpretable impact estimates and areas in which the evidence is particularly thin. We conclude with a discussion of emerging issues pertaining to the long-term sustainability of dams’ impacts and suggest directions for future research.


2019 ◽  
Vol 12 (1) ◽  
Author(s):  
Andi Kurniawan

Penelitian ini bertujuan mengidentifikasi dampak pembangunan ekonomi dan proses industrialisasi terhadap Degradasi lingkungan di Indonesia baik dalam jangka panjang maupun jangka pendek. Untuk melihat pengaruh pembangunan ekonomi dan industrialisasi terhadap penurunan kualitas lingkungan di Indonesia, penelitian ini menggunakan model Enviromental Kuznet Curve (EKC) dan dengan model Error Correction Mechanism (ECM). Hasil penelitian menjelaskan bahwa dalam jangka panjang peningkatan pendapatan masyarakat dan industrilasasi berpengaruh positif  secara linier terhadap peningkatan emisi C02 dan pada tingkat pendapatan tertentu terjadi proses perbaikan lingkungan yang ditandai dengan penurunan emisi CO2. Namun dalam jangka pendek hanya industrialisasi yeng membrikan pengaruh pada peningkatan emisi CO2. Diharapkan adanya konsesus bersama antara pemerintah dan pelaku usaha (industri) dalam mengurangi dampak pencemaran serta adanya peningkatan kesadaran masyakat dalam membantu mengurangi kerusakan lingkungan hidup.   Abstract This study aims to identify the impact of economic development and industrialization to  the environmental degradation in Indonesia, both in the long term and short term. To see the effect of economic development and industrialization to the environmental degradation in Indonesia, this research was  used Environmental Kuznets Curve (EKC) model and the model of  Error Correction Mechanism (ECM). The results of the study explain that in the long term, improvement of people's income and industrialization have positive effect linearly with the increase in C02 emissions and at a certain income level there is a process improvement environment characterized by a decrease in CO2 emissions. But in the short term only industrialization which influence on the increase of CO2 emissions Expected that the consensus between the government and businesses (industri) in reducing the impact of pollution and the increased awareness of society in helping to reduce environmental damage.    


Author(s):  
Madhuri . ◽  
Hare R. Tewari ◽  
Pradip K. Bhowmick

Vulnerability is the capacity to anticipate, cope with, resist and recover from the impact of natural disasters. Floods add to the distressed conditions of the poor and vulnerable people in Bihar. Floods have a different impact on households depending on differences in their livelihood choices. Therefore, in order to identify the variability in vulnerability of affected households, the livelihood vulnerability index (LVI) of Hahn, Riederer and Foster was modified according to the context of the study area. The LVI aims to identify sources and forms of vulnerability that are specific to the context in order to design context-specific resilience measures. However, vulnerability and resilience are not interdependent but discrete entities. The study was conducted in the seven blocks of Bhagalpur district in the state of Bihar. Naugachia was found to be the least vulnerable because of better access to basic amenities and livelihood strategies, whilst Kharik was found to be highly vulnerable in respect to other blocks because of high sensitivity and less adaptive strategy. The study also revealed that better access to resources does not necessarily mean that households are adopting resilience measures because of apathetic or indifferent attitudes.


Author(s):  
Mihir Bhatt ◽  
Ronak B. Patel ◽  
Kelsey Gleason ◽  
Mehul Pandya

Both the impact and the frequency of natural disasters and extreme events in South Asia are steadily increasing due to growing exposure and vulnerability. These vulnerabilities are compounded by fast economic growth and an increase in natural disasters across the region. Disaster losses in South Asia are rising and are felt across many domains. From the formal to the informal economy, natural disasters have increasingly strong impacts in terms of lives lost, social impact, and impediments to growth. New challenges in disaster risk reduction are emerging due to an increase in the duration and frequency of natural disaster events attributable to climate change. Though both climate change adaptation and disaster risk reduction efforts exist to some degree throughout South Asia, integrating climate change adaptation into disaster risk reduction is critical to successful and inclusive growth of economies in the region. Challenges remain, and national and subnational governments are making some progress in policies aimed at both climate change adaptation and disaster risk reduction. However, many of these efforts are planned, designed, and implemented separately, with limited understanding of how disaster and climate risk are linked. Moreover, progress is hindered by poor understanding of how integration of these concepts can result in better governance of risk in South Asia. Additionally, political will, capacity constraints, and institutional barriers must be overcome. Efforts by the international community are making progress in unifying these concepts, yet gaps and challenges still exist. The benefits of converging climate adaptation and disaster risk reduction in Asia are significant, from minimizing climate-related losses to more efficient use of limited resources and more effective and sustainable development.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tania El Kallab ◽  
Cristina Terra

PurposeThis paper explores the role of colonial heritage on long-term economic development from a resource-curse perspective. The authors investigate the impact of colonial exports on long-term economic development through two channels: (1) a direct impact of the economic dependency on natural resources and (2) an indirect impact via its effect on colonial institutions, which persisted over time and influenced current economic development.Design/methodology/approachTo address this issue, the authors use an original data set on French bilateral trade from 1880 to 1912. The authors use partial least square structural equation modeling (PLS-SEM) in the empirical analysis, so that the authors are able to construct latent variables (LVs) for variables that are not directly observable, such as the quality of institutions.FindingsThe authors find that exports of primary goods to France had a negative impact on colonial institutions and that for French colonies, this impact was driven by minerals exports. Despite its impact on colonial institutions, exports of French colonies had no significant indirect impact on their current institutions. The authors find no significant direct impact of colonial trade on current development for French colonies. Finally, colonial exports of manufactured products had no significant impact on colonial institutions among French colonies and a positive impact among non-French ones.Research limitations/implicationsResearch implications regarding the findings of this paper are, namely, that the relative poor performance within French colonies today cannot be attributed to the extraction of raw materials a century ago. However, human capital and institutional development, instead of exports, are more relatively important for long-term growth. Some limitations in trying to determine the simultaneous relationship among colonial trade, institutions and economic performance are the relation between colonial trade and the extent of extraction from the colonizer, which is hard to quantify, as well as its precise mechanism.Practical implicationsSince the initial institutions set in those former colonies presented a strong persistence in the long run, their governments should focus now on building sound and inclusive political and economic institutions, as well as on investing in human capital in order to foster long-term growth. Once a comprehensive set of institutional and human resources are put in place, the quality and quantity of exports might create a positive spillover on the short-run growth.Social implicationsOne social implication that can be retrieved from this study is the ever-lasting effect of both human capital investment and introduction of inclusive political and economic institutions on the long-run impact of growth.Originality/valueThe paper uses an original primary data set from archival sources to explore the role of colonial heritage on long-term economic development from a resource-curse perspective. It applies a relatively new model partial least squares path modeling (PLS-PM) that allows the construction of LVs for variables that are not directly observable, as well as channeling the impact on growth through both direct and indirect channels. Finally, it allows for the simultaneous multigroup analysis across different colonial groups.


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