Insuring Growth : The Impact of Disaster Funds on Economic Reconstruction in Mexico
Climate change has considerably increased the likelihood of experiencing extreme weather events. Governments in developing countries have a limited capacity to smooth the losses created by extreme weather, and could potentially benefit from the int...
| Main Authors: | , , |
|---|---|
| Format: | Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2016
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2016/06/26509996/insuring-growth-impact-disaster-funds-economic-reconstruction-mexico http://hdl.handle.net/10986/24631 |
| id |
okr-10986-24631 |
|---|---|
| recordtype |
oai_dc |
| spelling |
okr-10986-246312021-04-23T14:04:23Z Insuring Growth : The Impact of Disaster Funds on Economic Reconstruction in Mexico de Janvry, Alain del Valle, Alejandro Sadoulet, Elisabeth TIME FRAMES DAMAGE ASSESSMENT TROPICAL CYCLONE DISASTER RECONSTRUCTION EMERGENCY DISASTER REDUCTION DISASTER RISK CLIMATE CHANGE IMPACT OF DISASTER RESULTS ELECTRICITY BANK STORMS SATELLITES INFORMATION DECLARATION EMISSIONS HAIL STORMS TROPICAL CYCLONE ACTIVITY DISASTER ACTIVITIES DAMAGE IMAGE IMPACT OF DISASTERS TROPICAL STORMS RELIEF OPERATIONS DISASTER GAS DAMAGES BANDWIDTHS EMERGENCY RELIEF TIME PERIOD HEAVY RAINFALL IMAGES EARTHQUAKES ADMINISTRATION EXTREME WEATHER HURRICANES OPEN ACCESS INSURANCE SATELLITE RESULT TELEVISION ECONOMIC DEVELOPMENT ECONOMIC ACTIVITY PIXEL ICT INSTITUTIONS TIME PERIODS DATA HEAVY RAIN CYCLONE ACTIVITY LICENSES ENVIRONMENTAL HAZARDS NETWORK RELIEF BANDWIDTH RISK NATURAL DISASTER PERFORMANCE DECLARATIONS GROWTH PATH NATURAL DISASTERS FINANCIAL INSTITUTIONS DOCUMENTS INFRARED NUMBER OF USERS DISASTERS EXTREME WEATHER EVENTS PIXELS WEATHER EVENTS LANDSLIDES TYPHOONS RECONSTRUCTION CAPABILITIES MISSING DATA SERVICE PROVIDERS Climate change has considerably increased the likelihood of experiencing extreme weather events. Governments in developing countries have a limited capacity to smooth the losses created by extreme weather, and could potentially benefit from the introduction of disaster funds, that is, ex-ante budgeting allocations for post-disaster reconstruction. So far the implementation of disaster funds has been limited, in part because it is still unclear whether disaster funds provide a cost-effective way of coping with these losses. By taking advantage of the sharp rules that govern the municipal-level eligibility for reconstruction funds in Mexico, this paper provides some of the first estimates of the impact of disaster funds on local economic activity. The main finding is that access to disaster funding boosts local economic activity between 2 and 4 percent in the year following the disaster. Another finding is that the positive impact of disaster funds on local economic recovery can persist for as long as a year and a half after the disaster. Consistent with these findings, we additionally show that access to disaster funding leads to a large and sustained 76 percent increase in the growth of local construction employment. This labor market impact slightly precedes the overall increase in local economic activity. 2016-07-07T20:53:34Z 2016-07-07T20:53:34Z 2016-06 Working Paper http://documents.worldbank.org/curated/en/2016/06/26509996/insuring-growth-impact-disaster-funds-economic-reconstruction-mexico http://hdl.handle.net/10986/24631 English en_US Policy Research Working Paper;No. 7714 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Latin America & Caribbean Mexico |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
TIME FRAMES DAMAGE ASSESSMENT TROPICAL CYCLONE DISASTER RECONSTRUCTION EMERGENCY DISASTER REDUCTION DISASTER RISK CLIMATE CHANGE IMPACT OF DISASTER RESULTS ELECTRICITY BANK STORMS SATELLITES INFORMATION DECLARATION EMISSIONS HAIL STORMS TROPICAL CYCLONE ACTIVITY DISASTER ACTIVITIES DAMAGE IMAGE IMPACT OF DISASTERS TROPICAL STORMS RELIEF OPERATIONS DISASTER GAS DAMAGES BANDWIDTHS EMERGENCY RELIEF TIME PERIOD HEAVY RAINFALL IMAGES EARTHQUAKES ADMINISTRATION EXTREME WEATHER HURRICANES OPEN ACCESS INSURANCE SATELLITE RESULT TELEVISION ECONOMIC DEVELOPMENT ECONOMIC ACTIVITY PIXEL ICT INSTITUTIONS TIME PERIODS DATA HEAVY RAIN CYCLONE ACTIVITY LICENSES ENVIRONMENTAL HAZARDS NETWORK RELIEF BANDWIDTH RISK NATURAL DISASTER PERFORMANCE DECLARATIONS GROWTH PATH NATURAL DISASTERS FINANCIAL INSTITUTIONS DOCUMENTS INFRARED NUMBER OF USERS DISASTERS EXTREME WEATHER EVENTS PIXELS WEATHER EVENTS LANDSLIDES TYPHOONS RECONSTRUCTION CAPABILITIES MISSING DATA SERVICE PROVIDERS |
| spellingShingle |
TIME FRAMES DAMAGE ASSESSMENT TROPICAL CYCLONE DISASTER RECONSTRUCTION EMERGENCY DISASTER REDUCTION DISASTER RISK CLIMATE CHANGE IMPACT OF DISASTER RESULTS ELECTRICITY BANK STORMS SATELLITES INFORMATION DECLARATION EMISSIONS HAIL STORMS TROPICAL CYCLONE ACTIVITY DISASTER ACTIVITIES DAMAGE IMAGE IMPACT OF DISASTERS TROPICAL STORMS RELIEF OPERATIONS DISASTER GAS DAMAGES BANDWIDTHS EMERGENCY RELIEF TIME PERIOD HEAVY RAINFALL IMAGES EARTHQUAKES ADMINISTRATION EXTREME WEATHER HURRICANES OPEN ACCESS INSURANCE SATELLITE RESULT TELEVISION ECONOMIC DEVELOPMENT ECONOMIC ACTIVITY PIXEL ICT INSTITUTIONS TIME PERIODS DATA HEAVY RAIN CYCLONE ACTIVITY LICENSES ENVIRONMENTAL HAZARDS NETWORK RELIEF BANDWIDTH RISK NATURAL DISASTER PERFORMANCE DECLARATIONS GROWTH PATH NATURAL DISASTERS FINANCIAL INSTITUTIONS DOCUMENTS INFRARED NUMBER OF USERS DISASTERS EXTREME WEATHER EVENTS PIXELS WEATHER EVENTS LANDSLIDES TYPHOONS RECONSTRUCTION CAPABILITIES MISSING DATA SERVICE PROVIDERS de Janvry, Alain del Valle, Alejandro Sadoulet, Elisabeth Insuring Growth : The Impact of Disaster Funds on Economic Reconstruction in Mexico |
| geographic_facet |
Latin America & Caribbean Mexico |
| relation |
Policy Research Working Paper;No. 7714 |
| description |
Climate change has considerably
increased the likelihood of experiencing extreme weather
events. Governments in developing countries have a limited
capacity to smooth the losses created by extreme weather,
and could potentially benefit from the introduction of
disaster funds, that is, ex-ante budgeting allocations for
post-disaster reconstruction. So far the implementation of
disaster funds has been limited, in part because it is still
unclear whether disaster funds provide a cost-effective way
of coping with these losses. By taking advantage of the
sharp rules that govern the municipal-level eligibility for
reconstruction funds in Mexico, this paper provides some of
the first estimates of the impact of disaster funds on local
economic activity. The main finding is that access to
disaster funding boosts local economic activity between 2
and 4 percent in the year following the disaster. Another
finding is that the positive impact of disaster funds on
local economic recovery can persist for as long as a year
and a half after the disaster. Consistent with these
findings, we additionally show that access to disaster
funding leads to a large and sustained 76 percent increase
in the growth of local construction employment. This labor
market impact slightly precedes the overall increase in
local economic activity. |
| format |
Working Paper |
| author |
de Janvry, Alain del Valle, Alejandro Sadoulet, Elisabeth |
| author_facet |
de Janvry, Alain del Valle, Alejandro Sadoulet, Elisabeth |
| author_sort |
de Janvry, Alain |
| title |
Insuring Growth : The Impact of Disaster Funds on Economic Reconstruction in Mexico |
| title_short |
Insuring Growth : The Impact of Disaster Funds on Economic Reconstruction in Mexico |
| title_full |
Insuring Growth : The Impact of Disaster Funds on Economic Reconstruction in Mexico |
| title_fullStr |
Insuring Growth : The Impact of Disaster Funds on Economic Reconstruction in Mexico |
| title_full_unstemmed |
Insuring Growth : The Impact of Disaster Funds on Economic Reconstruction in Mexico |
| title_sort |
insuring growth : the impact of disaster funds on economic reconstruction in mexico |
| publisher |
World Bank, Washington, DC |
| publishDate |
2016 |
| url |
http://documents.worldbank.org/curated/en/2016/06/26509996/insuring-growth-impact-disaster-funds-economic-reconstruction-mexico http://hdl.handle.net/10986/24631 |
| _version_ |
1764457229669367808 |