Macroeconomic Modeling of Managing Hurricane Damage in the Caribbean : The Case of Jamaica

Macroeconomic Modeling of Managing Hurricane Damage in the Caribbean : The Case of Jamaica

This paper describes a modeling methodology that embeds climate damages from natural disasters and risk management strategies into a macroeconomic model for Jamaica. The modeled damages take the form of capital destruction, and the risk management...

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Main Authors: Burns, Andrew, Jooste, Charl, Schwerhoff, Gregor
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2021
Subjects:
ECONOMIC MODELING
DISASTER RISK MANAGEMENT
HURRICANE DAMAGE
Online Access:http://documents.worldbank.org/curated/en/593351609776234361/Macroeconomic-Modeling-of-Managing-Hurricane-Damage-in-the-Caribbean-The-Case-of-Jamaica
http://hdl.handle.net/10986/34982
id okr-10986-34982
recordtype oai_dc
spelling okr-10986-349822022-09-20T00:09:44Z Macroeconomic Modeling of Managing Hurricane Damage in the Caribbean : The Case of Jamaica Burns, Andrew Jooste, Charl Schwerhoff, Gregor ECONOMIC MODELING DISASTER RISK MANAGEMENT HURRICANE DAMAGE This paper describes a modeling methodology that embeds climate damages from natural disasters and risk management strategies into a macroeconomic model for Jamaica. The modeled damages take the form of capital destruction, and the risk management strategies considered are (i) adaptation investment in hurricane resilient infrastructure, (ii) commercial disaster insurance for the government, (iii) the formation of a contingency fund, and (iv) lower debt via higher future primary balances to create fiscal space for disaster recovery. Different risk management strategies are compared to a baseline of no risk management. The model behavior is estimated empirically on country-specific data. Hurricane damage and the model results are analyzed in deterministic and probabilistic settings, using the historical distribution of damages for Jamaica. 2021-01-07T15:58:25Z 2021-01-07T15:58:25Z 2021-01 Working Paper http://documents.worldbank.org/curated/en/593351609776234361/Macroeconomic-Modeling-of-Managing-Hurricane-Damage-in-the-Caribbean-The-Case-of-Jamaica http://hdl.handle.net/10986/34982 English Policy Research Working Paper;No. 9505 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Latin America & Caribbean Jamaica
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic ECONOMIC MODELING
DISASTER RISK MANAGEMENT
HURRICANE DAMAGE
spellingShingle ECONOMIC MODELING
DISASTER RISK MANAGEMENT
HURRICANE DAMAGE
Burns, Andrew
Jooste, Charl
Schwerhoff, Gregor
Macroeconomic Modeling of Managing Hurricane Damage in the Caribbean : The Case of Jamaica
geographic_facet Latin America & Caribbean
Jamaica
relation Policy Research Working Paper;No. 9505
description This paper describes a modeling methodology that embeds climate damages from natural disasters and risk management strategies into a macroeconomic model for Jamaica. The modeled damages take the form of capital destruction, and the risk management strategies considered are (i) adaptation investment in hurricane resilient infrastructure, (ii) commercial disaster insurance for the government, (iii) the formation of a contingency fund, and (iv) lower debt via higher future primary balances to create fiscal space for disaster recovery. Different risk management strategies are compared to a baseline of no risk management. The model behavior is estimated empirically on country-specific data. Hurricane damage and the model results are analyzed in deterministic and probabilistic settings, using the historical distribution of damages for Jamaica.
format Working Paper
author Burns, Andrew
Jooste, Charl
Schwerhoff, Gregor
author_facet Burns, Andrew
Jooste, Charl
Schwerhoff, Gregor
author_sort Burns, Andrew
title Macroeconomic Modeling of Managing Hurricane Damage in the Caribbean : The Case of Jamaica
title_short Macroeconomic Modeling of Managing Hurricane Damage in the Caribbean : The Case of Jamaica
title_full Macroeconomic Modeling of Managing Hurricane Damage in the Caribbean : The Case of Jamaica
title_fullStr Macroeconomic Modeling of Managing Hurricane Damage in the Caribbean : The Case of Jamaica
title_full_unstemmed Macroeconomic Modeling of Managing Hurricane Damage in the Caribbean : The Case of Jamaica
title_sort macroeconomic modeling of managing hurricane damage in the caribbean : the case of jamaica
publisher World Bank, Washington, DC
publishDate 2021
url http://documents.worldbank.org/curated/en/593351609776234361/Macroeconomic-Modeling-of-Managing-Hurricane-Damage-in-the-Caribbean-The-Case-of-Jamaica
http://hdl.handle.net/10986/34982
_version_ 1764482083759063040

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