The Wrath of God : Macroeconomic Costs of Natural Disasters

The process of global climate change has been associated with an increase in the frequency of climatic disasters. Yet, there is still little systematic evidence on the macroeconomic costs of these episodes. This paper uses panel time-series techniq...

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Main Author:	Raddatz, Claudio
Format:	Policy Research Working Paper
Language:	English
Published:	2012
Subjects:	ACCIDENTS CLIMATE CLIMATIC DISASTERS CONSEQUENCES OF DISASTERS CRED DAMAGES DISASTER DISASTER COMMUNITY DISASTER PREVENTION DISASTER PRONE COUNTRIES DROUGHT DROUGHTS EARTHQUAKES EMISSIONS EPIDEMIOLOGY EPIDEMIOLOGY OF DISASTERS ERUPTIONS EXTREME TEMPERATURE EXTREME TEMPERATURE EVENTS EXTREME TEMPERATURES FAMINES FATALITY FLOODS GEOLOGICAL DISASTERS GLOBAL CLIMATE CHANGE HURRICANE HURRICANES IMPACT OF DISASTERS INSURANCE INSURANCE INDUSTRY LANDSLIDES MITIGATION NATURAL CATASTROPHES NATURAL DISASTER NATURAL DISASTERS OCCURRENCE OF DISASTERS RECONSTRUCTION RELIEF TERMS OF AID TIDAL WAVES TYPE OF DISASTER TYPE OF DISASTERS VOLCANO VULNERABILITY TO DISASTERS WIND STORM WIND STORMS
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20091105181816 http://hdl.handle.net/10986/4307

id	okr-10986-4307
recordtype	oai_dc
spelling	okr-10986-43072021-04-23T14:02:17Z The Wrath of God : Macroeconomic Costs of Natural Disasters Raddatz, Claudio ACCIDENTS CLIMATE CLIMATIC DISASTERS CONSEQUENCES OF DISASTERS CRED DAMAGES DISASTER DISASTER COMMUNITY DISASTER PREVENTION DISASTER PRONE COUNTRIES DROUGHT DROUGHTS EARTHQUAKES EMISSIONS EPIDEMIOLOGY EPIDEMIOLOGY OF DISASTERS ERUPTIONS EXTREME TEMPERATURE EXTREME TEMPERATURE EVENTS EXTREME TEMPERATURES FAMINES FATALITY FLOODS GEOLOGICAL DISASTERS GLOBAL CLIMATE CHANGE HURRICANE HURRICANES IMPACT OF DISASTERS INSURANCE INSURANCE INDUSTRY LANDSLIDES MITIGATION NATURAL CATASTROPHES NATURAL DISASTER NATURAL DISASTERS OCCURRENCE OF DISASTERS RECONSTRUCTION RELIEF TERMS OF AID TIDAL WAVES TYPE OF DISASTER TYPE OF DISASTERS VOLCANO VULNERABILITY TO DISASTERS WIND STORM WIND STORMS The process of global climate change has been associated with an increase in the frequency of climatic disasters. Yet, there is still little systematic evidence on the macroeconomic costs of these episodes. This paper uses panel time-series techniques to estimate the short and long-run impact of climatic and other disasters on a country's GDP. The results indicate that a climate related disaster reduces real GDP per capita by at least 0.6 percent. Therefore, the increased incidence of these disasters during recent decades entails important macroeconomic costs. Among climatic disasters, droughts have the largest average impact, with cumulative losses of 1 percent of GDP per capita. Across groups of countries, small states are more vulnerable than other countries to windstorms, but exhibit a similar response to other types of disasters; and low-income countries responds more strongly to climatic disasters, mainly because of their higher response to droughts. However, a country's level of external debt has no relation to the output impact of any type of disaster. The evidence also indicates that, historically, aid flows have done little to attenuate the output consequences of climatic disasters. 2012-03-19T19:13:41Z 2012-03-19T19:13:41Z 2009-09-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20091105181816 http://hdl.handle.net/10986/4307 English Policy Research working paper ; no. WPS 5039 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper The World Region The World Region
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	ACCIDENTS CLIMATE CLIMATIC DISASTERS CONSEQUENCES OF DISASTERS CRED DAMAGES DISASTER DISASTER COMMUNITY DISASTER PREVENTION DISASTER PRONE COUNTRIES DROUGHT DROUGHTS EARTHQUAKES EMISSIONS EPIDEMIOLOGY EPIDEMIOLOGY OF DISASTERS ERUPTIONS EXTREME TEMPERATURE EXTREME TEMPERATURE EVENTS EXTREME TEMPERATURES FAMINES FATALITY FLOODS GEOLOGICAL DISASTERS GLOBAL CLIMATE CHANGE HURRICANE HURRICANES IMPACT OF DISASTERS INSURANCE INSURANCE INDUSTRY LANDSLIDES MITIGATION NATURAL CATASTROPHES NATURAL DISASTER NATURAL DISASTERS OCCURRENCE OF DISASTERS RECONSTRUCTION RELIEF TERMS OF AID TIDAL WAVES TYPE OF DISASTER TYPE OF DISASTERS VOLCANO VULNERABILITY TO DISASTERS WIND STORM WIND STORMS
spellingShingle	ACCIDENTS CLIMATE CLIMATIC DISASTERS CONSEQUENCES OF DISASTERS CRED DAMAGES DISASTER DISASTER COMMUNITY DISASTER PREVENTION DISASTER PRONE COUNTRIES DROUGHT DROUGHTS EARTHQUAKES EMISSIONS EPIDEMIOLOGY EPIDEMIOLOGY OF DISASTERS ERUPTIONS EXTREME TEMPERATURE EXTREME TEMPERATURE EVENTS EXTREME TEMPERATURES FAMINES FATALITY FLOODS GEOLOGICAL DISASTERS GLOBAL CLIMATE CHANGE HURRICANE HURRICANES IMPACT OF DISASTERS INSURANCE INSURANCE INDUSTRY LANDSLIDES MITIGATION NATURAL CATASTROPHES NATURAL DISASTER NATURAL DISASTERS OCCURRENCE OF DISASTERS RECONSTRUCTION RELIEF TERMS OF AID TIDAL WAVES TYPE OF DISASTER TYPE OF DISASTERS VOLCANO VULNERABILITY TO DISASTERS WIND STORM WIND STORMS Raddatz, Claudio The Wrath of God : Macroeconomic Costs of Natural Disasters
geographic_facet	The World Region The World Region
relation	Policy Research working paper ; no. WPS 5039
description	The process of global climate change has been associated with an increase in the frequency of climatic disasters. Yet, there is still little systematic evidence on the macroeconomic costs of these episodes. This paper uses panel time-series techniques to estimate the short and long-run impact of climatic and other disasters on a country's GDP. The results indicate that a climate related disaster reduces real GDP per capita by at least 0.6 percent. Therefore, the increased incidence of these disasters during recent decades entails important macroeconomic costs. Among climatic disasters, droughts have the largest average impact, with cumulative losses of 1 percent of GDP per capita. Across groups of countries, small states are more vulnerable than other countries to windstorms, but exhibit a similar response to other types of disasters; and low-income countries responds more strongly to climatic disasters, mainly because of their higher response to droughts. However, a country's level of external debt has no relation to the output impact of any type of disaster. The evidence also indicates that, historically, aid flows have done little to attenuate the output consequences of climatic disasters.
format	Publications & Research :: Policy Research Working Paper
author	Raddatz, Claudio
author_facet	Raddatz, Claudio
author_sort	Raddatz, Claudio
title	The Wrath of God : Macroeconomic Costs of Natural Disasters
title_short	The Wrath of God : Macroeconomic Costs of Natural Disasters
title_full	The Wrath of God : Macroeconomic Costs of Natural Disasters
title_fullStr	The Wrath of God : Macroeconomic Costs of Natural Disasters
title_full_unstemmed	The Wrath of God : Macroeconomic Costs of Natural Disasters
title_sort	wrath of god : macroeconomic costs of natural disasters
publishDate	2012
url	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20091105181816 http://hdl.handle.net/10986/4307
_version_	1764390857348218880

The Wrath of God : Macroeconomic Costs of Natural Disasters

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