Quantifying the costs of drought: new evidence from life satisfaction data

Carroll, Nicholas; Frijters, Paul; Shields, Michael A.

doi:10.1007/s00148-007-0174-3

Cited by 162 publications

(106 citation statements)

References 12 publications

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“…-The Life Satisfaction Analysis: welfare estimations of public goods (health, environment) are estimated based on life satisfaction surveys (Carroll et al, 2009). …”

Section: Intangible (Non-market) Costsmentioning

confidence: 99%

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Review article: Assessing the costs of natural hazards – state of the art and knowledge gaps

Meyer

Becker

Markantonis

et al. 2013

Nat. Hazards Earth Syst. Sci.

367

374

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Efficiently reducing natural hazard risks requires a thorough understanding of the costs of natural hazards. Current methods to assess these costs employ a variety of terminologies and approaches for different types of natural hazards and different impacted sectors. This may impede efforts to ascertain comprehensive and comparable cost figures. In order to strengthen the role of cost assessments in the development of integrated natural hazard management, a review of existing cost assessment approaches was undertaken. This review considers droughts, floods, coastal and Alpine hazards, and examines different cost types, namely direct tangible damages, losses due to business interruption, indirect damages, intangible effects, and the costs of risk mitigation. This paper provides an overview of the state-of-the-art cost assessment approaches and discusses key knowledge gaps. It shows that the application of cost assessments in practice is often incomplete and biased, as direct costs receive a relatively large amount of attention, while intangible and indirect effects are rarely considered. Furthermore, all parts of cost assessment entail considerable uncertainties due to insufficient or highly aggregated data sources, along with a lack of knowledge about the processes leading to damage and thus the appropriate models required. Recommendations are provided on how to reduce or handle these uncertainties by improving data sources and cost assessment methods. Further recommendations address how risk dynamics due to climate and socio-economic change can be better considered, how costs are distributed and risks transferred, and in what ways cost assessment can function as part of decision support

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“…-The Life Satisfaction Analysis: welfare estimations of public goods (health, environment) are estimated based on life satisfaction surveys (Carroll et al, 2009). …”

Section: Intangible (Non-market) Costsmentioning

confidence: 99%

“…So far, CV (e.g. Bakarat and Chamberlin, Inc., 1994;Howe et al, 1994;Griffin and Mjelde, 2000;Koss and Khawaja, 2001;Pattanayak and Kramer, 2001a), CM (Hensher et al, 2005;2006), Life Satisfaction Analysis (Carroll et al, 2009) and Benefit Transfer methods (Martin-Ortega et al, 2012) have been used to assess them.…”

Section: Intangible (Non-market) Costsmentioning

confidence: 99%

Review article: Assessing the costs of natural hazards – state of the art and knowledge gaps

Meyer

Becker

Markantonis

et al. 2013

Nat. Hazards Earth Syst. Sci.

367

374

View full text Add to dashboard Cite

show abstract

“…To illustrate the economic importance, studies in this field often provide a transformation of non-monetary effects into equivalent monetary figures (e.g., Carroll et al 2009;Luechinger 2009;Luechinger and Raschky 2009;Kountouris and Remoundou 2011). 4 While the study here is also motivated by the idea that subjective well-being is generally translatable and measurable in economic terms, the prime motivation comes from a different and more political viewpoint.…”

Section: Introductionmentioning

confidence: 99%

Concerns about the Euro and happiness in Germany during times of crisis

Chadi

2015

European Journal of Political Economy

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in Abstract:This empirical study investigates if people's concerns about the euro currency affect their life satisfaction. A minority of very concerned individuals appear to be unhappy, which cannot be explained by personality or other observable factors typically affecting well-being. As a novelty, this investigation exploits exogenous variation in reported concerns by using the intensity of media coverage on the euro crisis with its extraordinary events throughout the year 2011 as an instrument. Results from the application of several empirical approaches confirm that there is an effect from being concerned about the euro on people's satisfaction with life. The first potential explanation is that perceived economic insecurity works as a transmission channel, but this is not fully supported by the empirical evidence. A second explanation suggests that political beliefs and euro-skeptic attitudes are at play and may trigger unhappiness as a consequence of a perceived lack of representation in German politics. In line with this argument, a regional analysis links the variation in unhappiness among concerned citizens to the actual votes for Germany's first major anti-euro party in the subsequent federal elections. JEL Classification Codes:D72, H11, I31

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“…Other authors have used computable general equilibrium models (CGE) or input-output (IO) models to study the regional effects of water scarcity (Goodman, 2000;Gómez et al, 2004;Berrittella et al, 2007;Pérez y Pérez and Barreiro-Hurlé, 2009). Welfare losses of drought are also assessed by some authors, using choice experiments (Martin-Ortega and Berbel, 2010) or other innovative methods, such as happiness evaluations (Carroll et al, 2009;Frey et al, 2009).…”

Section: Evaluation Methods Of Economic Drought Impactsmentioning

confidence: 99%

Direct and indirect economic impacts of drought in the agri-food sector in the Ebro River basin (Spain)

Gil

Garrido

Hernández-Mora

2013

Nat. Hazards Earth Syst. Sci.

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Abstract. The economic evaluation of drought impacts is essential in order to define efficient and sustainable management and mitigation strategies. The aim of this study is to evaluate the economic impacts of a drought event on the agricultural sector and measure how they are transmitted from primary production to industrial output and related employment. We fit econometric models to determine the magnitude of the economic loss attributable to water storage. The direct impacts of drought on agricultural productivity are measured through a direct attribution model. Indirect impacts on agricultural employment and the agri-food industry are evaluated through a nested indirect attribution model. The transmission of water scarcity effects from agricultural production to macroeconomic variables is measured through chained elasticities. The models allow for differentiating the impacts deriving from water scarcity from other sources of economic losses. Results show that the importance of drought impacts are less relevant at the macroeconomic level, but are more significant for those activities directly dependent on water abstractions and precipitation. From a management perspective, implications of these findings are important to develop effective mitigation strategies to reduce drought risk exposure.

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Quantifying the costs of drought: new evidence from life satisfaction data

Abstract: Drought, Life Satisfaction, Income-equivalence, I31, Q10, R10,

Cited by 162 publications

References 12 publications

Review article: Assessing the costs of natural hazards – state of the art and knowledge gaps

Review article: Assessing the costs of natural hazards – state of the art and knowledge gaps

Concerns about the Euro and happiness in Germany during times of crisis

Direct and indirect economic impacts of drought in the agri-food sector in the Ebro River basin (Spain)

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