The Economic Impacts of Natural Disasters: A Review of Models and Empirical Studies

Botzen, Wouter; Deschênes, Olivier; Sanders, Mark

doi:10.1093/reep/rez004

Cited by 370 publications

(219 citation statements)

References 55 publications

(56 reference statements)

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“…Therefore, such models take geography explicitly into account, in order to connect the macro-level indirect impact (e.g. output losses) to the micro-level of directly destroyed capital stock (Botzen et al 2019).…”

Section: The Importance Of Place-specific Resilience In Transforming mentioning

confidence: 99%

Natural disasters as a development opportunity: a spatial economic resilience interpretation

2020

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Natural disasters are usually regarded as damage factors causing high private and social costs. Notwithstanding the incontestable validity of this premise, natural disasters do not necessarily lead to a structural deprivation of the area affected. Recent studies have clearly shown that in the long run one may even observe positive socioeconomic effects ('blessings in disguise'). This paper investigates this challenging proposition by developing a risk-disasteropportunity framework for a territorial system, and by analysing the socioeconomic impacts of natural shocks from a resilience perspective. This is inter alia done by designing a typology of natural disasters, and by presenting a systematic classification of long-range impacts. An empirical test of the above proposition of positive recovery effects of natural disasters is carried out by using, in particular, long-term data from the worldwide EM-DAT database. The attention is then focussed on positive feedback loops in spatial systems that are affected by a natural perturbation. Various case studies (USA, China, Haiti, Chile, Japan) are undertaken in order to test the existence of long-term 'blessings in disguise' effects, using in particular the HDI-index. In K.

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Section: The Importance Of Place-specific Resilience In Transforming mentioning

confidence: 99%

Natural disasters as a development opportunity: a spatial economic resilience interpretation

2020

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“…Thus, disasters can interrupt all components of a market economy: production, distribution, commercialization and consumption, directly threatening a country's development strategy and its socioeconomic performance, which can be seen in economic indicators such as GDP, trade, and employment (Vermeiren, 1989;Pelling et al, 2002, Botzen, Deschenes & Sanders, 2019. Natural disasters also have budgetary implications, due to the fact that there is no strategic economic planning that foresees these events (Benson, 1997), as well as other direct effects on business, homes, infrastructure and agriculture, or even on the physical and mental health of the population (Botzen, Deschenes & Sanders, 2019). In this perspective, the competitiveness of countries can also be affected by natural disasters due to the destruction of production capacities.…”

Section: Natural Disastersmentioning

confidence: 99%

O efeito dos desastres naturais no investimento estrangeiro direto dos países

Ramos

Krug

Ferretti

et al. 2021

RIAE

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Objective: This study aims to analyze the influence of natural disasters on countries' FDI.Method: We used data from 137 countries, considering the period from 2011 to 2017. The secondary data used to measure Foreign Direct Investment are from the UNCTAD - United Nations Conference on Trade and Development following the study by Alfaro et al. (2004). For data on natural disasters, the EM-DAT database - The International Disaster Database provided by CRED - Center for Research on the Epidemiology of Disasters - was used, based on the studies by Toya Skidmore (2007) and Escaleras Register (2011). The analysis was performed through Linear Regression of panel data.Originality/Relevance: This study points to a direction of research for those interested in expanding the flows of Foreign Direct Investment in their countries, being significant in the field of business, government, public policy makers and the third sector.Results: The results show that when an economy suffers from natural disasters that cause deaths and, consequently, a reduction in human capital, foreign investors can negatively portray this fact. On the other hand, the number of occurrences and the loss in millions of dollars when analyzed individually do not discourage FDI and the presence of multinationals in the affected country. The variables: total of injured, total of affected, and total of homeless have no relation with FDI in the analyzed sample. It is indicated that, in the face of a natural disaster, countries create opportunities for the replacement and reconstruction of infrastructure and human capital.Theoretical contribution: We seek to contribute theoretically to the recent increase of studies that verify the relationship between natural disasters and FDI in the light of the institution-based view. We direct greater understanding to the premise that natural disasters affect a country's economy as they cause FDI reduction, and we provide the foundation for future studies. While previous studies are concerned with FDI determinants, being tax incentives and property rights, this study focuses specifically on the different variables that aggregate natural disasters. In addition, the study aims to expand the perception of decision makers, belonging to the government, private entities and the third sector, so that they can reduce and prevent the occurrence of natural disasters, thus attracting FDI flows in their countries.

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“…In recent years, we have witnessed an increased interest of the research community in assessing and quantifying the vulnerability of communities to the occurrence of various sorts of natural disasters [129][130][131][132]. In a series of papers, specific factors that impact community readiness and resilience in the face of natural disasters have been identified and analyzed [131,[133][134][135][136].…”

Section: Enhancing the Economic Resilience Of Communities In The Facementioning

confidence: 99%

A Survey of Enabling Technologies for Smart Communities

Iqbal

Olariu

2020

Smart Cities

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In 2016, the Japanese Government publicized an initiative and a call to action for the implementation of a “Super Smart Society” announced as Society 5.0. The stated goal of Society 5.0 is to meet the various needs of the members of society through the provisioning of goods and services to those who require them, when they are required and in the amount required, thus enabling the citizens to live an active and comfortable life. In spite of its genuine appeal, details of a feasible path to Society 5.0 are conspicuously missing. The first main goal of this survey is to suggest such an implementation path. Specifically, we define a Smart Community as a human-centric entity where technology is used to equip the citizenry with information and services that they can use to inform their decisions. The arbiter of this ecosystem of services is a Marketplace of Services that will reward services aligned with the wants and needs of the citizens, while discouraging the proliferation of those that are not. In the limit, the Smart Community we defined will morph into Society 5.0. At that point, the Marketplace of Services will become a platform for the co-creation of services by a close cooperation between the citizens and their government. The second objective and contribution of this survey paper is to review known technologies that, in our opinion, will play a significant role in the transition to Society 5.0. These technologies will be surveyed in chronological order, as newer technologies often extend old technologies while avoiding their limitations.

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The Economic Impacts of Natural Disasters: A Review of Models and Empirical Studies

Cited by 370 publications

References 55 publications

Natural disasters as a development opportunity: a spatial economic resilience interpretation

Natural disasters as a development opportunity: a spatial economic resilience interpretation

O efeito dos desastres naturais no investimento estrangeiro direto dos países

A Survey of Enabling Technologies for Smart Communities

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