Economic Effects of Natural Disasters: Theoretical Foundations, Methods, and Tools

Front Cover
Economic Effects of Natural Disasters
Copyright Page
Contents
List of Contributors
Editor Biographies
Preface
Reference
1 The Economic Impact of National Disaster Relief and Recovery Funding for Local Government Infrastructure in Tropical Nort...
1.1 Introduction
1.2 Background of the Region
1.3 Two Zones of Analysis
1.4 Natural Disaster Weather Events
1.5 Disaster Expenditure Funded
1.6 Infrastructure Affected
1.7 Annual Disaster Spending Compared With Capital Value
1.8 Reconstruction Works Impacts
1.9 Scale of Economic Impacts If the Restoration Work Did Not Take Place
1.9.1 Direct Impacts
1.9.2 Flow-On Effects
1.9.3 Developmental/Catalytic Effects
1.10 Comparison of Disaster Spending With Output of Vulnerable Industries
1.11 Importance of Outside Funding
2 The Effects of Natural Disasters on Stock Market Return and Volatility in Hong Kong
2.1 Introduction
2.2 Literature Review
2.3 ARMAX–EGARCHX Model
2.4 Data
2.5 Findings and Discussion
2.6 Conclusion
References
3 Climate Change and Effects: A Qualitative Experience of Selected Older Adults
3.1 Introduction
3.2 Energy and Climate Crisis in Nigeria From a Social Perspective
3.3 Data and Methods
3.3.1 Study Area
3.3.2 Sampling Procedure
3.3.3 Data Analysis
3.4 Results
3.4.1 Demographic Characteristics of Participants
3.4.2 Older Adults and Their Understanding of Climate Change
3.4.3 Effects of Climate Change on Older Adults
3.4.4 Suggestions to Overcome Climate Change
3.5 Discussion and Conclusion
References
Further Reading
4 Natural Disasters and Labor Markets: Impacts of Cyclones on Employment in Northeast Australia
4.1 Introduction
4.2 Background to Cyclones in Northeast Australia
4.3 Impact of Cyclones on Employment and Labor Markets
4.3.1 Precyclone: Cyclone Warning Issued
4.3.2 During the Cyclone
4.3.3 Postcyclone
4.4 Methodology
4.5 Findings and Discussion
4.5.1 Overall Results
4.6 Employment—Work, Workers, and Businesses
4.7 Conclusion
References
5 Natural Disasters, Geography, and International Tourism
5.1 Introduction
5.2 A Review of the Literature
5.3 Data and Measures
5.3.1 Dependent Variable
5.3.2 Explanatory Variables
5.3.3 Control Variables
5.4 Empirical Model
5.5 Summary Statistics
5.6 Discussion of Empirical Results
5.6.1 The Contemporaneous Link Between Natural Disasters and International Tourist Flows
5.6.2 The Dynamic Link Between Natural Disasters and International Tourist Flows
5.6.3 The Contemporaneous Link Between Natural Disasters and International Tourist Flows by Regions
5.6.4 The Dynamic Link Between Natural Disasters and International Tourist Flows by Regions
5.7 Robustness Checks
5.7.1 The Contemporaneous and Dynamic Link Between Natural Disasters and International Tourist Flows Regions
5.8 Conclusion
References
6 Women and Economic Dimensions of Climate Change
6.1 Introduction
6.2 Methodological Approach
6.3 Gender Barriers, Vulnerability, and Adaptation
6.4 Gender and Economic Exclusion
6.5 Differentiated Climate Change Impacts: Emerging Themes from Research
6.5.1 Climate Change and Gender
6.5.2 Emerging Themes From Research on Climate Change and Gender
6.5.3 Livelihoods and Economic Development
6.6 Analysis and Discussion
6.7 Conclusion
References
7 Foreign Direct Investment, Natural Disasters, and Economic Growth of Host Countries
7.1 Introduction
7.2 Literature Review
7.3 Methodology
7.4 Results
7.4.1 Overview of Natural Disaster Around the World
7.4.2 Natural Disaster and Inward Foreign Direct Investment Stock in Countries With Different Economic Development Levels
7.4.3 Natural Disaster: Destruction to the Economy or a Destructive Growth Opportunity?
7.4.4 Does Foreign Direct Investment Contribute to Economic Recovery After Disasters?—A Regression Analysis
7.4.4.1 Overall Results
7.4.4.2 Different economic development levels and different categories of disasters
7.4.5 “Footlooseness” of Foreign Direct Investment
7.4.6 “Crowding-Out” or “Crowding-In” Effect of Foreign Direct Investment Following Disaster: Effect of Foreign Direct Inve...
7.5 Conclusion
References
Appendix
8 Mitigating Impact From Natural Disasters, Building Resilience in Tourism: The Case of Kerala
8.1 Introduction
8.2 Methodology, Data Collection, and Analysis
8.3 Kerala and the Tourist Industry
8.4 Kerala 2018 Flood and Its Impact
8.5 Post–Disaster Management
8.6 Post-2018 Kerala Floods
8.7 Challenges Faced
8.8 Recommendations
References
9 Showcasing Entrepreneurs’ Responses to Severe Drought: Qualitative Findings From Cape Town, South Africa
9.1 Contextualization: Drought and Entrepreneurship
9.2 Background Literature
9.2.1 Institutional Theory in Entrepreneurship Research
9.2.2 Ecological Challenges of Entrepreneurs in South Africa
9.3 Methodology
9.3.1 Research Context: Cape Town, South Africa
9.3.2 Research Design
9.3.3 Sample Selection
9.3.4 Data Collection
9.3.5 Data Analysis
9.4 Findings
9.5 Discussion
9.5.1 Contribution to the Literature
9.5.2 Limitations and Recommendations for Future Research
9.5.3 Implications for Practice
9.6 Conclusion
References
10 The Influence of Environmental Pollution and Drought on the Satisfaction With Life of Entrepreneurs in Zambia’s Mining S...
10.1 Point of Departure: Entrepreneurship in Sub-Saharan Africa
10.2 Arriving at Environmental Pollution, Drought, and Satisfaction With Life of Entrepreneurs
10.2.1 The Research Question
10.3 Methodology
10.3.1 Research Context: Zambia
10.3.2 Data Collection
10.3.3 Data Analysis
10.4 Results
10.4.1 Descriptive Statistics
10.4.2 Correlation Analyses
10.4.3 Regression Analyses
10.5 Concluding Discussion
10.5.1 Limitations and Recommendations for Future Research
References
11 Environmental Resilience of Bottom of the Pyramid Strategies Toward Single-Use Plastics: A Recipe From an Emerging Economy
11.1 Setting the Scene: Single-Use Plastics, Bottom of the Pyramid, and Frugal Innovation
11.2 Methodology
11.2.1 Research Context: India’s Bottom of the Pyramid
11.2.2 Data Collection
11.2.3 Data Analyses
11.3 Findings
11.3.1 Consumer Behavior
11.3.2 Market Forces
11.3.3 Entrepreneurial/Innovation Activities
11.3.4 Socio-political Factors and Themes
11.3.5 Trends and Interconnections
11.4 Concluding Discussion
11.4.1 Theoretical Implications
11.5 Future Outlook
References
12 Semantic Technologies for Disaster Management: Network Models and Methods of Diagrammatic Reasoning
12.1 Introduction
12.2 Applied Category Theory
12.3 Diagrammatic Reasoning
12.3.1 Case Study One
12.3.2 Case Study Two
12.4 Related Developments in Software Engineering
12.5 Conclusion
References
13 Methods and Insights on How to Explore Human Behavior in the Disaster Environment
13.1 Introduction
13.2 Experimentation
13.2.1 Laboratory Experiments
13.2.2 Natural Experiments
13.2.3 Field Experiments
13.3 Simulations
13.4 Virtual Reality
13.5 Comparative and Narrative Analysis
13.6 High-Quality Individual-Level Panel Data Analysis
13.7 Apps and Portable Sensing Systems
13.8 Conclusion
References
14 State-Wide Effects of Natural Disasters on the Labor Market
14.1 Introduction
14.2 Research Gap
14.3 Natural Disaster Profile of the Study Area
14.4 Theoretical Model
14.5 Econometric Model
14.6 Data
14.6.1 Disaster Data
14.6.2 Other Variables and Sources
14.7 Methods
14.7.1 Preliminary Analysis
14.7.1.1 Trend analysis and cointegration
14.7.2 VAR and Structural VAR Models Identification
14.7.3 Impulse Response Analysis
14.8 conclusion
References
15 Costing a Natural Disaster: An Accounting Perspective
15.1 Counting the Cost
15.1.1 What Is Considered Relevant
15.1.2 What Is Not Included
15.1.3 Ad hoc Accounting Systems
15.2 Previous Research
15.2.1 Power and Accounting
15.2.2 Classification and Costs
15.3 Suggestions for Further Research
15.3.1 Searching for Missing Data
15.4 Conclusion
References
Further Reading
16 Typical Social Adaptation Measures in Climate Change Planning: A Tropical Region Case Study
16.1 Introduction
16.2 Methods
16.3 Results: typical adaptation measures arising from the TNQ social resilience assessment
16.3.1 Enhanced Regional and Local Land Use Planning
16.3.2 Infrastructure Risk Identification
16.3.3 Climate Information Services
16.3.4 New Infrastructure Funding Models
16.3.5 Recasting Research Models
16.3.6 Collaborative Alliances Around Agriculture and Fisheries
16.3.7 Small Business Resilience
16.3.8 Insurance Reform
16.3.9 Disaster Coordination and Response
16.3.10 Capitalizing on the Region’s Climate Adaptation Skills
16.3.11 Regional Energy Reform in Tropical North Queensland
16.3.12 Regional Landscape Mitigation
16.3.13 Spatial Information Hubs for Property Scale Management and Response
16.3.14 Human Service Sector Capacity
16.3.15 Water Resource Management
16.3.16 Biosecurity and Health Risks
16.3.17 Long-Term Adaptive Regional Governance Models
16.4 Discussion and Conclusion: The Implications of Typical Social Adaptation Results Across the Tropics
Acknowledgments
References
17 The Impact of Natural Disasters and Climate Change on Agriculture: Findings From Vietnam
17.1 Introduction
17.2 Background: Natural Disasters and Climate Change in Vietnam
17.2.1 Overview of Vietnam’s Climate
17.2.2 Climate-Change Scenarios for Vietnam
17.2.3 An Overview of Natural Disasters in Vietnam
17.2.4 Institutional Framework for Natural Disasters and Climate Change in Vietnam
17.3 Impacts of Natural Disasters and Climate Change on Agriculture in Vietnam
17.3.1 Overview of Vietnam’s Agriculture
17.3.2 Impacts of Natural Disasters and Climate Change on Agricultural Production
17.4 Conclusion
References
18 Economic Impact Assessment After a Natural Disaster Using DEMATEL Method
18.1 Introduction
18.2 Economic Impacts of a Natural Disaster
18.3 Research Methodology
18.3.1 Economic Impacts (E) of Natural Disasters
18.3.1.1 Economic impacts description
18.3.1.2 Generation of the matrix
18.3.2 Decision-Making Trial and Evaluation Laboratory Method
18.4 Results and Discussion
18.4.1 Direct and Indirect Impact
18.4.2 Results and Discussion (Indirect Economic Impact)
18.5 Conclusion
Acknowledgment
Conflict of Interest
References
Appendix
19 Climate Change and Natural Disasters: Macroeconomic Performance and Sustainable Development
19.1 Introduction
19.2 Literature Review on the Economics of Natural Disasters
19.3 Methodology and Data
19.3.1 Empirical Model Specification
19.3.2 Data
19.4 Empirical Results
19.4.1 Natural Disasters and Economic Growth
19.4.2 Natural Disasters and Private Sector Investment
19.4.3 Natural Disasters and Public Sector Spending
19.5 Concluding Remarks
Acknowledgment
Conflict of Interest
References
Appendix
Countries Included
20 Natural Disasters: Macroeconomic Implications and Measurement Issues
20.1 Introduction
20.2 Economics of Natural Disasters: Theoretical Perspective
20.3 The Macroeconomic Impacts of Natural Disasters: Empirical Evidence
20.3.1 Cross-Sectional Studies
20.3.2 Panel Data Studies
20.3.3 Time Series Studies
20.3.4 Computable General Equilibrium Studies
20.4 Disaster Measurement and Modeling Issues
20.5 Concluding Remarks, Policy Implications, and Direction for Future Research
Acknowledgment
Conflict of Interest
References
Appendix
21 The Asian Tsunami and Tourism Industry: Impact and Recovery
21.1 Introduction
21.2 Preliminary Data Analysis
21.2.1 Maldives
21.2.2 Thailand
21.2.3 Sri Lanka
21.2.4 Indonesia
21.2.5 India
21.3 Methodology
21.3.1 Econometric Techniques
21.3.2 Autoregressive Integrated Moving Average Models
21.4 Estimation Results
21.4.1 Econometric Estimation
21.4.2 Autoregressive Integrated Moving Average Model Estimation and Forecasting
21.5 Concluding Comments
References
22 Effect of Drought on Development of Children: Field Observations From the Drought-Prone District of Deccan Plateau of So...
22.1 Title Introduction to Creeping Disaster—Drought
22.1.1 The Study
22.1.2 Methodology
22.1.3 Description of Study Villages
22.1.4 Key Observations
22.1.5 Drought and Livelihood
22.1.6 Nutrition
22.1.7 Health
22.1.7.1 Water and sanitation and child protection
22.1.8 Education
22.1.9 Way Forward
22.1.10 Measures to Address Needs Under Drought Risk Reduction
22.1.10.1 Water and sanitation
22.1.10.2 Education
22.1.10.3 Drought awareness program
22.1.10.4 Capacity building
22.1.10.5 Training to the teachers
22.1.10.6 Capacity building (resilience) in society
22.1.10.7 Food and nutrition
22.1.10.8 Psychosocial care of the children
22.1.10.9 Micronutrients, malnutrition (hidden hunger)
22.1.10.10 Child protection
22.1.10.11 Department-wise measures
22.1.11 Drought Risk Reduction: Gaps in Governance
References
23 Flood Disasters in Aba North Local Government Area of Abia State, Nigeria: Policy Options
23.1 Introduction
23.2 Method of Study
23.3 Description of the Study Area
23.4 The Concept of Flooding
23.5 Theoretical Framework
23.6 Major Causes of Flooding in Aba North Local Government Area
23.6.1 Flash Flooding
23.6.2 Groundwater Flooding
23.6.3 Poor Drainage System
23.7 Discussion of Findings
23.8 Concluding Remarks
References
24 Institutional Response and Mechanisms to the Management of Natural Disaster in Nigeria
24.1 Introduction
24.2 Climate Change and Flood Disaster in Nigeria
24.3 Impact of Flood on Livelihood
24.4 Disaster Adaptation and Resilience/Community Coping Mechanisms in Nigeria
24.5 Institutional Response and Mechanisms to Flood Management in Nigeria
24.6 Disaster Mapping and Postdisaster Needs Assessment in Nigeria
24.7 Conclusion
References
25 Challenges of Addressing Natural Disasters in Nigeria Through Public Policy Implementation: An Examination of Isuikwuato...
25.1 Introduction
25.2 The Nature of Soil and Gully Erosion Menace
25.3 Erosion-Induced Ecological and Economic Challenges
25.4 The Erosion-Induced Ecological Challenges of the People of Isuikwuato
25.4.1 Flooding
25.4.2 Landsliding
25.4.3 Deforestation
25.4.4 Road Destruction
25.5 The Erosion-Induced Economic Challenges of the People of Isuikwuato
25.5.1 Loss of Agricultural Produce and Agro-Related Sources of Livelihoods of the People
25.5.2 Breakdown of Properties of the People of Isuikwuato Due to Erosion Menace
25.5.3 Threat to Human Lives Due to Erosion Menace
25.5.4 The Establishment and Administration of Ecological Fund in Nigeria
25.6 Challenges of Addressing Natural Disasters in Nigeria Through Ecological Fund Policy
25.6.1 Mismanagement of the Ecological Fund at the Federal Government Level
25.6.2 Unhealthy Politics of Who Controls the Administration of the Ecological Fund
25.6.3 Possible Shortage of Fund to Attend to the Critical Ecological Problems
25.6.4 The Absence of National Assembly Oversight on the Management of the Ecological Fund
25.6.5 State Governments’ Mismanagement of Their Share of Ecological Fund
25.6.6 Politicization of Ecological Fund–Based Project Awards by the State Government
25.6.7 Award and Abandonment of Ecological Fund–Sponsored Projects
25.6.8 The Ecological Fund Office Working With Outdated Data Ecological Problem Sites
25.6.9 Disregard for the Sanctity of Human Life and the Provisions of the Constitution on the Protection of Lives and Prope...
25.6.10 Lack of Knowledge of the Processes and Procedures of Assessing Ecological Fund
25.6.11 Addressing Isuikwuato Erosion Menace Through the Ecological Fund Administration
25.6.12 Engaging the Erosion and Gullies It Creates Early to Combat It When It Is Still Small
25.6.13 Holding Both the State and Local Governments Accountable for Their Share of Ecological Funds Collectible Every Mont...
25.6.14 Engaging the Senator Representing Abia North Senatorial District and the Honorable Member of the House of Represent...
25.6.15 Ensuring That the Ecological Fund Office Is Kept Abreast of the Current State of Erosion Threat in Isuikwuato as Pr...
25.6.16 Acquaintance With the Processes and Procedure of Assessing Ecological Funds
25.6.17 The Local Government Can Look Out for International Donor Agencies Assistance
25.7 Conclusion
References
26 Ecological and Economic Costs of Oil Spills in Niger Delta, Nigeria
26.1 Introduction
26.2 Status of Ecosystem in the Niger Delta Region of Nigeria
26.3 Environmental Hazards of Oil Spills
26.3.1 Human Health
26.3.2 Plants and Animals
26.3.2.1 Socioeconomic cost of oil spills to environment
26.4 Spillover Effects of Oil Spills to the Ecosystem of Niger Delta Region
26.4.1 Short-Term Effects
26.4.2 Long-Term Effects
26.5 The Impact of Oil Spill on Economic Growth and Development of the Niger Delta Region
26.6 Conclusion
References
27 Socioeconomic Vulnerability to Urban Floods in Guwahati, Northeast India: An Indicator-Based Approach
27.1 Introduction
27.2 Urban Flood and Socioeconomic Vulnerability
27.3 Vulnerability Assessment: Theoretical Perspective
27.4 Assessment of Socioeconomic Urban Flood Vulnerability in Guwahati: LVI Approach
27.4.1 Calculating the Livelihood Vulnerability Index and Livelihood Vulnerability Index–IPCC
27.4.2 Livelihood Vulnerability Index–IPCC
27.5 Results and Discussions
27.6 Limitations and Future Implications
27.7 Conclusion
References
28 Agricultural Production and Income in a Disaster Year: Findings from the study of Melalinjippattu village affected by cy...
28.1 Introduction
28.1.1 Nature of Disasters
28.1.2 Impact of Disasters on Economy
28.1.3 Disaster Profile of India
28.1.4 Current Study
28.2 Method
28.2.1 Cyclone Thane
28.2.2 Selection of Study Village
28.2.3 Melalinjippattu: The Study Village
28.3 Assessing Damage and Losses due to Cyclone Thane
28.3.1 Direct Losses
28.3.1.1 Loss and Damage of Lives, Houses, and Buildings
28.3.1.2 Losses and Damages to Crop
28.3.2 Indirect Damages and Losses
28.3.2.1 Impact of Cyclone on Land Holding and Cropping Pattern in the Village
28.3.2.2 Impact of Cyclone on Income From Cultivation
28.3.3 Impact on Wage Employment
28.3.3.1 Agricultural Wage Employment
28.3.3.2 Income From Nonagricultural Manual Work
28.4 Adaptation Strategies
28.4.1 Compensation
28.5 Conclusion
Appendix
References
Further Reading
29 Socio-economic Vulnerabilities to Natural Disasters and Social Justice
29.1 Introduction
29.2 Constructing Disaster Vulnerability
29.3 Issues of Disaster Vulnerability
29.4 Potential Causes and Measures of Household and Community Vulnerability
29.5 Contributions of Local Knowledge, Human Rights, Social and Environmental Justice to the Mitigation of Disaster Vulnera...
29.6 Case Study of Townsville’s Monsoonal Floods 2019
29.7 Conclusion
References
Further Reading
30 Alternative Scenarios for Low-Carbon Transport in Nigeria: A Long-Range Energy Alternatives Planning System Model Applic...
30.1 Introduction
30.2 Methodology
30.2.1 The Long-Range Energy Alternatives Planning Modeling Tool
30.2.2 Scenarios
30.2.3 Cobenefits
30.3 Numerical Results and Analysis
30.3.1 Final Energy Demand
30.3.2 GHG Emissions
30.3.3 Air Quality
30.4 Conclusion and Options for the Future
References
31 Do Natural Disasters Reduce Foreign Direct Investment in Sub-Saharan Africa?
31.1 Introduction
31.2 Understanding the Natural Disasters and Foreign Direct Investment Nexus
31.2.1 Natural Disasters and Its Economic Effects
31.2.2 Natural Disasters and MNCs
31.2.3 Natural Disasters and International Capital Flows
31.3 Natural Disasters and Foreign Direct Investment Trends in Sub-Saharan Africa
31.4 Model Specification
31.4.1 Data and Variables
31.4.2 Estimation Strategy
31.5 Empirical Results and Implications
31.6 Conclusion
References
32 Integrating Climate Change Adaptation and Vulnerability Reduction for Sustainable Development in South Asia and Africa
32.1 Introduction
32.2 Climate-Smart Farming: Potentials and Problems
32.3 Climate-Smart Farming Practice: A Reality Check
32.4 Conclusion
References
33 Assessing the Social Vulnerability to Floods in India: An Application of Superefficiency Data Envelopment Analysis and S...
33.1 Introduction
33.2 Study Area Profile
33.3 Using Data Envelopment Analysis to Construct Vulnerability Index: Identification of the Indicators
33.4 Research Design: Material and Methods
33.4.1 Output Indicators
33.4.2 Input Indicators
33.4.2.1 Mean elevation
33.4.2.2 Population density
33.4.2.3 Per capita Gross District Domestic Product
33.4.2.4 Road density
33.4.2.5 Medical density
33.4.3 Method
33.4.4 Spatial Analysis
33.4.5 Steps for Index Operationalization Process and Spatial Mapping
33.5 Results and Discussion
33.6 Summary and Conclusion
References
34 Subjective Well-Being Impacts of Natural Hazards: A Review
34.1 Introduction
34.2 Psychological, Social, and Well-Being Impacts of Natural Disasters
34.3 Subjective Well-Being: Definition, Measurement, and Applications
34.4 Quantification of Subjective Well-Being Impacts: Method and Findings
34.5 Discussion
34.6 Conclusions and Directions for Future Research
References
35 Economic Consequences of Slow- and Fast-Onset Natural Disasters: Empirical Evidences From India
35.1 Introduction
35.2 Slow and Fast-Onset Natural Disasters: Recent Trends
35.3 Review of Literature
35.3.1 Economic Impact of Droughts
35.3.2 Floods and Economic Growth
35.4 Data and Methodology
35.4.1 Data and Variables
35.4.2 Estimation Methodology
35.5 Results and Discussion
35.5.1 Benchmark Results
35.5.1.1 Slow-onset disasters: droughts
35.5.1.2 Fast-onset disasters: floods
35.5.2 Comparing the Growth Effects of Slow- and Fast-Onset Disasters
35.6 Summary
References
Index
Back Cover