1932
0
  1. Home
  2. A-Z Publications
  3. Annual Review of Resource Economics
  4. Volume 16, 2024
  5. Article

Annual Review of Resource Economics

Volume 16, 2024

Extreme Weather Events and Climate Change: Economic Impacts and Adaptation Policies

Abstract

This article reviews the literature on the economic impacts of disasters caused by extreme weather and climate events to draw lessons on how societies can better manage these risks. While evidence that richer, better-governed societies suffer less and recover faster from climate extremes suggests adaptation, knowledge gaps remain, and little is known about the efficiency of specific adaptation actions. I review various “no or low” regrets adaptation options that are recommended when uncertainties over climate change impacts are high. I discuss how governments can play an important role in adaptation by directly providing public goods to manage disaster risks or by facilitating private agents’ adaptation responses but also highlight the political economy of policy and coordination failures.

Keyword(s): climate adaptation, climate change policy, climate extremes, JEL I30, JEL O13, JEL O44, JEL Q54, JEL Q56, natural disasters, risk management
Loading

Article metrics loading...

/content/journals/10.1146/annurev-resource-101623-095314
2024-10-07
2025-03-26
The full text of this item is not currently available.

Literature Cited

  1. Adélaïde L, Chanel O, Pascal M. 2022.. Health effects from heat waves in France: an economic evaluation. . Eur. J. Health Econ. 23::119–31
     [Crossref] [Google Scholar]
  2. Ahmadiani M, Ferreira S. 2021.. Well-being effects of extreme weather events in the United States. . Resour. Energy Econ. 64::101213
     [Crossref] [Google Scholar]
  3. Aldy JE, Zeckhauser R. 2020.. Three prongs for prudent climate policy. . South. Econ. J. 87:(1):3–29
     [Crossref] [Google Scholar]
  4. Annan F, Schlenker W. 2015.. Federal crop insurance and the disincentive to adapt to extreme heat. . Am. Econ. Rev. 105:(5):262–66
     [Crossref] [Google Scholar]
  5. Anttila-Hughes J, Hsiang S. 2013.. Destruction, disinvestment, and death: economic and human losses following environmental disaster. Work. Pap. , Univ. San Francisco/Univ. Calif., Berkeley:. http://dx.doi.org/10.2139/ssrn.2220501
    [Google Scholar]
  6. Atreya A, Ferreira S, Kriesel W. 2013.. Forgetting the flood? An analysis of the flood risk discount over time. . Land Econ. 89:(4):577–96
     [Crossref] [Google Scholar]
  7. Auffhammer M. 2018.. Quantifying economic damages from climate change. . J. Econ. Perspect. 32:(4):33–52
     [Crossref] [Google Scholar]
  8. Bagstad KJ, Stapleton K, D'Agostino JR. 2007.. Taxes, subsidies, and insurance as drivers of United States coastal development. . Ecol. Econ. 63:(2–3):285–98
     [Crossref] [Google Scholar]
  9. Bakkensen LA, Barrage L. 2018.. Climate shocks, cyclones, and economic growth: bridging the micro-macro gap. NBER Work. Pap. w24893
    [Google Scholar]
  10. Bakkensen LA, Barrage L. 2022.. Going underwater? Flood risk belief heterogeneity and coastal home price dynamics. . Rev. Financ. Stud. 35:(8):3666–3709
     [Crossref] [Google Scholar]
  11. Bakkensen LA, Conte MN. 2022.. Risk preferences and natural disasters: a review of theoretical and empirical themes. . See Skidmore 2022 , pp. 86–114
  12. Bakkensen LA, Mendelsohn RO. 2016.. Risk and adaptation: evidence from global hurricane damages and fatalities. . J. Assoc. Environ. Resour. Econ. 3:(3):555–87
     [Google Scholar]
  13. Baldauf M, Garlappi L, Yannelis C. 2020.. Does climate change affect real estate prices? Only if you believe in it. . Rev. Financ. Stud. 33:(3):1256–95
     [Crossref] [Google Scholar]
  14. Banda ML. 2018.. Global adaptation law: optimizing legal design for multi-level public goods after the Paris Agreement. . Vanderbilt J. Transnatl. Law 2018:. https://ssrn.com/abstract=3134172
    [Google Scholar]
  15. Banerjee C, Bevere L, Corti T, Finucane J, Lechner R. 2023.. Sigma: natural catastrophes and inflation in 2022: a perfect storm. Rep. , Swiss Re Inst., Zurich:
     [Google Scholar]
  16. Barreca A, Clay K, Deschenes O, Greenstone M, Shapiro JS. 2016.. Adapting to climate change: the remarkable decline in the US temperature-mortality relationship over the twentieth century. . J. Political Econ. 124:(1):105–59
     [Crossref] [Google Scholar]
  17. Basker E, Miranda J. 2018.. Taken by storm: business financing and survival in the aftermath of Hurricane Katrina. . J. Econ. Geogr. 18:(6):1285–1313
     [Crossref] [Google Scholar]
  18. Becerra O, Cavallo E, Noy I. 2014.. Foreign aid in the aftermath of large natural disasters. . Rev. Dev. Econ. 18:(3):445–60
     [Crossref] [Google Scholar]
  19. Becerra O, Cavallo E, Noy I. 2015.. Where is the money? Post-disaster foreign aid flows. . Environ. Dev. Econ. 20:(5):561–86
     [Crossref] [Google Scholar]
  20. Beltrán A, Maddison D, Elliott RJ. 2018.. Is flood risk capitalised into property values?. Ecol. Econ. 146::668–85
     [Crossref] [Google Scholar]
  21. Bertinelli L, Strobl E. 2013.. Quantifying the local economic growth impact of hurricane strikes: an analysis from outer space for the Caribbean. . J. Appl. Meteorol. Climatol. 52:(8):1688–97
     [Crossref] [Google Scholar]
  22. Besley T, Burgess R. 2002.. The political economy of government responsiveness: theory and evidence from India. . Q. J. Econ. 117:(4):1415–51
     [Crossref] [Google Scholar]
  23. Bilal A, Rossi-Hansberg E. 2023.. Anticipating climate change across the United States. NBER Work. Pap. w31323
    [Google Scholar]
  24. Bin O, Landry CE. 2013.. Changes in implicit flood risk premiums: empirical evidence from the housing market. . J. Environ. Econ. Manag. 65:(3):361–76
     [Crossref] [Google Scholar]
  25. Blankespoor B, Dasgupta S, Lange GM. 2017.. Mangroves as a protection from storm surges in a changing climate. . Ambio 46:(4):478–91
     [Crossref] [Google Scholar]
  26. Bolton P, Kacperczyk M, Hong HG, Vives X. 2021.. Resilience of the Financial System to Natural Disasters. London:: Cent. Econ. Policy Res.
     [Google Scholar]
  27. Botros A. 2023.. Trouble awaits Florida's housing market as the state just lost another home insurer. . Fortune, July 22. https://fortune.com/2023/07/22/housing-market-florida-trouble-as-home-insurers-pull-out/
    [Google Scholar]
  28. Botzen WW, Deschenes O, Sanders M. 2019.. The economic impacts of natural disasters: a review of models and empirical studies. . Rev. Environ. Econ. Policy 13:(2):167–88
     [Crossref] [Google Scholar]
  29. Brown P, Daigneault AJ, Tjernström E, Zou W. 2018.. Natural disasters, social protection, and risk perceptions. . World Dev. 104::310–25
     [Crossref] [Google Scholar]
  30. Brügger A, Dessai S, Devine-Wright P, Morton TA, Pidgeon NF. 2015.. Psychological responses to the proximity of climate change. . Nat. Clim. Change 5:(12):1031–37
     [Crossref] [Google Scholar]
  31. Burke M, Craxton M, Kolstad CD, Onda C, Allcott H, et al. 2016.. Opportunities for advances in climate change economics. . Science 352:(6283):292–93
     [Crossref] [Google Scholar]
  32. Burke M, Driscoll A, Lobell DB, Ermon S. 2021.. Using satellite imagery to understand and promote sustainable development. . Science 371:(6535):eabe8628
     [Crossref] [Google Scholar]
  33. Carleton TA, Hsiang SM. 2016.. Social and economic impacts of climate. . Science 353:(6304):aad9837
     [Crossref] [Google Scholar]
  34. Carleton TA, Jina A, Delgado M, Greenstone M, Houser T, et al. 2022.. Valuing the global mortality consequences of climate change accounting for adaptation costs and benefits. . Q. J. Econ. 137:(4):2037–105
     [Crossref] [Google Scholar]
  35. Carter C, Cui X, Ghanem D, Mérel P. 2018.. Identifying the economic impacts of climate change on agriculture. . Annu. Rev. Resour. Econ. 10::361–80
     [Crossref] [Google Scholar]
  36. Carter TR, Benzie M, Campiglio E, Carlsen H, Fronzek S, et al. 2021.. A conceptual framework for cross-border impacts of climate change. . Glob. Environ. Change 69::102307
     [Crossref] [Google Scholar]
  37. Caruso GD. 2017.. The legacy of natural disasters: the intergenerational impact of 100 years of disasters in Latin America. . J. Dev. Econ. 127::209–33
     [Crossref] [Google Scholar]
  38. Castells-Quintana D, del Pilar Lopez-Uribe M, McDermott TK. 2018.. Adaptation to climate change: a review through a development economics lens. . World Dev. 104::183–96
     [Crossref] [Google Scholar]
  39. Cattaneo C, Beine M, Fröhlich CJ, Kniveton D, Martinez-Zarzoso I, et al. 2019.. Human migration in the era of climate change. . Rev. Environ. Econ. Policy 13:(2):189–206
     [Crossref] [Google Scholar]
  40. Cavallo E, Becerra O, Acevedo L. 2022.. The impact of natural disasters on economic growth. . See Skidmore 2022 , pp. 150–92
  41. Cavallo E, Galiani S, Noy I, Pantano J. 2013.. Catastrophic natural disasters and economic growth. . Rev. Econ. Stat. 95:(5):1549–61
     [Crossref] [Google Scholar]
  42. Cavallo E, Noy I. 2011.. Natural disasters and the economy—a survey. . Int. Rev. Environ. Resour. Econ. 5:(1):63–102
     [Crossref] [Google Scholar]
  43. Cevik S, Jalles JT. 2022.. This changes everything: climate shocks and sovereign bonds. . Energy Econ. 107::105856
     [Crossref] [Google Scholar]
  44. Chuang Y, Schechter L. 2015.. Stability of experimental and survey measures of risk, time, and social preferences: a review and some new results. . J. Dev. Econ. 117::151–70
     [Crossref] [Google Scholar]
  45. Cissé G, McLeman R, Adams H, Aldunce P, Bowen K, et al. 2022.. Health, wellbeing, and the changing structure of communities. . See Pörtner et al. 2022 , pp. 1041–170
  46. Ciullo A, Strobl E, Meiler S, Martius O, Bresch DN. 2023.. Increasing countries’ financial resilience through global catastrophe risk pooling. . Nat. Commun. 14::922
     [Crossref] [Google Scholar]
  47. Clement V, Rigaud KK, de Sherbinin A, Jones B, Adamo S, et al. 2021.. Groundswell Part 2: Acting on Internal Climate Migration. Washington, DC:: World Bank
     [Google Scholar]
  48. Cole MA, Elliott RJ, Okubo T, Strobl E. 2019.. Natural disasters and spatial heterogeneity in damages: the birth, life and death of manufacturing plants. . J. Econ. Geogr. 19:(2):373–408
     [Crossref] [Google Scholar]
  49. Cole S, Giné X, Vickery J. 2017.. How does risk management influence production decisions? Evidence from a field experiment. . Rev. Financ. Stud. 30:(6):1935–70
     [Crossref] [Google Scholar]
  50. Coronese M, Lamperti F, Keller K, Chiaromonte F, Roventini A. 2019.. Evidence for sharp increase in the economic damages of extreme natural disasters. . PNAS 116:(43):21450–55
     [Crossref] [Google Scholar]
  51. Cuaresma JC. 2022.. Natural disasters and economic growth: revisiting the evidence. . See Skidmore 2022 , pp. 134–49
  52. Cuaresma JC, Hlouskova J, Obersteiner M. 2008.. Natural disasters as creative destruction? Evidence from developing countries. . Econ. Inq. 46:(2):214–26
     [Crossref] [Google Scholar]
  53. Currie J, Rossin-Slater M. 2013.. Weathering the storm: hurricanes and birth outcomes. . J. Health Econ. 32:(3):487–503
     [Crossref] [Google Scholar]
  54. Das S, Vincent JR. 2009.. Mangroves protected villages and reduced death toll during Indian super cyclone. . PNAS 106:(18):7357–60
     [Crossref] [Google Scholar]
  55. David AC. 2011.. How do international financial flows to developing countries respond to natural disasters?. Glob. Econ. J. 11:(4):1850243
     [Crossref] [Google Scholar]
  56. Davlasheridze M, Fisher-Vanden K, Klaiber HA. 2017.. The effects of adaptation measures on hurricane induced property losses: Which FEMA investments have the highest returns?. J. Environ. Econ. Manag. 81::93–114
     [Crossref] [Google Scholar]
  57. De Mel S, McKenzie D, Woodruff C. 2012.. Enterprise recovery following natural disasters. . Econ. J. 122:(559):64–91
     [Crossref] [Google Scholar]
  58. Del Valle A. 2024.. Saving lives with indexed disaster funds: evidence from Mexico. . Am. Econ. J. Econ. Policy 16::44279
     [Crossref] [Google Scholar]
  59. Del Valle A, de Janvry A, Sadoulet E. 2020.. Rules for recovery: impact of indexed disaster funds on shock coping in Mexico. . Am. Econ. J. Appl. Econ. 12:(4):164–95
     [Crossref] [Google Scholar]
  60. Dell M, Jones BF, Olken BA. 2014.. What do we learn from the weather? The new climate-economy literature. . J. Econ. Lit. 52:(3):740–98
     [Crossref] [Google Scholar]
  61. Dercon S. 2004.. Growth and shocks: evidence from rural Ethiopia. . J. Dev. Econ. 74:(2):309–29
     [Crossref] [Google Scholar]
  62. Dercon S, Christiaensen L. 2011.. Consumption risk, technology adoption and poverty traps: evidence from Ethiopia. . J. Dev. Econ. 96:(2):159–73
     [Crossref] [Google Scholar]
  63. Deryugina T. 2017.. The fiscal cost of hurricanes: disaster aid versus social insurance. . Am. Econ. J. Econ. Policy 9:(3):168–98
     [Crossref] [Google Scholar]
  64. Deryugina T. 2022.. The fiscal consequences of natural disasters. . See Skidmore 2022 , pp. 208–28
  65. Deryugina T, Kirwan B. 2018.. Does the Samaritan's dilemma matter? Evidence from US agriculture. . Econ. Inq. 56:(2):983–1006
     [Crossref] [Google Scholar]
  66. Deuchert E, Felfe C. 2015.. The tempest: short- and long-term consequences of a natural disaster for children's development. . Eur. Econ. Rev. 80::280–94
     [Crossref] [Google Scholar]
  67. Dixon L, Tsang F, Fitts G. 2018.. The impact of changing wildfire risk on California's residential insurance market. Rep. CCCA4-CNRA-2018-008 for California's Fourth Climate Change Assessment , Calif. Nat. Resour. Agency, Sacramento:. https://www.rand.org/pubs/external_publications/EP67670.html
    [Google Scholar]
  68. Dodman D, Hayward B, Pelling M, Castan Broto V, Chow W, et al. 2022.. Cities, settlements and key infrastructure. . See Pörtner et al. 2022 , pp. 907–1040
  69. Dolšak N, Prakash A. 2018.. The politics of climate change adaptation. . Annu. Rev. Environ. Resour. 43::317–41
     [Crossref] [Google Scholar]
  70. Drabo A, Mbaye LM. 2015.. Natural disasters, migration and education: an empirical analysis in developing countries. . Environ. Dev. Econ. 20:(6):767–96
     [Crossref] [Google Scholar]
  71. Edmondson JL, Stott I, Davies ZG, Gaston KJ, Leake JR. 2016.. Soil surface temperatures reveal moderation of the urban heat island effect by trees and shrubs. . Sci. Rep. 6::33708
     [Crossref] [Google Scholar]
  72. Elliott R, Strobl E, Sun P. 2015.. The local impact of typhoons on economic activity in China: a view from outer space. . J. Urban Econ. 88::50–66
     [Crossref] [Google Scholar]
  73. Fankhauser S. 2017.. Adaptation to climate change. . Annu. Rev. Resour. Econ. 9::209–30
     [Crossref] [Google Scholar]
  74. Fankhauser S, McDermott TK. 2014.. Understanding the adaptation deficit: why are poor countries more vulnerable to climate events than rich countries?. Glob. Environ. Change 27::9–18
     [Crossref] [Google Scholar]
  75. Fankhauser S, Tol RSJ. 2005.. On climate change and economic growth. . Resour. Energy Econ. 27:(1):1–17
     [Crossref] [Google Scholar]
  76. Felbermayr G, Gröschl J. 2014.. Naturally negative: the growth effects of natural disasters. . J. Dev. Econ. 111::92–106
     [Crossref] [Google Scholar]
  77. Ferriani F, Gazzani AG, Natoli F. 2023.. Flight to climatic safety: local natural disasters and global portfolio flows. Work. Pap. , Bank Italy, Rome:. http://dx.doi.org/10.2139/ssrn.4497865
    [Google Scholar]
  78. Filipski M, Jin L, Zhang X, Chen KZ. 2019.. Living like there's no tomorrow: the psychological effects of an earthquake on savings and spending behavior. . Eur. Econ. Rev. 116::107–28
     [Crossref] [Google Scholar]
  79. Fisera B, Horvath R, Melecky M. 2023.. Natural disasters and debt financing costs. . Clim. Change Econ. 14:(3):2350015
     [Crossref] [Google Scholar]
  80. Fisher AC, Hanemann WM, Roberts MJ, Schlenker W. 2012.. The economic impacts of climate change: evidence from agricultural output and random fluctuations in weather: comment. . Am. Econ. Rev. 102:(7):3749–60
     [Crossref] [Google Scholar]
  81. Fried S. 2022.. Seawalls and stilts: a quantitative macro study of climate adaptation. . Rev. Econ. Stud. 89:(6):3303–44
     [Crossref] [Google Scholar]
  82. Garrett TA, Sobel RS. 2003.. The political economy of FEMA disaster payments. . Econ. Inq. 41:(3):496–509
     [Crossref] [Google Scholar]
  83. Glavovic BC, Dawson R, Chow W, Garschagen M, Haasnoot M, et al. 2022.. Cross-chapter paper 2: cities and settlements by the sea. . See Pörtner et al. 2022 , pp. 2163–94
  84. Hallegatte S, Ghil M. 2008.. Natural disasters impacting a macroeconomic model with endogenous dynamics. . Ecol. Econ. 68:(1–2):582–92
     [Crossref] [Google Scholar]
  85. Hallegatte S, Rozenberg J. 2017.. Climate change through a poverty lens. . Nat. Clim. Change 7:(4):250–56
     [Crossref] [Google Scholar]
  86. Hallegatte S, Vogt-Schilb A, Rozenberg J, Bangalore M, Beaudet C. 2020.. From poverty to disaster and back: a review of the literature. . Econ. Disasters Clim. Change 4::223–47
     [Crossref] [Google Scholar]
  87. Heal G, Millner A. 2014.. Reflections: uncertainty and decision making in climate change economics. . Rev. Environ. Econ. Policy 8:(1):120–37
     [Crossref] [Google Scholar]
  88. Healy A, Malhotra N. 2009.. Myopic voters and natural disaster policy. . Am. Political Sci. Rev. 103:(3):387–406
     [Crossref] [Google Scholar]
  89. Hernández de Cos P. 2021.. The role of central banks and banking supervisors in climate action. . In Resilience of the Financial System to Natural Disasters, ed. P Bolton, M Kacperczyk, HG Hong, X Vives , pp. 5–10. London:: Cent. Econ. Policy Res. https://cepr.org/system/files/publication-files/60025-barcelona_3_resilience_of_the_financial_system_to_natural_disasters.pdf
    [Google Scholar]
  90. Hino M, Burke M. 2021.. The effect of information about climate risk on property values. . PNAS 118:(17):e2003374118
     [Crossref] [Google Scholar]
  91. Hochrainer S. 2009.. Assessing the macroeconomic impacts of natural disasters: Are there any? Policy Res. Work. Pap. 4968 , World Bank, Washington, DC:
     [Google Scholar]
  92. Hoeppe P. 2016.. Trends in weather related disasters—consequences for insurers and society. . Weather Clim. Extremes 11::70–79
     [Crossref] [Google Scholar]
  93. Hsiang SM. 2010.. Temperatures and cyclones strongly associated with economic production in the Caribbean and Central America. . PNAS 107:(35):15367–72
     [Crossref] [Google Scholar]
  94. Hsiang SM, Jina AS. 2014.. The causal effect of environmental catastrophe on long-run economic growth: evidence from 6,700 cyclones. NBER Work. Pap. w20352
    [Google Scholar]
  95. Hsiang SM, Narita D. 2012.. Adaptation to cyclone risk: evidence from the global cross-section. . Clim. Change Econ. 3:(2):1250011
     [Crossref] [Google Scholar]
  96. IDMC (Intern. Displac. Monit. Cent.). 2023.. GRID 2023. Internal displacement and food security. Rep. , IDMC, Geneva:. https://www.internal-displacement.org/global-report/grid2023/
    [Google Scholar]
  97. IPCC (Intergov. Panel Clim. Change). 2012.. Managing the Risks of Extreme Events and Disasters to Advance Climate Change Adaptation. A Special Report of Working Groups I and II of the Intergovernmental Panel on Climate Change, ed. CB Field, V Barros, TF Stocker, D Qin, DJ Dokken, et al . Cambridge, UK/New York:: Cambridge Univ. Press
     [Google Scholar]
  98. IPCC (Intergov. Panel Clim. Change). 2023.. Summary for policymakers. . In Climate Change 2023: Synthesis Report. A Report of the Intergovernmental Panel on Climate Change. Contribution of Working Groups I, II and III to the Sixth Assessment Report of the Intergovernmental Panel on Climate Change, ed. H Lee, J Romero . Geneva:: IPCC
     [Google Scholar]
  99. Jerch R, Kahn ME, Lin GC. 2023.. Local public finance dynamics and hurricane shocks. . J. Urban Econ. 134::103516
     [Crossref] [Google Scholar]
  100. Kaczan DJ, Orgill-Meyer J. 2020.. The impact of climate change on migration: a synthesis of recent empirical insights. . Clim. Change 158:(3–4):281–300
     [Crossref] [Google Scholar]
  101. Kahn ME. 2005.. The death toll from natural disasters: the role of income, geography, and institutions. . Rev. Econ. Stat. 87:(2):271–84
     [Crossref] [Google Scholar]
  102. Kahn ME. 2016.. The climate change adaptation literature. . Rev. Environ. Econ. Policy 10:(1):166–78
     [Crossref] [Google Scholar]
  103. Kalkstein LS, Eisenman DP, de Guzman EB, Sailor DJ. 2022.. Increasing trees and high-albedo surfaces decreases heat impacts and mortality in Los Angeles, CA. . Int. J. Biometeorol. 66:(5):911–25
     [Crossref] [Google Scholar]
  104. Kazianga H, Udry C. 2006.. Consumption smoothing? Livestock, insurance and drought in rural Burkina Faso. . J. Dev. Econ. 79:(2):413–46
     [Crossref] [Google Scholar]
  105. Kellenberg D, Mobarak AM. 2011.. The economics of natural disasters. . Annu. Rev. Resour. Econ. 3::297–312
     [Crossref] [Google Scholar]
  106. Khan Q, Hussain K. 2022.. Gone with the flood: natural disasters and children's schooling in Pakistan. . BE J. Econ. Anal. Policy 23:(1):271–83
     [Crossref] [Google Scholar]
  107. Klomp J. 2016.. Economic development and natural disasters: a satellite data analysis. . Glob. Environ. Change 36::67–88
     [Crossref] [Google Scholar]
  108. Klomp J. 2017.. Flooded with debt. . J. Int. Money Finance 73::93–103
     [Crossref] [Google Scholar]
  109. Klomp J, Valckx K. 2014.. Natural disasters and economic growth: a meta-analysis. . Glob. Environ. Change 26::183–95
     [Crossref] [Google Scholar]
  110. Kolak M, Anselin L. 2020.. A spatial perspective on the econometrics of program evaluation. . Int. Reg. Sci. Rev. 43:(1–2):128–53
     [Crossref] [Google Scholar]
  111. Kousky C. 2014.. Informing climate adaptation: a review of the economic costs of natural disasters. . Energy Econ. 46::576–92
     [Crossref] [Google Scholar]
  112. Kousky C. 2019.. The role of natural disaster insurance in recovery and risk reduction. . Annu. Rev. Resour. Econ. 11::399–418
     [Crossref] [Google Scholar]
  113. Kousky C. 2022.. Understanding Disaster Insurance: New Tools for a More Resilient Future. Washington, DC:: Island Press
     [Google Scholar]
  114. Kousky C, Kunreuther H. 2014.. Addressing affordability in the national flood insurance program. . J. Extreme Events 1:(1):1450001
     [Crossref] [Google Scholar]
  115. Kousky C, Michel-Kerjan EO, Raschky PA. 2018.. Does federal disaster assistance crowd out flood insurance?. J. Environ. Econ. Manag. 87::150–64
     [Crossref] [Google Scholar]
  116. Kunreuther H, Botzen W. 2022.. The role of biases and heuristics in addressing natural disasters. . See Skidmore 2022 , pp. 72–85
  117. Lal PN, Mitchell T, Aldunce P, Auld H, Mechler R, et al. 2012.. National systems for managing the risks from climate extremes and disasters. . In Managing the Risks of Extreme Events and Disasters to Advance Climate Change Adaptation: Special Report of Working Groups I and II of the Intergovernmental Panel on Climate Change, ed. CB Field, V Barros, TF Stocker, D Qin, DJ Dokken, et al. , pp. 339–92. Cambridge, UK/New York:: Cambridge Univ. Press
     [Google Scholar]
  118. Leiter AM, Oberhofer H, Raschky PA. 2009.. Creative disasters? Flooding effects on capital, labour and productivity within European firms. . Environ. Resour. Econ. 43::333–50
     [Crossref] [Google Scholar]
  119. Lempert R, Arnold J, Pulwarty R, Gordon K, Greig K, et al. 2018.. Reducing risks through adaptation actions. . In Impacts, Risks, and Adaptation in the United States: Fourth National Climate Assessment, Vol. 2, ed. DR Reidmiller, CW Avery, DR Easterling, KE Kunkel, KLM Lewis, et al. , pp. 1309–345. US Glob. Change Res. Prog., Washington, DC:. https://www.doi.org/10.7930/NCA4.2018.CH28
    [Google Scholar]
  120. Liao Y, Kousky C. 2022.. The fiscal impacts of wildfires on California municipalities. . J. Assoc. Environ. Resour. Econ. 9:(3):455–93
     [Google Scholar]
  121. Lima RCDA, Barbosa AVB. 2019.. Natural disasters, economic growth and spatial spillovers: evidence from a flash flood in Brazil. . Pap. Reg. Sci. 98:(2):905–24
     [Crossref] [Google Scholar]
  122. Lindsey R, Dahlman L. 2024.. Climate change: global temperature. . Climate.gov, Jan. 18, Natl. Oceanic Atmos. Admin., Silver Spring, MD:. https://www.climate.gov/news-features/understanding-climate/climate-change-global-temperature
    [Google Scholar]
  123. Lis EM, Nickel C. 2010.. The impact of extreme weather events on budget balances. . Int. Tax Public Finance 17::378–99
     [Crossref] [Google Scholar]
  124. Loayza NV, Olaberria E, Rigolini J, Christiaensen L. 2012.. Natural disasters and growth: going beyond the averages. . World Dev. 40:(7):1317–36
     [Crossref] [Google Scholar]
  125. Luechinger S, Raschky PA. 2009.. Valuing flood disasters using the life satisfaction approach. . J. Public Econ. 93:(3–4):620–33
     [Crossref] [Google Scholar]
  126. Maccini S, Yang D. 2009.. Under the weather: health, schooling, and economic consequences of early-life rainfall. . Am. Econ. Rev. 99:(3):1006–26
     [Crossref] [Google Scholar]
  127. Mechler R. 2016.. Reviewing estimates of the economic efficiency of disaster risk management: opportunities and limitations of using risk-based cost–benefit analysis. . Nat. Hazards 81::2121–47
     [Crossref] [Google Scholar]
  128. Melecky M, Raddatz C. 2015.. Fiscal responses after catastrophes and the enabling role of financial development. . World Bank Econ. Rev. 29:(1):129–49
     [Crossref] [Google Scholar]
  129. Mendelsohn R, Nordhaus WD, Shaw D. 1994.. The impact of global warming on agriculture: a Ricardian analysis. . Am. Econ. Rev. 84:(4):753–71
     [Google Scholar]
  130. Meyer R, Kunreuther H. 2017.. The Ostrich Paradox: Why We Underprepare for Disasters. Philadelphia:: Univ. Penn. Press
     [Google Scholar]
  131. Miao Q. 2019.. Are we adapting to floods? Evidence from global flooding fatalities. . Risk Anal. 39:(6):1298–1313
     [Crossref] [Google Scholar]
  132. Miao Q, Popp D. 2014.. Necessity as the mother of invention: innovative responses to natural disasters. . J. Environ. Econ. Manag. 68:(2):280–95
     [Crossref] [Google Scholar]
  133. Mohapatra S, Joseph G, Ratha D. 2012.. Remittances and natural disasters: ex-post response and contribution to ex-ante preparedness. . Environ. Dev. Sustain. 14::365–87
     [Crossref] [Google Scholar]
  134. Molina R, Rudik I. 2022.. The social value of predicting hurricanes. CESifo Work. Pap. 10049. http://dx.doi.org/10.2139/ssrn.4266614
    [Google Scholar]
  135. Moore FC, Obradovich N, Lehner F, Baylis P. 2019.. Rapidly declining remarkability of temperature anomalies may obscure public perception of climate change. . PNAS 116:(11):4905–10
     [Crossref] [Google Scholar]
  136. Mora C, McKenzie T, Gaw IM, Dean JM, von Hammerstein H, et al. 2022.. Over half of known human pathogenic diseases can be aggravated by climate change. . Nat. Clim. Change 12:(9):869–75
     [Crossref] [Google Scholar]
  137. Nelson DR, Bledsoe BP, Ferreira S, Nibbelink NP. 2020.. Challenges to realizing the potential of nature-based solutions. . Curr. Opin. Environ. Sustain. 45::49–55
     [Crossref] [Google Scholar]
  138. Neumayer E, Plümper T. 2007.. The gendered nature of natural disasters: the impact of catastrophic events on the gender gap in life expectancy, 1981–2002. . Ann. Assoc. Am. Geogr. 97:(3):551–66
     [Crossref] [Google Scholar]
  139. New M, Reckien D, Viner D, Adler C, Cheong S-M, et al. 2022.. Decision-making options for managing risk. . See Pörtner et al. 2022 , pp. 2539–654
  140. Nguyen CN, Noy I. 2020.. Measuring the impact of insurance on urban earthquake recovery using nightlights. . J. Econ. Geogr. 20:(3):857–77
     [Crossref] [Google Scholar]
  141. NOAA (Natl. Oceanic Atmos. Admin.). 2023.. Billion-dollar weather and climate disasters. Natl. Cent. Environ. Inf., Natl. Oceanic Atmos. Admin., Silver Spring, MD:, updated March 8, 2024. https://www.ncei.noaa.gov/access/billions
    [Google Scholar]
  142. Noy I. 2009.. The macroeconomic consequences of disasters. . J. Dev. Econ. 88:(2):221–31
     [Crossref] [Google Scholar]
  143. Noy I, Nguyen C, Patel P. 2021.. Floods and spillovers: households after the 2011 great flood in Thailand. . Econ. Dev. Cult. Change 69:(2):829–68
     [Crossref] [Google Scholar]
  144. Noy I, Nualsri A. 2011.. Fiscal storms: public spending and revenues in the aftermath of natural disasters. . Environ. Dev. Econ. 16:(1):113–28
     [Crossref] [Google Scholar]
  145. NWS (Natl. Weather Serv.). 2022.. Weather related fatality and injury statistics. Natl. Weather Serv., Silver Spring, MD:. https://www.weather.gov/hazstat/
    [Google Scholar]
  146. Obradovich N, Migliorini R, Paulus MP, Rahwan I. 2018.. Empirical evidence of mental health risks posed by climate change. . PNAS 115:(43):10953–58
     [Crossref] [Google Scholar]
  147. Okuyama Y. 2022.. A few good models for economic analysis of disasters: Can your model handle the truth?. See Skidmore 2022 , pp. 30–49
  148. O'Neill B, Van Aalst M, Ibrahim ZZ, Ford LB, Bhadwal S, et al. 2022.. Key risks across sectors and regions. See Pörtner et al. . 2022, pp. 2411–538
     [Google Scholar]
  149. Osberghaus D. 2019.. The effects of natural disasters and weather variations on international trade and financial flows: a review of the empirical literature. . Econ. Disasters Clim. Change 3:(3):305–25
     [Crossref] [Google Scholar]
  150. Parida Y. 2020.. Economic impact of floods in the Indian states. . Environ. Dev. Econ. 25:(3):267–90
     [Crossref] [Google Scholar]
  151. Pelli M, Tschopp J. 2017.. Comparative advantage, capital destruction, and hurricanes. . J. Int. Econ. 108::315–37
     [Crossref] [Google Scholar]
  152. Persson Å. 2019.. Global adaptation governance: an emerging but contested domain. . Wiley Interdisc. Rev. Clim. Change 10:(6):e618
     [Crossref] [Google Scholar]
  153. Pindyck RS. 2022.. Climate Future: Averting and Adapting to Climate Change. New York:: Oxford Univ. Press
     [Google Scholar]
  154. Pörtner H-O, Roberts DC, Tignor M, Poloczanska ES, Mintenbeck K, et al., eds. 2022.. Climate Change 2022: Impacts, Adaptation and Vulnerability. Contribution of Working Group II to the Sixth Assessment Report of the Intergovernmental Panel on Climate Change. Cambridge, UK/New York:: Cambridge Univ. Press
     [Google Scholar]
  155. Priest GL. 1996.. The government, the market, and the problem of catastrophic loss. . J. Risk Uncertain. 12::219–37
     [Crossref] [Google Scholar]
  156. Ramcharan R. 2007.. Does the exchange rate regime matter for real shocks? Evidence from windstorms and earthquakes. . J. Int. Econ. 73:(1):31–47
     [Crossref] [Google Scholar]
  157. Reguero BG, Beck MW, Bresch DN, Calil J, Meliane I. 2018.. Comparing the cost effectiveness of nature-based and coastal adaptation: a case study from the Gulf Coast of the United States. . PLOS ONE 13:(4):e0192132
     [Crossref] [Google Scholar]
  158. Rigaud KK, de Sherbinin A, Jones B, Bergmann J, Clement V, et al. 2018.. Groundswell: Preparing for Internal Climate Migration. Washington, DC:: World Bank
     [Google Scholar]
  159. Roth Tran B, Wilson DJ. 2023.. The local economic impact of natural disasters. Work. Pap. 2020-34 , Fed. Reserve Bank San Francisco. https://doi.org/10.24148/wp2020-34
    [Google Scholar]
  160. Schelling TC. 1992.. Some economics of global warming. . Am. Econ. Rev. 82:(1):1–14
     [Google Scholar]
  161. Schildberg-Hörisch H. 2018.. Are risk preferences stable?. J. Econ. Perspect. 32:(2):135–54
     [Crossref] [Google Scholar]
  162. Sheldon TL, Zhan C. 2022.. The impact of hurricanes and floods on domestic migration. . J. Environ. Econ. Manag. 115::102726
     [Crossref] [Google Scholar]
  163. Shrader JG, Bakkensen L, Lemoine D. 2023.. Fatal errors: the mortality value of accurate weather forecasts. NBER Work. Pap. w31361
    [Google Scholar]
  164. Skidmore M, ed. 2022.. Handbook on the Economics of Disasters. Cheltenham, UK:: Edward Elgar
     [Google Scholar]
  165. Skidmore M, Toya H. 2002.. Do natural disasters promote long-run growth?. Econ. Inq. 40:(4):664–87
     [Crossref] [Google Scholar]
  166. Somanathan E, Somanathan R, Sudarshan A, Tewari M. 2021.. The impact of temperature on productivity and labor supply: evidence from Indian manufacturing. . J. Political Econ. 129:(6):1797–1827
     [Crossref] [Google Scholar]
  167. Sotomayor O. 2013.. Fetal and infant origins of diabetes and ill health: evidence from Puerto Rico's 1928 and 1932 hurricanes. . Econ. Hum. Biol. 11:(3):281–93
     [Crossref] [Google Scholar]
  168. Strobl E. 2011.. The economic growth impact of hurricanes: evidence from US coastal counties. . Rev. Econ. Stat. 93:(2):575–89
     [Crossref] [Google Scholar]
  169. Strobl E. 2012.. The economic growth impact of natural disasters in developing countries: evidence from hurricane strikes in the Central American and Caribbean regions. . J. Dev. Econ. 97:(1):130–41
     [Crossref] [Google Scholar]
  170. Sun F, Carson RT. 2020.. Coastal wetlands reduce property damage during tropical cyclones. . PNAS 117:(11):5719–25
     [Crossref] [Google Scholar]
  171. Surminski. 2022.. The role of insurance in integrated disaster risk management with a focus on how insurance can support climate adaptation and disaster resilience. . See Skidmore 2022 , pp. 294–318
  172. Taylor CA, Druckenmiller H. 2022.. Wetlands, flooding, and the Clean Water Act. . Am. Econ. Rev. 112:(4):1334–63
     [Crossref] [Google Scholar]
  173. Tol RSJ. 2018.. The economic impacts of climate change. . Rev. Environ. Econ. Policy 12:(1):4–25
     [Crossref] [Google Scholar]
  174. Tol RSJ, Leek F. 1999.. Economic analysis of natural disasters. . In Climate, Change and Risk, ed. TE Downing, AA Olsthoorn, RSJ Tol , pp. 308–27. London:: Routledge. , 1st ed..
     [Google Scholar]
  175. UNDRR (United Nations Off. Disaster Risk Reduct.). 2015.. Sendai Framework for Disaster Risk Reduction 2015–2030. Geneva:: UNDRR
     [Google Scholar]
  176. UNEP (United Nations Environ. Prog.). 2022.. Adaptation Gap Report 2022: Too Little, Too Slow. Climate Adaptation Failure Puts World at Risk. Nairobi:: UNEP
     [Google Scholar]
  177. Van Valkengoed AM, Steg L. 2019.. Meta-analyses of factors motivating climate change adaptation behaviour. . Nat. Clim. Change 9::158–63
     [Crossref] [Google Scholar]
  178. von Peter G, von Dahlen S, Saxena S. 2024.. Unmitigated disasters? Risk sharing and macroeconomic recovery in a large international panel. . J. Int. Econ. https://doi.org/10.1016/j.jinteco.2024.103920
    [Google Scholar]
  179. Wagner G, Weitzman ML. 2015.. Climate Shock: The Economic Consequences of a Hotter Planet. Princeton, NJ:: Princeton Univ. Press
     [Google Scholar]
  180. Weitzman ML. 2009.. On modeling and interpreting the economics of catastrophic climate change. . Rev. Econ. Stat. 91:(1):1–19
     [Crossref] [Google Scholar]
  181. World Econ. Forum. 2023.. Global Risks Report 2023. Geneva:: World Econ. Forum. https://www.weforum.org/reports/global-risks-report-2023/digest
    [Google Scholar]
  182. Yang D. 2008.. Coping with disaster: the impact of hurricanes on international financial flows, 1970–2002. . BE J. Econ. Anal. Policy 8:(1). https://doi.org/10.2202/1935-1682.1903
    [Google Scholar]
  183. Yeh C, Perez A, Driscoll A, Azzari G, Tang Z, et al. 2020.. Using publicly available satellite imagery and deep learning to understand economic well-being in Africa. . Nat. Commun. 11::2583
     [Crossref] [Google Scholar]
  184. Zachariah M, Philip S, Pinto I, Vahlberg M, Singh R, et al. 2023.. Extreme heat in North America, Europe and China in July 2023 made much more likely by climate change. Rep. , Grantham Inst. Clim. Change, Imp. Coll. London:. https://doi.org/10.25561/105549
    [Google Scholar]
/content/journals/10.1146/annurev-resource-101623-095314
Loading
Extreme Weather Events and Climate Change: Economic Impacts and Adaptation Policies
Annual Review of Resource Economics 16, 207 (2024); https://doi.org/10.1146/annurev-resource-101623-095314
/content/journals/10.1146/annurev-resource-101623-095314
/content/journals/10.1146/annurev-resource-101623-095314
Loading

Data & Media loading...

  • Article Type: Review Article

Most Cited Most Cited RSS feed

This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error