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The Economic Dynamics After a Flood: Evidence from Satellite Data

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  • Dino Collalti

    (University of Bern)

Abstract

This study investigates the effect of flash floods on local economic activity in Central America and the Caribbean. I measure these rarely analyzed floods by constructing a high-resolution, physically based index of flash flood occurrence from satellite data and connect these to changes in local night light emissions. After accounting for tropical cyclone activity, flash floods have a delayed, short-term negative effect on economic activity. In countries with a low to medium human development index (HDI), the average negative effect can be up to $$5.6\%$$ 5.6 % in the following months. Countries with higher HDI appear more resilient and are only marginally affected. Also, flash floods exhibit a minor positive spatial spillover in low to medium HDI countries, besides their more substantial local negative effect. Due to their high frequency, flash floods have a detrimental effect on local economic growth in developing countries that will likely be exacerbated by climate change. (JEL )

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  • Dino Collalti, 2024. "The Economic Dynamics After a Flood: Evidence from Satellite Data," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 87(9), pages 2401-2428, September.
    • Handle: RePEc:kap:enreec:v:87:y:2024:i:9:d:10.1007_s10640-024-00887-6
    DOI: 10.1007/s10640-024-00887-6
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    More about this item

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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