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The effect of the Wenchuan earthquake and government aid on rural households

In: Earthquake lessons from China: Coping and rebuilding strategies

Author

Listed:
  • Feng, Shuaizhang
  • Lu, Jingliang
  • Nolen, Patrick
  • Wang, Lei

Abstract

This chapter discusses the impact of the 2008 Sichuan earthquake on household income, consumption, and income inequality using a unique dataset collected in rural Sichuan. We find that household income fell by 14 percent because of the earthquake and that income inequality did not increase. With regard to government support, living subsidies were more than enough to offset losses in annual income, but reconstruction aid, such as grants and bank loans for housing, accounted for less than 60 percent of total house-rebuilding costs.

Suggested Citation

  • Feng, Shuaizhang & Lu, Jingliang & Nolen, Patrick & Wang, Lei, 2016. "The effect of the Wenchuan earthquake and government aid on rural households," IFPRI book chapters, in: Chen, Kevin Z. & Zhang, Qiang & Hsu, Claire (ed.), Earthquake lessons from China: Coping and rebuilding strategies, chapter 2, pages 11-34, International Food Policy Research Institute (IFPRI).
    • Handle: RePEc:fpr:ifpric:9780896298743-02
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    Cited by:

    1. Bequet, Ludovic, 2020. "Biotech Crops, Input Use and Landslides: The case of Genetically Modified Corn in the Philippine Highlands," MPRA Paper 98225, University Library of Munich, Germany.
    2. Warr, Peter & Aung, Lwin Lwin, 2019. "Poverty and inequality impact of a natural disaster: Myanmar’s 2008 cyclone Nargis," World Development, Elsevier, vol. 122(C), pages 446-461.
    3. Mahdi Moudi & Shiyu Yan & Bahador Bahramimianrood & Xiaoping Li & Liming Yao, 2019. "Statistical model for earthquake economic loss estimation using GDP and DPI: a case study from Iran," Quality & Quantity: International Journal of Methodology, Springer, vol. 53(2), pages 583-598, March.
    4. Keerthiratne, Subhani & Tol, Richard S.J., 2018. "Impact of natural disasters on income inequality in Sri Lanka," World Development, Elsevier, vol. 105(C), pages 217-230.
    5. Barbora Sedova & Matthias Kalkuhl & Robert Mendelsohn, 2020. "Distributional Impacts of Weather and Climate in Rural India," Economics of Disasters and Climate Change, Springer, vol. 4(1), pages 5-44, April.
    6. Huang, Lulu & Liu, Qiannan & Tang, Yugang, 2024. "Long-term economic impact of disasters: Evidence from multiple earthquakes in China," World Development, Elsevier, vol. 174(C).
    7. Kulanthaivelu, Eric, 2023. "The impact of tropical cyclones on income inequality in the U.S.: An empirical analysis," Ecological Economics, Elsevier, vol. 209(C).

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