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Impact of 2011 Floods, and Flood Management in Thailand

Author

Listed:
  • Nipon POAPONSAKORN

    (Thailand Development Research Institute)

  • Pitsom MEETHOM

    (Thailand Development Research Institute)

Abstract

This paper first describes the causes of the major flooding in Thailand in 2011, which include natural events, unregulated land-use patterns and flood mismanagement. It discusses the government’s quick response in drafting a flood management master plan and allocating USD 11,290 million for assistance and compensation for flood victims, restoration of damaged property, and implementation of the master plan. The weakness of the master plan is also pointed out. The study goes on to develop the “difference-in-difference” method to estimate the impact of the flooding on household income and expenditure in 26 flooded provinces. It matches the addresses of flooded households taken from the 2011 Socio-economic Survey, which did not have questions regarding the impact of floods, with the flooded areas from satellite radar images. Quantile regressions are employed to quantify the differential impact of the flood on households with different income levels. The results show that the flooding reduced total household expenditures by 5.7% to 14%. These findings are consistent with the reported negative national GDP growth of 8.9 % in the fourth quarter of 2011 when Thailand was flooded. One interesting finding is that the 2011 floods had a significantly negative impact on the income and expenditure of middle and high income households, but that its impact on poor households was not statistically significant. The study also finds that the 2011 floods had a negative impact on the money and wage incomes of some middle income households living in the flooded areas. All estimated coefficients in the business income regression are not statistically significant. Comparing farmers’ income in the 2011 Socio-economic Survey with that in 2009, the study also finds that the 2011 flooding had a large negative impact on the farm profits of some middle income households in the flooded provinces. Finally, the study discusses some policy implications, particularly weaknesses in the current information system for flood management.

Suggested Citation

  • Nipon POAPONSAKORN & Pitsom MEETHOM, 2013. "Impact of 2011 Floods, and Flood Management in Thailand," Working Papers DP-2013-34, Economic Research Institute for ASEAN and East Asia (ERIA).
    • Handle: RePEc:era:wpaper:dp-2013-34
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    1. World Bank, 2012. "Thai Flood 2011," World Bank Publications - Reports 26862, The World Bank Group.
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    Cited by:

    1. Karim, Azreen, 2016. "The household response to persistent natural disasters: Evidence from Bangladesh," Working Paper Series 4968, Victoria University of Wellington, School of Economics and Finance.
    2. Md. Mahmudul Alam & Yusnidah Ibrahim & Md Shahin Mia, 2020. "Climate change impacts on yield and financial performance of agro-plantation companies in Malaysia," Post-Print hal-03520113, HAL.
    3. Danny Marks & Frank Thomalla, 2017. "Responses to the 2011 floods in Central Thailand: Perpetuating the vulnerability of small and medium enterprises?," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 87(2), pages 1147-1165, June.
    4. Karim, Azreen, 2018. "The Household Response to Persistent Natural Disasters: Evidence from Bangladesh," World Development, Elsevier, vol. 103(C), pages 40-59.

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    More about this item

    Keywords

    Flood; flood management master plan; impact on household income; expenditures and farm profit; quantile regression; radar satellite images.;
    All these keywords.

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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