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Economic Impacts of Natural Disasters in Megacities: The Case of Floods in São Paulo, Brazil

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  • Eduardo Haddad
  • Eliane Teixeira

Abstract

The city of São Paulo, home to 11 million people, suffers constantly the effects of flooding caused by extreme precipitation. Localized floods occur every summer in various parts of the city. Besides the losses and inconvenience felt by the residents, floods produce damages that cross the city boundaries, affecting income and output in the metropolitan area as well as in other parts of the state and the country. The objective of this study is to evaluate the economic impacts of floods in the city of São Paulo through the use of a spatial CGE model integrated to GIS information related to the location of points of floods and the firms within their influence. It is estimated that floods contributed to reduce city growth and residents welfare, as well as to hamper local competitiveness in both domestic and international markets. An intra-city total impact-damage ratio of 2.2 and an economy-wide total impact-damage ratio of 5.0 were found.

Suggested Citation

  • Eduardo Haddad & Eliane Teixeira, 2013. "Economic Impacts of Natural Disasters in Megacities: The Case of Floods in São Paulo, Brazil," ERSA conference papers ersa13p409, European Regional Science Association.
    • Handle: RePEc:wiw:wiwrsa:ersa13p409
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    Cited by:

    1. Ionela Daniela Găitan (Botezatu), 2019. "The Analysis Of Economic Impact Of Natural Disasters," Logos Universalitate Mentalitate Educatie Noutate - Sectiunea Stiinte Economice si Administrative/ Logos Universality Mentality Education Novelty - Section: Economical and Administrative Sciences, Editura Lumen, Department of Economics, vol. 4(1), pages 43-55, December.
    2. Lorenzo Carrera & Gabriele Standardi & Francesco Bosello & Jaroslav Mysiak, 2014. "Assessing Direct and Indirect Economic Impacts of a Flood Event Through the Integration of Spatial and Computable General Equilibrium Modelling," Working Papers 2014.82, Fondazione Eni Enrico Mattei.
    3. Barbora Šedová & Lucia Čizmaziová & Athene Cook, 2021. "A meta-analysis of climate migration literature," CEPA Discussion Papers 29, Center for Economic Policy Analysis.
    4. Robert Bierkandt & Leonie Wenz & Sven Norman Willner & Anders Levermann, 2014. "Acclimate—a model for economic damage propagation. Part 1: basic formulation of damage transfer within a global supply network and damage conserving dynamics," Environment Systems and Decisions, Springer, vol. 34(4), pages 507-524, December.
    5. Annetta Burger & Talha Oz & William G. Kennedy & Andrew T. Crooks, 2019. "Computational Social Science of Disasters: Opportunities and Challenges," Future Internet, MDPI, vol. 11(5), pages 1-31, April.
    6. Haddad, Eduardo & Mena-Chalco, Jesús & Sidone, Otávio, 2015. "Scholarly Collaboration in Regional Science in Developing Countries: The Case of the Brazilian REAL Network," TD NEREUS 4-2015, Núcleo de Economia Regional e Urbana da Universidade de São Paulo (NEREUS).
    7. Leonie Wenz & Sven Norman Willner & Robert Bierkandt & Anders Levermann, 2014. "Acclimate—a model for economic damage propagation. Part II: a dynamic formulation of the backward effects of disaster-induced production failures in the global supply network," Environment Systems and Decisions, Springer, vol. 34(4), pages 525-539, December.
    8. Eduardo A. Haddad & Jesús P. Mena-Chalco & Otávio J. G. Sidone, 2017. "Scholarly Collaboration in Regional Science in Developing Countries," International Regional Science Review, , vol. 40(5), pages 500-529, September.

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    More about this item

    Keywords

    climate change; natural disasters; flooding in São Paulo; spatial CGE; GIS;
    All these keywords.

    JEL classification:

    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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