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Delving into the eye of the cyclone to quantify the cascading impacts of natural disasters on life satisfaction

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  • Ha Trong Nguyen
  • Mitrou, Francis

Abstract

The catastrophic effects of natural disasters on social and economic systems are well-documented; however, their impacts on individual life satisfaction remain insufficiently understood. This study pioneers a causal analysis of cyclones' impacts on Australians' life satisfaction, using local cyclones as natural experiments. Analysing over two decades of data, individual fixed-effects models reveal that cyclones, particularly category 5 (highest severity) cyclones in close proximity to residences, significantly reduce overall life satisfaction and specific domains like community, personal safety, and health satisfaction. Notably, these cyclones have a lasting impact on community and personal safety satisfaction. Our findings withstand rigorous sensitivity assessments, including a falsification test demonstrating no impact of future cyclones on current life satisfaction. Moreover, extensive heterogeneous analysis uncovers significant variations in cyclone impact based on life satisfaction domains and individual, household, and regional characteristics. Additionally, this study shows that cyclone-induced home damage, especially from the most severe cyclones, significantly diminishes the aforementioned life satisfaction outcomes, but to a much greater magnitude.

Suggested Citation

  • Ha Trong Nguyen & Mitrou, Francis, 2024. "Delving into the eye of the cyclone to quantify the cascading impacts of natural disasters on life satisfaction," GLO Discussion Paper Series 1446, Global Labor Organization (GLO).
    • Handle: RePEc:zbw:glodps:1446
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    File URL: https://www.econstor.eu/bitstream/10419/298790/1/GLO-DP-1446.pdf
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    References listed on IDEAS

    as
    1. Melissa Dell & Benjamin F. Jones & Benjamin A. Olken, 2014. "What Do We Learn from the Weather? The New Climate-Economy Literature," Journal of Economic Literature, American Economic Association, vol. 52(3), pages 740-798, September.
    2. Zhang, Xin & Zhang, Xiaobo & Chen, Xi, 2017. "Happiness in the air: How does a dirty sky affect mental health and subjective well-being?," Journal of Environmental Economics and Management, Elsevier, vol. 85(C), pages 81-94.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Natural Disasters; Life Satisfaction; Happiness; Wellbeing; Australia;
    All these keywords.

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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