Older empirical studies suffer to a large extent from endogeneity problems in their econometric analysis because their damage data are based on reports and insurance data, such as the Emergency Events Database (EM-DAT). 2020), and, simultaneously, more people will be exposed to tropical cyclones. J Atmos Ocean Technol 27(4):680692, Lazzaroni S, van Bergeijk P (2014) Natural disasters impact, factors of resilience and development: a meta-analysis of the macroeconomic literature. Earth Syst Sci Data 9(2):927953, Klomp JG, Valckx K (2014) Natural disasters and economic growth: a meta-analysis. The storm damaged and destroyed famand, vital infrastructure and thousands of homes, dealing another devastating blow to families still trying to put their lives together after. The sum of these exposure weights \(w_{g,t-1}\) is divided by the total sum of the weights \(W_{i,t-1}\) in country i in period \(t-1\). J Afr Econ 17(Supplement2):ii7ii49, Cole MA, Elliott RJR, Okubo T, Strobl E (2019) Natural disasters and spatial heterogeneity in damages: the birth, life and death of manufacturing plants. This finding undermines the evidence presented in the main specification: Even several years after the occurrence of a tropical cyclone, tourists avoid restaurants and hotels in devastated areas. Each year the impacts of tropical cyclones and other weather, climate and water extremes around the Earth give rise to multiple casualties and significant damage to property and infrastructure, with adverse economic consequences for communities that can persist for many years. 2013), I control for the mean temperature and precipitation of a country in further specifications. The dynamic analysis reveals that past tropical cyclones have a negative influence on the majority of sectors providing evidence for the no recovery hypothesis discussed in the literature. To demonstrate the average intersectoral connections within my sample, Fig. When water changes from a liquid to a gas, it absorbs heat, and when it changes from a gas to a liquid, it releases heat. Springer, New York, London, Toya H, Skidmore M (2007) Economic development and the impacts of natural disasters. 2014). Am Econ J Appl Econ 8(2):123153, Guha-Sapir D, CRED (2020) EM-DAT: the emergency events database. Color intensities indicate p values according to: \(p<0.01\), \(p<0.05\), \(p<0.1\). The images or other third party material in this article are included in the article's Creative Commons licence, unless indicated otherwise in a credit line to the material. The tests are conducted with the STATA command parmest (Newson 1998). PDF 4.5: Economic Impacts of Tropical Cyclones - University of Colorado Boulder J Mon Econ 45(1):69106, Hsiang SM (2010) Temperatures and cyclones strongly associated with economic production in the Caribbean and Central America. Tropical cyclones are immensely powerful and can travel up to speeds of 65 km/h. However, these growth rates are simply not high enough to reach the pre-disaster growth path. After controlling for country and time specific effects, my estimation approaches allow for a causal identification of the direct and indirect responses to tropical cyclones damages with only little assumption needed (Dell etal. Ann Rev Resour Econ 8(1):4375, Hsiang SM, Jina AS (2014) The causal effect of environmental catastrophe on long-run economic growth: evidence from 6,700 cyclones. Sci Rep 9(1):20452322. J Econ Geogra 20(3):857877, NHC (2016) National hurricane center forecast verification. As tropical cyclones are highly correlated with higher temperature and precipitation (Auffhammer etal. Appendix A.5 presents further statistics: Figs. This does not mean that there have to exist a permanent negative growth effect for every period after the disaster. How did the tropical cyclone impact the communities of Florence? | how Energy Econ 46:576592, Kruk MC, Knapp KR, Levinson DH (2010) A technique for combining global tropical cyclone best track data. Notes InputOutput coefficients show how much input one sector needs to produce one unit of output. 2017) at a spatial resolution of around \(10\,\times \,10\)km.Footnote 10 To avoid potential endogeneity concerns, I lag the respective weights by one period. The purpose of this study is to advance our understanding of anthropogenic influences on tropical cyclones by quantifying the impact of climate change so far, and in the future, on the intensity . Cyclone Freddy - Wikipedia In contrast to Eq. https://unstats.un.org/unsd/snaama/assets/pdf/methodology.pdf, United Nations Statistical Division (2015c) UN data. 2012, 2013). However, as an additional robustness test, I also show a regression where I include these outliers and the results remain unchanged.