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dc.titleEstimating the Economic Impact of Governance in Disaster Risk Management: Theory and Evidence from Latin America and the Caribbean
dc.contributor.authorGuerrero Compeán, Roberto
dc.contributor.authorZegarra Méndez, Eduardo
dc.contributor.authorLacambra Ayuso, Sergio
dc.contributor.orgunitAgriculture and Rural Development Division
dc.coverageLatin America and the Caribbean
dc.date.available2024-07-02T00:07:00
dc.date.issue2024-07-02T00:07:00
dc.description.abstractStrengthened governance is crucial to reduce economic risks associated with disasters, but little is known about its impact. We combine a new dataset on disaster risk management governance for 26 countries from the Latin America and Caribbean region with annual information on economic losses resulting from disasters between 1980 and 2016. To account for endogenous disaster risk management (DRM) governance processes, we exploit the fact that changes in DRM regulatory frameworks affect a country's capacity for disaster risk identification and reduction to provide instrumental variable estimates of their impact. We find that disasters cause substantial economic losses and that a more robust governance for disaster risk resilience to economic losses reduces the expected economic toll caused by natures shocks. Our estimates suggest that the improvement of DRM governance in Latin America and the Caribbean mitigate the economic toll of disasters, especially in a context where climate change leads to the occurrence of more frequent and severe natural hazards across the region.
dc.format.extent41
dc.identifier.doihttp://dx.doi.org/10.18235/0013046
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Estimating-the-Economic-Impact-of-Governance-in-Disaster-Risk-Management-Theory-and-Evidence-from-Latin-America-and-the-Caribbean.pdf
dc.language.isoen
dc.publisherInter-American Development Bank
dc.subjectDisaster Risk Management
dc.subjectDisaster
dc.subjectEconomy
dc.subjectGovernance
dc.subjectDisaster Prevention
dc.subjectEarthquake
dc.subjectNatural Disaster
dc.subjectGross Domestic Product
dc.subject.jelcodeO54 - Latin America • Caribbean
dc.subject.jelcodeQ54 - Climate • Natural Disasters and Their Management • Global Warming
dc.subject.jelcodeQ58 - Government Policy
dc.subject.keywordsDisaster Risk Resilience;governance;economic losses;Latin America and the Caribbean
idb.identifier.pubnumberIDB-WP-01616
idb.operationRG-T3577
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