An Introduction to Natural Disaster Economics

Kahn, Matthew (2025): An Introduction to Natural Disaster Economics.

Abstract

The fires in Los Angeles ignited in January 2025. I will use this shock to sketch out my main themes as I will explore the microeconomics of natural disasters as I focus on the causes and consequences of extreme weather events; including hurricanes, tornadoes, wildfires, extreme heat, and pollution spikes. I will ask (and sketch answers to) some tough questions: Why do these shocks cause damage? Why weren’t people, firms, and governments prepared for such shocks? What does it mean “to be ready”?

• Item Type: MPRA Paper
• Language: English
• Keywords: natural disasters, adaptation, uncertainty, investment, incentives
• Subjects: R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R3 - Real Estate Markets, Spatial Production Analysis, and Firm Location > R31 - Housing Supply and Markets

References

Kahn, Matthew E. "The death toll from natural disasters: the role of income, geography, and institutions." Review of economics and statistics 87, no. 2 (2005): 271-284.