Building Resilience to Natural Disaster in Vulnerable States: Savings from Ex Ante Interventions
The finding underscores the importance of mobilising more resources to build resilient infrastructure against natural disaster and climate change.
Abstract
In chapter 9 titled “Building Resilience to Natural Disaster in Vulnerable States: Savings from Ex-Ante Interventions,” the authors assess the trade-off in building resilient infrastructure against natural disasters between exante and ex-post approaches. The authors use dynamic and general equilibrium and empirical models and calibrate their structural model to six small countries that are highly vulnerable to natural disasters. The results suggest that policy makers can save in net present value terms by investing in ex-ante resilience and avoiding large recovery costs. In addition, increasing the elasticity of output to infrastructure by improving governance would also leads to sizable output gains from the baseline. The finding underscores the importance of mobilising more resources to build resilient infrastructure against natural disaster and climate change.
This work is part of the ‘Macroeconomics in Low-income countries’ programme
Citation
Guo, W. (2020). “Chapter 9 Building Resilience to Natural Disaster in Vulnerable States: Savings from Ex Ante Interventions”. In Well Spent. USA: International Monetary Fund. Retrieved Aug 9, 2022, from https://www.elibrary.imf.org/view/book/9781513511818/ch009.xml
Links
Building Resilience to Natural Disaster in Vulnerable States: Savings from Ex Ante Interventions