 Under the water: flood impacts and economic dynamics in northern PeruJose Cobian Alvarez and Budy Resosudarmo Departmental Working Papers from The Australian National University, Arndt-Corden Department of Economics Abstract: This paper assesses the effects of devastating flooding on household welfare in northern Peru. Remote sensing data are used to construct a novel damage index as a proxy for the local economic impact caused by the 2017 coastal El Niño floods. Using 5-year panel data from the Peruvian National Household Survey (ENAHO), we observe that affected households experience a decrease in income and expenditure compared to those in unaffected areas during the period 2015–2019. Additionally, poverty increases as a result of this natural hazard, especially among households in urban areas. Although there is a recovery in income and expenditure in the aftermath of the floods, households mitigate their consumption through donations of food and clothing. We suggest that, in a context where the occurrence of flooding affects the most vulnerable groups, the development of formal risk-coping strategies such as insurance is crucial for boosting their ability to reduce, mitigate, or adapt to future disaster risk. JEL-codes: C23 O12 Q54 (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pas:papers:2025-07 Access Statistics for this paper More papers in Departmental Working Papers from The Australian National University, Arndt-Corden Department of Economics Contact information at EDIRC. |
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