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Catastrophes naturelles et dynamiques économiques: application aux cyclones tropicaux

Jere Lehtomaa and Clément Renoir

Revue française d'économie, 2022, vol. Volume XXXVII, issue 2, 11-41

Abstract: We overview the macroeconomic literature on natural disasters and propose a new methodology to integrate tropical cyclone damages into economic models. Our approach combines a general equilibrium model of economic growth with a probabilistic disaster impact model. We show that the post-disaster recovery can take several decades, with notable cumulative effects for frequently affected regions. Still, the impact magnitude depends on assumptions regarding future climate change and the underlying drivers of economic growth. We take the US economy to quantify our results.

Date: 2022
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