Private disaster expenditures by rural Bangladeshi households: evidence from survey data

Shaikh M.S.U. Eskander and Paul Steele

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: This paper investigates household’s private expenditures to cope with the harmful losses of climate change and disasters. Using household-level survey data from Bangladesh, this paper finds that disaster-affected rural Bangladeshi households allocate between $499 and $1076 in disaster-related expenditures. Such expenditures are always greater than their relevant precautionary savings, implying that those households may debt-finance their defensive measures. Households with greater precautionary savings spend more: a 100% increase in precautionary savings can increase disaster expenditures by 5%. Moreover, there are considerable regional heterogeneities in household’s disaster expenditures. Increased public sector allocations in addition to carefully designed affordable market-based financing instruments can potentially ease the pressure on disaster-affected households in their fight against the harms of climate change and disaster.

Keywords: Bangladesh; climate change; climate finance; disaster; disaster expenditures; disaster risk; expenditures; precautionary savings (search for similar items in EconPapers)
JEL-codes: Q01 Q54 (search for similar items in EconPapers)
Pages: 9 pages
Date: 2023-02-19
New Economics Papers: this item is included in nep-ban and nep-env
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Published in Climate and Development, 19, February, 2023, 15(10), pp. 876 - 884. ISSN: 1756-5529

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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:118337

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