Disaster, Mitigation and Household Welfare in Indonesia

Teguh Dartanto

No 201706, LPEM FEBUI Working Papers from LPEM, Faculty of Economics and Business, University of Indonesia

Abstract: Households in the world as well as in Indonesia have become more exposed to a wide variety of vulnerabilities and risks due to the recent increase in the intensity and scope of global natural disasters. This study aims to comprehensively examine the impact of natural disasters on Indonesian’s household welfare (consumption and poverty) using the Indonesian Family Life Survey (IFLS). This study finds that households in rural areas are the most vulnerable to natural disasters; the average asset losses and medical/funeral costs from natural disasters are roughly USD 2,190/household. Our econometric models confirm that earthquakes are the most destructive disaster to affect household welfare, whereas droughts, forest fires, floods, and other disasters appear to have only moderate effects. Disaster-mitigation preparedness plays a significant role in reducing the devastating impacts of disasters and in lessening households’ vulnerability to becoming impoverished.

Keywords: Natural; Disaster; —; Welfare; —; Vulnerability (search for similar items in EconPapers)
JEL-codes: I31 I32 Q54 (search for similar items in EconPapers)
Date: 2017-06, Revised 2017-06
New Economics Papers: this item is included in nep-env and nep-sea
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Persistent link: https://EconPapers.repec.org/RePEc:lpe:wpaper:201706

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