Household level effects of flooding: Evidence from Thailand

Zhuldyz Ashikbayeva, Marei Fürstenberg, Timo Kapelari, Albert Pierres Tejada and Stephan Thies

TVSEP Working Papers from Leibniz Universitaet Hannover, Institute for Environmental Economics and World Trade, Project TVSEP

Abstract: This thesis studies the impacts of flooding on income and expenditures of rural households in Northeast Thailand. It explores and compares shock coping strategies and identifies household level differences in flood resilience. Drawing on unique household panel data collected between 2007 and 2016, we exploit random spatio-temporal variation in flood intensities on the village level to identify the causal impacts of flooding on households. Two objective measures for flood intensities are derived from satellite data and employed in the analysis. Both proposed measures rely on the percentage area inundated in the surrounding of a village, but the second measure is standardized and expressed in comparison to the median village level flood exposure. We find that household incomes are negatively affected by floods. However, our results suggest that rather than absolute levels of flooding, deviations from median flood exposure are driving negative effects on households. This indicates a certain degree of adaptation to floods. Household expenditures for health and especially food rise in the aftermath of flooding. Lastly, we find that above primary school education helps to completely offset potential negative effects of flooding.

Keywords: Flooding; Household level effects; Southeast Asia; TVSEP (search for similar items in EconPapers)
JEL-codes: D10 I10 Q54 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2020-10
New Economics Papers: this item is included in nep-agr, nep-dev, nep-env and nep-sea
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