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

Eskander, Shaikh M.S.U. ORCID: 0000-0002-3325-5486 and Steele, Paul (2023) Private disaster expenditures by rural Bangladeshi households: evidence from survey data. Climate and Development, 15 (10). 876 - 884. ISSN 1756-5529

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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.

Item Type:	Article
Official URL:	https://www.tandfonline.com/journals/tcld20
Additional Information:	© 2023 The Authors
Divisions:	Grantham Research Institute Climate Change Economics and Policy
Subjects:	G Geography. Anthropology. Recreation > GE Environmental Sciences H Social Sciences > HB Economic Theory
JEL classification:	Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q0 - General > Q01 - Sustainable Development Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q5 - Environmental Economics > Q54 - Climate; Natural Disasters
Date Deposited:	03 Mar 2023 16:30
Last Modified:	12 Dec 2024 03:37
URI:	http://eprints.lse.ac.uk/id/eprint/118337

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