Building Resilience to Natural Disaster in Vulnerable States: Savings from Ex Ante Interventions
The finding underscores the importance of mobilising more resources to build resilient infrastructure against natural disaster and climate change.
Abstract
In chapter 9 titled 鈥淏uilding Resilience to Natural Disaster in Vulnerable States: Savings from Ex-Ante Interventions,鈥� the authors assess the trade-off in building resilient infrastructure against natural disasters between exante and ex-post approaches. The authors use dynamic and general equilibrium and empirical models and calibrate their structural model to six small countries that are highly vulnerable to natural disasters. The results suggest that policy makers can save in net present value terms by investing in ex-ante resilience and avoiding large recovery costs. In addition, increasing the elasticity of output to infrastructure by improving governance would also leads to sizable output gains from the baseline. The finding underscores the importance of mobilising more resources to build resilient infrastructure against natural disaster and climate change.
This work is part of the 鈥楳acroeconomics in Low-income countries鈥� programme
Citation
Guo, W. (2020). 鈥淐hapter 9 Building Resilience to Natural Disaster in Vulnerable States: Savings from Ex Ante Interventions鈥�. In Well Spent. USA: International Monetary Fund. Retrieved Aug 9, 2022, from https://www.elibrary.imf.org/view/book/9781513511818/ch009.xml