During past centuries, natural disasters occurred more often in our environment and caused more serious damage worldwide. The Hurricane Irene in the Caribbean and the USA, the floods in Australia, the earthquake in New Zealand and especially in Japan in 2011 had enormous extends concerning the caused loss and damages in the specific regions.
Within the past four decades, the frequency of large natural disasters raised three times more. Furthermore, the economic losses - after adjusting for inflation – increased even eight times more compared to the past decades. This also has a great impact on the insurance industry, since the insured losses increase even in a larger amount compared to other factors affected by natural disasters. However, the insurance industry uses in spite of these unfavorable loss trends, a wide range of coverage against disasters such as Cat Bonds to transfer the disaster risk, and to avoid unnecessary expenses.
Climate change also plays a big role in the frequently occurring amount of disasters. Since it is still hard to estimate the impacts of future climate changes for the frequency and intensity of natural disasters with its huge losses, new policies such as Green Growth have been introduced for mitigation effects.
The purpose of this thesis is to represent and describe the economics of natural disasters due to climate change with its macroeconomic aspects and structural effects.
While demonstrating the impacts on natural disasters to a region’s economy, it is important to know that many other factors are linked with natural disasters that have an effect on a region’s economy. Therefore, after defining the important terms in the first section of this thesis, the scope and costs of natural disasters will be illustrated in chapter 2 for a better
demonstration of the disaster events impacts in general. This will start by describing the reasons for climate change to demonstrate in the latter the increasing number of disaster appearances due to the effects of climate change.
Different regions will be considered within this analysis, whereas in the following sections only the regions which are economically vulnerable to natural disasters will be taken into account to illustrate the costs of natural disasters........
Inhaltsverzeichnis (Table of Contents)
- INTRODUCTION
- Problem Investigation and objectives
- Approach
- SCOPE AND COSTS OF NATURAL DISASTERS
- Reasons for Climate Change
- Appearance of Natural Disasters
- Costs of Natural Disasters
- Disaster Hedging with Cat Bonds
- Development of Disaster Bonds
- Application of Cat Bonds
- Cat Bonds versus Reinsurance
- ECONOMICS OF NATURAL DISASTERS
- Natural Disasters in a Neoclassical Economy
- Natural Disasters and Poverty Traps – Multiple Equilibria Models
- Macroeconomic Impacts of Natural Disasters
- Theoretical Negative Macroeconomic Impacts
- Theoretically Conceivable Positive Macroeconomic Impacts
- Weakness of the GDP Concept
- Evaluation of the Empirical Studies on the Macroeconomic Impacts by Natural Disasters
- Long-Term Negative Macroeconomic Effects of Natural Disasters
- Long-Term Positive Macroeconomic Effects of Natural Disasters
- Short-to Medium-Term Effects of Natural Disasters
- Alternative Methods for Determining the Effects
- Influencing Factors on the Vulnerability of Countries due to Natural Disasters
- GREEN GROWTH
- Background and Definition
- Roles of Green Growth Application in Disaster Risk Management and Climate Change Adaptation and Mitigation
- Trends of Increasing Vulnerability and Natural Disaster Risk in the Context of Socio-Economic Development
- The Path of Climate Change and Green Growth
- The Macroeconomics of Green Growth
- Valuing the Welfare of Future-Generations
- Aggregate Supply and Demand Analysis
- Financing Developing Countries Green Economies
- CASE STUDY
- CONCLUSION
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This Master Thesis aims to investigate the macroeconomic aspects and structural effects of natural disasters and climate change. The work examines the economic implications of these events, focusing on the potential for both negative and positive impacts on economic growth and development.
- The economic impacts of natural disasters and climate change
- The role of climate change in the frequency and intensity of natural disasters
- The macroeconomic effects of natural disasters, including both positive and negative impacts
- The concept of green growth and its potential for mitigating disaster risk and adapting to climate change
- The vulnerability of countries to natural disasters and the factors that influence this vulnerability
Zusammenfassung der Kapitel (Chapter Summaries)
The first chapter of the thesis introduces the topic of the economics of natural disasters and climate change, outlining the problem investigation and objectives of the study. It also discusses the approach taken in the research.
The second chapter delves into the scope and costs of natural disasters, exploring the reasons behind climate change and the increasing frequency and intensity of natural disasters. It further analyzes the economic costs associated with these events and examines disaster hedging strategies, such as the use of catastrophe bonds.
Chapter three focuses on the economics of natural disasters, analyzing the impact of natural disasters on a neoclassical economy and investigating the potential for multiple equilibria models, including poverty traps. It then examines the macroeconomic impacts of natural disasters, considering both theoretical negative and positive impacts. The chapter also addresses the limitations of using GDP as a measure of economic well-being in the context of natural disasters.
The fourth chapter explores the concept of green growth, providing a background on its definition and roles in disaster risk management, climate change adaptation, and mitigation. It examines the relationship between socio-economic development, vulnerability, and natural disaster risk, and discusses the macroeconomics of green growth, including the importance of valuing the welfare of future generations and financing green economies in developing countries.
Schlüsselwörter (Keywords)
The main keywords and focus topics of this thesis include natural disasters, climate change, macroeconomic impacts, green growth, vulnerability, disaster risk management, climate change adaptation, mitigation, and poverty traps. The research focuses on understanding the economic implications of natural disasters and climate change, exploring both the negative and positive effects on economic growth and development. The thesis also investigates the potential of green growth as a strategy for mitigating disaster risk and adapting to climate change.
- Quote paper
- Derya Dogan (Author), 2012, Economics of Natural Disasters and Climate Change, Munich, GRIN Verlag, https://www.grin.com/document/208936
