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This study finds that natural shocks-storms in particular-are a significant and often leading cause for power supply disruptions. This finding is based on 20 years of high frequency (i.e. daily) data on power outages and climate variables in 28 countries-Bangladesh, the United States and 26 European countries. More specifically: (1) Natural shocks are the most important cause of power outages in developed economies. On average, they account for more than 50 of annual outage duration in both the US and Europe. In contrast, natural shocks are responsible for a small share of outages in Bangladesh, where disruptions occur on a daily basis for a variety of reasons. (2) Outages due to natural shocks are found to last significantly longer than those due to non-natural shocks in-e.g. more than 4.5 times in Europe. Reasons include the challenge of locating wide-spread damages, and the sustained duration of storms. (3) Several factors can reinforce the adverse effect of natural shocks on power supply. In the US, forest cover is shown to significantly increase the risk of power outages when storms occur. (4) There are significant differences in network fragility. For instance, wind speeds above 35 km/h are found to be 12 times more likely to cause an outage in Bangladesh than in the US. This difference may be explained by a range of factors, including investments in infrastructure resilience and maintenance.
Climate Change Impacts --- Electric Power --- Electricity --- Energy --- Energy and Environment --- Energy Policies and Economics --- Environment --- Infrastructure Economics --- Infrastructure Economics and Finance --- Infrastructure Investment --- Natural Disaster --- Natural Disasters --- Power Outage --- Resilient Infrastructure
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This study constructs a microdata set of about 143,000 firms to estimate the monetary costs of infrastructure disruptions in 137 low- and middle-income countries, representing 78 percent of the world population and 80 percent of the GDP of low- and -middle-income countries. Specifically, this study assesses the impact of transport, electricity, and water disruptions on the capacity utilization rates of firms. The estimates suggest that utilization losses amount to 151 billion dollar a year-of which 107 billion dollar are due to transport disruptions, 38 billion dollar due to blackouts, and 6 billion dollar due to dryouts. Moreover, this study shows that electricity outages are causing sales losses equivalent to 82 billion dollar a year. Firms are also incurring the costs of self-generated electricity, estimated to amount to 64 billion dollar a year (including annualized capital expenditure). At almost 300 billion dollar a year, these figures highlight the substantial drag that unreliable infrastructure imposes on firms in developing countries. Yet, these figures are likely to be under-estimates as neither all countries nor all types of impacts are covered.
Business Environment --- Capacity Utilization --- Climate Change Impacts --- Electric Power --- Electricity --- Energy --- Environment --- Firm Productivity --- Infrastructure Economics --- Infrastructure Investment --- Natural Disaster --- Natural Disasters --- Power Outage --- Private Sector Economics --- Resilient Infrastructure --- Transport --- Transportation Infrastructure --- Water Supply --- Water Supply and Sanitation Economics
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This review examines the literature on the welfare impacts of infrastructure disruptions. There is widespread evidence that households suffer from the consequences of a lack of infrastructure reliability, and that being connected to the grid is not sufficient to close the infrastructure gap. Disruptions and irregular service have adverse effects on household welfare, due to missed work and education opportunities, and negative impact on health. Calibrating costs of unreliable infrastructure on existing willingness to pay assessments, we estimate the welfare losses associated with blackouts and water outages. Overall, between 0.1 and 0.2 percent of GDP would be lost each year because of unreliable infrastructure-electricity, water and transport.
Access to Energy --- Access to Water --- Drinking Water --- Electric Power --- Energy --- Energy and Poverty Alleviation --- Energy Policies and Economics --- Household Welfare --- Households --- Inequality --- Infrastructure --- Infrastructure Economics --- Infrastructure Economics and Finance --- Infrastructure Reliability --- Living Standards --- Natural Disaster --- Poverty Reduction --- Power Outage --- Resilient Infrastructure --- Vulnerability --- Water Supply and Sanitation Economics --- Well-Being
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This paper introduces the concept of "climate matching" as a driver of migration and establishes several new results. First, we show that climate strongly predicts the spatial distribution of immigrants in the US, both historically (1880) and more recently (2015), whereby movers select destinations with climates similar to their place of origin. Second, we analyze historical flows of German, Norwegian, and domestic migrants in the US and document that climate sorting also holds within countries. Third, we exploit variation in the long-run change in average US climate from 1900 to 2019 and find that migration increased more between locations whose climate converged. Fourth, we verify that results are not driven by the persistence of ethnic networks or other confounders, and provide evidence for two complementary mechanisms: climate-specific human capital and climate as amenity. Fifth, we back out the value of climate similarity by: i) exploiting the Homestead Act, a historical policy that changed relative land prices; and, ii) examining the relationship between climate mismatch and mortality. Finally, we project how climate change shapes the geography of US population growth by altering migration patterns, both historically and into the 21st century.
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Dar es Salaam is frequently affected by severe flooding causing destruction and impeding daily life of its 4.5 million inhabitants. The focus of this paper is on the role of poverty in the impact of floods on households, focusing on both direct (damage to or loss of assets or property) and indirect (losses involving health, infrastructure, labor, and education) impacts using household survey data. Poorer households are more likely to be affected by floods; directly affected households are more likely female-headed and have more insecure tenure arrangements; and indirectly affected households tend to have access to poorer quality infrastructure. Focusing on the floods of April 2018, affected households suffered losses of 23 percent of annual income on average. Surprisingly, poorer households are not over-represented among the households that lost the most - even in relation to their income, possibly because 77 percent of total losses were due to asset losses, with richer households having more valuable assets. Although indirect losses were relatively small, they had significant well-being effects for the affected households. It is estimated that households' losses due to the April 2018 flood reached more than USD 100 million, representing between 2-4 percent of the gross domestic product of Dar es Salaam. Furthermore, poorer households were less likely to recover from flood exposure. The report finds that access to finance play an important role in recovery for households.
Agriculture --- Climate Change and Agriculture --- Climate Change Impact --- Climate Resilience --- Disaster Risk Management --- Environment --- Flood --- Flood Control --- Flood Risk --- Hazard Risk Management --- Household Welfare --- Hydrology --- Inequality --- Natural Disasters --- Poverty --- Poverty Reduction --- Vulnerability
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