Natural disasters : What are the economic consequences of natural disasters for households?

Sammanfattning: Climate change is an important subject nowadays and climate change leads to more natural disasters. This essay is a large literature study on Asian, American, European, Oceanian and African countries about the economic consequences for households as a result of natural disasters and the coping mechanisms used by households, as well as governments and institutions. It also provides information about natural disasters, such as natural disasters that have the worst consequences, people that are highly affected by disasters and places in the world where disasters happen the most. The aim of this study is to learn more about environmental disasters and prepare better for future disasters. The results show consequences on welfare (income, assets, poverty), the labour market, migration and inequality. And the coping strategies found are post-disaster sources (help from family and relatives, public and private transfers, borrowing, credits, savings, insurance), decrease in expenditures, changes in consumption, selling assets, changes in the labour market, help from communities and other ways to cope. Governments and institutions also help households in the aftermath of natural disasters. Overall, we conclude that natural disasters lead to important economic impacts for people, and households react by using different coping mechanisms to recover.