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Floods and firms: vulnerabilities and resilience to natural disasters in Europe

Details

Identification
JRC132125
Publication date
19 December 2022
Author
Joint Research Centre

Description

Combining a rich database on natural hazards, granular flood risk maps and detailed information on firm geolocalisation, we study the dynamic impacts of floods on European manufacturing firms during the period 2007-2018. We find that water damages significantly and persistently worsen firm performance, and may endanger their survival. An average flood deteriorates total assets by about 2% in the year after the event, and up to 5% seven years out. The drop in sales and employment is comparable. We show how reallocation of economic activity within flooded regions can reconcile our results with the ’creative destruction’ hypothesis proposed by the natural disaster literature.

Authors

Fatica, S., Gábor, K., Rancan, M.

Files

19 DECEMBER 2022
JRC132125_Floods and firms: vulnerabilities and resilience to natural disasters in Europe
English
(8.71 MB - PDF)
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