Floods, Bushfires and Sectoral Economic Output in Australia, 1978–2014
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Authors
Ulubaşoğlu, Mehmet Ali
Rahman, Muhammad Habibur
Önder, Yasin Kürşat
Chen, Yiqun
Rajabifard, Abbas
Date
2018Type
Journal Article
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Ulubaşoğlu, M.A. and Rahman, M.H. and Önder, Y.K. and Chen, Y. and Rajabifard, A. 2019. Floods, Bushfires and Sectoral Economic Output in Australia, 1978–2014. Economic Record. 95 (308): pp. 58-80.
Source Title
Economic Record
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Faculty
Faculty of Business and Law
School
School of Economics, Finance and Property
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Abstract
© 2018 Economic Society of Australia
Using state-level annual variation in natural disasters and economic output in Australia, we estimate the direct effects of floods and bushfires on sectoral gross value added during the period 1978–2014. We find that floods exert an adverse and persistent effect on the outputs of agriculture, mining, construction and financial services sectors. For example, our estimates indicate that a state that experienced a flood in a given year encountered, on average, 5–6 per cent lower agricultural output in both that year and the following year, compared to another state with no such flood experience. Sectoral responses to bushfires are more nuanced.