Findings from Federal Reserve Bank in the Area of Environmental and Resource Economics Described (The Local Economic Impact of Natural Disasters): Economics – Environmental and Resource Economics

2025 OCT 30 (NewsRx) -- By a News Reporter-Staff News Editor at Ecology Daily News -- Research findings on Economics - Environmental and Resource Economics are discussed in a new report. According to news reporting out of San Francisco, California, by NewsRx editors, research stated, “We use nearly four decades of US county data to study dynamic local economic impacts of natural disasters that trigger federal aid. We find that these disasters on average raise personal income per capita in the longer run (eight years out).”

Our news journalists obtained a quote from the research from Federal Reserve Bank, “We also find that, in the longer run, wages and home prices are higher, while employment and population are unaffected, suggesting that the income boost may reflect productivity increases and greater demand for housing in supply-constrained areas or compositional shifts. Allowing for heterogeneity across disaster types, we find that the longer-run income boost is driven primarily by hurricanes and tornadoes.”

According to the news editors, the research concluded: “We also find that the longer-run boost increases with damages, suggestive of an important role for insurance and government aid-which are highly correlated with damages-in fueling recovery.”

This research has been peer-reviewed.

For more information on this research see: The Local Economic Impact of Natural Disasters. Journal of the Association of Environmental and Resource Economists, 2025;12(6):1667-1704. Journal of the Association of Environmental and Resource Economists can be contacted at: Univ Chicago Press, 1427 E 60TH St, Chicago, IL 60637-2954, USA.

Our news journalists report that additional information may be obtained by contacting Brigitte Roth Tran, Federal Reserve Bank, San Francisco, CA 94105, United States.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1086/735533. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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