How do production networks adapt to extreme weather events?
Considers how far private adaptation may reduce future vulnerability to flood risk.
Abstract
This paper considers how far private adaptation may reduce future vulnerability to flood risk. Using data from Pakistan, it finds that flood affected firms are more likely to relocate to safer ground, and shift purchases towards suppliers in less flood-prone regions and reached via less flood-prone roads. Simulations suggest that economy-wide climate damages will be mediated as firms learn from increasingly frequent disasters.
This paper is part of the Private Enterprise Development in Low Income Countries (PEDL) programme.
Citation
Balboni C, Boehm J and Waseem M. ‘How do production networks adapt to extreme weather events?’ PEDL Research Note 2024