Impact of Behavioral Issues on Green Growth Policies and Weather-Related Disaster Reduction in Developing Countries
This paper focuses on how developing countries can change the way they prepare for disasters so they are better equipped to sustain economic growth. It discusses the importance of considering the goals of key decision makers and the need to underst...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2012/10/16840538/impact-behavioral-issues-green-growth-policies-weather-related-disaster-reduction-developing-countries http://hdl.handle.net/10986/12073 |
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okr-10986-12073 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ACCOUNTING ADMINISTRATIVE COSTS AGRICULTURAL PRODUCTION ASSURANCE BANKS BID BOND BUDGET CONSTRAINTS BUDGETING BUSINESS INTERRUPTION INSURANCE CAPITAL MARKETS CATASTROPHE BONDS CATASTROPHE REINSURANCE CATASTROPHE RISK FINANCING CATASTROPHIC LOSS CATASTROPHIC LOSSES CLIMATE CLIMATE CHANGE CLIMATE RELATED DISASTERS COMMERCIAL INSURANCE CONSUMER BEHAVIOR CONSUMERS COST ANALYSES COST ESTIMATES COUNTRY RISK COVERAGE CREDIT RISK CREDITWORTHINESS CROP INSURANCE DAMAGE FROM HURRICANES DAMAGES DEFAULT RATE DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPMENT NETWORK DISASTER DISASTER AID DISASTER MITIGATION DISASTER PRONE AREA DISASTER REDUCTION DISASTER RELIEF DISASTER RISK DISASTER RISK FINANCING DISASTER RISK REDUCTION DISASTERS DISCOUNT RATE DISCOUNT RATES DONOR COMMUNITY DRAINAGE SYSTEMS DROUGHT DROUGHTS EARTHQUAKE ECOLOGICAL ECONOMICS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC IMPACT EMERGING ECONOMIES EQUIPMENT EVACUATION EX ANTE RISK FINANCING MECHANISMS EXPENDITURE EXPENDITURES EXTREME EVENT EXTREME EVENTS EXTREME RAINFALL EXTREME RAINFALL EVENTS FARMER FARMERS FEASIBILITY FINANCIAL ASSISTANCE FINANCIAL CONSTRAINTS FINANCIAL INSTRUMENT FINANCIAL MANAGEMENT FINANCIAL MARKETS FINANCIAL POLICY FINANCIAL PRODUCTS FLOOD FLOOD DAMAGE FLOOD INSURANCE FLOODED FLOODING FLOODS FREE ASSETS GLOBAL REINSURANCE GROSS DOMESTIC PRODUCT HEALTH CARE HOLDING HUMAN CAPITAL HURRICANE HURRICANES INCOME INDEMNITY INSURANCE INSURANCE COMPANY INSURANCE CONTRACT INSURANCE INDUSTRY INSURANCE POLICIES INSURANCE POLICY INSURANCE PREMIUMS INSURANCE PRODUCT INSURANCE PRODUCTS INSURANCE RATES INSURANCE SCHEME INSURANCE SCHEMES INSURER INSURERS INTEREST RATE INTERNATIONAL BANK INVESTING INVESTMENT DECISIONS INVESTMENT STRATEGIES LABOR PRODUCTIVITY LAWS LEGAL PROTECTIONS LEVEL OF RISK LIQUIDITY LIQUIDITY CONSTRAINTS LOAN LONG-TERM LOANS MATURITY MICRO-FINANCE MICRO-INSURANCE MICROCREDIT MICROINSURANCE MITIGATION MEASURES MONEY MARKET MORAL HAZARD NATURAL CATASTROPHES NATURAL DISASTERS NATURAL HAZARDS NONGOVERNMENTAL ORGANIZATIONS PAYMENT OF INTEREST PENSION PENSIONS POLICY ANALYSIS POLICY IMPLICATIONS PORTFOLIO PORTFOLIO RISKS POTENTIAL INVESTORS PRICE STABILITY PROGRAMS REINSURANCE REINSURANCE CONTRACTS REINSURERS RELIEF RESERVE RESERVES RETURN RETURNS RISK AVERSION RISK EXPOSURE RISK INSURANCE RISK MANAGEMENT RISK MANAGEMENT PROCESS RISK TRANSFER SAFETY SAFETY NET SECURITIES SETTLEMENT SMALL BUSINESSES TECHNICAL ASSISTANCE TEMPORARY HOUSING TERRORISM TERRORIST TRADE UNION TREASURY TREATIES VICTIMS WAR WEATHER INSURANCE |
| spellingShingle |
ACCOUNTING ADMINISTRATIVE COSTS AGRICULTURAL PRODUCTION ASSURANCE BANKS BID BOND BUDGET CONSTRAINTS BUDGETING BUSINESS INTERRUPTION INSURANCE CAPITAL MARKETS CATASTROPHE BONDS CATASTROPHE REINSURANCE CATASTROPHE RISK FINANCING CATASTROPHIC LOSS CATASTROPHIC LOSSES CLIMATE CLIMATE CHANGE CLIMATE RELATED DISASTERS COMMERCIAL INSURANCE CONSUMER BEHAVIOR CONSUMERS COST ANALYSES COST ESTIMATES COUNTRY RISK COVERAGE CREDIT RISK CREDITWORTHINESS CROP INSURANCE DAMAGE FROM HURRICANES DAMAGES DEFAULT RATE DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPMENT NETWORK DISASTER DISASTER AID DISASTER MITIGATION DISASTER PRONE AREA DISASTER REDUCTION DISASTER RELIEF DISASTER RISK DISASTER RISK FINANCING DISASTER RISK REDUCTION DISASTERS DISCOUNT RATE DISCOUNT RATES DONOR COMMUNITY DRAINAGE SYSTEMS DROUGHT DROUGHTS EARTHQUAKE ECOLOGICAL ECONOMICS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC IMPACT EMERGING ECONOMIES EQUIPMENT EVACUATION EX ANTE RISK FINANCING MECHANISMS EXPENDITURE EXPENDITURES EXTREME EVENT EXTREME EVENTS EXTREME RAINFALL EXTREME RAINFALL EVENTS FARMER FARMERS FEASIBILITY FINANCIAL ASSISTANCE FINANCIAL CONSTRAINTS FINANCIAL INSTRUMENT FINANCIAL MANAGEMENT FINANCIAL MARKETS FINANCIAL POLICY FINANCIAL PRODUCTS FLOOD FLOOD DAMAGE FLOOD INSURANCE FLOODED FLOODING FLOODS FREE ASSETS GLOBAL REINSURANCE GROSS DOMESTIC PRODUCT HEALTH CARE HOLDING HUMAN CAPITAL HURRICANE HURRICANES INCOME INDEMNITY INSURANCE INSURANCE COMPANY INSURANCE CONTRACT INSURANCE INDUSTRY INSURANCE POLICIES INSURANCE POLICY INSURANCE PREMIUMS INSURANCE PRODUCT INSURANCE PRODUCTS INSURANCE RATES INSURANCE SCHEME INSURANCE SCHEMES INSURER INSURERS INTEREST RATE INTERNATIONAL BANK INVESTING INVESTMENT DECISIONS INVESTMENT STRATEGIES LABOR PRODUCTIVITY LAWS LEGAL PROTECTIONS LEVEL OF RISK LIQUIDITY LIQUIDITY CONSTRAINTS LOAN LONG-TERM LOANS MATURITY MICRO-FINANCE MICRO-INSURANCE MICROCREDIT MICROINSURANCE MITIGATION MEASURES MONEY MARKET MORAL HAZARD NATURAL CATASTROPHES NATURAL DISASTERS NATURAL HAZARDS NONGOVERNMENTAL ORGANIZATIONS PAYMENT OF INTEREST PENSION PENSIONS POLICY ANALYSIS POLICY IMPLICATIONS PORTFOLIO PORTFOLIO RISKS POTENTIAL INVESTORS PRICE STABILITY PROGRAMS REINSURANCE REINSURANCE CONTRACTS REINSURERS RELIEF RESERVE RESERVES RETURN RETURNS RISK AVERSION RISK EXPOSURE RISK INSURANCE RISK MANAGEMENT RISK MANAGEMENT PROCESS RISK TRANSFER SAFETY SAFETY NET SECURITIES SETTLEMENT SMALL BUSINESSES TECHNICAL ASSISTANCE TEMPORARY HOUSING TERRORISM TERRORIST TRADE UNION TREASURY TREATIES VICTIMS WAR WEATHER INSURANCE Kunreuther, Howard Michel-Kerjan, Erwann Impact of Behavioral Issues on Green Growth Policies and Weather-Related Disaster Reduction in Developing Countries |
| relation |
Policy Research Working Paper;No. 6241 |
| description |
This paper focuses on how developing
countries can change the way they prepare for disasters so
they are better equipped to sustain economic growth. It
discusses the importance of considering the goals of key
decision makers and the need to understand the perceptions,
systematics biases, and heuristics used by the relevant
interested parties (the affected public, private and public
sector organizations, and nongovernmental organizations) in
choosing between alternatives. The paper highlights the
importance of undertaking benefit-cost analysis to evaluate
disaster risk reduction measures, recognizing that decision
makers might not make meaningful use of this policy tool
given their behavioral biases and simplified heuristics. To
address these issues, the authors propose green growth
strategies that involve multi-year contracts coupled with
short-term incentives that have a chance of being
implemented. The strategies focus on the role of multi-year
micro-insurance, long-term loans, and multi-year catastrophe
bonds that reflect the institutional arrangements in the
developing country. The paper illustrates this proposal in
the case of farmers' agricultural practices and
investment decisions that reduce losses to property from
catastrophic disasters such as drought. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Kunreuther, Howard Michel-Kerjan, Erwann |
| author_facet |
Kunreuther, Howard Michel-Kerjan, Erwann |
| author_sort |
Kunreuther, Howard |
| title |
Impact of Behavioral Issues on Green Growth Policies and Weather-Related Disaster Reduction in Developing Countries |
| title_short |
Impact of Behavioral Issues on Green Growth Policies and Weather-Related Disaster Reduction in Developing Countries |
| title_full |
Impact of Behavioral Issues on Green Growth Policies and Weather-Related Disaster Reduction in Developing Countries |
| title_fullStr |
Impact of Behavioral Issues on Green Growth Policies and Weather-Related Disaster Reduction in Developing Countries |
| title_full_unstemmed |
Impact of Behavioral Issues on Green Growth Policies and Weather-Related Disaster Reduction in Developing Countries |
| title_sort |
impact of behavioral issues on green growth policies and weather-related disaster reduction in developing countries |
| publisher |
World Bank, Washington, DC |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2012/10/16840538/impact-behavioral-issues-green-growth-policies-weather-related-disaster-reduction-developing-countries http://hdl.handle.net/10986/12073 |
| _version_ |
1764418928541433856 |
| spelling |
okr-10986-120732021-04-23T14:02:59Z Impact of Behavioral Issues on Green Growth Policies and Weather-Related Disaster Reduction in Developing Countries Kunreuther, Howard Michel-Kerjan, Erwann ACCOUNTING ADMINISTRATIVE COSTS AGRICULTURAL PRODUCTION ASSURANCE BANKS BID BOND BUDGET CONSTRAINTS BUDGETING BUSINESS INTERRUPTION INSURANCE CAPITAL MARKETS CATASTROPHE BONDS CATASTROPHE REINSURANCE CATASTROPHE RISK FINANCING CATASTROPHIC LOSS CATASTROPHIC LOSSES CLIMATE CLIMATE CHANGE CLIMATE RELATED DISASTERS COMMERCIAL INSURANCE CONSUMER BEHAVIOR CONSUMERS COST ANALYSES COST ESTIMATES COUNTRY RISK COVERAGE CREDIT RISK CREDITWORTHINESS CROP INSURANCE DAMAGE FROM HURRICANES DAMAGES DEFAULT RATE DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPMENT NETWORK DISASTER DISASTER AID DISASTER MITIGATION DISASTER PRONE AREA DISASTER REDUCTION DISASTER RELIEF DISASTER RISK DISASTER RISK FINANCING DISASTER RISK REDUCTION DISASTERS DISCOUNT RATE DISCOUNT RATES DONOR COMMUNITY DRAINAGE SYSTEMS DROUGHT DROUGHTS EARTHQUAKE ECOLOGICAL ECONOMICS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC IMPACT EMERGING ECONOMIES EQUIPMENT EVACUATION EX ANTE RISK FINANCING MECHANISMS EXPENDITURE EXPENDITURES EXTREME EVENT EXTREME EVENTS EXTREME RAINFALL EXTREME RAINFALL EVENTS FARMER FARMERS FEASIBILITY FINANCIAL ASSISTANCE FINANCIAL CONSTRAINTS FINANCIAL INSTRUMENT FINANCIAL MANAGEMENT FINANCIAL MARKETS FINANCIAL POLICY FINANCIAL PRODUCTS FLOOD FLOOD DAMAGE FLOOD INSURANCE FLOODED FLOODING FLOODS FREE ASSETS GLOBAL REINSURANCE GROSS DOMESTIC PRODUCT HEALTH CARE HOLDING HUMAN CAPITAL HURRICANE HURRICANES INCOME INDEMNITY INSURANCE INSURANCE COMPANY INSURANCE CONTRACT INSURANCE INDUSTRY INSURANCE POLICIES INSURANCE POLICY INSURANCE PREMIUMS INSURANCE PRODUCT INSURANCE PRODUCTS INSURANCE RATES INSURANCE SCHEME INSURANCE SCHEMES INSURER INSURERS INTEREST RATE INTERNATIONAL BANK INVESTING INVESTMENT DECISIONS INVESTMENT STRATEGIES LABOR PRODUCTIVITY LAWS LEGAL PROTECTIONS LEVEL OF RISK LIQUIDITY LIQUIDITY CONSTRAINTS LOAN LONG-TERM LOANS MATURITY MICRO-FINANCE MICRO-INSURANCE MICROCREDIT MICROINSURANCE MITIGATION MEASURES MONEY MARKET MORAL HAZARD NATURAL CATASTROPHES NATURAL DISASTERS NATURAL HAZARDS NONGOVERNMENTAL ORGANIZATIONS PAYMENT OF INTEREST PENSION PENSIONS POLICY ANALYSIS POLICY IMPLICATIONS PORTFOLIO PORTFOLIO RISKS POTENTIAL INVESTORS PRICE STABILITY PROGRAMS REINSURANCE REINSURANCE CONTRACTS REINSURERS RELIEF RESERVE RESERVES RETURN RETURNS RISK AVERSION RISK EXPOSURE RISK INSURANCE RISK MANAGEMENT RISK MANAGEMENT PROCESS RISK TRANSFER SAFETY SAFETY NET SECURITIES SETTLEMENT SMALL BUSINESSES TECHNICAL ASSISTANCE TEMPORARY HOUSING TERRORISM TERRORIST TRADE UNION TREASURY TREATIES VICTIMS WAR WEATHER INSURANCE This paper focuses on how developing countries can change the way they prepare for disasters so they are better equipped to sustain economic growth. It discusses the importance of considering the goals of key decision makers and the need to understand the perceptions, systematics biases, and heuristics used by the relevant interested parties (the affected public, private and public sector organizations, and nongovernmental organizations) in choosing between alternatives. The paper highlights the importance of undertaking benefit-cost analysis to evaluate disaster risk reduction measures, recognizing that decision makers might not make meaningful use of this policy tool given their behavioral biases and simplified heuristics. To address these issues, the authors propose green growth strategies that involve multi-year contracts coupled with short-term incentives that have a chance of being implemented. The strategies focus on the role of multi-year micro-insurance, long-term loans, and multi-year catastrophe bonds that reflect the institutional arrangements in the developing country. The paper illustrates this proposal in the case of farmers' agricultural practices and investment decisions that reduce losses to property from catastrophic disasters such as drought. 2013-01-03T22:28:40Z 2013-01-03T22:28:40Z 2012-10 http://documents.worldbank.org/curated/en/2012/10/16840538/impact-behavioral-issues-green-growth-policies-weather-related-disaster-reduction-developing-countries http://hdl.handle.net/10986/12073 English en_US Policy Research Working Paper;No. 6241 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research |