Abstract
We utilize monthly individual-level financial data and item-level supermarket sales data to study how consumption responds to one of the costliest natural disasters in India. We find that consumption dropped by 11% during the disaster, 65% of which was recovered after the disaster. On average, consumption per capita dropped by $312 per year, which costs about 5% of the GDP. We also show that natural disasters depressed consumption through income shocks instead of price shocks. Consumers smooth consumption using credit card, banks loans and wealth in coping with the shocks. © 2024 Elsevier B.V. All rights reserved.
| Original language | English |
|---|---|
| Article number | 107323 |
| Number of pages | 15 |
| Journal | Energy Economics |
| Volume | 131 |
| Online published | 18 Jan 2024 |
| DOIs | |
| Publication status | Published - Mar 2024 |
| Externally published | Yes |
Funding
Financial supports from Social Science Research Council (SSRC) and the Sustainable and Green Finance Institute (SGFIN) are gratefully acknowledged.
Research Keywords
- Household finance
- Income shocks
- Natural disaster
- Online shopping
- Price shocks
Policy Impact
- Cited in Policy Documents
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