Analysis of Local Economic Impacts Using a Village Social Accounting Matrix: The Case of Oaxaca

Ferrarese, Cataldo; Mazzoli, Enrico

doi:10.1007/978-3-319-58533-8_5

Cited by 2 publications

(4 citation statements)

References 11 publications

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“…Floods are natural phenomena that can cause very serious damage, particularly to economic activities (SwissRE, 2017). Due to the impacts of global warming on hydrological regimes and development of territories exposed to flooding, flood damage is indeed expected to increase in the coming decades (Field et al, 2012). It is thus becoming increasingly important to understand the precise mechanisms through which floods cause economic damage.…”

Section: Introductionmentioning

confidence: 99%

“…rect damage to buildings and assets (equipment, stock, furniture). However, only estimating direct damage frequently leads to underestimating the value of the impact (Field et al, 2012). Indeed, as mentioned by many authors (Scawthorn et al, 2006;Meyer et al, 2012Meyer et al, , 2013National Research Council, 1999), impacts other than the direct material ones do occur and should be estimated as indirect damage.…”

Section: Introductionmentioning

confidence: 99%

“…There have been attempts to adapt the CGE methodology at local level. For instance, Ferrarese and Mazzoli (2018) used a local social accounting matrix to study the impacts of rural development plans in Mexico. But none have been dedicated to flood damage assessment so far.…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Are interactions important in estimating flood damage to economic entities? The case of wine-making in France

Martínez

Grelot

Brémond

et al. 2021

Nat. Hazards Earth Syst. Sci.

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Abstract. Estimating flood damage, although crucial for assessing flood risk and for designing mitigation policies, continues to face numerous challenges, notably the assessment of indirect damage. It is widely accepted that damage other than direct damage can account for a significant proportion of total damage. Yet due to scarcer data sources and lack of knowledge on links within and between economic activities, indirect impacts have received less attention than direct impacts. Furthermore, attempts to grasp indirect damage through economic models have not gone below regional levels. Even though local communities can be devastated by flood events without this being reflected in regional accounts, few studies have been conducted from a microeconomic perspective at local level. What is more, the standard practices applied at this level of analysis tackle entities but ignore how they may be linked. This paper addresses these two challenges by building a novel agent-based model of a local agricultural production chain (a French cooperative wine-making system), utilized as a virtual laboratory for the ex ante estimation of flood impacts. We show how overlooking existing interactions between economic entities in production chains can result in either overestimation (double counting) or underestimation (wrong estimation of the consequences for the activity) of flood damage. Our results also reveal that considering interactions requires thorough characterization of their spatial configuration. Based on both the application of our method and the results obtained, we propose balanced recommendations for flood damage estimation at local level.

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Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Are interactions important in estimating flood damage to economic entities? The case of wine-making in France

Martínez

Grelot

Brémond

et al. 2021

Nat. Hazards Earth Syst. Sci.

View full text Add to dashboard Cite

show abstract

“…There has been attempts to adapt the CGE methodology at local level. For instance, Ferrarese and Mazzoli (2018) used a local social accounting matrix to study the impacts of rural development plans in Mexico. But none have been dedicated to flood damage assessment so far.…”

mentioning

confidence: 99%

Are interactions important in estimating flood damage to economic entities?

Martínez¹,

Grelot²,

Brémond³

et al. 2020

Preprint

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Abstract. Estimating flood damage, although crucial for assessing flood risk and for designing mitigation policies, continues to face numerous challenges, notably the assessment of indirect damage. It is widely accepted that damage other than direct damage can account for a significant proportion of total damage. Yet due to more scarce data sources and lack of knowledge on links within and between economic activities, indirect impacts have received less attention than direct impacts. Furthermore, attempts to grasp indirect damage through economic models have not gone below regional levels. Even though local communities can be devastated by flood events without this being reflected in regional accounts, few studies have been conducted from a microeconomic perspective at local level. What is more, the standard practices applied at this level of analysis tackle entities but ignore how they may be linked. This paper addresses these two challenges by building a novel agent-based model of a local agricultural production chain (a cooperative winemaking system), which is then used as a virtual laboratory for the ex-ante estimation of flood impacts. We show how overlooking existing interactions between economic entities in production chains can result in either overestimation (double counting) or underestimation (wrong estimation of the consequences for the activity) of flood damage. Our results also reveal that considering interactions requires thorough characterization of their spatial configuration.Based on both the application of our method and the results obtained, we propose balanced recommendations for flood damage estimation at local level.

show abstract

Analysis of Local Economic Impacts Using a Village Social Accounting Matrix: The Case of Oaxaca

Cited by 2 publications

References 11 publications

Are interactions important in estimating flood damage to economic entities? The case of wine-making in France

Are interactions important in estimating flood damage to economic entities? The case of wine-making in France

Are interactions important in estimating flood damage to economic entities?

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