The Impact of Tornadoes and Damaging Winds on County-Level Income Growth in the United States

Abstract

This study investigated the economic impact of tornadoes and damaging winds on county-level income growth in the United States from 1969 to 2023. Using a fixed effect regression methodology, the analysis showed that an average damaging storm and an average tornado reduced income growth in the affected counties by 0.16–0.23% and 0.21–0.23%, respectively, translating into a one-time growth loss of approximately USD 5.6 million and USD 6.3 million. The findings also indicate that tornadoes have a 20% greater economic impact than damaging winds. This study underscored the unique challenges posed by tornadoes and damaging winds, which are characterized by their unpredictable nature and concentrated but extreme damage.