cyclones increases to the cubic power of wind speeds. For example, the relation between the potential power generation of wind turbines and windvelocity is given by the cube of wind speed. Therefore, Emanuel (2005) based on the work of Southern (1979) suggests that monetary loses generated by storms also increase to the cube of wind speeds. 14
Nordhaus ( 2006 , 2010 ) 15 was the first to estimate the wind-damages relation using rigorous statistical techniques. Using data on US tropical cyclone landfalls and damages, Nordhaus found what he called the “ninth
This paper studies the economic costs of hurricanes in the Caribbean by constructing a novel dataset that combines a detailed record of tropical cyclones’ characteristics with reported damages. I estimate the relation between hurricane wind speeds and damages in the Caribbean; finding that the elasticity of damages to GDP ratio with respect to maximum wind speeds is three in the case of landfalls. The data show that hurricane damages are considerably underreported, particularly in the 1950s and 1960s, with average damages potentially being three times as large as the reported average of 1.6 percent of GDP per year. I document and show that hurricanes that do not make landfall also have considerable negative impacts on the Caribbean economies. Finally, I estimate that the average annual hurricane damages in the Caribbean will increase between 22 and 77 percent by the year 2100, in a global warming scenario of high CO2 concentrations and high global temperatures.
the land from farm cattle grazing have resulted in a substantial depletion of the tree stocks that serve as an environmental equilibrating factor. The lack of windbreaks in the region results in multiple environmental problems. Chief among these are (i) loss of topsoil due to wind erosion, (ii) reduced soil moisture and greater surface evaporation, as a result of both the lack of shade increasing windvelocities, (iii) reduced natural soil nutrient recycling, (iv) decline in soil fertility as a result of the diversion of crop residues and animal dung for fuel, (v
circumstances, arbitrary action and fixed instruments of policy are likely to deprive the system of the flexibility essential to ensure that, when leaning into the wind, one neither gets blown off his feet nor falls down when the force of the wind decreases slightly. However, when the windvelocity reaches gale strength it may be futile to attempt to lean into it. In such situations, firm and inflexible policies may be essential to permit progress: under normal circumstances, a monetary policy based on inflexible ceilings is likely to be unduly rigid; when faced with a severe
This paper discusses performance of Canadian markets for US dollars. US dollar deposits transferred by US residents from US banks to Canadian banks or other foreign banks are treated by the US Department of Commerce for balance of payments purposes as an item that contributes to the balance of payments deficit, that is, as a short-term capital outflow financed by an increase in US liquid liabilities to foreigners. In Canadian banks, deposits denominated in foreign currencies have for many years been increasing much more rapidly than those denominated in Canadian dollars. The foreign currency assets of the Canadian banks are the mirror image of their foreign currency deposits. In view of the balanced relationship of foreign currency assets and liabilities, and of current banking practices, it is virtually impossible to visualize sales by the chartered banks of dollar assets for other currencies without a parallel adjustment in their deposit liabilities.