RESUMO
Floods are the most commonly occurring natural disasters in India due to India's unique geographical location and socioeconomic conditions. Frequent flooding causes enormous loss of human lives and damage crops and public utilities. Furthermore, floods adversely affect economic development and increase the government's financial burden by increasing spending on various disaster mitigation measures. Recent empirical literature based on cross-national comparisons shows that disaster fatalities and damages are monotonically decreasing in per capita income. We challenge this view on the monotonic negative relationship between income and flood damages. We examine the non-monotonic (inverted U-shaped) relationship between per capita income and flood impact in terms of deaths, people affected, and damages due to floods in 19 major Indian states from 1980 to 2011, using Poisson and Tobit estimation methods. In particular, deaths and the population affected by floods increase with a turning point of income up to 882 US$ and 578 US$, respectively, and diminishes thereafter. Our results confirm an inverted U-shaped relationship between income and fatalities and the population affected by floods. In addition to income, we argue that government responsiveness plays an essential role in mitigating the risk of floods. We employ the fixed-effect Poisson estimation method to examine the government's role in protecting people against disaster risk, focusing on regional differences in India. Deaths from floods remain non-linear and follow the inverted U-pattern with respect to government responsiveness. However, the effect of government responsiveness on flood fatalities and flood damages is statistically insignificant. Our results further suggest that high-income states experience a lower death toll from floods. The high-income (rich) states are capable of incurring a higher threshold level of income and higher natural calamity expenditure to reduce flood fatalities and protect the population affected by floods than the low-income (poor) states. The poor states have minimal resources and face severe financial constraints to reduce the death toll from floods. From the perspective of public policy, the poor states, in particular, require an increase in income, better governance, and effective disaster management policies to mitigate flood impact.
