Estimating sectoral COVID-19 economic losses in the Philippines using nighttime light and electricity consumption data.

Introduction: Economic loss estimation is critical for policymakers to craft policies that balance economic and health concerns during pandemic emergencies. However, this task is time-consuming and resource-intensive, posing challenges during emergencies. Method: To address this, we proposed using electricity consumption (EC) and nighttime lights (NTL) datasets to estimate the total, commercial, and industrial economic losses from COVID-19 lockdowns in the Philippines. Regression models were employed to establish the relationship of GDP with EC and NTL. Then, models using basic statistics and weather data were developed to estimate the counterfactual EC and NTL, from which counterfactual GDP was derived. The difference between the actual and the counterfactual GDP from 2020 to 2021 yielded economic loss. Results: This paper highlights three findings. First, the regression model results established that models based on EC (adj-R2 ≥ 0.978) were better at explaining GDP than models using NTL (adj-R2 ≥ 0.663); however, combining both EC and NTL improved the prediction (adj-R2 ≥ 0.979). Second, counterfactual EC and NTL could be estimated using models based on statistics and weather data explaining more than 81% of the pre-pandemic values. Last, the estimated total loss amounted to 2.9 trillion PhP in 2020 and 3.2 trillion PhP in 2021. More than two-thirds of the losses were in the commercial sector as it responded to both policies and the COVID-19 case surge. In contrast, the industrial sector was affected primarily by the lockdown implementation. Discussion: This method allowed monitoring of economic losses resulting from long-term and large-scale hazards such as the COVID-19 pandemic. These findings can serve as empirical evidence for advocating targeted strategies that balance public health and the economy during pandemic scenarios.

Who are Pioneers of Disaster Preparedness? - Insights from Rainwater Harvesting Dissemination in Bangladesh.

This study deals with the roles of pioneers or early adopters in a rainwater harvesting technology dissemination process in arsenic and water salinity affected communities in coastal Bangladesh. The dissemination of such innovative technologies has long been advocated for making disaster resilient communities, but how to disseminate these innovations has rarely been addressed, except heuristic studies limited to analyzing the cognitive factors of preparedness. We argue that identifying and characterizing pioneer adopters is critical to promote innovative disaster preventive technologies. Because pioneers take the risk to adopt at a time when only limited information of the innovation is available, and, based on their firsthand experience, other members can make prudent adoption decisions. By using the social network threshold model, we show that just as there are adopters at the macro or regional level, there are adopters at the micro or local level, and they have the most critical roles, as catalysts to disseminate disaster preventive technologies among the population. We also argue that cosmopolitaness and level of education characterize the pioneers better, rather than their income, risk awareness, and other personal features. Some policy options related to the findings are also discussed.

Promoting seismic retrofit implementation through "nudge": using warranty as a driver.

This article proposes a new type of warranty policy that applies the "nudge" concept developed by Thaler and Sunstein to encourage homeowners in Japan to implement seismic retrofitting. Homeowner adaptation to natural disasters through loss reduction measures is known to be inadequate. To encourage proactive risk management, the "nudge" approach capitalizes on how choice architecture can influence human decision-making tendencies. For example, people tend to place more value on a warranty for consumer goods than on actuarial value. This article proposes a "warranty for seismic retrofitting" as a "nudge" policy that gives homeowners the incentive to adopt loss reduction measures. Under such a contract, the government guarantees all repair costs in the event of earthquake damage to the house if the homeowner implements seismic retrofitting. To estimate the degree to which a warranty will increase the perceived value of seismic retrofitting, we use field survey data from 1,200 homeowners. Our results show that a warranty increases the perceived value of seismic retrofitting by an average of 33%, and an approximate cost-benefit analysis indicates that such a warranty can be more economically efficient than an ex ante subsidy. Furthermore, we address the failure of the standard expected utility model to explain homeowners' decisions based on warranty evaluation, and explore the significant influence of ambiguity aversion on the efficacy of seismic retrofitting and nonanalytical factors such as feelings or trust.