Abstract

MENDOZA TINOCO, David; MENDEZ DELGADO, Alba Verónica  and  MERCADO GARCIA, Alfonso. Economic costs of hurricane Alex in Nuevo León, Mexico. Prob. Des [online]. 2019, vol.50, n.198, pp.3-29.  Epub Nov 16, 2019. ISSN 0301-7036.  https://doi.org/10.22201/iiec.20078951e.2019.198.67469.

The periodic heavy flooding which Mexico experiences impacts negatively on its economic development. Adaptation and risk-management measures are predominantly based on cost evaluation, which therefore needs to be comprehensive. This paper evaluates the total economic cost of Hurricane Alex in the state of Nuevo León in 2010, which was the most devastating natural phenomenon recorded during the last 50 years. Therefore, for the first time in Mexico, a methodology was applied which factors in both direct costs (material damage) and indirect costs (productivity losses) in the affected region’s economy (MIP). This methodology was based on the input-output model. The results suggest that total costs were $20.5 billion MXN, of which 29% (6 billion) were indirect costs.

Keywords : natural disasters; indirect costs; risk management; tropical cyclones; inputoutput model.

        · abstract in Spanish     · text in English | Spanish     · English ( pdf ) | Spanish ( pdf )