Sustainable Financing for Climate and Disaster Resilience in Atoll Islands: Evidence from Tuvalu and Kiribati

Taupo, Tauisi (2019) Sustainable Financing for Climate and Disaster Resilience in Atoll Islands: Evidence from Tuvalu and Kiribati. Pacific Economic Review, 24 (5). pp. 705-717. ISSN 1361-374X

PDF - Draft Version Restricted to Registered users only Download (1MB) | Request a copy

Abstract

This paper examines the financing of disaster risk management. Future climate and disaster risks are predicted to impose increasing financial pressure on the governments of low‐lying atoll nations. The aftermath of a disaster, such as a cyclone, requires financial means for quick response and recovery. We quantify the appropriate levels of financial support for expected disasters in Tuvalu and Kiribati by building on the Pacific Catastrophe Risk Assessment and Financing Initiative (PCRAFI)‐calculated likely costs for disasters. To these, we add estimates of the potential effects of distant cyclones, droughts, sea‐level rise, climate change and large‐scale disaster shocks as they are predicted to affect low‐lying atoll islands. The present paper focuses on the potential contribution of the sovereign wealth funds (SWF) of Tuvalu and Kiribati in reducing reliance on foreign aid for ex‐post disaster risk management. We forecast the future size of SWF using Monte Carlo simulations. We examine the long‐term sustainability of SWF and the feasibility of extending their mandate for disaster recovery.

Item Type:	Journal Article
Subjects:	H Social Sciences > H Social Sciences (General) H Social Sciences > HB Economic Theory
Divisions:	Faculty of Business and Economics (FBE) > School of Economics
Depositing User:	Tauisi Taupo
Date Deposited:	01 Oct 2018 00:07
Last Modified:	13 Jan 2020 20:41
URI:	https://repository.usp.ac.fj/id/eprint/11021

Actions (login required)

View Item