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Sustainable financing for climate and disaster resilience in Atoll Islands: Evidence from Tuvalu and Kiribati
Author(s) -
Taupo Tauisi
Publication year - 2019
Publication title -
pacific economic review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.34
H-Index - 33
eISSN - 1468-0106
pISSN - 1361-374X
DOI - 10.1111/1468-0106.12295
Subject(s) - atoll , emergency management , finance , resilience (materials science) , sustainability , risk management , climate change , business , environmental resource management , economics , geography , economic growth , oceanography , ecology , physics , geology , biology , reef , thermodynamics
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.