Hazardous aid? The crowding-out effect of international charity

P. A. Raschky, Manijeh Schwindt

Research output: Chapter in Book/Report/Conference proceedingConference PaperResearchpeer-review

1 Citation (Scopus)

Abstract

Research suggests that public support for natural hazard mitigation activities is distorted due to choice anomalies. For that reason, preparedness measures are often implemented to an insufficient extent. From an ex-post perspective the lack of mitigation might result in a necessity for a risk-transfer. On the other hand, based on the conclusions from the Samaritan's Dilemma, the anticipation of relief in case of a disaster event might induce individuals to diminish ex-ante protection activities. In order to analyze the existence of this phenomenon in an international context, this paper discusses the impact of expected foreign aid in case of a natural disaster on the level of disaster mitigation activities. The results suggest that foreign aid in previous disaster years implies future ex-post charity and thus does crowd out risk-management activities. The paper concludes with propositions on the enlightenment of natural hazards aiming to counter the crowding-out of prevention.

Original languageEnglish
Title of host publicationSafety, Reliability and Risk Analysis: Theory, Methods and Applications - Proceedings of the Joint ESREL and SRA-Europe Conference
Pages965-971
Number of pages7
Volume2
Publication statusPublished - 2009
Externally publishedYes
EventEuropean Safety and Reliability Conference (ESREL) Annual Meeting of the Society-for-Risk-Analysis-Europe (SRA-Europe) 2008 - Valencia, Spain
Duration: 22 Sep 200825 Sep 2008

Conference

ConferenceEuropean Safety and Reliability Conference (ESREL) Annual Meeting of the Society-for-Risk-Analysis-Europe (SRA-Europe) 2008
CountrySpain
CityValencia
Period22/09/0825/09/08

Cite this