The Impact of Natural Disasters on Community Welfare

Abstract

Natural disasters are a source of shocks that have the potential to impact community well-being in a sustainable manner, not only through material losses but also through changes in household perceptions and expectations. This study aims to analyze the effect of disaster intensity on community well-being by focusing on two dimensions of subjective well-being: life satisfaction and five-year life expectancy. This study uses household data from the Indonesia Family Life Survey (IFLS) and measures disaster intensity based on the frequency of disaster events experienced by households. Empirical analysis was conducted using linear regression with robust standard errors to estimate the relationship between disaster intensity and well-being indicators, controlling for household socioeconomic characteristics. The results show that disaster intensity significantly influences the decline in life satisfaction and weakens community life expectancy in the future. This finding indicates that disaster impacts are intertemporal, where repeated disaster exposure not only reduces current well-being but also erodes households' hopes and sense of security regarding the sustainability of their livelihoods. Overall, this study emphasizes the importance of incorporating subjective well-being and future expectations into disaster impact analysis to gain a more comprehensive understanding of the implications of disasters on community well-being.