8 October, 2024

Economic and non-economic loss and damage: a harmful dichotomy?

Authors

Douwe van Schie, Guy Jackson, Olivia Serdeczny and Kees van der Geest

Loss and damage is treated as comprising separate ‘economic’ and ‘non-economic’ dimensions in research and policy. While this has contributed to greater awareness and visibility of non-economic values, our empirical insights show that the two are inextricably linked and that research aimed at informing policy must be better attuned to the multifaceted and cascading nature of loss and damage.

For example, the loss of a home due to flooding is not only a financial loss but can also have a profound impact on identity and well-being. Moreover, ‘economic’ loss and damage can cascade into ‘non-economic’ loss and damage, and vice versa. For example, when a household incurs economic losses due to drought, this may prevent their children from attending school, which has long-term financial consequences.

The paper argues that instead of treating loss and damage impacts as either economic or non-economic, there should be a shift to recognising that it is multidimensional, interwoven, and evolving over time. This will open up new avenues for research that better reflect reality and can therefore better inform policies to address loss and damage, argue the authors.

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