Expanding domestic demand is an important means to promote high-quality development and enhance the endogenous power and reliability of the domestic circulation. The potential for improving and expanding rural consumption is enormous, and it is an important focus for expanding domestic demand. However, in recent years, natural disasters have occurred frequently, which may inhibit the release of rural consumption potential. Using the data of China Family Panel Studies (CFPS) over the years, this paper analyzes the boosting effect of disaster prevention facilities on rural household consumption by mitigating the adverse impact of natural disasters. The results show that: First, the increase of natural disaster risks and the increase of the actual impact both suppress rural household consumption. Second, disaster prevention facilities not only reduce the impact of natural disasters on rural household income and improve their consumption ability, but also reduce the impact of natural disasters on farmers’ risk attitudes. Lower risk aversion not only helps to increase farmers’ willingness to consume, but also improves their labor allocation efficiency and income growth space, thereby further enhancing their consumption ability. Third, the consumption boosting effect of disaster prevention facilities is strengthened with the increase of natural disaster risks and the increase of the mechanization level. The conclusions show that efforts to make up for the undersupply of disaster prevention facilities will not only help to alleviate the practical constraints caused by frequent natural disasters on expanding rural consumption, but also provide effective measures to promote rural household income and rural revitalization.
/ Journals / Journal of Shanghai University of Finance and Economics
Journal of Shanghai University of Finance and Economics
LiuYuanchun, Editor-in-Chief
ZhengChunrong, Vice Executive Editor-in-Chief
GuoChanglin YanJinqiang WangWenbin WuWenfang, Vice Editor-in-Chief
Natural Disasters, Disaster Prevention Facilities, and Rural Household Consumption
Journal of Shanghai University of Finance and Economics Vol. 26, Issue 06, pp. 93 - 107 (2024) DOI:10.16538/j.cnki.jsufe.2024.06.007
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Yang Zhen, Xin Baoying. Natural Disasters, Disaster Prevention Facilities, and Rural Household Consumption[J]. Journal of Shanghai University of Finance and Economics, 2024, 26(6): 93-107.
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