This study investigates economic damage risk due to extreme rainfall during tropical storms in Jamaica. To this end, remote sensing precipitation data are linked to regional damage data for five storms. Extreme value modelling of precipitation is combined with an estimated damage function and satellite-derived nightlight intensity to estimate local risk in monetary terms. The results show that variation in maximum rainfall dur...

We examine whether Caribbean islands will be worse off as hurricane activity alters under climate change. To this end, we construct island level damages for synthetic storm tracks generated from four climate models under current and future climate settings. Using a flexible stochastic dominance preference ordering framework, we find that the fat-tailed and uncertain nature of the distribution of storms makes it difficult to co...