theigc.org (09.01.2023) When natural disasters displace households, impacts on welfare can last for years after the event and vary depending on the extent of response. Between 2008 and 2018, around 265 million people were displaced by natural disasters around the world. While climate change threatens to increase the frequency and severity of natural disasters, studying the impacts of displacement is very difficult for two main reasons. First, natural disasters don’t strike randomly (some areas are more prone to disasters than other because of their geography among other factors), and people who are better off tend to avoid living in high-risk areas. Second, the very nature of displacement makes it difficult to collect data on all the people who were affected.