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Abstract
Transportation costs represent one of the main determinants of the level of subnational trade, and natural disasters such as landslides can affect main roads and reduce the movement of cargo between two cities. The Bogotá – Villavicencio highway in Colombia, known as the Vía al Llano, which is essential for the transportation of products to and from the eastern plains region, faces challenges due to its geographical location. This documents studies how natural disasters affect the movement of cargo along this route, as well as freight faced by transporters. With data from the National Registry of Freight Dispatch (RNDC) of the Ministry of Transportation and the state reports of the roads from the National Highway Institute (INVIAS), it is found that natural disasters that affect the Vía al Llano increase the freight cost and reduce the volume of goods transported. This shows that natural disasters have a negative effect on subnational trade, which can affect regional economic dynamics in the face of the threats of climate change.
“The existence of closures on the Vía al Llano increases transportation costs by 41.1%, while one more day of closure increases freight costs on average by 3.7%. When examining the effect of blockages on the Vía al Llano caused by natural disasters, by breaking down the goods by sector, it is highlighted that crops and plants are the most affected.”