Measuring Economic Impacts of Disasters: Interregional Input-Output Analysis Using Sequential Interindustry Model

Okuyama, Yasuhide; Hewings, Geoffrey J. D.; Sonis, Michael

doi:10.1007/978-3-540-24787-6_5

Cited by 110 publications

(111 citation statements)

References 36 publications

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“…Input-output studies are popular because they reflect linkages between industries; even if an industry is not directly affected by the storm, it may be affected by changes in the spending patterns of other businesses and their consumers. Several studies use input-output and related methods to quantify the impact of storms on regional economies (Rose and Liao [5], Donaghy et al [6], Okuyama et al [7], and Xiao [8]). …”

Section: Review Of the Disaster Impact Literaturementioning

confidence: 99%

Development and validation of a stochastic disaster impact model

Dudensing¹,

Richardson²,

Lu³

2013

WIT Transactions on the Built Environment

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Natural disasters result in economic losses as capital and industry are destroyed, as transportation and communication lines are severed, and as customers temporarily flee a region. In many cases, production and sales levels remain depressed as the region rebuilds. Furthermore, these direct losses account for only a portion of the total economic loss experienced. This paper presents a disaster impact model (DIM) to quantify the economic impact of natural disasters on regional output, GDP contribution, labor income, tax income, and employment, as well as the time to recovery. The model is developed to measure the impact of Hurricane Ike on eight Texas Gulf Coast counties and is then extended to a wildfire in central Texas. Actual county sales data are modeled for a period of years before the event, accounting for trends over time and between fiscal quarters, and are used to predict quarterly and annual sales by industry and agricultural commodity in post-event quarters. IMPLAN input-output multipliers are applied to the predicted sales, and stochastic estimates of total impacts are generated using Simetar. Actual postevent impacts are then compared to predicted impacts to estimate the quarterly and annual total economic losses attributable to each industry. Losses are reported at the county and state levels for individual industries as well as across the regional economy. Results show that Hurricane Ike (and a global recession) impacted the coastal economy negatively for at least three years after the event, and industries and locations exhibited different initial responses and recovery paths. Wildfire losses were more sector-specific and shorter in duration.

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Section: Review Of the Disaster Impact Literaturementioning

confidence: 99%

Development and validation of a stochastic disaster impact model

Dudensing¹,

Richardson²,

Lu³

2013

WIT Transactions on the Built Environment

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“…The sensitivity of spatial distribution of natural disaster's damages and economic hot spots are evaluated using spatially disaggregated economic models (Cole 1998, Yamano et al 2007). The dynamic process of a disaster is investigated using the sequential interindustry model (Okuyama andChang 2004, Okuyama et al 2004). Additionally, a methodology has been developed that combines an input-output model and the hypothetical extraction method that evaluates how loss of production affects identified sectors (Miller andLahr 2001, Miller andBlair 2009).…”

Section: Introductionmentioning

confidence: 99%

Evaluating production effects of economic activity in zones surrounding the nuclear power station in Shizuoka Prefecture, Japan

Shibusawa

Miyata

2017

Asia-Pac J Reg Sci

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We examine the production effects of economic activity in zones surrounding the Hamaoka nuclear power station in Shizuoka Prefecture before and after a natural disaster interrupts its operations. Using a regional input-output model and GIS employment data for Shizuoka Prefecture, we incorporate a hypothetical extraction method into the regional input-output framework. We then calculate impacts via backward and forward linkages among increasingly larger zones. We derive and compare density functions of effects transmitted via backward and forward linkages and assess economic implications for zones surrounding the nuclear plant. Results indicate that a production stoppage within zones generates large indirect negative effects on the regional economy. Our results suggest that disaster prevention and recovery policies consider industrial structures and their economic implications in zones surrounding nuclear plants. Our area-based approach is useful in evaluating the economic impacts of nuclear plants and analyzing economic losses from natural disasters in specific areas.

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“…Bradley et al [25] found that the reconstruction of commercial and residential housing and infrastructure in Oklahoma City after the 3 May 1999 tornado stimulated the labor market and increased the average employment rate. Older facilities are more vulnerable to damage, and thus the reinvestment in such facilities will have a positive effect on overall economic growth and productivity in the long run (Okuyama [27]; Okuyama et al [28]). Different authors have also reported the inconclusive relationships between natural disasters and economic growth.…”

Section: Introductionmentioning

confidence: 99%

Natural Disasters, Economic Growth and Sustainable Development in China―An Empirical Study Using Provincial Panel Data

Guo

Liu

et al. 2015

Sustainability

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Using a newly developed integrated indicator system with entropy weighting, we analyzed the panel data of 577 recorded disasters in 30 provinces of China from 1985-2011 to identify their links with the subsequent economic growth. Meteorological disasters promote economic growth through human capital instead of physical capital. Geological disasters did not trigger local economic growth from 1999-2011. Generally, natural disasters overall had no significant impact on economic growth from 1985-1998. Thus, human capital reinvestment should be the aim in managing recoveries, and it should be used to regenerate the local economy based on long-term sustainable development.

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Measuring Economic Impacts of Disasters: Interregional Input-Output Analysis Using Sequential Interindustry Model

Cited by 110 publications

References 36 publications

Development and validation of a stochastic disaster impact model

Development and validation of a stochastic disaster impact model

Evaluating production effects of economic activity in zones surrounding the nuclear power station in Shizuoka Prefecture, Japan

Natural Disasters, Economic Growth and Sustainable Development in China―An Empirical Study Using Provincial Panel Data

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