Modeling spatial economic impacts of an earthquake: input‐output approaches

Abstract

Economic modeling issues for measuring damages and losses from disasters and their impacts are complex. The questions surrounding the potential economic effects of a disaster have been studied and discussed in various aspects. Input‐output analysis has been employed in many studies to measure and evaluate the economic impacts of disasters, mainly because of the ability to reflect the structure of regional economy in great detail. Whereas they provide useful information regarding the economic impacts and consequences and about the resource allocation strategies to minimize the losses and impacts, many of these studies have failed to investigate the dynamic nature of impact path over space and time, due to the difficulties to obtain such data and also to the static nature of input‐output framework. In order to analyze the spatial impacts of a disaster, Miyazawa's extension to the conventional input‐output framework is employed and is applied for the case of the Great Hanshin Earthquake.

Input–output Analysis: The Next 25 Years

“…Steenge and Bočkarjova, 2007;Li et al, 2013), earthquakes (e.g. Rose et al, 1997;Okuyama, 2004), and terrorism (Santos and Haimes, 2004).…”

Toward a Sustainable and Resilient Future

“…However, most such models are at spatial and temporal scales that do not resolve specific climate extremes or disasters (Hallegatte et al, 2007). At higher spatial resolution, numerical models (e.g., inputoutput models, calculable general equilibrium models) can help to assess disaster consequences and, therefore, balance the cost of disaster risk management actions and their benefits (Rose et al, 1997;Gordon et al, 1998;Okuyama, 2004;Rose and Liao, 2005;Tsuchiya et al, 2007;Hallegatte, 2008b). In particular, they can compare the cost of responding to disasters with the cost of preventing disasters.…”

Regional Impact of Cyclone Sidr in Bangladesh: A Multi-Sector Analysis

“…According to Horwich (2000), because natural disasters are localized events, they may have limited effect on the whole economy. Butvery few studies have investigated the effects of disasters at a regional scale (for example, Cole 1998;Okuyama et al 1999;Okuyama 2004;Tsuchiya et al 2007;Tatano and Tsuchiya 2008). Disaster impact analysis at both spatial and sectoral levels remains limited in Bangladesh.…”