Simplified Estimation of Indirect Economic Damages from Storm and Flood Disaster Using Input-Output Analysis

Abstract

The purpose of this study is to develop a simplified technique to estimate Indirect Economic Damages (IEDs) from storm and flood disasters. An Economic Loss Coefficient (ELC) from each industry is calculated using input-output analysis. Through applying ELCs to the industry sectors directly affected by disasters from 2010 to 2015, the costs of IED per year is computed. Results show that the average cost of IED is 2.16 times larger than direct damages, nearly 0.1% of Korea's GDP. Moreover, IED quantity is significantly different depending on the type of disaster and the type of damaged industry. If central and local governments conducted more precise examinations of direct damages by industry, more credible indirect damages could be calculated.