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Supply-chain impacts of Sichuan earthquake: a case study using disaster input–output analysis

Author

Listed:
  • Rui Huang

    (Nanjing Normal University
    Jiangsu Center for Collaborative Innovation in Geographical Information Resource Development and Application
    The University of Sydney)

  • Arunima Malik

    (The University of Sydney
    The University of Sydney)

  • Manfred Lenzen

    (The University of Sydney)

  • Yutong Jin

    (The University of Sydney)

  • Yafei Wang

    (Beijing Normal University)

  • Futu Faturay

    (Ministry of Finance of the Republic of Indonesia)

  • Zhiyi Zhu

    (Nanjing Normal University
    Jiangsu Center for Collaborative Innovation in Geographical Information Resource Development and Application)

Abstract

With the development of interregional trade, a potential disaster that happens in one place could cause enormous economic losses in distant areas. Timely and comprehensive post-disaster assessments play a significant role in guiding disaster recovery, and for reconstruction and planning for future disaster risk reduction. In this study, we evaluate the post-disaster economic impacts due to Sichuan earthquake in 2008 and its regional and industrial spillover effects based on a Chinese multi-regional input–output table. The results show that the 2008 Sichuan earthquake caused around 1725 billion US dollars of value-added losses and 69.9 million people of employment losses. The Chemical industry in Guangdong and Zhejiang suffered severe value-added losses due to indirect effects through supply chains. Furthermore, public administration in Henan, Sichuan, and Guangdong suffered large employment losses. In general, we find that the economically less developed provinces are more susceptible to larger losses compared to the economically developed provinces. The results in this study can provide information for decision-makers to devise effective solutions on how to release relief funds and for dividing adaptation plans to avoid serious economic losses due to future disasters.

Suggested Citation

  • Rui Huang & Arunima Malik & Manfred Lenzen & Yutong Jin & Yafei Wang & Futu Faturay & Zhiyi Zhu, 2022. "Supply-chain impacts of Sichuan earthquake: a case study using disaster input–output analysis," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 110(3), pages 2227-2248, February.
    • Handle: RePEc:spr:nathaz:v:110:y:2022:i:3:d:10.1007_s11069-021-05034-8
    DOI: 10.1007/s11069-021-05034-8
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    Cited by:

    1. Robert Reinhardt, 2022. "Shaking up Foreign Finance: FDI in a Post-Disaster World," Post-Print halshs-03908250, HAL.
    2. Robert Reinhardt, 2024. "Shaking up Foreign Finance: FDI in a Post-Disaster World," Economics of Disasters and Climate Change, Springer, vol. 8(2), pages 317-348, July.
    3. Robert Reinhardt, 2022. "Shaking up Foreign Finance: FDI in a Post-Disaster World," Documents de travail du Centre d'Economie de la Sorbonne 22024, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    4. Robert Reinhardt, 2022. "Shaking up Foreign Finance: FDI in a Post-Disaster World," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-03908250, HAL.
    5. Robert Reinhardt, 2022. "Shaking up Foreign Finance: FDI in a Post-Disaster World," Working Papers halshs-03908250, HAL.
    6. Robert Reinhardt, 2022. "Shaking up Foreign Finance: FDI in a Post-Disaster World," Documents de travail du Centre d'Economie de la Sorbonne 22024r, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne, revised Sep 2023.

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