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Modeling the Regional Economic Loss of Natural Disasters: The Search for Economic Hotspots

Author

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  • Norihiko Yamano
  • Yoshio Kajitani
  • Yoshiharu Shumuta

Abstract

This paper examines the economic impacts of natural disasters using the originally estimated finer geographical scale production datasets and the redefined interregional input-output table. For more effective estimates of direct losses of the disasters, the precise geographical information of industrial distribution is required, because most economic data are published according to political boundaries that may be too aggregated to be the practical information for disaster preventions and retrofit policies. The direct losses are captured by the output data at the district level (500-meter square) by sector and the population density. The map of economic hotspots is obtained after estimating the economic importance of each district. The numerical examples clearly show that the advantages of finer geographical scale datasets and the total economic losses are not proportional to the distributions of population and industrial activities. In other words, the disaster prevention and retrofit policies have to consider the higher-order effects to reduce the total economic loss.

Suggested Citation

  • Norihiko Yamano & Yoshio Kajitani & Yoshiharu Shumuta, 2007. "Modeling the Regional Economic Loss of Natural Disasters: The Search for Economic Hotspots," Economic Systems Research, Taylor & Francis Journals, vol. 19(2), pages 163-181.
    • Handle: RePEc:taf:ecsysr:v:19:y:2007:i:2:p:163-181
    DOI: 10.1080/09535310701330191
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    Citations

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    Cited by:

    1. Sina Duensing & Martin C. Schleper & Christian Busse, 2023. "Wildlife trafficking as a societal supply chain risk: Removing the parasite without damaging the host?," Journal of Supply Chain Management, Institute for Supply Management, vol. 59(2), pages 3-32, April.
    2. Balbi Stefano & Giupponi Carlo & Olschewski Roland & Mojtahed Vahid, 2015. "The Total Cost of Water-Related Disasters," Review of Economics, De Gruyter, vol. 66(2), pages 225-252, August.
    3. H. Lin & Y. Kuo & D. Shaw & M. Chang & T. Kao, 2012. "Regional economic impact analysis of earthquakes in northern Taiwan and its implications for disaster reduction policies," 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. 61(2), pages 603-620, March.
    4. Xinyu Jiang & Nobuhito Mori & Hirokazu Tatano & Lijiao Yang & Yoko Shibutani, 2016. "Estimation of property loss and business interruption loss caused by storm surge inundation due to climate change: a case of Typhoon Vera revisit," 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. 84(1), pages 35-49, November.
    5. Hiroyuki Shibusawa & Yuzuru Miyata, 2017. "Evaluating production effects of economic activity in zones surrounding the nuclear power station in Shizuoka Prefecture, Japan," Asia-Pacific Journal of Regional Science, Springer, vol. 1(2), pages 291-306, October.
    6. Kiyoshi Yonemoto, 2016. "Changes in the input–output structures of the six regions of Fukushima, Japan: 3 years after the disaster," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 5(1), pages 1-20, December.
    7. José Manuel Rueda-Cantuche & Iñaki Arto & Valeria Andreoni & José M. Rueda-Cantuche, 2012. "Worldwide economic effects of disruptions in the production chain: the 2011 Japanese disasters," EcoMod2012 4088, EcoMod.
    8. Iman Rahimi Aloughareh & Mohsen Ghafory Ashtiany & Kiarash Nasserasadi, 2016. "An Integrated Methodology For Regional Macroeconomic Loss Estimation Of Earthquake: A Case Study Of Tehran," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 61(04), pages 1-24, September.
    9. Hajime Tanaka & Michael C Huang, 2021. "Impact assessment and a fiscal recovery policy for tsunami risk: GIS and the general equilibrium approach in Hakodate city, Japan," Environment and Planning B, , vol. 48(5), pages 1144-1160, June.
    10. Stefano Balbi & Carlo Giupponi & Roland Olschewski & Vahid Mojtahed, 2013. "The economics of hydro-meteorological disasters: approaching the estimation of the total costs," Working Papers 2013-12, BC3.
    11. Eduardo Rodrigues-Oreggia, 2010. "The Impact of Natural Disasters on Human Development and Poverty at the Municipal Level in Mexico," CID Working Papers 43, Center for International Development at Harvard University.
    12. Kiyoshi Yonemoto, 2016. "Changes in the input–output structures of the six regions of Fukushima, Japan: 3 years after the disaster," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 5(1), pages 1-20, December.
    13. K. Jenkins, 2013. "Indirect economic losses of drought under future projections of climate change: a case study for Spain," 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. 69(3), pages 1967-1986, December.

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