Regional economic impact analysis of earthquakes in northern Taiwan and its implications for disaster reduction policies

H. Lin, Y. Kuo (), Daigee Shaw (), M. Chang and T. Kao

Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, 2012, vol. 61, issue 2, 603-620

Abstract: The direct damage caused by earthquakes, such as impaired buildings, may interfere with normal business operations and disrupt the function of the industrial chain. Such economic impacts can be evaluated using the input–output analysis developed by Leontief. In this paper, two scenario earthquakes in northern Taiwan both with a return period of 475 years—the Hsinchu Hsincheng and the Yilan Nan-ao earthquakes—are simulated. The results show that the economic impact caused by the Hsincheng earthquake is greater than that resulting from the Nan-ao earthquake, which should be the major scenario considered for the disaster reduction plan. The industries affected the most are the manufacturing, food services and entertainment, storage and retail trade, and public and construction industries. The Nan-ao earthquake causes relatively more losses in the food services and entertainment industries. Most of the repercussion effects of these industries are in the central and southern parts of Taiwan. The loss to the manufacturing sector and its repercussion effects are enormous. Therefore, the government should make it a first priority to encourage the manufacturing sector to implement earthquake mitigations, such as a seismic retrofit, or to provide a seismic evaluation, which can enable firms to engage in mitigation voluntarily. The measure needed to reduce the loss in agriculture is that the government can purchase agricultural products in central and southern Taiwan following the disaster and offer them to survivors in northern Taiwan. Copyright Springer Science+Business Media B.V. 2012

Keywords: Regional economic impact; Multi-regional input–output table; TELES; Scenario earthquake; Seismic retrofit (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://hdl.handle.net/10.1007/s11069-011-0049-5 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:nathaz:v:61:y:2012:i:2:p:603-620

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/11069

DOI: 10.1007/s11069-011-0049-5

Access Statistics for this article

Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards is currently edited by Thomas Glade, Tad S. Murty and Vladimír Schenk

More articles in Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards from Springer, International Society for the Prevention and Mitigation of Natural Hazards
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().