Energy and asset value elasticity of earthquake-induced direct economic losses. (February 2019)

• Record Type: Journal Article
• Authors: Wu, Jidong; He, Xin; Ye, Mengqi; Wang, Cailin
• Is Part Of: International journal of disaster risk reduction. Volume 33(2019)
• Page Start: 229
• Page End: 234
• Publication Date: 2019-02
• Subjects: Earthquake energy -- Natural hazards -- Direct economic losses (DELs) -- Exposure -- Risk assessment; Emergency management -- Periodicals; Risk management -- Periodicals; Disaster relief -- Periodicals; Hazard mitigation -- Periodicals; 363.34
• DOI: 10.1016/j.ijdrr.2018.10.008
• Languages: English
• ISSNs: 2212-4209

Abstract

Abstract: Major earthquakes usually release massive energy with a strong destructive force on human life and property. Nevertheless, how earthquake-induced direct economic losses (DELs) depend on earthquake energy dissipation and asset value exposure is still rarely known. Based on the estimated asset value exposure and the estimated earthquake energy for DELs produced by earthquakes over the period from 1990 to 2016 in China, the economic concept of elasticity is used to quantify the statistical relationship between DELs, asset value exposure and earthquake energy. The results show that asset value exposure and earthquake energy are correlated with earthquake DELs. On average, changes in asset value exposure have been relatively more important in explaining earthquake DELs than changes in earthquake energy. Moreover, a doubling in asset value exposure increases the DEL by 60% while a doubling in energy dissipation leads to a 31% increase in the DEL, and these results could be used for DEL predictions for new emerging earthquakes. This study suggested that the accumulation of wealth in earthquake-prone regions under economic growth will inevitably increase DELs if there are no changes in mitigation efforts. These findings also emphasize human behavior in determining the difference between a hazard and a disaster and provide significant insights in urban planning and disaster risk reduction strategies.