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The Economics of Natural Hazards
In this two-volume set the editors have brought together some of the most significant previously published papers by leading academics in this field. The Economics of Natural Hazards investigates the impact of natural disasters on national and regional economies. Volume I considers the effects both of the perception of risk and of direct losses and explores the costs of reducing the impact of disasters by, for example, forecasting, self-protection and the building of physical structures. Volume II deals with mitigating the costs of disaster through insurance, including financial coverage for catastrophic loss, and investigates the development of private–public partnerships for managing disasters and the problems of reconstruction and recovery. A final section addresses the particular problems of disasters in developing countries.
More Information
Critical Acclaim
Contributors
Contents
More Information
In this two-volume set the editors have brought together some of the most significant previously published papers by leading academics in this field. The Economics of Natural Hazards investigates the impact of natural disasters on national and regional economies. Volume I considers the effects both of the perception of risk and of direct losses and explores the costs of reducing the impact of disasters by, for example, forecasting, self-protection and the building of physical structures. Volume II deals with mitigating the costs of disaster through insurance, including financial coverage for catastrophic loss, and investigates the development of private–public partnerships for managing disasters and the problems of reconstruction and recovery. A final section addresses the particular problems of disasters in developing countries.
Critical Acclaim
‘Given the recent events and the ever present risk of natural hazards, this book edited by Kunreuther and Rose is a timely and useful contribution. . . this book is a worthwhile contribution to the Elgar reference collection and is complemented by a readable introduction which deserves to be read widely. . . A pleasing feature of the selection of articles is the inclusion of articles not just from economics but from other disciplines as well.’
– Clem Tisdell, Economic Analysis and Policy
– Clem Tisdell, Economic Analysis and Policy
Contributors
52 articles, dating from 1964 to 2002
Contributors include: J.W. Albala-Bertrand, K.J. Arrow, G.S. Becker, D.S. Brookshire, K.A.Froot, J. Hirshleifer, D.W. North, V.K. Smith, R. Zeckhauser
Contributors include: J.W. Albala-Bertrand, K.J. Arrow, G.S. Becker, D.S. Brookshire, K.A.Froot, J. Hirshleifer, D.W. North, V.K. Smith, R. Zeckhauser
Contents
Contents:
Volume I
Acknowledgements
Introduction Howard Kunreuther and Adam Rose
PART I FOUNDATIONS
1. J. Hirshleifer (1966), ‘Disaster and Recovery: The Black Death in Western Europe’
2. Gilbert F. White (1966), ‘Optimal Flood Damage Management: Retrospect and Prospect’
3. Ian Burton and Robert W. Kates (1964), ‘The Perception of Natural Hazards in Resource Management’
4. Clifford S. Russell (1970), ‘Losses from Natural Hazards’
PART II RISK PERCEPTION AND ITS ECONOMIC IMPACT
5. Paul Slovic (1987), ‘Perception of Risk’
6. Baruch Fischhoff, Stephen R. Watson and Chris Hope (1984), ‘Defining Risk’
7. David S. Brookshire, Mark A. Thayer, John Tschirhart and William D. Schulze (1985), ‘A Test of the Expected Utility Model: Evidence from Earthquake Risks’
8. Richard L. Bernknopf, David S. Brookshire and Mark A. Thayer (1990), ‘Earthquake and Volcano Hazard Notices: An Economic Evaluation of Changes in Risk Perceptions’
PART III DIRECT LOSSES AND THE DISTRIBUTION OF IMPACTS
9. Arthur A. Atkisson, William J. Petak and Daniel J. Alesch (1984), ‘Natural Hazard Exposures, Losses and Mitigation Costs in the United States 1970–2000’
10. Carol T. West and David G. Lenze (1994), ‘Modeling the Regional Impact of Natural Disaster and Recovery: A General Framework and an Application to Hurricane Andrew’
11. Gary R. Webb, Kathleen J. Tierney and James M. Dahlhamer (2000), ‘Businesses and Disasters: Empirical Patterns and Unanswered Questions’
12. Sam Cole (1995), ‘Lifelines and Livelihood: A Social Accounting Matrix Approach to Calamity Preparedness’
PART IV REGIONAL AND ECONOMY-WIDE IMPACTS
13. Richard W. Ellson, Jerome W. Milliman and R. Blaine Roberts (1984), ‘Measuring the Regional Economic Effects of Earthquakes and Earthquake Predictions’
14. Adam Rose, Juan Benavides, Stephanie E. Chang, Philip Szczesniak and Dongsoon Lim (1997), ‘The Regional Economic Impact of an Earthquake: Direct and Indirect Effects of Electricity Lifeline Disruptions’
15. Sungbin Cho, Peter Gordon, James E. Moore II, Harry W. Richardson, Masanobu Shinozuka and Stephanie Chang (2001), ‘Integrating Transportation Network and Regional Economic Models to Estimate the Costs of a Large Urban Earthquake’
16. Mary F. Kokoski and V. Kerry Smith (1987), ‘A General Equilibrium Analysis of Partial-Equilibrium Welfare Measures: The Case of Climate Change’
PART V ROLE OF FORECASTING IN REDUCING DISASTER IMPACTS
17. Richard R. Nelson and Sidney G. Winter, Jr. (1964), ‘A Case Study in the Economics of Information and Coordination: The Weather Forecasting System’
18. Charles W. Howe and Harold C. Cochrane (1976), ‘A Decision Model for Adjusting to Natural Hazard Events with Application to Urban Snow Storms’
19. R.A. Howard, J.E. Matheson and D.W. North (1972), ‘The Decision to Seed Hurricanes’
20. Stanley A. Changnon, Jr., Barbara C. Farhar and Earl R. Swanson (1978), ‘Hail Suppression and Society’
PART VI REDUCING RISKS THROUGH SELF-PROTECTION
21. Isaac Ehrlich and Gary S. Becker (1972), ‘Market Insurance, Self-Insurance, and Self-Protection’
22. Tracy Lewis and David Nickerson (1989), ‘Self-Insurance against Natural Disasters’
23. Jason F. Shogren and Thomas D. Crocker (1991), ‘Risk, Self-Protection, and Ex Ante Economic Value’
PART VII STRUCTURAL MITIGATION MEASURES
24. Linda Cohen and Roger Noll (1981), ‘The Economics of Building Codes to Resist Seismic Shock’
25. Anthony Fisher, David Fullerton, Nile Hatch and Peter Reinelt (1995), ‘Alternatives for Managing Drought: A Comparative Cost Analysis’
26. M. Elisabeth Paté-Cornell and George Tagaras (1986), ‘Risk Costs for New Dams: Economic Analysis and Effects of Monitoring’
27. Lester B. Lave and Tunde Balvanyos (1998), ‘Risk Analysis and Management of Dam Safety’
Name Index
Volume II
Acknowledgements
An introduction by the editors to both volumes appears in Volume I
PART I ROLE OF DISASTER INSURANCE
1. Kenneth J. Arrow (1971), ‘Insurance, Risk and Resource Allocation’
2. John V. Krutilla (1966), ‘An Economic Approach to Coping with Flood Damage’
3. Dan R. Anderson (1976), ‘All Risks Rating within a Catastrophe Insurance System’
4. Howard Kunreuther (1996), ‘Mitigating Disaster Losses through Insurance’
PART II FINANCIAL COVERAGE AGAINST CATASTROPHIC LOSSES
5. Dwight M. Jaffee and Thomas Russell (1997), ‘Catastrophe Insurance, Capital Markets, and Uninsurable Risks’
6. J. David Cummins, Neil Doherty and Anita Lo (2002), ‘Can Insurers Pay for the “Big One”? Measuring the Capacity of the Insurance Market to Respond to Catastrophic Losses’
7. Kenneth A. Froot (2001), ‘The Market for Catastrophe Risk: A Clinical Examination’
8. Christopher M. Lewis and Kevin C. Murdock (1996), ‘The Role of Government Contracts in Discretionary Reinsurance Markets for Natural Disasters’
9. Jerry R. Skees (2000), ‘A Role for Capital Markets in Natural Disasters: A Piece of the Food Security Puzzle’
PART III DEVELOPING PRIVATE-PUBLIC PARTNERSHIPS FOR MANAGING DISASTERS
10. Richard Zeckhauser (1996), ‘The Economics of Catastrophes’
11. Peter J. May (1991), ‘Addressing Public Risks: Federal Earthquake Policy Design’
12. Board on Natural Disasters (1999), ‘Mitigation Emerges as Major Strategy for Reducing Losses Caused by Natural Disasters’
13. Paul R. Kleindorfer and Howard Kunreuther (1999), ‘The Complementary Roles of Mitigation and Insurance in Managing Catastrophic Risks’
PART IV RECOVERY AND RECONSTRUCTION
14. Peter H. Rossi, James D. Wright, Sonia R. Wright and Eleanor Weber-Burdin (1978), ‘Are There Long Term Effects of American Natural Disasters?: Estimations of Effects of Floods, Hurricanes, and Tornados occurring 1960 to 1970 on U.S. Counties and Census Tracts in 1970’
15. Christopher M. Douty (1972), ‘Disaster and Charity: Some Aspects of Cooperative Economic Behavior’
16. George Horwich (2000), ‘Economic Lessons of the Kobe Earthquake’
PART V INTEGRATED ASSESSMENT OF HAZARDS
17. Robert W. Kates (1971), ‘Natural Hazard in Human Ecological Perspective: Hypotheses and Models’
18. Hadi Dowlatabadi and M. Granger Morgan (1993), ‘A Model Framework for Integrated Studies of the Climate Problem’
19. Robert V. Whitman, Thalia Anagnos, Charles A. Kircher, Henry J. Lagorio, R. Scott Lawson and Philip Schneider (1997), ‘Development of a National Earthquake Loss Estimation Methodology’
PART VI SUSTAINABILITY AND DISASTER-RESISTANT COMMUNITIES
20. Dennis S. Mileti (1999), ‘Summary’
21. Philip R. Berke, Jack Kartez and Dennis Wenger (1993), ‘Recovery after Disaster: Achieving Sustainable Development, Mitigation and Equity’
22. Raymond J. Burby with Timothy Beatley, Philip R. Berke, Robert E. Deyle, Steven P. French, David R. Godschalk, Edward J. Kaiser, Jack D. Kartez, Peter J. May, Robert Olshansky, Robert G. Paterson and Rutherford H. Platt (1999), ‘Unleashing the Power of Planning to Create Disaster-Resistant Communities’
PART VII ECONOMICS OF DISASTERS IN DEVELOPING COUNTRIES
23. Barclay G. Jones and William A. Kandel (1992), ‘Population Growth, Urbanization, and Disaster Risk and Vulnerability in Metropolitan Areas: A Conceptual Framework’
24. J.M. Albala-Bertrand (1993), ‘Natural Disaster Situations and Growth: A Macroeconomic Model for Sudden Disaster Impacts’
25. Paul K. Freeman (2001), ‘Hedging Natural Catastrophe Risk in Developing Countries’
Name Index
Volume I
Acknowledgements
Introduction Howard Kunreuther and Adam Rose
PART I FOUNDATIONS
1. J. Hirshleifer (1966), ‘Disaster and Recovery: The Black Death in Western Europe’
2. Gilbert F. White (1966), ‘Optimal Flood Damage Management: Retrospect and Prospect’
3. Ian Burton and Robert W. Kates (1964), ‘The Perception of Natural Hazards in Resource Management’
4. Clifford S. Russell (1970), ‘Losses from Natural Hazards’
PART II RISK PERCEPTION AND ITS ECONOMIC IMPACT
5. Paul Slovic (1987), ‘Perception of Risk’
6. Baruch Fischhoff, Stephen R. Watson and Chris Hope (1984), ‘Defining Risk’
7. David S. Brookshire, Mark A. Thayer, John Tschirhart and William D. Schulze (1985), ‘A Test of the Expected Utility Model: Evidence from Earthquake Risks’
8. Richard L. Bernknopf, David S. Brookshire and Mark A. Thayer (1990), ‘Earthquake and Volcano Hazard Notices: An Economic Evaluation of Changes in Risk Perceptions’
PART III DIRECT LOSSES AND THE DISTRIBUTION OF IMPACTS
9. Arthur A. Atkisson, William J. Petak and Daniel J. Alesch (1984), ‘Natural Hazard Exposures, Losses and Mitigation Costs in the United States 1970–2000’
10. Carol T. West and David G. Lenze (1994), ‘Modeling the Regional Impact of Natural Disaster and Recovery: A General Framework and an Application to Hurricane Andrew’
11. Gary R. Webb, Kathleen J. Tierney and James M. Dahlhamer (2000), ‘Businesses and Disasters: Empirical Patterns and Unanswered Questions’
12. Sam Cole (1995), ‘Lifelines and Livelihood: A Social Accounting Matrix Approach to Calamity Preparedness’
PART IV REGIONAL AND ECONOMY-WIDE IMPACTS
13. Richard W. Ellson, Jerome W. Milliman and R. Blaine Roberts (1984), ‘Measuring the Regional Economic Effects of Earthquakes and Earthquake Predictions’
14. Adam Rose, Juan Benavides, Stephanie E. Chang, Philip Szczesniak and Dongsoon Lim (1997), ‘The Regional Economic Impact of an Earthquake: Direct and Indirect Effects of Electricity Lifeline Disruptions’
15. Sungbin Cho, Peter Gordon, James E. Moore II, Harry W. Richardson, Masanobu Shinozuka and Stephanie Chang (2001), ‘Integrating Transportation Network and Regional Economic Models to Estimate the Costs of a Large Urban Earthquake’
16. Mary F. Kokoski and V. Kerry Smith (1987), ‘A General Equilibrium Analysis of Partial-Equilibrium Welfare Measures: The Case of Climate Change’
PART V ROLE OF FORECASTING IN REDUCING DISASTER IMPACTS
17. Richard R. Nelson and Sidney G. Winter, Jr. (1964), ‘A Case Study in the Economics of Information and Coordination: The Weather Forecasting System’
18. Charles W. Howe and Harold C. Cochrane (1976), ‘A Decision Model for Adjusting to Natural Hazard Events with Application to Urban Snow Storms’
19. R.A. Howard, J.E. Matheson and D.W. North (1972), ‘The Decision to Seed Hurricanes’
20. Stanley A. Changnon, Jr., Barbara C. Farhar and Earl R. Swanson (1978), ‘Hail Suppression and Society’
PART VI REDUCING RISKS THROUGH SELF-PROTECTION
21. Isaac Ehrlich and Gary S. Becker (1972), ‘Market Insurance, Self-Insurance, and Self-Protection’
22. Tracy Lewis and David Nickerson (1989), ‘Self-Insurance against Natural Disasters’
23. Jason F. Shogren and Thomas D. Crocker (1991), ‘Risk, Self-Protection, and Ex Ante Economic Value’
PART VII STRUCTURAL MITIGATION MEASURES
24. Linda Cohen and Roger Noll (1981), ‘The Economics of Building Codes to Resist Seismic Shock’
25. Anthony Fisher, David Fullerton, Nile Hatch and Peter Reinelt (1995), ‘Alternatives for Managing Drought: A Comparative Cost Analysis’
26. M. Elisabeth Paté-Cornell and George Tagaras (1986), ‘Risk Costs for New Dams: Economic Analysis and Effects of Monitoring’
27. Lester B. Lave and Tunde Balvanyos (1998), ‘Risk Analysis and Management of Dam Safety’
Name Index
Volume II
Acknowledgements
An introduction by the editors to both volumes appears in Volume I
PART I ROLE OF DISASTER INSURANCE
1. Kenneth J. Arrow (1971), ‘Insurance, Risk and Resource Allocation’
2. John V. Krutilla (1966), ‘An Economic Approach to Coping with Flood Damage’
3. Dan R. Anderson (1976), ‘All Risks Rating within a Catastrophe Insurance System’
4. Howard Kunreuther (1996), ‘Mitigating Disaster Losses through Insurance’
PART II FINANCIAL COVERAGE AGAINST CATASTROPHIC LOSSES
5. Dwight M. Jaffee and Thomas Russell (1997), ‘Catastrophe Insurance, Capital Markets, and Uninsurable Risks’
6. J. David Cummins, Neil Doherty and Anita Lo (2002), ‘Can Insurers Pay for the “Big One”? Measuring the Capacity of the Insurance Market to Respond to Catastrophic Losses’
7. Kenneth A. Froot (2001), ‘The Market for Catastrophe Risk: A Clinical Examination’
8. Christopher M. Lewis and Kevin C. Murdock (1996), ‘The Role of Government Contracts in Discretionary Reinsurance Markets for Natural Disasters’
9. Jerry R. Skees (2000), ‘A Role for Capital Markets in Natural Disasters: A Piece of the Food Security Puzzle’
PART III DEVELOPING PRIVATE-PUBLIC PARTNERSHIPS FOR MANAGING DISASTERS
10. Richard Zeckhauser (1996), ‘The Economics of Catastrophes’
11. Peter J. May (1991), ‘Addressing Public Risks: Federal Earthquake Policy Design’
12. Board on Natural Disasters (1999), ‘Mitigation Emerges as Major Strategy for Reducing Losses Caused by Natural Disasters’
13. Paul R. Kleindorfer and Howard Kunreuther (1999), ‘The Complementary Roles of Mitigation and Insurance in Managing Catastrophic Risks’
PART IV RECOVERY AND RECONSTRUCTION
14. Peter H. Rossi, James D. Wright, Sonia R. Wright and Eleanor Weber-Burdin (1978), ‘Are There Long Term Effects of American Natural Disasters?: Estimations of Effects of Floods, Hurricanes, and Tornados occurring 1960 to 1970 on U.S. Counties and Census Tracts in 1970’
15. Christopher M. Douty (1972), ‘Disaster and Charity: Some Aspects of Cooperative Economic Behavior’
16. George Horwich (2000), ‘Economic Lessons of the Kobe Earthquake’
PART V INTEGRATED ASSESSMENT OF HAZARDS
17. Robert W. Kates (1971), ‘Natural Hazard in Human Ecological Perspective: Hypotheses and Models’
18. Hadi Dowlatabadi and M. Granger Morgan (1993), ‘A Model Framework for Integrated Studies of the Climate Problem’
19. Robert V. Whitman, Thalia Anagnos, Charles A. Kircher, Henry J. Lagorio, R. Scott Lawson and Philip Schneider (1997), ‘Development of a National Earthquake Loss Estimation Methodology’
PART VI SUSTAINABILITY AND DISASTER-RESISTANT COMMUNITIES
20. Dennis S. Mileti (1999), ‘Summary’
21. Philip R. Berke, Jack Kartez and Dennis Wenger (1993), ‘Recovery after Disaster: Achieving Sustainable Development, Mitigation and Equity’
22. Raymond J. Burby with Timothy Beatley, Philip R. Berke, Robert E. Deyle, Steven P. French, David R. Godschalk, Edward J. Kaiser, Jack D. Kartez, Peter J. May, Robert Olshansky, Robert G. Paterson and Rutherford H. Platt (1999), ‘Unleashing the Power of Planning to Create Disaster-Resistant Communities’
PART VII ECONOMICS OF DISASTERS IN DEVELOPING COUNTRIES
23. Barclay G. Jones and William A. Kandel (1992), ‘Population Growth, Urbanization, and Disaster Risk and Vulnerability in Metropolitan Areas: A Conceptual Framework’
24. J.M. Albala-Bertrand (1993), ‘Natural Disaster Situations and Growth: A Macroeconomic Model for Sudden Disaster Impacts’
25. Paul K. Freeman (2001), ‘Hedging Natural Catastrophe Risk in Developing Countries’
Name Index
