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Disaster Economics and Networked Transportation Infrastructures: Status Quo and a Multi-disciplinary Framework to Estimate Economic Losses

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Abstract

In recent years, the frequency and severity of catastrophic events triggered by natural hazards have increased. Meanwhile, man-made hazards, such as terrorist attacks, and their impacts on infrastructure systems have gained increasing attention. These hazards (both natural and man-made) can cause catastrophic physical damage to transportation infrastructure systems that are essential to the wellbeing of the society. Moreover, the direct economic losses (e.g., physical damage to infrastructure) diffuse and expand continually through the disruption of economic activities between different regions and industries, resulting in enormous and complex indirect losses. A comprehensive investigation of total losses, including direct and indirect losses, requires the use of economic impact analysis models. However, most of the economic impact analysis methods and models introduced in the existing literature fail to incorporate the spatially distributed and networked nature of transportation infrastructures. To achieve a comprehensive and a realistic understanding of the economic impacts caused by the disturbances to the transportation infrastructure, the spatial distribution and the networked nature of transportation systems has to be accounted for, and realistic and locally relevant hazard scenarios must be incorporated into the economic analyses. This paper first provides a detailed account of the status-quo in economic modeling associated with impact analysis of transportation disturbances to identify the gaps in this domain. Next, focusing on the commuting related economic impacts of transportation disturbances as an example, the paper introduces a multidisciplinary framework designed to demonstrate an understanding on how to address the gaps. Preliminary results from a Los Angeles case study are presented.

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Notes

  1. 1.

    We assume that most critical components of the transportation network are its bridges. This is well established by the literature in transportation safety.

  2. 2.

    Earthquakes present a different opportunity for economic impact analysis than some of the other hazards. This is due to the advanced ability of scientists to forecast the impact of these events which gives way to policy initiatives directed to mitigation [50].

  3. 3.

    The economic region in the full deployment of the framework will be the regions in Los Angeles that we have the input-output table for.

  4. 4.

    These values are published annually by Bureau of Transportation Statistics. Average cost of driving includes fuel, maintenance, and tires. Available online at: www.rita.dot.gov/bts.

  5. 5.

    The Vehicle Operation Cost Parameters are statewide representative average values recommended by California Department of Transportation [60] to be used in the economic analysis of highway and other projects.

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Acknowledgements

This material is based upon work supported by National Key R&D Program of China under grant No. 2017YFC0803308, National Natural Science Foundation of China (NSFC) under grant No. U1709212, 71741023, and Tsinghua University Initiative Scientific Research Program under grant No. 2014z21050 and 2015THZ0. The authors are thankful for the support of Ministry of Science and Technology of China, NSFC and Tsinghua University. Any opinions, findings, and conclusions or recommendations expressed in this paper are those of the authors and do not necessarily reflect the views of the funding agencies.

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Wei, F., Koc, E., Soibelman, L., Li, N. (2018). Disaster Economics and Networked Transportation Infrastructures: Status Quo and a Multi-disciplinary Framework to Estimate Economic Losses. In: Smith, I., Domer, B. (eds) Advanced Computing Strategies for Engineering. EG-ICE 2018. Lecture Notes in Computer Science(), vol 10864. Springer, Cham. https://doi.org/10.1007/978-3-319-91638-5_1

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