Policy and Economics of Hazards

Weather-impact-on-food_1.jpg

Weather impacts on food supply
Weather impacts on food supply

Project Status:

The economic impacts resulting from natural disasters are often overlooked in the economic planning process. This is because the immediate focus in the wake of natural hazards is typically placed on the emergency response, and it takes time to realise the economic effects of the disasters. In Australia, the disaster management arrangements across all stages (mitigation, preparedness, response and recovery) have proven to be very successful at saving lives, however, less attention and resources have been devoted to the economic impacts of natural disasters. One of the problems identified in this setting is the lack of estimates of the full economic impact of natural hazards covering all the affected sectors of the economy. An ideal estimation should reflect both the primary and secondary effects of the natural disasters so that persistent losses throughout the economy originating from various sectors are taken into account.

Pre-disaster multi-hazard damage and economic loss estimation model - project overview

The economic impacts resulting from natural disasters are often overlooked in the economic planning process. This is because the immediate focus in the wake of natural hazards is typically placed on the emergency response, and it takes time to realise the economic effects of the disasters. In Australia, the disaster management arrangements across all stages (mitigation, preparedness, response and recovery) have proven to be very successful at saving lives, however, less attention and resources have been devoted to the economic impacts of natural disasters.

One of the problems identified in this setting is the lack of estimates of the full economic impact of natural hazards covering all the affected sectors of the economy. An ideal estimation should reflect both the primary and secondary effects of the natural disasters so that persistent losses throughout the economy originating from various sectors are taken into account.

The project team has conducted a case study on the 2010-2011 Queensland floods, which involved comparisons between the flooded areas and unaffected areas of 19 economic sectors. This involved comparing the economic conditions of individuals residing in flooded and non-flooded areas before and after the floods, and revealed the sectoral decomposition of income and employment differences reflected in household well-being because of the floods.

Findings indicate that individuals working in 12 of the 19 sectors experienced no income difference due to the floods. Three sectors (retail trade, accommodation and food services, administrative and support services) were negatively impacted, while two sectors, (education and training, and health care and social assistance) were positively impacted.

The main objective in the next stage of this research is to estimate the sector-disaggregated economic effects of the floods, the Black Saturday bushfires, and Cyclone Oswald (Queensland, January 2013) to support the decision-making process in the design of post-disaster recovery interventions.

Particular objectives are:

  1. To estimate the sector-specific economic effects of Queensland floods and Cyclone Oswald on firms, and of the Black Saturday bushfires on individuals and firms;
  2. To develop a ranked list of the economic sectors that seek more attention for post-disaster resource allocation in minimising potential negative effects of natural disasters;
  3. To inform budget allocation decisions across economic sectors in both pre-disaster mitigation as well as post-disaster recovery phases.

This stage of the research will place the microscope on how the key variables change in the wake of disasters:

  • At the individual level, income, employment-type (full-time, part-time), status of employment, and the number of working hours, all investigated with respect to the social vulnerability status of individuals (i.e., gender, age, income-level),
  • At the firm level, the volume of output, revenue, profit, and employment, again all examined with respect to the vulnerability status of firms, such as small vs large enterprises.

It is expected that the findings of this project will act as a catalyst in designing post-disaster recovery interventions at the federal and state level that will not only be customised to directly support individuals, but also be tailored in directly assisting firms to ensure their survival and keep their workforce employed.

Flood hazard
16 November, 2016
The latest videos featuring CRC researchers, PhD students and end-users explaining our science and the benefits it will bring are now online.
14 September, 2016
New journal articles and reports on CRC research are available online.
Holger Maier presents at the 2016 Hobart RAF
24 June, 2016
A number of insights around who dies in floods, mitigation benefits, estimating resilience and economics were key takeways for me from the Research Advisory Forum in Hobart.
A pre-disaster multi-hazard damage and economic loss estimation model for Australia
25 Aug 2014

Australia has experienced a number of natural disasters throughout history that have significantly impacted upon the economy. 

Key Topics:
Seismic Vulnerability Assessment of Buildings in Australia
18 Aug 2015

This poster present research activities undertaken in the University of Melbourne and Swinburne University of Technology towards assessment of seismic vulnerability of buildings in Australia. The activities contributes to BHNCRC Project aimed to develop risk mitigation and retrofitting strategies for the most vulnerable Australian buildings subject to earthquakes.

Download:
Design & Implementation of pre-disaster hazard loss estimation platform
11 Sep 2015

The platform developed and utilised for this work is the Pre-disaster Hazard Loss Estimation Platform (PHiLEP). The PHiLEP platform is particularly suitable for this specific research purpose since it is devised to facilitate the decision making process in Disaster Risk Reduction (DRR) field by utilising a combination of spatial data management, disaster modelling, optimisation technologies and visualisation.

Effects of natural disasters on sectoral economic development: Evidence from Australia
11 Sep 2015

 Using a unique dataset observed over 1990-2014, we estimate the impact of natural disasters on sector-specific economic growth of Australia at both state and national levels

 Bringing hazard and economic modellers together
11 Sep 2015

 A paper on the use of a spatial platform for damage and loss visualization to bring together hazard and economic modellers

 Reviewing past hazard events in Australia and Victoria
11 Sep 2015

In order to better understand the history of natural disasters in Australia as a whole, and also solely in the state of Victoria, a review of the past hazard events data was conducted. The data was obtained from the Australian government website www.emknowledge.gov.au and includes events from the years 1857 to 2014.

Mehmet Ulubasoglu Conference Poster 2016
12 Aug 2016

This project is investigating, at the national level, the economic impact of natural disasters on sectoral growth of the Australian economy. 

Elisa Lumantarna Conference Poster 2016
12 Aug 2016

This poster introduces a rapid seismic assessment method for reinforced concrete buildings in regions of low to moderate seismicity such as Australia.

Key Topics:

Research clusters

Explore by keyword