Economics of Natural Hazards

Edited by Howard Kunreuther, Cecilia Yen Koo Professor of Decision Sciences and Co-Director, Wharton School, University of Pennsylvania, US and Adam Rose, University of Southern California, US

'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.'

• Contents:Volume I AcknowledgementsIntroduction Howard Kunreuther and Adam RosePART IFOUNDATIONS 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 IIRISK 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 IIIDIRECT 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 IVREGIONAL AND ECONOMY-WIDE IMPACTS13. 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 VROLE 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 VIREDUCING 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 VIISTRUCTURAL 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 IndexVolume IIAcknowledgementsAn introduction by the editors to both volumes appears in Volume IPART 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 IIFINANCIAL 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 IIIDEVELOPING 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 IVRECOVERY 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 VINTEGRATED 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