Contrasting sharply with these glaring deficits apparent in the literature are countless articles in the lay press that have more than adequately addressed the issue of underlying health disparities in the wake of a disaster. For example, a seminal article was featured in the Washington Post just two weeks after Hurricane Katrina. People will continue to suffer from the effects of disasters.
Indirect Losses of Natural Disasters Introduction Indirect losses of natural disasters, or losses resulting from the consequences of physical destruction, have not been measured, studied, and modeled to the same extent as direct losses the monetized losses of physical destruction.
Evidence to date suggests that the proportion of indirect impacts increases in larger disasters, and thus may constitute a larger fraction of total losses and damage in large disasters than in smaller disasters Gordon and Richardson, and Toyoda, By their nature, indirect losses are harder to measure than losses stemming directly from physical damage.
For example, a ruptured power line is readily observed and the cost of its repair evaluated. Far less obvious are losses such as those of industries that are forced to close down because they lack critical power supplies, firms with power that lose business because suppliers or buyers lacked power, and firms that lose business because employees of firms affected by the power outage have reduced incomes and consequently spent less.
Additionally, there are almost no programs or processes in place to draw upon in measuring indirect losses. Two exceptions to this observation are business interruption insurance and unemployment insurance.
The usefulness of these data are limited, as many firms do not carry business interruption insurance, and that many indirect effects may not qualify for reimbursement under such insurance.
Similarly, unemployment insurance data do not adequately reflect employment and income losses that may occur in the wake of a natural disaster. For many, proving eligibility can be troublesome; for others, the key impact is not unemployment per se but reduced work and income that does not qualify for program assistance.
The Impacts of Natural Disasters: A Framework for Loss Estimation.
The National Academies Press. Photo courtesy of FEMA. Business interruption reimbursements may be lumped with other types of insurance payments.
In the case of unemployment insurance, it may be difficult to separate claims attributable to the disaster and claims that would have arisen as a consequence of typical business and economic cycles.
Limited available sources of data and the often high cost of primary data collection have led to attempts to measure indirect losses using statistical models of the type that have long been utilized for economic forecasting and economic impact analysis.
A modeling approach is also potentially able to project expected future outcomes over a period of years, and estimate indirect losses associated with a particular actual event. The forward-looking capability is critical for developing simulation models for planning mitigation and emergency responses.
Recent studies evaluating model-based estimates suggest that the models designed for traditional economic forecasting and impact analysis do not accurately estimate indirect effects that occur in the wake of a natural disaster. These models must be substantially revised in order to be reliable in estimating indirect effects.
Prospects of their long-run cost-effectiveness compared with primary data collection helps justify the research and testing necessary to make the needed revisions.A disaster is a serious disruption, occurring over a relatively short time, of the functioning of a community or a society involving widespread human, material, economic or environmental loss and impacts, which exceeds the ability of the affected community or society to cope using its own resources.
While most natural disasters are fairly local in their impact, the worst can change the planet. The eruption of the Indonesian volcano Tamora pumped so much sulfur into the atmosphere that the world’s temperature dropped by 2 degrees Fahrenheit (1 degree Celsius) for two years afterwards.
Impact of Natural Disasters on Risk Management—Mark Walls and Kimberly George explain how you can be well prepared for most emergencies.
Economic and financial impacts Major natural disasters can and do have severe negative short-run economic impacts. Disasters also appear to have adverse longer-term consequences for economic growth, development and poverty reduction.
Economic and Financial Impacts of Natural Disasters: an Assessment of Their . Natural disasters can have huge environmental impacts as well, even when human communities are relatively unaffected. How well the impact of a disaster event is absorbed has much to do with the intensity of the impact and the level of preparedness and resilience of the subject impacted.
It is recognized that many significant nonmarket effects result from natural disasters, including environmental impacts. Though our committee had a keen interest in these topics, it became clear that these impacts—though often significant—did not fit easily with this study's main report and.