The Economics of Natural Disasters: Mitigating the Impact

摘要

A hurricane struck the united States Gulf Coast, causing more than $200 billion in damage. A flood in the Mississippi River Basin damaged or destroyed more than 50,000 homes. A California firestorm cost $120 million to extinguish, and an earthquake caused the collapse of elevated portions of six major freeways.1 These are a few of the catastrophic losses that occur all too often within the United States. Natural disasters, despite their origin, boast one invariable-the irreplaceable loss of life and the loss of property, businesses, and infrastructure that must be rebuilt. The recovery of a standard household and business environment takes time and money. The resources necessary come from various entities, all of which profoundly influence the economy. For a sustained recovery, rebuilding should focus on the lessons learned from past disasters. Citizens and private insurers, along with local, state, and federal governments, should anticipate greater losses from future disasters. Preparing a more disaster-resilient society can ease the burden of these events and reduce the impact on local and national economic interests.