Given Japan’s substantial exposure to many kinds of natural hazards, such as earthquakes, tsunamis, and typhoons, it has been a priority to invest in resilience, guided by evidence-based modeling. In 2011, the Great East Japan Earthquake and Tsunami became the costliest natural disaster ever recorded. This study applied a geographic information system using assumed tsunami-affected data calibrated in a recursive computable general equilibrium model to perform an economic impact assessment and an estimated recovery budget. We simulated 100 years of tsunamis and a 10-year sectoral recovery package for the sectors related to the ocean economy, such as kelp, net fishery, squid, other fisheries, food processing, and recreation, with a capital-use subsidy policy regarding investment strategy. We found that the aqua sector is incredibly vulnerable and would not recover with the capital-use subsidy within Hakodate City’s financial capability. Nevertheless, the recovery policy could still ease output price changes. On the other hand, the recreation sector could recover to pre-disaster conditions, but at huge fiscal and social costs. Meanwhile, the food processing sector’s recovery could generate social benefits and have a spillover effect on other fisheries sectors. The application of geographic information system in tsunami-prone areas could strengthen the precision of economic analysis. Such evidence-based modeling could visualize the economic impact to assist policymakers and stakeholders in foreseeing disaster risk and implementing more effective building resilience measures.
Japan is highly prone to multiple natural hazards, such as typhoons, earthquakes, and tsunamis in general. However, the compound disaster that entailed earthquake, tsunami, and a nuclear crisis, along with disruption of the global supply chain triggered by the Great East Japan Earthquake in 2011, highlighted the need for a holistic risk assessment of impacts amplified by multiple disasters. According to the Cabinet Office of Japan, the occurrence probability of a Nankai Trough Earthquake and Tsunami is 70% within the next 30 years. It suggests the need for comprehensive impact assessment to enhance the disaster risk reduction strategies of the region. This study conducts a tsunami impact assessment using quantitative analysis to identify vulnerable industries in Mie Prefecture, Japan, famous for tourism, valueadded sectors of aquaculture, food processing, and petroleum refining tanks situated in at-risk areas. To create a tsunami shock scenario, we apply a computable general equilibrium (CGE) model using an input-output table of the Mie Prefecture (2015 version) and geographic information system (GIS). The street-level business entity data enable us to incorporate with the disaster scenario to provide evidence-based damage estimates of capital and labor loss due to a tsunami. We present the simulation results of output change, price change, external trade, and welfare analysis and propose creating a vulnerability index (VI) for disaster impact. These quantified and visualized indicators would provide informative implications for ex-ante policymaking and risk financing to cope with fragile sectors effectively.
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