All buildings in Iceland are registered in an official database that contains detailed information about them, and insurance against natural disasters is obligatory. When a destructive earthquake occurs, all damage is reported, and the repair and replacement cost for every affected building is evaluated. In May 2008, a shallow earthquake of magnitude Mw = 6.3 struck in South Iceland. A great deal of damage occurred, but fortunately, there was no loss of life. The recorded maximum PGA was 0.88 g. Detailed and complete information of all real estate property and the damage incurred, along with recorded strong-motion data and an area-specific attenuation model, have provided an opportunity to create probabilistic damage curves for the building stock in the affected area. The damage model obtained from the 2008 earthquake was tested and verified by using it to back-calculate the damage that occurred in the two South Iceland earthquakes of June 2000 ( Mw = 6.5).
During World War II, a military airport was built inside the city of Reykjavik. This airport then became the centre of domestic aviation for the whole country. Today, 50 years later, the airport tract has become valuable for urban development. The city government therefore wants the airport relocated. Four different sites have been considered. The first alternative is to maintain the airport in the same place. A second alternative is based on reclaiming land alongside the present airport. A third possible site is in a rugged lava field south of Reykjavik, and the fourth alternative is to move the domestic traffic to Keflavik International Airport about 60 km away. The relocation has become a hot issue in the country. The people living in the countryside want to keep the airport in the same place. On the other hand, people living in Reykjavik see the airport land as valuable potential for urban development close to the city centre. To approach this debate in an orderly fashion, the four sites have been studied from an environmental and socio-economic point of view. The four alternatives are classified by four different categories: (1) economy and capital investment, (2) social impacts, (3) direct environmental consequences, and (4) public safety. Firstly, the last three categories were evaluated and weighted, and all four alternatives graded according to their environmental quality. Secondly, using the results of a separate cost-effectiveness study, a Pareto optimality solution is suggested. Finally, sensitivity analysis was carried out to investigate how the Benvironmental^factors through their variation can influence the final selection.
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