Economic impact of production bottlenecks caused by disasters impacting interdependent industry sectors

Regional disaster impact analysis: comparing input–output and computable general equilibrium models

“…Finally, more research is being done recently in combining IO modelling with linear programming (see e.g. Rose et al, 1997;Baghersad and Zobel, 2015;Koks and Thissen, 2014).…”

“…2, an important characteristic which significantly influences the potential total losses is the duration of the recovery period and the type of recovery path. Figure 2 shows three possible paths: concave, convex, and linear (similar paths have been used in Baghersad and Zobel, 2015). The concave recovery path can be interpreted as being quick and smooth from the beginning, as a result of which most of the area is recovered within a couple of time steps.…”

“…In response, a large number as well as a variety of models have been applied to study the economic impacts of disasters. While the most common economic models for disaster impact analysis are input-output (IO) and computable general equilibrium (CGE) models, an increasing number of scholars employ hybrid models, combining the two or either of them with different (partly noneconomic) models (Baghersad and Zobel, 2015;Carrera et al, 2015;Koks et al, 2015). This wide variety of models, however, leads to an important question: how should (differences in) the outcomes of the models be interpreted?…”

Optimizing Human Resource Allocation in Organizations During Crisis Conditions: a P-graph Approach

“…Initially unaffected business units may also fail as a result, further causing a magnified impact. Research on disaster, risk and reduction management in organizations and industries have looked into developing disaster action plans which look at critical engineering infrastructure (Janius et al 2016), quantifying the economic consequences of production losses due to disasters (Baghersad and Zobel 2015), and finding the balance between trust and control for inter-organizational disaster management (Kalkman and de Waard 2016) to name a few. A recent article by Nascimento and Alencar (2016) provides a review of the work done on risk management particularly in the context of natural hazards which trigger technological disasters due to cascading effects.…”

“…The similarities between the economic structure and the structure of other systems have led to the adoption of the framework in various fields. It has been used for the design of various process systems and has proven to facilitate the identification of bottlenecks in multifunctional energy systems (Tan et al 2012) and economywide industries (Baghersad and Zobel 2015), as well as in risk evaluation in global production networks (Niknejad and Petrovic 2016). It has been used for modeling industrial systems within an eco-industrial park to look at risk aspects in bioenergy parks (Benjamin et al 2015) and to develop adaptation strategies within industrial complexes or supply chains .…”