Hiromi TAKAHASHI

A Study on Evaluating Industrial Resiliency to Lifeline Disruption

Supervisor: Shoji MATSUMOTO and Satoshi TSUCHIYA

Present-day society, in which population and asset are accumulated, becomes more dependent on lifeline utilities such as electricity, water and gas supplies. As a consequence, dysfunction of lifeline utilities due to various kinds of large disasters influences more significantly on community life and firm”Ēs business. In order to reduce the secondary loss, effective countermeasures should be carried out, such as reinforcing facilities themselves and building backup functions. Quantitative evaluation of lifeline dysfunction is then necessary for decision makers. However, not so many studies have been conducted with linking declining functions due to lifeline disruptions and the economic losses.
This paper focuses on industrial resilience to lifeline, and considered a way to quantify the resilience of manufacturing and non-manufacturing sectors. A production function is assumed that has three kinds of utilities electricity, water and gas as independent inputs, and the substitution parameters are estimated with a set of data on damage and recovery process of such utilities and operation level for firms in the 2004 Mid-Niigata earthquake (the Niigata-Chuetsu earthquake).
The result shows small elasticity of substitution on utility inputs in both manufacturing and non-manufacturing sectors. The manufacturing sector has smaller elasticity of substitution than the non-manufacturing sector. This implies the manufacturing sector has more crucial effect when lifeline is disrupted due to disasters.
The estimated parameters in this study can be incorporated in a computable general equilibrium for regional loss estimation by disasters.


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