Sequencing lifeline repairs after an earthquake: an economic approach

Marco Casari, Simon J. Wilkie

Research output: Contribution to journalReview ArticleResearchpeer-review

12 Citations (Scopus)

Abstract

Recoveries after recent earthquakes in the U.S. and Japan have shown that large welfare gains can be achieved by reshaping current emergency plans as incentive-compatible contracts. We apply tools from the mechanisms design literature to show ways to integrate economic incentives into the management of natural disasters and discuss issues related to the application to seismic event recovery. The focus is on restoring lifeline services such as the water, gas, transportation, and electric power networks. We put forward decisional procedures that an uninformed planner could employ to set repair priorities and help to coordinate lifeline firms in the post-earthquake reconstruction.

Original languageEnglish
Pages (from-to)47-65
Number of pages19
JournalJournal of Regulatory Economics
Volume27
Issue number1
DOIs
Publication statusPublished - Jan 2005
Externally publishedYes

Keywords

  • Inter-temporal decisions
  • Mechanism design
  • Natural disasters
  • Network externalities
  • Utilities

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