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Suggested Citation:"FRONT MATTER." National Research Council. 1992. The Economic Consequences of a Catastrophic Earthquake: Proceedings of a Forum. Washington, DC: The National Academies Press. doi: 10.17226/2027.
×

THE ECONOMIC CONSEQUENCES OF A CATASTROPHIC EARTHQUAKE

PROCEEDINGS OF A FORUM AUGUST 1 AND 2, 1990

Committee on Earthquake Engineering

Division of Natural Hazard Mitigation

Commission on Engineering and Technical Systems

National Research Council

NATIONAL ACADEMY PRESS
Washington, D.C.
1992

Suggested Citation:"FRONT MATTER." National Research Council. 1992. The Economic Consequences of a Catastrophic Earthquake: Proceedings of a Forum. Washington, DC: The National Academies Press. doi: 10.17226/2027.
×

NOTICE: The project that is the subject of this report was approved by the Governing Board of the National Research Council, whose members are drawn from the councils of the National Academy of Sciences, the National Academy of Engineering, and the Institute of Medicine. The members of the committee responsible for the report were chosen for their special competences and with regard for appropriate balance.

This report has been reviewed by a group other than the authors according to procedures approved by a Report Review Committee consisting of members of the National Academy of Sciences, the National Academy of Engineering, and the Institute of Medicine.

Any opinions, findings, and conclusions or recommendations expressed in this report are those of the committee and do not necessarily reflect the views of the sponsoring agencies.

Library of Congress Catalog Card Number 92-60712

International Standard Book Number 0-309-04639-4

Copies of this report are available from:
National Academy Press
2101 Constitution Avenue, N.W. Washington, D.C. 20418

S-481

Printed in the United States of America

Suggested Citation:"FRONT MATTER." National Research Council. 1992. The Economic Consequences of a Catastrophic Earthquake: Proceedings of a Forum. Washington, DC: The National Academies Press. doi: 10.17226/2027.
×

COMMITTEE ON EARTHQUAKE ENGINEERING

GEORGE W. HOUSNER (Chair),

California Institute of Technology, Pasadena

KEIITI AKI,

Department of Geological Sciences, University of Southern California, Los Angeles

CHRISTOPHER ARNOLD,

Building Systems Development, Inc., San Mateo, California

JAMES E. BEAVERS,

Martin Marietta Energy Systems, Inc., Oak Ridge, Tennessee

RAY W. CLOUGH,

Department of Civil Engineering, University of California, Berkeley

C. B. CROUSE,

Dames & Moore, Seattle, Washington

JOANNE NIGG,

Disaster Research Center, University of Delaware, Newark

METE A. SOZEN,

Department of Civil Engineering, University of Illinois, Urbana-Champaign

ROBERT V. WHITMAN,

Department of Civil Engineering, Massachusetts Institute of Technology, Cambridge

JAMES K. WIGHT,

Department of Civil Engineering, University of Michigan, Ann Arbor

T. LESLIE YOUD,

Department of Civil Engineering, Brigham Young University, Provo, Utah

Liaison Representatives

WILLIAM H. ALLERTON,

Division of Inspections, Federal Energy Regulatory Commission, Washington, D.C.

WILLIAM A. ANDERSON, Program Director,

Division of Biological and Critical Systems, National Science Foundation, Washington, D.C.

C. CHESTER BIGELOW,

Division of Advanced Technology Development, U.S. Department of Energy, Washington, D.C.

STEPHEN BOYCE,

Air Force Office of Scientific Research, Bolling Air Force Base, Washington, D.C.

MANMOHAN S. CHAWLA,

Naval Facilities Engineering Command, Washington, D.C.

DAE H. CHUNG,

Nuclear Systems Safety Program, Lawrence Livermore National Laboratory, Livermore, California

FRED COLE, Office of U.S. Foreign Disaster Assistance,

Agency for International Development, Washington, D.C.

JAMES COOPER,

Federal Highway Administration, U.S. Department of Transportation, Washington, D.C.

JAMES F. COSTELLO,

Mechanical/Structural Engineering Branch, Office of Nuclear Regulatory Research, U.S. Nuclear Regulatory Commission, Washington, D.C.

RICHARD F. DAVIDSON,

Civil Engineering, Geotechnical Branch, U.S. Army Corps of Engineers, U.S. Department of the Army, Washington, D.C.

Suggested Citation:"FRONT MATTER." National Research Council. 1992. The Economic Consequences of a Catastrophic Earthquake: Proceedings of a Forum. Washington, DC: The National Academies Press. doi: 10.17226/2027.
×

G. ROBERT FULLER,

Compliance Branch, U.S. Department of Housing and Urban Development, Washington, D.C.

WALTER W. HAYS,

Office of Earthquakes, Volcanoes, and Engineering, U.S. Geological Survey, Reston, Virginia

JAMES R. HILL,

Natural Phenomena Hazards Mitigation Program, U.S. Department of Energy, Washington, D.C.

PAUL KRUMPE, Office of U.S. Foreign Disaster Assistance,

Agency for International Development, Washington, D.C.

H. S. LEW,

Center for Building Technology, National Institute of Standards and Technology, Gaithersburg, Maryland

DON LINGER,

Strategic Structures Branch, Defense Nuclear Agency, Washington, D.C.

S.C. LIU,

Earthquake Hazard Mitigation, Division of Biological and Critical Systems, National Science Foundation, Washington, D.C.

UGO MORELLI,

Office of Natural and Technological Hazards, Federal Emergency Management Agency, Washington, D.C.

KENNETH J. SULLIVAN,

Office of Natural and Technological Hazards Programs, State and Local Programs and Support, Federal Emergency Management Agency, Washington, D.C.

J. LAWRENCE VON THUN,

Bureau of Reclamation, U.S. Department of the Interior, Denver, Colorado

SPENCER WU,

Air Force Office of Scientific Research, U.S. Department of the Air Force, Washington, D.C.

EDWARD YOUNGER,

Structural Engineering Service, U.S. Department of Veterans Affairs, Washington, D.C.

ARTHUR ZEIZEL,

Office of Natural and Technological Hazards Programs, State and Local Programs and Support, Federal Emergency Management Agency, Washington, D.C.

Staff

RILEY M. CHUNG, Director

SUSAN R. MCCUTCHEN, Administrative Assistant

SHIRLEY J. WHITLEY, Project Assistant

EDWARD LIPP, Editor

Technical Editor

CAROLETTA LOWE,

Editorial Concepts, Columbia, Maryland

Suggested Citation:"FRONT MATTER." National Research Council. 1992. The Economic Consequences of a Catastrophic Earthquake: Proceedings of a Forum. Washington, DC: The National Academies Press. doi: 10.17226/2027.
×

ADVISORY GROUP FOR THE FORUM ON EARTHQUAKE ECONOMIC ISSUES

JOANNE NIGG (Chair),

Disaster Research Center, University of Delaware, Newark

RICHARD N. BOISVERT,

Department of Agricultural Economics, Cornell University, Ithaca, New York

RICHARD K. EISNER,

Bay Area Regional Earthquake Preparedness Project, Oakland, California

HOWARD KUNREUTHER,

Department of Decision Sciences, The Wharton School, University of Pennsylvania, Philadelphia

SHIRLEY MATTINGLY,

Office of Emergency Management, City of Los Angeles, California

JEROME MILLIMAN (retired),

Bureau of Economic and Business Research, University of Florida, Gainesville

RISA PALM,

Graduate School, University of Colorado, Boulder

WILLIAM J. PETAK,

Institute of Safety and Systems Management, University of Southern California, Los Angeles

Liaison Representatives

GARY JOHNSON,

Office of Natural and Technological Hazards Programs, Federal Emergency Management Agency, Washington, D.C.

EUGENE L. LECOMTE,

The Earthquake Project, National Committee on Property Insurance, Boston, Massachusetts

JAMES TAYLOR,

Insurance Support Services, Federal Insurance Administration, Federal Emergency Management Agency, Washington, D.C.

SPEAKERS

CHRISTOPHER ARNOLD,

Building Systems Development, Inc., San Mateo, California

ROBERT G. CHAPPELL,

State and Local Programs and Support, Federal Emergency Management Agency, Washington, D.C.

LEONARD K. CHENG,

Department of Economics, University of Florida, Gainesville

HAROLD COCHRANE,

Department of Economics, Colorado State University, Fort Collins

NEIL DOHERTY,

Department of Decision Sciences, The Wharton School, University of Pennsylvania, Philadelphia

RONALD EGUCHI,

Dames and Moore, Los Angeles, California

DON G. FRIEDMAN,

Corporate Strategy and Research, Travelers Insurance Company, Hartford, Connecticut

ROBERT M. HAMILTON,

U.S. Geological Survey, Reston, Virginia

Suggested Citation:"FRONT MATTER." National Research Council. 1992. The Economic Consequences of a Catastrophic Earthquake: Proceedings of a Forum. Washington, DC: The National Academies Press. doi: 10.17226/2027.
×

ROBERT W. KLING,

Department of Economics, Colorado State University, Fort Collins

HOWARD KUNREUTHER,

Department of Decision Sciences, The Wharton School, University of Pennsylvania, Philadelphia

TAPAN MUNROE,

Pacific Gas and Electric Company, San Francisco, California

RICHARD J. ROTH, Jr.,

California Department of Insurance, Los Angeles

BARBARA D. STEWART,

Stewart Economics, Inc., Chapel Hill, North Carolina

KATHLEEN TIERNEY,

Disaster Research Center, University of Delaware, Newark

L. THOMAS TOBIN,

Seismic Safety Commission, Sacramento, California

ANTHONY M. YEZER,

Department of Economics, George Washington University, Washington, D.C.

Original transcription of Proceedings by C.A.S.E.T. Associates, Fairfax, Virginia

Suggested Citation:"FRONT MATTER." National Research Council. 1992. The Economic Consequences of a Catastrophic Earthquake: Proceedings of a Forum. Washington, DC: The National Academies Press. doi: 10.17226/2027.
×

Table of Contents

Page viii Cite
Suggested Citation:"FRONT MATTER." National Research Council. 1992. The Economic Consequences of a Catastrophic Earthquake: Proceedings of a Forum. Washington, DC: The National Academies Press. doi: 10.17226/2027.
×

List of Illustrations

Figures:

FIGURE 1-1

 

Global distribution of seismicity.

 

13

FIGURE 1-2

 

Earthquakes and global tectonics.

 

14

FIGURE 1-3

 

Schematic cross section illustrating plate tectonics processes.

 

15

FIGURE 1-4

 

The North American plate.

 

16

FIGURE 1-5

 

Major (M>7) California Earthquakes (1812–1989).

 

16

FIGURE 1-6

 

The San Andreas fault system.

 

17

FIGURE 1-7

 

The Loma Prieta earthquake.

 

18

FIGURE 1-8

 

Cross section of seismicity along the San Andreas fault.

 

20

FIGURE 1-9

 

Loma Prieta earthquakes (October 17–19, 1989).

 

21

FIGURE 1-10

 

Preliminary probabilities of large San Andreas earthquakes (1988–2018).

 

21

FIGURE 1-11

 

Collapsed section of the Bay Bridge.

 

22

FIGURE 1-12

 

Multistory building in the Marina District.

 

22

FIGURE 1-13

 

Liquefaction in the Marina District.

 

23

FIGURE 1-14

 

Collapsed bridge in Salinas River valley.

 

24

FIGURE 1-15

 

Nimitz Freeway, showing collapsed pilings.

 

25

FIGURE 1-16

 

Chasms in the Santa Cruz Mountains.

 

26

FIGURE 1-17

 

Collapsed house at Boulder Creek.

 

27

FIGURE 1-18

 

San Francisco Bay area: predicted maximum earthquake intensity.

 

27

Suggested Citation:"FRONT MATTER." National Research Council. 1992. The Economic Consequences of a Catastrophic Earthquake: Proceedings of a Forum. Washington, DC: The National Academies Press. doi: 10.17226/2027.
×

FIGURE 1-19

 

Earthquakes of intensity > VII or felt area > 450,000 km2.

 

28

FIGURE 1-20

 

Felt areas of some large U.S. earthquakes.

 

29

FIGURE 1-21

 

Terrain map of the eastern United States.

 

30

FIGURE 1-22

 

Gravity map of the eastern United States.

 

30

FIGURE 1-23

 

Seismic activity in the New Madrid region.

 

31

FIGURE 1-24

 

Magnetic field in the New Madrid region.

 

31

FIGURE 2-1

 

Earthquake-damage-loss estimation.

 

39

FIGURE 2-2

 

Loss ratio versus modified Mercalli intensity (mean damage ratio curves).

 

40

FIGURE 2-3

 

Expert responses to round one damage factor questionnaire for Facility Class 18—low-rise moment-resisting ductile concrete-frame buildings.

 

42

FIGURE 2-4

 

Expert responses to round two damage factor questionnaire for Facility Class 18—low-rise moment-resisting ductile concrete-frame buildings.

 

42

FIGURE 2-5

 

Fragility curves for wood-frame buildings.

 

43

FIGURE 2-6

 

Intensity-damage relationships for unreinforced masonry buildings.

 

44

FIGURE 2-7

 

Composite map of the highest modified Mercalli intensity that might be observed at each location if the magnitude of a simulated earthquake held constant at 8.6 and its epicenter were shifted in increments along the New Madrid seismic zone.

 

58

FIGURE 2-8

 

Loss-producing potential of a recurrence of the December 16, 1811, New Madrid earthquake.

 

60

FIGURE 2-9

 

Loss-producing potential of a recurrence of the 1886 Charleston, South Carolina earthquake.

 

61

FIGURE 2-10

 

Loss-producing potential of a recurrence of the 1755 Cape Ann (Boston), Massachusetts earthquake.

 

62

Suggested Citation:"FRONT MATTER." National Research Council. 1992. The Economic Consequences of a Catastrophic Earthquake: Proceedings of a Forum. Washington, DC: The National Academies Press. doi: 10.17226/2027.
×

FIGURE 2-11

 

Loss-producing potential of a recurrence of a stronger (magnitude 6.7) Cape Ann (Boston), Massachusetts earthquake.

 

63

FIGURE 2-12

 

Estimated damage to buildings caused by ground motion and fire following an earthquake, versus earthquake magnitude. Damage, expressed in terms of the catastrophe index (Table 2-5), is based on vulnerability scenarios 1 and 3.

 

74

FIGURE 2-13

 

Effect of a local labor demand increase.

 

93

FIGURE 2-14

 

Effect of a local labor demand decrease.

 

94

FIGURE 2-15

 

Social capital lost from relocation.

 

96

FIGURE 2-16

 

Losses to workers from lower labor demand.

 

97

FIGURE 3-1

 

Flow of payments in a simple, three-sector economy.

 

102

FIGURE 5-1

 

San Francisco Bay Area economic indicators (1985 = 100).

 

135

Tables:

TABLE 2-1

 

Construction Classes Used in the ISO and NOAA/USGS Methods

 

38

TABLE 2-2

 

Injury and Death Rates in Relation to Damage

 

45

TABLE 2-3

 

Comparison of Some Building Damage Ratios (D/R)

 

46

TABLE 2-4

 

Percentage of Past Hurricanes with a Simulated 1990 Recurrence that Produce Various Loss Potentials when Grouped by Storm Intensity

 

54

TABLE 2-5

 

Catastrophe Index Resulting from the Simulated Present-Day Recurrence of 247 Past Hurricanes (1871–1990) Listed Versus Each Storm's Saffir-Simpson Intensity at Landfall

 

55

Suggested Citation:"FRONT MATTER." National Research Council. 1992. The Economic Consequences of a Catastrophic Earthquake: Proceedings of a Forum. Washington, DC: The National Academies Press. doi: 10.17226/2027.
×

TABLE 2-6

 

Occurrence Date, Location, and Magnitude of the Ten Largest Earthquakes that Affected the Central and Eastern United States and Southern Canada in Historic Times

 

57

TABLE 2-7

 

Estimate of the Number of Persons Who Would be Exposed to Various Levels of Ground-Motion Severity Caused by Each of the Scenario Earthquakes

 

65

TABLE 2-8

 

Estimate of the Number of Fatalities Caused by Each of the Hypothetical Earthquakes and the Three Fatality-Vulnerability Scenarios

 

68

TABLE 2-9

 

Estimated Building-Damage Losses by State Resulting from a 1990 Recurrence of the December 16, 1811, New Madrid Earthquake with a Richter Magnitude 8.6, Based on Damage-Vulnerability Scenario 2

 

72

TABLE 2-10

 

Probability of Earthquake Occurrence in the Decade Before the Year 2001 (in Percentages)

 

73

TABLE 2-11a

 

Estimated 1990 Fatality and Building Damage Potentials in the Central and Eastern United States Resulting from Simulated Earthquakes of Various Magnitudes Centered at the Location of the 1811 New Madrid, 1886 Charleston, and 1755 Cape Ann Events, Based on the Scenario 2 Vulnerability Relationship: Number of Fatalities

 

75

TABLE 2-11b

 

Estimated 1990 Fatality and Building Damage Potentials in the Central and Eastern United States Resulting from Simulated Earthquakes of Various Magnitudes Centered at the Location of the 1811 New Madrid, 1886 Charleston, and 1755 Cape Ann Events, Based on the Scenario 2 Vulnerability Relationship: Building Damage (Millions of Dollars)

 

76

TABLE 2-12

 

Per Trip Costs and Per Capita Visits

 

89

TABLE 2-13

 

Visits Demanded at Various Cost Increments

 

90

TABLE 5-1

 

Economic Impact of the Loma Prieta Earthquake

 

134

TABLE 5-2

 

Economic Impact of the Loma Prieta Earthquake

 

137

Suggested Citation:"FRONT MATTER." National Research Council. 1992. The Economic Consequences of a Catastrophic Earthquake: Proceedings of a Forum. Washington, DC: The National Academies Press. doi: 10.17226/2027.
×

The National Academy of Sciences is a private, nonprofit, self-perpe tuating society of distinguished scholars engaged in scientific and engineering research, dedicated to the furtherance of science and technology and to their use for the general welfare. Upon the authority of the charter granted to it by the Congress in 1863, the Academy has a mandate that requires it to advise the federal government on scientific and technical matters. Dr. Frank Press is president of the National Academy of Sciences.

The National Academy of Engineering was established in 1964, under the charter of the National Academy of Sciences, as a parallel organization of outstanding engineers. It is autonomous in its administration and in the selection of its members, sharing with the National Academy of Sciences the responsibility for advising the federal government. The National Academy of Engineering also sponsors engineering programs aimed at meeting national needs, encourages education and research, and recognizes the superior achievements of engineers. Dr. Robert M. White is president of the National Academy of Engineering.

The Institute of Medicine was established in 1970 by the National Academy of Sciences to secure the services of eminent members of appropriate professions in the examination of policy matters pertaining to the health of the public. The Institute acts under the responsibility given to the National Academy of Sciences by its congressional charter to be an adviser to the federal government and, upon its own initiative, to identify issues of medical care, research, and education. Dr. Kenneth Shine is president of the Institute of Medicine.

The National Research Council was established by the National Academy of Sciences in 1916 to associate the broad community of science and technology with the Academy's purposes of furthering knowledge and of advising the federal government. Functioning in accordance with general policies determined by the Academy, the Council has become the principal operating agency of both the National Academy of Sciences and the National Academy of Engineering in providing services to the government, the public, and the scientific and engineering communities. The Council is administered jointly by both Academies and the Institute of Medicine. Dr. Frank Press and Dr. Robert M. White are chairman and vice-chairman, respectively, of the National Research Council.

Page xiii Cite
Suggested Citation:"FRONT MATTER." National Research Council. 1992. The Economic Consequences of a Catastrophic Earthquake: Proceedings of a Forum. Washington, DC: The National Academies Press. doi: 10.17226/2027.
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The Economic Consequences of a Catastrophic Earthquake

Suggested Citation:"FRONT MATTER." National Research Council. 1992. The Economic Consequences of a Catastrophic Earthquake: Proceedings of a Forum. Washington, DC: The National Academies Press. doi: 10.17226/2027.
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Page xiii Cite
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This book presents the proceedings of an August 1990 forum held at the National Academy of Sciences in Washington, D.C. Topics covered include the current and potential roles of the private sector and the various levels of government before, during, and after an earthquake occurs, and alternative strategies that could be implemented to reduce the economic impacts, with emphasis placed on the role of the insurance industry.

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