Evaluation of Economic Impacts from Flood Damages Using Hybrid Input-Output Analysis

Abstract. Flooding is a common issue in many countries and can cause extensive damage to residential areas, agricultural and livestock areas, and public facilities. These damages impact the local economy directly and create unexpected demand for goods and services. The consequences of flood damage are marked by the ambiguity of how it changes the production of local economies. For this reason, our study implements the use of the hybrid I-O analysis to evaluate the economic effects of flood damages. The flooding scenario in Kochi prefecture, Japan simulated from the inundation model was selected to demonstrate the analysis. The influences of flood damages were divided into two stages, the garbage cleaning stage and the reconstructing stage; these two stages lead to the different scenarios based on the different activities. It was found that in total, flood damages could stimulate economic growth when the positive effect of reconstruction activities surpass the negative effect of garbage cleaning activities.