Economic resilience lessons from the ShakeOut earthquake scenario
Following a damaging earthquake, “business interruption” (BI)—reduced production of goods and services—begins and continues long after the ground shaking stops. Economic resilience reduces BI losses by making the best use of the resources available at a given point in time (static resilience) or by speeding recovery through repair and reconstruction (dynamic resilience), in contrast to mitigation that prevents damage in the first place. Economic resilience is an important concept to incorporate into economic loss modeling and in recovery and contingency planning. Economic resilience framework includes the applicability of resilience strategies to production inputs and output, demand- and supply-side effects, inherent and adaptive abilities, and levels of the economy. We use our resilience framework to organize and share strategies that enhance economic resilience, identify overlooked resilience strategies, and present evidence and structure of resilience strategies for economic loss modelers. Numerous resilience strategies are compiled from stakeholder discussions about the ShakeOut Scenario (Jones et. al. 2008). Modeled results of ShakeOut BI sector losses reveal variable effectiveness of resilience strategies for lengthy disruptions caused by fire-damaged buildings and water service outages. Resilience is a complement to mitigation and may, in fact, have cost and all-hazards advantages.