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Showing papers on "Natural disaster published in 1974"


Book
01 Jan 1974

376 citations


Journal ArticleDOI
TL;DR: In this paper, the authors evaluate alternative measures for mitigating losses to residential structures from natural disasters and suggest a plan for mitigating future losses based on comprehensive disaster insurance coupled with land use measures and building codes regulations.
Abstract: This paper evaluates alternative measures for mitigating losses to residential structures from natural disasters. The first part focuses on the effect of liberalized federal disaster relief policies on the types of structures which will be built in hazard-prone areas. Both physical losses from disasters as well as intangible costs, such as the value of a human life, are considered in the evaluation of two alternative type structures. The second part of the paper discusses four extreme costbearing approaches to cover losses from natural disasters: (i) Total federal responsibility, (ii) Self insurance by the homeowner, (iii) Required insurance protection, (iv) Land use restrictions and building codes. The concluding section suggests a plan for mitigating future losses based on comprehensive disaster insurance coupled with land use measures and building codes regulations. A critical question which remains to be answered is whether disaster insurance should be voluntary or required. During the past several years the United States has had more than its usual share of damage from the natural elements: an earthshaking experience in San Fernando, a windblown affair in Lubbock, Texas, and stormy Agnes creating havoc in the Northeast. Not only have these recent disasters demonstrated that nature knows no boundaries but they have underlined the importance of pre-disaster planning. One of the lessons to be learned from these recent events is the failure of communities and individuals to protect themselves adequately against potential damage from disasters. In San Fernando, a number of buildings including a newly occupied hospital did not withstand the force of the quake. Few individuals living in the area carried earthquake insurance even though the rates were relatively modest. For example, the premium rate for wood frame houses is twenty cents per $100 of coverage for straight earthquake insurance and fifteen cents per $100 if the risk is endorsed on Howard Kunreuther, Ph.D., is Associate Professor in The Wharton School of the University of Pennsylvania. He is co-author of The Economics of Natural Disasters: Implications for Federal Policy (New York: Free Press, 1969) which received the 1971 Elizur Wright Award. Dr. Kunreuther's monograph, Recovery From Natural Disasters: Insurance or Federal Aid?, was published in 1973 by the American Enterprise Institute. This paper was submitted in March, 1973. The author gratefully acknowledges support for this paper from NSF-RANN grant GI 39587.

25 citations



ReportDOI
01 Jan 1974
TL;DR: In this article, the authors examined the extent of some of the losses resulting from natural disasters, including hurricanes, floods, earthquakes and tornadoes, and made recommendations for further research in determining the economic feasibility of various techniques designed to mitigate the losses from disasters.
Abstract: This study examines the extent of some of the losses resulting from natural disasters. An estimate of these losses is necessary in order to determine the potential benefits that might be realized from mitigating the negative economic impacts from natural disasters. Absolute and relative losses resulting from hurricanes, floods, earthquakes and tornadoes are examined. These data will help individuals, communities, and the Federal government make better decisions as to how and to what extent protection against disasters should be provided. The application of benefit-cost analysis for choosing the optimal level of protection against disasters is also discussed. Recommendations are made for further research in determining the economic feasibility of various techniques designed to mitigate the losses from disasters.

3 citations