Earthquake loss estimation for Greater Cairo and the national economic implications

The Egyptian economy and culture are centralized in the Greater Cairo region. Thus, it is essential that the built environment is able to withstand the possible earthquake events that may occur, and to continue to operate and function. Failure to do so would result in significant economic losses. This study presents the latter stages of a multi-tiered probabilistic earthquake loss estimation model for Greater Cairo and builds upon previous studies of the seismic hazard. In order to assess possible damage to the built environment, and the resulting economic losses, the vulnerability of the built environment is first evaluated. Through the use of satellite images, Egypts building census, previous studies and field surveys, a building-stock inventory is compiled. This building inventory is classified according to structural type and height, and is geocoded by district. Using existing fragility curves, the vulnerability of the building stock is assessed. In addition, the vulnerability of both the electricity and natural gas networks are assessed, through the use of fragility curves, cut sets and an evaluation of the supply networks. Based on the assessment of direct losses, the losses associated with building damage far exceed those associated with the considered network infrastructure. A macro-economic model is developed that takes into account damage to the built environment and provides estimates of indirect economic losses, as well as enabling the identification of the optimal recovery process. Using this model, it is shown that the indirect losses can exceed direct losses for extreme scenarios where the economy is brought to a near standstill. The framework developed and presented herein can be extended to include more networks, and is also applicable to other regions.

[1]  Adam Rose,et al.  Regional Economic Impacts of a Terrorist Attack on the Water System of Los Angeles: A Computable General Disequilibrium Analysis , 2007 .

[2]  Stephanie E. Chang,et al.  The Regional Economic Impact of an Earthquake: Direct and Indirect Effects of Electricity Lifeline Disruptions , 1997 .

[3]  Stephanie E. Chang,et al.  Direct and Indirect Economic Losses from Earthquake Damage , 1997 .

[4]  Thalia Anagnos,et al.  Development of an Electrical Substation Equipment Performance Database for Evaluation of Equipment Fragilities , 2002 .

[5]  Ragui Assaad,et al.  Formal and informal institutions in the labor market, with applications to the construction sector in Egypt , 1993 .

[6]  A. Rose Input-output economics and computable general equilibrium models , 1995 .

[7]  Harry W. Richardson,et al.  The business interruption effects of the Northridge earthquake , 1995 .

[8]  Julian J. Bommer,et al.  The impact of epistemic uncertainty on an earthquake loss model , 2005 .

[9]  Omar Pineda-Porras,et al.  SEISMIC VULNERABILITY FUNCTION FOR HIGH-DIAMETER BURIED PIPELINES: MEXICO CITY'S PRIMARY WATER SYSTEM CASE , 2003 .

[10]  Gregory C. Beroza 15 Years Later: The Growing Legacy of the 1995 Kobe Earthquake , 2010 .

[11]  Stéphane Hallegatte,et al.  An Adaptive Regional Input‐Output Model and its Application to the Assessment of the Economic Cost of Katrina , 2006, Risk analysis : an official publication of the Society for Risk Analysis.

[12]  J. Shoven,et al.  Applying general equilibrium , 1993 .

[13]  Mahmoud Mohieldin,et al.  On bank privatization: The case of Egypt , 2007 .

[14]  Adam Rose,et al.  Business interruption losses from natural hazards: conceptual and methodological issues in the case of the Northridge earthquake , 2002 .

[15]  Christopher F. Dumas,et al.  Impact of Low-Intensity Hurricanes on Regional Economic Activity , 2002 .

[16]  Jack W. Baker,et al.  Efficient sampling and data reduction techniques for probabilistic seismic lifeline risk assessment , 2010 .

[17]  M. Ordaz,et al.  A New Seismic Intensity Parameter to Estimate Damage in Buried Pipelines due to Seismic Wave Propagation , 2007 .

[18]  G. Atkinson,et al.  Ground-Motion Prediction Equations for the Average Horizontal Component of PGA, PGV, and 5%-Damped PSA at Spectral Periods between 0.01 s and 10.0 s , 2008 .

[19]  Julian J. Bommer,et al.  A framework for a seismic risk model for Greater Cairo , 2008 .

[20]  Wassily Leontief Input-Output Economics , 1966 .

[21]  Elkhayam Medhat Dorra Greater Cairo earthquake loss assessment and its implications on the Egyptian economy , 2011 .

[22]  N. Abrahamson,et al.  Summary of the Abrahamson & Silva NGA Ground-Motion Relations , 2008 .

[23]  Masanobu Shinozuka,et al.  Seismic performance of electric transmission network under component failures , 2007 .

[24]  S. Tsuchiya,et al.  A framework for economic loss estimation due to seismic transportation network disruption: a spatial computable general equilibrium approach , 2008 .

[25]  Marco Antonio Torres-Vera,et al.  A lifeline vulnerability study in Barcelona, Spain , 2003, Reliab. Eng. Syst. Saf..

[26]  Seung-Yong Ok,et al.  Multi-scale system reliability analysis of lifeline networks under earthquake hazards , 2009 .

[27]  J. Bommer,et al.  Empirical Equations for the Prediction of PGA, PGV, and Spectral Accelerations in Europe, the Mediterranean Region, and the Middle East , 2010 .