Assessing the economic impact of tsunami and nuclear power plant disasters in Shizuoka, Japan: a dynamic inter-regional input-output (IRIO) approach

Natural disasters cause damage to regional economies. This study investigated how production activities in 35 municipalities of Shizuoka Prefecture recover when such activities stop due to a nuclear power plant disaster and tsunami that may be caused by a Nankai Megathrust Earthquake (NME). We developed a dynamic inter-regional input-output model (IRIO) featuring a production bottleneck due to a shortage of inputs and other goods. Using a simulation model, the economic damage caused by single and combined disasters was evaluated based on several recovery scenarios. The effect of depopulation in Japan on post-disaster recovery processes was also examined. This analysis provides useful disaster preparedness information for local governments and companies.