Economic impacts of transportation network changes: Implementation of a combined transportation network and input‐output model

Abstract

Abstract This article estimates and evaluates the economic impacts from a catastrophic earthquake within regional and national contexts, emphasising the inter‐industry relationship in conjunction with regional commodity flows and the assessment of seismic damages on a transportation network. The analytical methods employed are twofold: a multi‐regional input‐output model and a regional commodity flow model.Using the above analytical framework, the economic impacts from a catastrophic earthquake are estimated and evaluated based on hypothetical scenarios of the event, by analysing the magnitude and extent of direct and indirect impacts. Furthermore, as possible extensions, the models developed here can be used as tools for strategic management of the recovery and reconstruction efforts after the event.