Direct Economic Losses Research Articles

Damage Characteristics and Mechanism of a Strong Water Inrush Disaster at the Wangjialing Coal Mine, Shanxi Province, China

A serious groundwater inrush occurred at the Wangjialing coal mine on March 28, 2010. Great effort from all over the country was taken during the postaccident rescue. However, triggered by accumulated water in the upper abandoned tunnels and goafs of a nearby closed individually owned coal mine, it caused great damage, including 38 deaths and direct economic losses of over 49 million yuan. The inrush water was from the abandoned tunnels and goafs, which were filled subsequently by groundwater from the sandstone aquifer in the roof of the coal seam. The passage formed in the west roof of the heading face of the air return tunnel in the 20101 first mining face. Unidentified distribution and water-filled degree of the abandoned tunnels and goafs are critical bases for the accident. That important regulations for abundant groundwater exploration and release were not carried out thoroughly was another fatal cause leading to the accident. The poor awareness of water hazard controlling also contributed to the accident to a large extent.

The Prevalence of Bovine and Ovine Fasciolosis and the Associated Economic Loss Due to Liver Condemnation in and around Debire Birhan, Ethiopia

CA cross-sectional survey was conducted from October 2013 up to March 2014 to assess the prevalence, risk factors and direct economic loss of bovine and ovine fasciolosis in and around Debire Birhan, a town of North shoa Amhara Regional state. In the present study coprology, postmortem examination, questionnaire survey and an abattoir retrospective data were retrieved and analyzed. Seven Kebeles were purposively selected for coprological examination by considering the number of cattle and sheep population of the area and proximity to parasitological laboratories. Coprological examination of fecal samples randomly collected from 300 cattle and 280 sheep revealed an overall prevalence of 62.3% in cattle and 60.7% in sheep whereas 450 (300 cattle and 150 sheep) animals were randomly selected from Debire Birhan Municipal Abattoir for post mortem examination and revealed a total prevalence of 58.6% and 56.0% in cattle and sheep, respectively. This study shows that risk factors such as locality, species and age didn’t show significant effect on the prevalence of infections in both cattle and sheep (P>0.05). However, season, sex, and body condition revealed significant difference (P< 0.05) as higher degree of infections were detected in Autumn, female and in poor body conditioned, respectively. Species identification revealed that F. hepatica was highly abundant (43.8%) as compared to Fasciola gigantica (10.2%) in cattle. Likewise sheep livers also harbored F. hepatica (44.0%) and F.gigantica (15.5%). Certain proportion of mixed and unidentified immature fluke infection also common in both species. The economic loss incurred due to condemned liver as a result of bovine and ovine fasciolosis was estimated to be 59,387ETB (2969USD) per annum. In conclusion, fasciolosis was proved to be widely distributed disease with higher prevalence and great impact on the economy. Therefore integrated vector and parasite control approaches should be involved so as to reduce the snail burn and infection rate. Key words: Abattoir, Bovine, Ovine, Coprology, Economic significance, Fasciolosis, Prevalence. Debire Birhan.

Historical Earthquakes and Their Socioeconomic Consequences in China: 1950⁻2017.

Understanding the spatiotemporal pattern of historical earthquake disasters and resultant socioeconomic consequences is essential for designing effective disaster risk reduction measures. Based on historical earthquake disaster records, this study compiles a Chinese earthquake disaster catalog (CH-CAT) that includes records of 722 earthquake disasters that occurred during 1950–2017 in the mainland of China. This catalog includes more complete data records than other existing global earthquake databases for China as a whole. Statistical results demonstrate that the number of earthquake disasters and the resultant direct economic losses (DELs) exhibit significant increasing trends (p < 0.01) over the studied 68-year period. Earthquake-induced deaths vary greatly between individual years and exhibit no significant trend. The Qinghai-Tibet seismic zone is the area with the highest frequency of earthquake disasters and the largest accumulated DELs, whereas the North China seismic zone is associated with the highest number of deaths. Among the 722 earthquake disasters, nearly 99.0% of deaths and 95.0% of DELs are attributable to 1.8% and 3.9% of the earthquake disasters, respectively. Approximately 54.2% of recorded earthquake disasters have earthquake magnitude (Ms) values between 5.0 and 5.9, while earthquake disasters with Ms greater than or equal to 7.0 account for 88.5% of DELs and 98.8% of deaths. On average, earthquake-induced DELs and deaths increase nonlinearly with increasing Ms per earthquake. DELs have a positive correlation with deaths and casualties on a logarithmic scale. This study further discusses that during different stages of socioeconomic development, changes in both exposure and vulnerability may be the major factors leading to change differences in earthquake-induced socioeconomic consequences. This study is a beneficial supplement to the global earthquake database and is useful for calibrating global or regional empirical loss models.

The Comprehensive Analysis of Flood Disasters Losses in China from 2000 to 2010

Flood disasters possess the features of high frequency; widen involving, severe damages and so on. An understanding of flood disaster impact including social and economic aspects is becoming a significant factor to find out a comprehensive and participatory approach for long-term disaster risk reduction and management. On the basis of the flood disasters losses in Chinese provinces, municipalities directly under the central government, affected population, disaster area of crops and direct economic loss were utilized as indicators to probe into the flood disaster impact. Thus based on general statistical method and correlation analysis method, this paper analyzed the tendency of flood disasters losses over time on the angle of above aspects, calculated the correlation between affected population, disaster area of crops and direct economic losses, and eventually the empirical correlation was built. The results showed that the ratio of the maximum direct economic loss to the minimum one was the highest among that of affected population and disaster area of crops. Moreover, the impact of flood disaster on Chinese economy showed a decrease tendency, but the extreme weather may still cause the occurrence of national flood disasters leading to serious losses. After analyzing, the conclusion that Hunan, Hubei, Sichuan, Anhui, Henan and Guangxi are areas suffering the most serious flood disasters in China.

Normalized hurricane damage in the continental United States 1900–2017

Direct economic losses result when a hurricane encounters an exposed, vulnerable society. A normalization estimates direct economic losses from a historical extreme event if that same event was to occur under contemporary societal conditions. Under the global indicator framework of United Nations Sustainable Development Goals, the reduction of direct economic losses as a proportion of total economic activity is identified as a key indicator of progress in the mitigation of disaster impacts. Understanding loss trends in the context of development can therefore aid in assessing sustainable development. This analysis provides a major update to the leading dataset on normalized US hurricane losses in the continental United States from 1900 to 2017. Over this period, 197 hurricanes resulted in 206 landfalls with about US$2 trillion in normalized (2018) damage, or just under US$17 billion annually. Consistent with observed trends in the frequency and intensity of hurricane landfalls along the continental United States since 1900, the updated normalized loss estimates also show no trend. A more detailed comparison of trends in hurricanes and normalized losses over various periods in the twentieth century to 2017 demonstrates a very high degree of consistency. Reducing direct economic losses from disasters is part of mitigating disaster impacts. This study presents an update to the leading dataset on normalized US hurricane losses in the continental United States from 1900 to 2017.

Risk zoning of typhoon disasters in Zhejiang Province, China

Abstract. In this paper, typhoon simply means tropical cyclone. As risk is future probability of hazard events, when estimated future probability is the same as historical probability for a specific period, we can understand risk by learning from past events. Based on precipitation and wind data over the mainland of China during 1980–2014 and disaster and social data at the county level in Zhejiang Province from 2004 to 2012, a study on risk zoning of typhoon disasters (typhoon disasters in this paper refer to affected population or direct economic losses caused by typhoons in Zhejiang Province) is carried out. Firstly, characteristics of typhoon disasters and factors causing typhoon disasters are analyzed. Secondly, an intensity index of factors causing typhoon disasters and a population vulnerability index are developed. Thirdly, combining the two indexes, a comprehensive risk index for typhoon disasters is obtained and used to zone areas of risk. The above analyses show that southeastern Zhejiang is the area most affected by typhoon disasters. The annual probability of the occurrence of typhoon rainstorms &gt;50 mm decreases from the southeast coast to inland areas, with a maximum in the boundary region between Fujian and Zhejiang, which has the highest risk of rainstorms. Southeastern Zhejiang and the boundary region between Zhejiang and Fujian provinces and the Hangzhou Bay area are most frequently affected by extreme typhoon winds and have the highest risk of wind damage. The population of southwestern Zhejiang is the most vulnerable to typhoons as a result of the relatively undeveloped economy, mountainous terrain and the high risk of geological disasters in this region. Vulnerability is lower in the cities due to better disaster prevention and reduction strategies and a more highly educated population. The southeast coastal areas face the highest risk of typhoon disasters, especially in the boundary region between Taizhou and Wenzhou cities. Although the inland mountainous areas are not directly affected by typhoons, they are in the medium-risk category for vulnerability.

Rainfall occurrence and its relation to flood damage in China from 2000 to 2015

China is highly susceptible to flood disasters and subjected to great damage every year. Furthermore, the flood frequency has exhibited an increasing trend in recent years. Most flood events, including flash floods and river flood, are induced by rainfall. This study investigates annual variations of rainfall occurrence over China during the period from 2000 to 2015 at the national and regional scale using daily rainfall data from the Tropical Rainfall Measuring Mission. The Mann-Kendall test is performed for trend detection, and statistical data of flood damage published by China’s government, including destroyed crop area, damaged buildings, direct economic loss, percentage of GDP (gross domestic product), and death toll are correlatively analysed with rainfall occurrences. The results show that storm rain events show the greatest variation among three rainfall types (moderate rain, heavy rain and storm rain). The variation coefficients of rainfall over Northeast China, North China, and Northwest China are the highest, whereas that for Southwest China is the smallest. Moderate rain, heavy rain over Central China, and moderate rain over Southwest China exhibits decreasing trends, whereas the remaining exhibit increasing trends. The correlation between the rainfall occurrences and these flood damage indices at the national scale shows that only direct economic loss has a strong positive correlation with rainfall occurrences, and the other indices have weaker correlations. The correlation is strong in three north regions, except for death toll in Northwest China. In contrast, the correlation between flood damage and rainfall is weak in East China, Central China, Southwest China, and South China. Overall, death toll is strongly correlated with the number of damaged buildings, implying that flood fatalities in China are likely associated with building collapse, and are dominated by specific extreme events. This study can provide a scientific reference for flood management in China.

How earthquake-induced direct economic losses change with earthquake magnitude, asset value, residential building structural type and physical environment: An elasticity perspective

Diagnosing all components of risk is essential in earthquake loss attribution science, but quantitative estimates on how sensitive the earthquake-induced direct economic losses (DELs) are to changes in hazard, exposure and vulnerability is rarely known. Here the relationship between earthquake DELs and earthquake magnitude (Ms), asset value exposure (K), proportion of non-steel-concrete residential buildings (H) and physical environment instability (E) is quantified using the concept of economic elasticity. Earthquake disaster event-based DEL records over the period from 1990 to 2016 for the mainland of China are fitted to a regression model. Elasticity values for Ms, K, H and E are 7.63, 0.75, 4.92 and 0.91, respectively, indicating that on average, DEL changes are more sensitive to changes in Ms and H—a 13% increase in Ms or a 20% increase in H would double earthquake DELs, while it may take a 133% increase in K or a 110% increase in E to cause the same economic losses. In turn, this suggests that human factors—decreasing H and K—could be efficient ways to reduce earthquake risk, while these two factors will become increasingly relevant for risk assessment in the future with continued economic growth. The elasticity estimate results could be used for studying future change in earthquake risks and for supporting disaster risk reduction strategies.

An Optimized Procedure to Estimate the Economic Seismic Losses of Existing Reinforced Concrete Buildings due to Seismic Damage

The latest Italian seismic events have highlighted a high discrepancy between the potential destructiveness of an earthquake and the consequent economic losses due to damage to buildings. The main reason for this mismatch is the high number of vulnerable residential buildings or the low-to-medium vulnerability of buildings that are reaching the ends of their service lives. Awareness of the economic impact of seismic vulnerability should be a matter of primary interest for public administrations, private and insurance companies, banks, owners, and professionals, despite operating at different territorial levels and with different objectives. Quantification of the expected monetary consequence of seismic vulnerability, in terms of the probable cost of repairing earthquake damage, plays a key role in defining new and more effective seismic risk mitigation strategies. Retrofitting strategies based on intervention priority defined only according to the structural seismic risk level of buildings are incorrect. These strategies neglect several important issues, such as the financial losses caused by building damage. A new procedure for estimating the expected seismic direct economic losses resulting from building damage (repair/replacement measures) is proposed and applied. The fundamental roles of analytical fragility curves and cost ratio functions in the new procedure are highlighted.

Energy and asset value elasticity of earthquake-induced direct economic losses

Major earthquakes usually release massive energy with a strong destructive force on human life and property. Nevertheless, how earthquake-induced direct economic losses (DELs) depend on earthquake energy dissipation and asset value exposure is still rarely known. Based on the estimated asset value exposure and the estimated earthquake energy for DELs produced by earthquakes over the period from 1990 to 2016 in China, the economic concept of elasticity is used to quantify the statistical relationship between DELs, asset value exposure and earthquake energy. The results show that asset value exposure and earthquake energy are correlated with earthquake DELs. On average, changes in asset value exposure have been relatively more important in explaining earthquake DELs than changes in earthquake energy. Moreover, a doubling in asset value exposure increases the DEL by 60% while a doubling in energy dissipation leads to a 31% increase in the DEL, and these results could be used for DEL predictions for new emerging earthquakes. This study suggested that the accumulation of wealth in earthquake-prone regions under economic growth will inevitably increase DELs if there are no changes in mitigation efforts. These findings also emphasize human behavior in determining the difference between a hazard and a disaster and provide significant insights in urban planning and disaster risk reduction strategies.

Comparative seismic loss analysis of an existing non-ductile RC building based on element fragility functions proposals

A comparative seismic loss analysis is presented for a non-ductile infilled reinforced concrete building evaluating the influence on direct economic losses of different parameters characterizing a building performance model. Propagation of uncertainties to seismic repair cost estimate is investigated in terms of effect of input intensity measures, definition of element fragility and consequence functions specific to non-ductile RC buildings through incremental dynamic analyses and probabilistic performance-based earthquake engineering methodologies. A set of element fragility and consequence functions has been proposed based on experimental data for internal and external beam column joints and on analytical models for masonry infill walls. A quantitative estimate of indirect losses is proposed based on past earthquakes data, incorporating the building inactivity and the delay in the beginning of the reconstruction process. Seismic loss assessment is presented at single hazard levels and critically compared, providing insight into different possible alternatives for performance models implementation. A fully probabilistic life-cycle analysis is carried out to present realistic risk analysis figures for non-ductile reinforced concrete buildings.

Transcriptome profile analysis identifies candidate genes for the melanin pigmentation of breast muscle in Muchuan black-boned chicken.

Melanin-based coloration in the meat of black-boned chicken is a major economic issue in China. Variation in the pigmentation (hypopigmentation) of chicken muscle causes direct economic losses every year. To determine the molecular mechanisms involved in the melanogenesis of muscle tissue, this study used high-throughput sequencing to compare differences in the transcriptome between black (BM) and white (WM) chicken breast muscles. We constructed 6 cDNA libraries from BM and WM groups in Muchuan black-boned chickens. A comparison between the BM and WM groups revealed 264 differentially expressed genes, of which 152 were upregulated, whereas 112 were downregulated in black muscle. Gene ontology and a Kyoto Encyclopedia of Genes and Genomes pathway analysis identified several differentially enriched biological functions and processes of the 2 muscles. Seven promising candidate genes [PMEL, Ras-related protein RAB29, and 5 solute carrier superfamily genes: SLC6A9, SLC38A4, SLC22A5, SLC35F3, and SLC16A3] may play an important role in the melanogenesis of chicken muscle. Our data provide a valuable resource for identifying genes whose functions are critical for muscle melanogenesis, and will assist studies of the molecular mechanisms of melanogenesis regulation in chicken muscle.

SOCIO-ECONOMIC IMPACTS OF EPIDEMIC DISEASES OF FARM ANIMALS

Based on desk research and literature review, the paper identifies the effects of farm animal disease outbreaks from the economic perspective. It provides a brief overview of broad impacts of trans-boundary animal diseases such as Bovine Spongiform Encephalopathy (BSE) and Foot and Mouth Disease (FMD) on the economy and society. It also presents a synthetic summary of the results of several studies dealing with the assessment and estimation of the costs of BSE and FMD epidemics in selected countries. The two epidemics were costly, both in monetary and non-monetary terms. Assessed direct and indirect economic losses were equivalent to several billion US dollars or euro in the countries under consideration. The economies depending on the export of live animals and meat products (e.g. the UK and Canada) were particularly affected. The economic welfare losses from hypothetical FMD outbreak in the USA could exceed a hundred billion US dollars. From the political perspective, government-run policies aimed at controlling and eradicating dangerous animal diseases seem to find the justification primarily in economic rationality or international competitiveness arguments.

The effect of natural disasters on housing prices: An examination of the Fourmile Canyon fire

In September 2010, the Fourmile-Lefthand Canyon forest fire burned 6181 acres, destroyed 169 homes, and caused $217 million in property damages making it by far the most expensive fire in Colorado history at the time. This paper examines how the fire affected housing prices in vulnerable neighboring areas that were not directly impacted by the fire, controlling for the property’s level of risk. This damaging fire may have increased home owners’ perceptions about the risk of living in forested areas subject to wildfires to a significant degree adding to the total direct economic losses from the fire. Utilizing a unique fire risk data set and a difference-in-difference approach, we test whether buyers of houses in areas with different risk levels prior to the fire adjust expectations differently. We find buyers in the highest risk area are most likely to change their perceptions in response to a fire with houses in these areas experiencing a statistically significant 21.7% decline in sale price compared to houses in non-risky areas.

Gene mapping of starch accumulation and premature leaf senescence in the ossac3 mutant of rice

Leaf senescence is the final stage of plant leaf development. Early leaf senescence leads to a reduction in yield and quality of rice (Oryza sativa). Reduction in yield and quality of rice will cause direct economic losses to farmers, and even insufficient food supply worldwide. Elucidation of the molecular mechanism of premature senescence is important for the genetic improvement of rice. The rice mutant ossac3 (sugar accumulating 3) characterized in this study was raised from seeds of the indica maintainer line Xinong 1B treated with ethyl methanesulfonate. The mutant showed premature leaf senescence associated with excessive starch accumulation in the leaf. Under field conditions, the mutant showed the early senescence phenotype at the seedling stage. Apart from newly developing leaves, the leaves began to turn yellow from the leaf tip extending to the middle of the leaf, and the base of the leaves was pale green. The mutant phenotype was maintained to maturity. Compared to the wild type, photosynthetic pigment content and photosynthetic rate in leaves of the mutant were significantly decreased. Concentrations of reactive oxygen species were significantly increased, antioxidant enzyme activities were significantly reduced, and all analyzed agronomic traits decreased in the mutant. Iodine-potassium iodide staining and starch content analysis showed that starch accumulated in ossac3 leaves. Quantitative real-time PCR analysis revealed changes in the expression levels of starch metabolism-related genes. The mutant phenotype was controlled by a pair of recessive nuclear genes and ossac3 was localized on chromosome 3 between the markers RM15243 and HJY8 with a physical distance of 374.2 kb.

Increased human and economic losses from river flooding with anthropogenic warming

River floods are among some of the costliest natural disasters1, but their socio-economic impacts under contrasting warming levels remain little explored2. Here, using a multi-model framework, we estimate human losses, direct economic damage and subsequent indirect impacts (welfare losses) under a range of temperature (1.5 °C, 2 °C and 3 °C warming)3 and socio-economic scenarios, assuming current vulnerability levels and in the absence of future adaptation. With temperature increases of 1.5 °C, depending on the socio-economic scenario, it is found that human losses from flooding could rise by 70–83%, direct flood damage by 160–240%, with a relative welfare reduction between 0.23 and 0.29%. In a 2 °C world, by contrast, the death toll is 50% higher, direct economic damage doubles and welfare losses grow to 0.4%. Impacts are notably higher under 3 C warming, but at the same time, variability between ensemble members also increases, leading to greater uncertainty regarding flood impacts at higher warming levels. Flood impacts are further shown to have an uneven regional distribution, with the greatest losses observed in the Asian continent at all analysed warming levels. It is clear that increased adaptation and mitigation efforts—perhaps through infrastructural investment4—are needed to offset increasing risk of river floods in the future. River floods have severe socio-economic impacts. A multi-model framework reveals river-flood-related human losses may rise by up to 83%, 134% and 265% at 1.5 °C, 2 °C and 3 °C warming, respectively, with economic losses also projected to rise.

Spatiotemporal characteristics of earthquake disaster losses in China from 1993 to 2016

On the basis of data obtained from China Earthquake Administration and China National Statistics Bureau, this paper focuses on the earthquake disaster loss characteristics in 31 provinces or municipalities of China from 1993 to 2016. The trends of direct economic losses, casualties and affected population are also analyzed by constructing two relative earthquake loss indexes (losses/GDP and losses/E) and employing gray correlation theory. Results show that during the 24 years, without taking Wenchuan Ms8.0 earthquake into account, the direct economic losses exhibit a significant increasing trend while losses/GDP also increases but is not significant. Meanwhile, the injuries and affected population both witness a decline trend but the fatalities show the opposite. According to the correlational degree of each year, 8 years (1995, 1996, 1998, 2003, 2008, 2010, 2013 and 2014) suffered losses of equal or above moderate grade. Regionally, the western China suffered the most accumulative direct economic losses and losses/GDP. However, the ranking results of losses/E demonstrate that the central China is the most vulnerable when confronting with the same earthquake. Specifically, Sichuan and Yunnan suffered losses of extra-large grade, Qinghai of large grade and Tibet, Xinjiang and Guangdong of moderate grade. These discoveries are helpful for earthquake mitigation and preparedness as well as earthquake loss evaluation in China.

Changes in mortality and economic vulnerability to climatic hazards under economic development at the provincial level in China

Studies have reported that economic development can contribute to reducing vulnerability to natural hazards. However, there exist considerable variations in the association between economic growth and vulnerability, especially at the sub-country scale. Based on climatic hazard impact (indicated by mortality and direct economic losses (DEL)) and economic development data for 31 provinces in the mainland of China from 1990 to 2015, trends of disaster impact, and trends of vulnerability (indicated by mortality rate and DEL rate), were detected using the Mann–Kendall trend test at the provincial level. Next, the relationship between income and vulnerability was characterized. At the provincial level during 1990–2015, there was a clear transformation of the climatic hazard impact landscape from high average annual mortality to high average annual DEL. Both the mortality and the DEL rates presented downward trends for most provinces. The magnitude of vulnerability decrease was higher in the economically developed provinces compared to the underdeveloped provinces, and vulnerability declined nonlinearly with income increase. A vulnerability trap appears to exist approximately below 1600 US$ for income—above this threshold, a province’s vulnerability significantly decreased. Mortality and economic vulnerability to climatic hazards are correlated with economic development, but causal links between economic development and vulnerability reduction need further investigation. Our findings suggest that shortening the transitional period from the low-income trap and reducing inter-provincial disparity of economic development may be powerful tools for reducing vulnerability to climatic hazards, especially for economically underdeveloped regions. These should also be important considerations in developing efficient adaption strategies for climate change.

Disturbances to Urban Mobility and Comprehensive Estimation of Economic Losses

Civil infrastructure systems are disturbed by natural or man-made hazards at an increasing frequency and severity. Among these systems, transportation systems are especially vulnerable due to their nature and are of significant importance to urban built environments as they maintain the mobility of urban dwellers and goods. Mobility disturbances are significant not only due to the direct losses associated but also due to the greater economic impacts driven by indirect losses stemming from the economic interactions of regions and sectors. Therefore, understanding the economic impacts of urban mobility disturbances is critical. To achieve a better understanding of the status quo of the research on transportation disturbances and economic impact analysis, a literature review was conducted. The review indicates that most of the articles fail to leverage realistic hazard impact information and explicit network modeling, consequently jeopardizing the credibility of the results. To begin addressing the gaps in the field, an interdisciplinary framework was designed to investigate the economic impacts of mobility disturbances. To validate the framework, a case study was conducted to estimate the economic impacts of commuting-based mobility disturbances resulting from a potential earthquake scenario in the Greater Los Angeles Area. The direct and indirect economic losses were estimated to be 285.49 and 93.48 million dollars, respectively. The results indicated that the economic losses could vary significantly among regions as well as industries. Among the five counties in the study region, Los Angeles County suffered the most. In addition, industries related to finance, education and scientific services, etc. were estimated to experience larger losses.

Economic Evaluation of Dapagliflozin vs. Other Oral Hypoglycemic Drugs in China via Idealized Model

Objective: To analyze and compare economic values of cardiovascular benefits from dapagliflozin to the ones from other oral hypoglycemic drugs in China using the idealized model. Methods: An idealized model for type 2 diabetes in China with an assumed number of cases (n=2000) was established. Half of cases (Dapa group; n=1000) are treated with 10 mg of dapagliflozin and another half (Other hypoglycemic drug group; n=1000) are treated with other oral hypoglycemic drugs as monotherapy. Cardiovascular benefits resulting from the CVD-REAL study were used as the evaluation criteria for predictions of cardiovascular events. Information about the direct economic loss brought by cardiovascular events reported in relevant literatures from 20to the present (Data source including the Web of Science, PubMed, Google scholar, Wanfangdata, CNKI and Cqvip) was collected as the standard for cost calculation. Results: Compared with other oral hypoglycemic drugs, the application of dapagliflozin allows each type 2 diabetic patient to save an average of 14279.57 CNY on cardiovascular events annually in China. The annual per capita treatment cost for patients receiving dapagliflozin in the control of blood glucose and cardiovascular events was 66.98% of that of patients in the first and second-line treatment regimens, and was 65.83% of that of patients in the second-line treatment regimen. Conclusions: Based on this idealized model, dapagliflozin is expected to save 33.02% of annual cost on hyperglycemia control and cardiovascular complications in patients with type 2 diabetes compared to patients treated with the first and second-line treatment regimens and to save 34.17% of annual cost compared to patients treated with the second-line treatment regimen in China. Disclosure J. Zheng: None. L. Long: Employee; Self; AstraZeneca. Z. Ye: Employee; Self; AstraZeneca. L. Chen: None.