 Using
Regional Economic Models To Estimate The Costs Of Infrastructure
Failures: The Cost Of A Limited Interruption In Electric
Power In The Los Angeles Region
April 2005
by Professor James E. Moore II
Richard
G. Little
and Sungbin Cho
Abstract
We present an integrated model of losses due to infrastructure
failures, and we provide an example application to interruptions
in electric power. The model estimates how these losses
affect the metropolitan economy. This measurement accounts
for direct, indirect, and induced costs that can result from
infrastructure failures. The procedure advances the information
provided by transportation and activity system analysis techniques
in ways that help capture the most important economic implications
of infrastructure failures. Transportation network costs
and origin-destination requirements are modeled endogenously
and consistently. Our overall research framework enables
us to express these full costs in aggregate terms at a sub-metropolitan
level as well as in a distributional sense.
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