Evaluating the robustness of the ARIO model for a local disaster: 2021 flooding in Germany

Given the interconnectedness of modern economies and the widespread adoption of just-in-time production methods, even minor disruptions caused by natural disasters can lead to substantial indirect economic impact. A substantial body of literature has explored this phenomenon, using input-output anal...

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Main Authors: Samuel Juhel, Adrien Delahais, Vincent Viguié
Format: Article
Language:English
Published: IOP Publishing 2024-01-01
Series:Environmental Research: Infrastructure and Sustainability
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Online Access:https://doi.org/10.1088/2634-4505/ad8375
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author Samuel Juhel
Adrien Delahais
Vincent Viguié
author_facet Samuel Juhel
Adrien Delahais
Vincent Viguié
author_sort Samuel Juhel
collection DOAJ
description Given the interconnectedness of modern economies and the widespread adoption of just-in-time production methods, even minor disruptions caused by natural disasters can lead to substantial indirect economic impact. A substantial body of literature has explored this phenomenon, using input-output analysis, computable general equilibrium and agent-based models. However, these models (i) heavily rely on parameters and data that often lack empirical grounding or (ii) exhibit considerable uncertainty, making it challenging to assess their reliability. The ARIO model has been widely used in the literature and has provided theoretical foundation for several related models. Using the July 2021 floods in Germany as a case study, we assess the sensitivity of the results of this model by varying key parameters, as well as the multi-regional input-output tables (MRIOTs), which constitute its primary input data. To facilitate this analysis, we introduce a new, resource-efficient Python implementation of the ARIO model, enabling the execution of a large number of simulations. Our findings highlight the substantial impact of data source and parameter selection on model outcomes, especially so when post-disaster rebuilding is costly. To ensure the robustness of their results, future studies on indirect economic impacts should be careful about recovery dynamics, consider multiple scenarios and compare results using MRIOTs from various sources.
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spelling doaj-art-5a65ab12e8564ee0965d2b27343afbb02025-08-20T02:12:24ZengIOP PublishingEnvironmental Research: Infrastructure and Sustainability2634-45052024-01-014404500310.1088/2634-4505/ad8375Evaluating the robustness of the ARIO model for a local disaster: 2021 flooding in GermanySamuel Juhel0https://orcid.org/0000-0001-8801-3890Adrien Delahais1https://orcid.org/0009-0007-6822-902XVincent Viguié2https://orcid.org/0000-0002-8994-2648CIRED, Ecole des Ponts, AgroParisTech, EHESS, CIRAD, CNRS, Université Paris-Saclay , Nogent-sur-Marne, France; LMD, Ecole Normlale Supérieure , Paris, FranceCIRED, Ecole des Ponts, AgroParisTech, EHESS, CIRAD, CNRS, Université Paris-Saclay , Nogent-sur-Marne, FranceCIRED, Ecole des Ponts, AgroParisTech, EHESS, CIRAD, CNRS, Université Paris-Saclay , Nogent-sur-Marne, FranceGiven the interconnectedness of modern economies and the widespread adoption of just-in-time production methods, even minor disruptions caused by natural disasters can lead to substantial indirect economic impact. A substantial body of literature has explored this phenomenon, using input-output analysis, computable general equilibrium and agent-based models. However, these models (i) heavily rely on parameters and data that often lack empirical grounding or (ii) exhibit considerable uncertainty, making it challenging to assess their reliability. The ARIO model has been widely used in the literature and has provided theoretical foundation for several related models. Using the July 2021 floods in Germany as a case study, we assess the sensitivity of the results of this model by varying key parameters, as well as the multi-regional input-output tables (MRIOTs), which constitute its primary input data. To facilitate this analysis, we introduce a new, resource-efficient Python implementation of the ARIO model, enabling the execution of a large number of simulations. Our findings highlight the substantial impact of data source and parameter selection on model outcomes, especially so when post-disaster rebuilding is costly. To ensure the robustness of their results, future studies on indirect economic impacts should be careful about recovery dynamics, consider multiple scenarios and compare results using MRIOTs from various sources.https://doi.org/10.1088/2634-4505/ad8375ARIOfloodingindirect impactsinput-output modelsnatural disastersreconstruction
spellingShingle Samuel Juhel
Adrien Delahais
Vincent Viguié
Evaluating the robustness of the ARIO model for a local disaster: 2021 flooding in Germany
Environmental Research: Infrastructure and Sustainability
ARIO
flooding
indirect impacts
input-output models
natural disasters
reconstruction
title Evaluating the robustness of the ARIO model for a local disaster: 2021 flooding in Germany
title_full Evaluating the robustness of the ARIO model for a local disaster: 2021 flooding in Germany
title_fullStr Evaluating the robustness of the ARIO model for a local disaster: 2021 flooding in Germany
title_full_unstemmed Evaluating the robustness of the ARIO model for a local disaster: 2021 flooding in Germany
title_short Evaluating the robustness of the ARIO model for a local disaster: 2021 flooding in Germany
title_sort evaluating the robustness of the ario model for a local disaster 2021 flooding in germany
topic ARIO
flooding
indirect impacts
input-output models
natural disasters
reconstruction
url https://doi.org/10.1088/2634-4505/ad8375
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AT adriendelahais evaluatingtherobustnessoftheariomodelforalocaldisaster2021floodingingermany
AT vincentviguie evaluatingtherobustnessoftheariomodelforalocaldisaster2021floodingingermany