Estimating the Economic Losses of Hurricane Ike in the Greater Houston Region

Hurricanes Katrina and Rita in 2005 caused tremendous economic losses in the Gulf Coast region. Though Hurricane Ike in 2008 was relatively less severe, it still caused significant damage in the Gulf Coast Region, especially in Houston, Texas, the fourth largest city and the sixth largest metropolitan area in the United States. This study obtains the storm parameters of Hurricane Ike from the National Hurricane Center (NHC) and then employs a hurricane model to estimate the strength of wind and the property damages by census tract. To fill the gaps in disaster loss estimation models, this paper adopted a systematic method that combines disaster models, a regional input/output model, and a spatial allocation model to estimate the spatial distribution of property damage and business interruption losses of Hurricane Ike in the Greater Houston region. The modeling results of property damage are reasonably close to the estimates from insured damage claims after Hurricane Ike. The spatial distribution of economic losses in industrial sectors generated by the model is needed for policymakers and planners to identify the most cost-effective options for disaster mitigation and allocate manpower and resources for disaster relief efficiently and equitably.