IDEAS home Printed from https://ideas.repec.org/a/eee/trapol/v100y2021icp108-119.html
   My bibliography  Save this article

U.S. transportation infrastructure resilience: Influences of insurance, incentives, and public assistance

Author

Listed:
  • Tonn, Gina
  • Reilly, Allison
  • Czajkowski, Jeffrey
  • Ghaedi, Hamed
  • Kunreuther, Howard

Abstract

The U.S. economy and way of life are highly dependent on transportation systems, which move goods and people locally, regionally, nationally, and internationally. Major disruptions to transportation networks due to natural hazards, manmade hazards (notably terrorist and cyberattacks), accidents, or infrastructure failure can cause substantial social and economic impacts. Through qualitative and quantitative analyses, including an in-depth review of the literature and semi-structured interviews, we identify barriers to and opportunities for lowering transportation-related disaster losses and for improving infrastructure risk management including the need for better data and metrics to support resilience. Our analyses are supported by a review of transportation-related Public Assistance (PA) expenditures to understand the magnitude and variation of expenditures over time. PA is a U.S. Federal Emergency Management Agency (FEMA) program dedicated to partial reimbursement of hazard-related losses for public infrastructure. Our analyses show that the availability and significant outlays of PA after disasters inhibit risk-based loss reduction actions by infrastructure managers. Risk management tools, notably insurance and mitigation measures, can efficiently reduce disaster losses and speed recovery times. This paper concludes with recommendations for policy measures to facilitate improvements in transportation infrastructure resilience.

Suggested Citation

  • Tonn, Gina & Reilly, Allison & Czajkowski, Jeffrey & Ghaedi, Hamed & Kunreuther, Howard, 2021. "U.S. transportation infrastructure resilience: Influences of insurance, incentives, and public assistance," Transport Policy, Elsevier, vol. 100(C), pages 108-119.
    • Handle: RePEc:eee:trapol:v:100:y:2021:i:c:p:108-119
    DOI: 10.1016/j.tranpol.2020.10.011
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0967070X20309100
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.tranpol.2020.10.011?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Tonn, Gina & Kesan, Jay P. & Zhang, Linfeng & Czajkowski, Jeffrey, 2019. "Cyber risk and insurance for transportation infrastructure," Transport Policy, Elsevier, vol. 79(C), pages 103-114.
    2. Mark Camillo, 2017. "Cyber risk and the changing role of insurance," Journal of Cyber Policy, Taylor & Francis Journals, vol. 2(1), pages 53-63, January.
    3. Thomas A. Garrett & Russell S. Sobel, 2003. "The Political Economy of FEMA Disaster Payments," Economic Inquiry, Western Economic Association International, vol. 41(3), pages 496-509, July.
    4. Stephanie E. Chang & Timothy McDaniels & Jana Fox & Rajan Dhariwal & Holly Longstaff, 2014. "Toward Disaster‐Resilient Cities: Characterizing Resilience of Infrastructure Systems with Expert Judgments," Risk Analysis, John Wiley & Sons, vol. 34(3), pages 416-434, March.
    5. Jeffrey E. Harris, 2020. "The Subways Seeded the Massive Coronavirus Epidemic in New York City," NBER Working Papers 27021, National Bureau of Economic Research, Inc.
    6. Kunreuther, Howard C. & Michel-Kerjan, Erwann O., 2011. "At War with the Weather: Managing Large-Scale Risks in a New Era of Catastrophes," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262516543, December.
    7. Bostick, T.P. & Connelly, E.B. & Lambert, J.H. & Linkov, I., 2018. "Resilience science, policy and investment for civil infrastructure," Reliability Engineering and System Safety, Elsevier, vol. 175(C), pages 19-23.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Rahimi-Golkhandan, Armin & Aslani, Babak & Mohebbi, Shima, 2022. "Predictive resilience of interdependent water and transportation infrastructures: A sociotechnical approach," Socio-Economic Planning Sciences, Elsevier, vol. 80(C).
    2. Agnieszka Dudziak & Jacek Caban & Ondrej Stopka & Monika Stoma & Marie Sejkorová & Mária Stopková, 2023. "Vehicle Market Analysis of Drivers’ Preferences in Terms of the Propulsion Systems: The Czech Case Study," Energies, MDPI, vol. 16(5), pages 1-20, March.
    3. Dawei Li & Yiping Liu & Yuchen Song & Zhenghao Ye & Dongjie Liu, 2022. "A Framework for Assessing Resilience in Urban Mobility: Incorporating Impact of Ridesharing," IJERPH, MDPI, vol. 19(17), pages 1-20, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Melanie Gall & Kevin A. Borden & Christopher T. Emrich & Susan L. Cutter, 2011. "The Unsustainable Trend of Natural Hazard Losses in the United States," Sustainability, MDPI, vol. 3(11), pages 1-25, November.
    2. Paul Raschky & Reimund Schwarze & Manijeh Schwindt & Ferdinand Zahn, 2013. "Uncertainty of Governmental Relief and the Crowding out of Flood Insurance," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 54(2), pages 179-200, February.
    3. Dirk Wrede & Tino Stegen & Johann-Matthias Schulenburg, 2020. "Affirmative and silent cyber coverage in traditional insurance policies: Qualitative content analysis of selected insurance products from the German insurance market," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 45(4), pages 657-689, October.
    4. Xiansheng Chen & Ruisong Quan, 2021. "A spatiotemporal analysis of urban resilience to the COVID-19 pandemic in the Yangtze River Delta," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 106(1), pages 829-854, March.
    5. Howard Kunreuther & Erwann Michel-Kerjan, 2015. "Demand for fixed-price multi-year contracts: Experimental evidence from insurance decisions," Journal of Risk and Uncertainty, Springer, vol. 51(2), pages 171-194, October.
    6. Jeffrey E. Harris, 2020. "Geospatial Analysis of the September 2020 Coronavirus Outbreak at the University of Wisconsin – Madison: Did a Cluster of Local Bars Play a Critical Role?," NBER Working Papers 28132, National Bureau of Economic Research, Inc.
    7. de Palma, André & Vosough, Shaghayegh & Liao, Feixiong, 2022. "An overview of effects of COVID-19 on mobility and lifestyle: 18 months since the outbreak," Transportation Research Part A: Policy and Practice, Elsevier, vol. 159(C), pages 372-397.
    8. Stuart Kasdin & Luona Lin, 2015. "Strategic behavior by federal agencies in the allocation of public resources," Public Choice, Springer, vol. 164(3), pages 309-329, September.
    9. Timothy Goodspeed & Andrew Haughwout, 2012. "On the optimal design of disaster insurance in a federation," Economics of Governance, Springer, vol. 13(1), pages 1-27, March.
    10. Jef Mot & Michael Faure, 2019. "Public authority liability and the cost of disasters," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 44(4), pages 760-783, October.
    11. Jeroen Klomp, 2020. "Election or Disaster Support?," Journal of Development Studies, Taylor & Francis Journals, vol. 56(1), pages 205-220, January.
    12. Thomas Husted & David Nickerson, 2014. "Political Economy of Presidential Disaster Declarations and Federal Disaster Assistance," Public Finance Review, , vol. 42(1), pages 35-57, January.
    13. Matteo Malavasi & Gareth W. Peters & Pavel V. Shevchenko & Stefan Truck & Jiwook Jang & Georgy Sofronov, 2021. "Cyber Risk Frequency, Severity and Insurance Viability," Papers 2111.03366, arXiv.org, revised Mar 2022.
    14. Ulrik Franke, 2020. "IT service outage cost: case study and implications for cyber insurance," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 45(4), pages 760-784, October.
    15. Timothy L. McDaniels & Stephanie E. Chang & David Hawkins & Gerard Chew & Holly Longstaff, 2015. "Towards disaster-resilient cities: an approach for setting priorities in infrastructure mitigation efforts," Environment Systems and Decisions, Springer, vol. 35(2), pages 252-263, June.
    16. Oliver Walker & Simon Dietz, 2012. "Ambiguity and insurance: robust capital requirements and premiums," GRI Working Papers 97, Grantham Research Institute on Climate Change and the Environment.
    17. Davlasheridze, Meri & Fisher-Vanden, Karen & Allen Klaiber, H., 2017. "The effects of adaptation measures on hurricane induced property losses: Which FEMA investments have the highest returns?," Journal of Environmental Economics and Management, Elsevier, vol. 81(C), pages 93-114.
    18. Xiaoying Xie & Charles Lee & Martin Eling, 2020. "Cyber insurance offering and performance: an analysis of the U.S. cyber insurance market," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 45(4), pages 690-736, October.
    19. H. Klammler & P. S. C. Rao & K. Hatfield, 2018. "Modeling dynamic resilience in coupled technological-social systems subjected to stochastic disturbance regimes," Environment Systems and Decisions, Springer, vol. 38(1), pages 140-159, March.
    20. Mark C. Quigley & Januka Attanayake & Andrew King & Fabian Prideaux, 2020. "A multi-hazards earth science perspective on the COVID-19 pandemic: the potential for concurrent and cascading crises," Environment Systems and Decisions, Springer, vol. 40(2), pages 199-215, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:trapol:v:100:y:2021:i:c:p:108-119. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/30473/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.