Economic Consequences of 1989-1990 Mt. Redoubt Eruptions

Abstract

The Mt. Redoubt eruptions of 1989-1990 presented all of the elements of a major natural disaster, including the extensive disruption of social and economic activity, significant property damage, and the threat of major loss of human life. Some of the costs associated with a major eruptions, or series of eruptions, are unavoidable. However, other costs may be avoided, or at least reduced. The economic value of such mitigation efforts depends on both the costs and benefits of mitigation. In the case of natural disasters, the benefit of mitigation are measured by the avoided economic costs of future disasters. Thus, the economic costs associated with the Mt. Redoubt eruptions of 1989-1990 can serve as a measure of the potential benefits to be derived from future mitigation activities. Measurement of these economic costs has been the primary objective of this study.