Response to Discussion by Muneta Yokomatsu on Kuniyoshi Takeuchi and Shigenobu Tanaka: Recovery from Catastrophe and Building Back Better, JDR Vol.11 No.6, pp. 1190-1201, Dec. 2016
Kuniyoshi Takeuchi*,† and Shigenobu Tanaka**
*University of Yamanashi
4-3-11 Takeda, Kofu, Yamanashi 400-8511, Japan
**Water Resources Research Center, Disaster Prevention Research Institute, Kyoto University, Kyoto, Japan
Mr. Yokomatsu provided valuable comments on the paper JDR Vol.11 No.6, pp. 1190-1201 by Takeuchi and Tanaka. The discusser claims that if “direct loss” is defined as a “loss of assets (capital stock)” and “indirect loss” as a “loss of postdisaster production decline,” then the sum of the two as the “total loss” of a disaster contains a double count of disaster loss, because the “value of assets (capital stock)” for “direct loss” is the present value of an output to be produced in the future by the assets, which is nothing but “indirect loss.” This is a misunderstanding caused by an ambiguous definition of the term “loss of assets.” In order to avoid such misunderstanding, the authors clarify the definition by elaborating the content of “total loss” = “direct loss” + “indirect loss” as the “total loss of assets” = “loss of the physical acquisition cost of assets” + “loss of the potential production profit of assets.”
-  M. Yokomatsu, “A Commentary on “Recovery from Catastrophe and Building Back Better (Takeuchi and Tanaka, 2016)” –Structure of Damage of Production Capital Stock on Normative Economic Process,” J. Disaster Res., Vol.13, No.3, 2018.
-  K. Takeuchi and S. Tanaka, “Recovery from Catastrophe and Building Back Better,” J. Disaster Res., Vol.11, No.6, pp. 1190-1201, 2016.
-  T. Uenoyama and N. Arai, “Viewpoint of economic losses of catastrophic disasters: Taking examples of Great Hanshin-Awaji Earthquake, 9/11 Terrorism and Hurricane Katrina,” ESRI Discussion Paper Series No.177, Economic and Social Research Institute, Cabinet Office, Government of Japan, 2007 (in Japanese).
-  H. Iwaki, Korekawa, Gonda, Masuda, and Itoh, “Estimate of stock damage by the Great East Japan Earthquake (How to estimate the amount of stock damage caused by the Great East Japan Earthquake),” Discussion paper, Economic Research Bureau, Cabinet Office, Government of Japan, 2011 (in Japanese).
-  Cabinet Office, “Target area of investigation of economic disaster impacts assessment,” Material 3-1 (Document 3-1 Scope of Economic Damage Prediction Review), Disaster reduction in charge, Cabinet Office, Government of Japan, 2004 (in Japanese).