New Zealand has experienced several strong earthquakes in its history. While an earthquake cannot be prevented from occurring, planning can reduce its consequences when it does occur. This dissertation research examines various aspects of disaster risk management policy in Aotearoa New Zealand. Chapter 2 develops a method to rank and prioritise high-rise buildings for seismic retrofitting in Wellington, the earthquake-prone capital city of New Zealand. These buildings pose risks to Wellington’s long-term seismic resilience that are of clear concern to current and future policymakers. The prioritization strategy we propose, based on multi-criteria decision analysis (MCDA) methods, considers a variety of data on each building, including not only its structural characteristics, but also its location, its economic value to the city, and its social importance to the community around it. The study demonstrates how different measures, within four general criteria – life safety, geo-spatial location of the building, its economic role, and its socio-cultural role – can be operationalized into a viable framework for determining retrofitting/demolition policy priorities. Chapter 3 and chapter 4 analyse the Residential Red Zone (RRR) program that was implemented in Christchurch after the 2011 earthquake. In the program, approximately 8,000 homeowners were told that their homes were no longer permittable, and they were bought by the government (through the Canterbury Earthquake Recovery Authority). Chapter 3 examines the subjective wellbeing of the RRR residents (around 16000 people) after they were forced to move. We consider three indicators of subjective wellbeing: quality of life, stress, and emotional wellbeing. We found that demographic factors, health conditions, and the type of government compensation the residents accepted, were all significant determinants of the wellbeing of the Red Zone residents. More social relations, better financial circumstances, and the perception of better government communication were also all associated positively with a higher quality of life, less stress, and higher emotional wellbeing. Chapter 4 concentrates on the impact of this managed retreat program on RRR residents’ income. We use individual-level comprehensive, administrative, panel data from Canterbury, and difference in difference evaluation method to explore the effects of displacement on Red Zone residential residents. We found that compared to non-relocated neighbours, the displaced people experience a significant initial decrease in their wages and salaries, and their total income. The impacts vary with time spent in the Red Zone and when they moved away. Wages and salaries of those who were red-zoned and moved in 2011 were reduced by 8%, and 5.4% for those who moved in 2012. Females faced greater decreases in wages and salaries, and total income, than males. There were no discernible impacts of the relocation on people’s self-employment income.
We aim to investigate the role of insurance in business recovery following the devastating Christchurch earthquake in February, 22nd, 2011. We analyze data from two business surveys conducted after the earthquake to examine how insurance affected business operation in the aftermath of the earthquake both in the short-term and longer-term. For the short-term analysis, we use a combination of propensity score matching (PSM) and linear probability model (LPM) to analyze the data. We first estimate the propensity scores for insurance take-up of each firm conditional on the firm’s individual characteristics. Stratification based on the estimated propensity scores is used to match the treated (insured) and the control (uninsured) firms. We then estimate the probability of firms’ continuing operations with a set of control variables to account for the level of damage and disruption caused by the quake in each stratum. We find little evidence of any beneficial effect of insurance coverage on business continuity in the short-run. For the longer-term analysis, we analyze the available survey data using logistic regression. The result suggests that business interruption insurance significantly promotes increased level of long-term productivity for surviving firms following the earthquake.
The city of Christchurch, New Zealand, incurred significant damage due to a series of earthquakes in 2010 and 2011. The city had, by the late 2010s, regained economic and social normalcy after a sustained period of rebuilding and economic recovery. Through the concerted rebuilding effort, a modern central business district (CBD) with redesigned infrastructure and amenities was developed. The Christchurch rebuild was underpinned by a commitment of urban planners to an open and connected city, including the use of innovative technologies to gather, use and share data. As was the case elsewhere, the COVID-19 pandemic brought about significant disruptions to social and economic life in Christchurch. Border closures, lockdowns, trading limitations and other restrictions on movement led to changes in traditional consumer behaviors and affected the retail sector’s resilience. In this study, we used CBD pedestrian traffic data gathered from various locations to predict changes in retail spending and identify recovery implications through the lens of retail resilience. We found that the COVID-19 pandemic and its related lockdowns have driven a substantive change in the behavioral patterns of city users. The implications for resilient retail, sustainable policy and further research are explored.
The Canterbury earthquake sequence (2010-2011) was the most devastating catastrophe in New Zealand‘s modern history. Fortunately, in 2011 New Zealand had a high insurance penetration ratio, with more than 95% of residences being insured for these earthquakes. This dissertation sheds light on the functions of disaster insurance schemes and their role in economic recovery post-earthquakes. The first chapter describes the demand and supply for earthquake insurance and provides insights about different public-private partnership earthquake insurance schemes around the world. In the second chapter, we concentrate on three public earthquake insurance schemes in California, Japan, and New Zealand. The chapter examines what would have been the outcome had the system of insurance in Christchurch been different in the aftermath of the Canterbury earthquake sequence (CES). We focus on the California Earthquake Authority insurance program, and the Japanese Earthquake Reinsurance scheme. Overall, the aggregate cost of the earthquake to the New Zealand public insurer (the Earthquake Commission) was USD 6.2 billion. If a similar-sized disaster event had occurred in Japan and California, homeowners would have received only around USD 1.6 billion and USD 0.7 billion from the Japanese and Californian schemes, respectively. We further describe the spatial and distributive aspects of these scenarios and discuss some of the policy questions that emerge from this comparison. The third chapter measures the longer-term effect of the CES on the local economy, using night-time light intensity measured from space, and focus on the role of insurance payments for damaged residential property during the local recovery process. Uniquely for this event, more than 95% of residential housing units were covered by insurance and almost all incurred some damage. However, insurance payments were staggered over 5 years, enabling us to identify their local impact. We find that night-time luminosity can capture the process of recovery; and that insurance payments contributed significantly to the process of local economic recovery after the earthquake. Yet, delayed payments were less affective in assisting recovery and cash settlement of claims were more effective than insurance-managed repairs. After the Christchurch earthquakes, the government declared about 8000 houses as Red Zoned, prohibiting further developments in these properties, and offering the owners to buy them out. The government provided two options for owners: the first was full payment for both land and dwelling at the 2007 property evaluation, the second was payment for land, and the rest to be paid by the owner‘s insurance. Most people chose the second option. Using data from LINZ combined with data from Stats NZ, the fourth chapter empirically investigates what led people to choose this second option, and how peer effect influenced the homeowners‘ choices. Due to climate change, public disclosure of coastal hazard information through maps and property reports have been used more frequently by local government. This is expected to raise awareness about disaster risks in local community and help potential property owners to make informed locational decision. However, media outlets and business sector argue that public hazard disclosure will cause a negative effect on property value. Despite this opposition, some district councils in New Zealand have attempted to implement improved disclosure. Kapiti Coast district in the Wellington region serves as a case study for this research. In the fifth chapter, we utilize the residential property sale data and coastal hazard maps from the local district council. This study employs a difference-in-difference hedonic property price approach to examine the effect of hazard disclosure on coastal property values. We also apply spatial hedonic regression methods, controlling for coastal amenities, as our robustness check. Our findings suggest that hazard designation has a statistically and economically insignificant impact on property values. Overall, the risk perception about coastal hazards should be more emphasized in communities.
The major earthquakes of 2010 and 2011 brought to an abrupt end a process of adaptive reuse, revitalisation and gentrification that was underway in the early 20th century laneways and buildings located in the south eastern corner of the Christchurch Central Business District. Up until then, this location was seen as an exemplar of how mixed use could contribute to making the central city an attractive and viable alternative to the suburban living experience predominant in New Zealand. This thesis is the result of a comprehensive case study of this “Lichfield Lanes” area, which involved in depth interviews with business owners, observation of public meetings and examination of documents and the revitalisation research literature. Findings were that many of the factors seen to make this location successful pre-earthquakes mirror the results of similar research in other cities. These factors include: the importance of building upon historic architecture and the eclectic spaces this creates; a wide variety of uses generating street life; affordable rental levels; plus the dangers of uniformity of use brought about by focussing on business types that pay the most rent. Also critical is co-operation between businesses to create and effectively market and manage an identifiable precinct that has a coherent style and ambience that differentiates the location from competing suburban malls. In relation to the latter, a significant finding of this project was that the hospitality and retail businesses key to the success of Lichfield Lanes were not typical and could be described as quirky, bohemian, chaotic, relatively low rent, owner operated and appealing to the economically important “Creative Class” identified by Richard Florida (2002) and others. In turn, success for many of these businesses can be characterised as including psychological and social returns rather than simply conventional economic benefits. This has important implications for inner city revitalisation, as it contrasts with the traditional focus of local authorities and property developers on physical aspects and tenant profitability as measures of success. This leads on to an important conclusion from this research, which is that an almost completely inverted strategy from that applied to suburban mall development, may be most appropriate for successful inner city revitalisation. It also highlights a disconnection between the focus and processes of regulatory authorities and the outcomes and processes most acceptable to the people likely to frequent the central city. Developers are often caught in the middle of this conflicted situation. Another finding was early commitment by businesses to rebuild the case study area in the same style, but over time this waned as delay, demolition, insurance problems, political and planning uncertainty plus other issues made participation by the original owners and tenants impossible or uneconomic. In conclusion, the focus of inner city revitalisation is too often on buildings rather than the people that use them and what they now desire from the central city.
Disasters are often followed by a large-scale stimulus supporting the economy through the built environment, which can last years. During this time, official economic indicators tend to suggest the economy is doing well, but as activity winds down, the sentiment can quickly change. In response to the damaging 2011 earthquakes in Canterbury, New Zealand, the regional economy outpaced national economic growth rates for several years during the rebuild. The repair work on the built environment created years of elevated building activity. However, after the peak of the rebuilding activity, as economic and employment growth retracts below national growth, we are left with the question of how the underlying economy performs during large scale stimulus activity in the built environment. This paper assesses the performance of the underlying economy by quantifying the usual, demand-driven level of building activity at this time. Applying an Input–Output approach and excluding the economic benefit gained from the investment stimulus reveals the performance of the underlying economy. The results reveal a strong growing underlying economy, and while convergence was expected as the stimulus slowed down, the results found that growth had already crossed over for some time. The results reveal that the investment stimulus provides an initial 1.5% to 2% growth buffer from the underlying economy before the growth rates cross over. This supports short-term economic recovery and enables the underlying economy to transition away from a significant rebuild stimulus. Once the growth crosses over, five years after the disaster, economic growth in the underlying economy remains buoyant even if official regional economic data suggest otherwise.
Christchurch City Council (Council) is undertaking the Land Drainage Recovery Programme in order to assess the effects of the earthquakes on flood risk to Christchurch. In the course of these investigations it has become better understood that floodplain management should be considered in a multi natural hazards context. Council have therefore engaged the Jacobs, Beca, University of Canterbury, and HR Wallingford project team to investigate the multihazards in eastern areas of Christchurch and develop flood management options which also consider other natural hazards in that context (i.e. how other hazards contribute to flooding both through temporal and spatial coincidence). The study has three stages: Stage 1 Gap Analysis – assessment of information known, identification of gaps and studies required to fill the gaps. Stage 2 Hazard Studies – a gap filling stage with the studies identified in Stage 1. Stage 3 Collating, Optioneering and Reporting – development of options to manage flood risk. This present report is to document findings of Stage 1 and recommends the studies that should be completed for Stage 2. It has also been important to consider how Stage 3 would be delivered and the gaps are prioritised to provide for this. The level of information available and hazards to consider is extensive; requiring this report to be made up of five parts each identifying individual gaps. A process of identifying information for individual hazards in Christchurch has been undertaken and documented (Part 1) followed by assessing the spatial co-location (Part 2) and probabilistic presence of multi hazards using available information. Part 3 considers multi hazard presence both as a temporal coincidence (e.g. an earthquake and flood occurring at one time) and as a cascade sequence (e.g. earthquake followed by a flood at some point in the future). Council have already undertaken a number of options studies for managing flood risk and these are documented in Part 4. Finally Part 5 provides the Gap Analysis Summary and Recommendations to Council. The key findings of Stage 1 gap analysis are: - The spatial analysis showed eastern Christchurch has a large number of hazards present with only 20% of the study area not being affected by any of the hazards mapped. Over 20% of the study area is exposed to four or more hazards at the frequencies and data available. - The majority of the Residential Red Zone is strongly exposed to multiple hazards, with 86% of the area being exposed to 4 or more hazards, and 24% being exposed to 6 or more hazards. - A wide number of gaps are present; however, prioritisation needs to consider the level of benefit and risks associated with not undertaking the studies. In light of this 10 studies ranging in scale are recommended to be done for the project team to complete the present scope of Stage 3. - Stage 3 will need to consider a number of engineering options to address hazards and compare with policy options; however, Council have not established a consistent policy on managed retreat that can be applied for equal comparison; without which substantial assumptions are required. We recommend Council undertake a study to define a managed retreat framework as an option for the city. - In undertaking Stage 1 with floodplain management as the focal point in a multi hazards context we have identified that Stage 3 requires consideration of options in the context of economics, implementation and residual risk. Presently the scope of work will provide a level of definition for floodplain options; however, this will not be at equal levels of detail for other hazard management options. Therefore, we recommend Council considers undertaking other studies with those key hazards (e.g. Coastal Hazards) as a focal point and identifies the engineering options to address such hazards. Doing so will provide equal levels of information for Council to make an informed and defendable decision on which options are progressed following Stage 3.
