Natural disasters impact our critical infrastructure
E.g. Thailand floods hit major manufacturing facilities; insurers surprised by companies’ exposure to event
Insured losses have been rising over time since 1970s
Insurers use catastrophe “Cat” models to estimate risk of extreme events
Event Set -> Hazard -> Vulnerability -> Financial Module
Small number of Cat model vendors who license models as black boxes
Oasis Loss Modeling Framework is attempting to open up Cat models
Climate change is making infrastructure more vulnerable to extreme events, which may make Cat model too optimistic
Insurers mostly care about the next several years since policies are typically short-term
Companies/societies care about next several decades (damages and premiums will rise)
Climate models disagree in their predictions about extreme events
Developing system for predicting risk from climate change-driven extreme events on infrastructure
Hazard
Networks
Services
Socio-economics
Asset, condition, exposure -> Direct damages
Disruption to service -> Indirect damages
Macroeconomic events
===> Sum(Probability×Impact) = Risk
Adaptation options: reduce risk
Example: cyclone risks to infrastructure
Cyclone tracks database
Global network of power networks
Collaboration with World Bank on GridFinder
Superimpose maximum wind speed from cyclone on the network to infer the number of assets that will fail
Use nighttime light data before/after cyclones to infer damage from different wind speeds
Currently it is hard to get data on the physical design of power networks (pole material, over/underground, etc.) so accounting for this is future work
Performed risk assessment using synthetic distributions of cyclone tracks
IRIS (Sparks & Toumi)
Example: impact on ports and supply chains
1350 ports
Datasets used to analyze impact of extreme weather on port activity
OxMarTrans Transport and Trade model
Import/export data between sectors and countries
Port bill data
AIS Ship tracking data
Infer the port-to-port shipping network model
Makes it possible to understand the impact of a disruption at one port on other ports
Focused on the impact of different hazards on each port: Cyclone, Fluvial, Coastal, Pluvial, Earthquake, Operational
Application: Using model for decarbonization scenarios
E.g. adoption of green ammonia
Identified the points where ammonia can be generated, where it would be shipped to and how to refuel ships using it
Australia would be the producer for Asia, and West Africa for Europe and Chile for North America (unless US creates subsidies for domestic production)
Application: routing agricultural commodities through shipping network
Estimate cost of food delivery
Infer impact of food shocks
Optimal design of distribution network and improve its resilience
Challenges:
Availability of detailed infrastructure, trade and supply chain data
Validation is hard because there are not that many extreme events historically and their impacts are very specific to the impacted location
Future socioeconomic changes are unpredictable