This section details how capital and labor losses are calculated using the ECAM component within HEC-FIA. Within the calculations, direct damage and life loss, are utilized to evaluate the losses of capital and labor as a ratio of the overall available capital and labor by sector. After capital and labor losses are described, they are submitted to the ECAM module as inputs. ECAM then computes indirect losses.

Capital Losses

Capital loss results are computed through three steps: 1) calculating the total exposed value per county; 2) calculating the losses per county resulting from the event; and 3) dividing the losses per county by the total exposed value per county for all non-residential structures, which results in a capital loss ratio per county. The procedure for calculating capital loss results is described in the following steps:

Calculate the total capital (TC_c) for a County (c) by summing the structure and content values for all non-residential structures within a County (c) using the equation below:

$\begin{array}{l}\displaystyle TC_C = TIC_C + TCC_C + TPC_C\end{array}$

where:
TIC_c is the total industrial capital for a County (c)
TCC_c is the total commercial capital for a County (c)
TPC_c is the total public capital for a County (c)

2. Calculate the total lost capital by summing the damage for each structure category, as computed in the Direct Damage Computations. The total lost capital (LC_c) for a County (c) is calculated using the equation below:

$\begin{array}{l}\displaystyle LC_C = LIC_C + LCC_C + LPC_C\end{array}$

where:
LIC_c is total lost industrial capital for a County (c)
LCC_c is total lost commercial capital for a County (c)
LPC_c is total lost public capital for a County (c)

3. Finally, a comparison between (LC_c) for a County (c) and (TC_c) for a County (c) is expressed in terms of a capital loss ratio (CL_r). This ratio, which cannot be greater than one nor less than zero is calculated using the following formula:

$\begin{array}{l}\displaystyle CL_R = LC_C/TC_C\end{array}$

Labor Losses

To compute labor losses within HEC-FIA, the population for all structures within the structure inventory that are impacted by an event are utilized. This means that the population in both residential and non-residential structures will be utilized to calculate labor loss based upon the population under the age of 65 at 2:00 p.m. The justification for including all residential and non-residential structures is that although the entire population is not part of the workforce, the assumption is that the distribution of laborers (those under 65) and non-laborers (those over 65) within the study area is fixed both geospatially and temporally. The procedure for calculating labor losses was derived from FEMA's formulas for estimating population damage (Table 13.2, HAZUS-MH Technical Manual). The methodology used in HEC-FIA is described in the following steps:

Identify the number of people located in each impacted structure at 2:00 p.m.

2. Calculate the impact duration (Is) for each structure (s) in hours using the following formula:

$\begin{array}{l}\displaystyle I_S = D_S + C_S + R_S\end{array}$

where:
D_s is a user provided study wide duration value of flooding at structure (s) (hr)
C_s is cleanup time at structure (s) (hr)
R_s is reconstruction time at structure (s) (hr)
I_s may not exceed 8,766 hours (equivalent to one year, or 365.25 days). D_s, C_s, and R_s are defined by the user in the ECAM tab of the HEC-FIA Edit Alternative dialog box.

3. Calculate the number of labor hours displaced (LHD_s) for the working population at each structure (s) using the following formula:

$\begin{array}{l}\displaystyle LHD_S = I_S * (2000/(365.25*4)) * (P_S - L_S)\end{array}$

where:
2,000 is the number of working hours per laborer per year
365.25 is the number of days per year
24 is the number of hours per day
P_s is the total population under 65 in structure (s)
L_s is the life loss under 65 for structure (s)

4. Calculate the total labor loss (LL_s) at each structure (s) in hours by adding the number of labor hours displaced (LHD_s) for the working population to the number of labor hours lost due to life loss using the following formula:

$\begin{array}{l}\displaystyle LL_S = LHD_S + L_S *2000\end{array}$

where:
L_s is life loss at structure (s)
2000 is the number of working hours per laborer per year

5. Calculate the cumulative labor loss for County (c) using the following formula:

where:
LL_c is the labor loss for County (c) in hours
LL_s is the labor loss for structure (s)
n is the number of structures within County (c)

6. Calculate total population during the day (Popday) per county using the following formula:

$\begin{array}{l}\displaystyle Popday = (0.95*ResidDay+0.98*WorkingCom+0.80*WorkingInd+Hotel+Visitor+0.80*SchoolEnrollmentKto12+College+ 0.05*Pop)\end{array}$

where:
ResidDay is the daytime residential population
WorkingCom is the number of people commuting
WorkingInd is the number of people employed in the industrial sector
Hotel is number of people staying in hotels in the census tract
Visitor is the number of regional residents who do not live in the study area
School EnrollmentKto12 is the number of grade school students
College is the number of university students
Pop is the census tract population

7, Calculate the total available workforce (WF_c) for County (c) using the following formula:

where: EldersFrac is the fraction of the population over age 65

8. Finally, a comparison between the labor loss for the County (c) (LL_c) and the available labor for the County (c) is expressed in terms of a labor loss ratio (LL_r). This ratio, which cannot be greater than one nor less than zero, is calculated using the following formula:

$\begin{array}{l}\displaystyle LL_R = (LL_C)/(2000*WF_C)\end{array}$

Indirect Economic Losses

To convert the capital loss ratio (CL_r) and labor loss ratio (LL_r) into a reduction in economic output, the ECAM system model requires information about the specific nature of the economy being analyzed. The ECAM system model determines whether the economy in question is capital or labor intensive, and what the rate of exchange is between labor and capital. Each County has a unique dataset that is used to define the specific economic characteristics assessed in the ECAM system model. Statistics for production, employment, income and all other economic indicators are based upon the IMPLAN (IMpact analysis for PLANing) dataset, unless otherwise indicated. Each of these datasets can distinguish up to 440 separate production activities, ten household types, and four levels of government. The dataset used for evaluating indirect economics with ECAM and HEC-FIA has been aggregated from the full 440 sectors to thirty sectors. Additional information on the IMPLAN dataset is available from IMPLAN Group, LLC. (Appendix A). Additional information on the ECAM system model can be found in Lehman, et al. (2013).