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Maps of occurrence. (a) Geophysical hazards and (b) industrial hazards. Note: The scale of maps represents cumulative observations of event occurrences in each country over the years since 1900.
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The purpose of this paper is to approach the way investors perceive the risk associated with unexpected environmental disasters. For that reason, we examine certain types of natural and technological disasters, also known as “na-tech”. Based on the existing relevant literature and historical sources, the most common types of such disasters are geop...
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... More specifically, on 11 March 2011, a 9 MW earthquake close to the north-eastern coast of Honshu (Japan) triggered a series of large tsunami waves which devastated all regional coastal areas (Tanaka and Managi 2016; Managi and Guan 2017; Behling et al. 2019). As Halkos and Zisiadou (2020b) state, this series of events led to a shutdown of 11 nuclear power plants. Regarding the Fukushima Power Plant, a shutdown of its cooling system due to the flood of the tsunami waves caused the most catastrophic nuclear accident since Chernobyl. ...
This paper reviews the case of nuclear energy. Currently, the worldworld is facing one of the greatest energy crises due to the Russo-Ukrainian war. This conflict has lead to limited sources of gas, causing a dramatic decrease in energy supply, leading to emerging energy crisis risks. This is one on the main purposes of reviewing nuclear energy as a possible energy alternative in the future. Apart from presenting the basis of nuclear energy and nuclear reactors, we attempt to compare this source of electricity with other renewable energy forms, such as solar, wind and hydroelectric power. Furthermore, we illustrate the benefits and drawbacks that have been observed regarding nuclear power as well as its contribution to economic growth and the impact it has had on the environment. It has been said that, with the use of nuclear power, air pollution will be reduced because of the elimination of greenhouse gases. However, nuclear power, apart from the final product, generates waste that in this case is radioactive, meaning that the management and disposal techniques are of the utmost importance. Of course, unfortunate events that involved nuclear power do exist and are unfortunately engraved in our memories. Both the nuclear accidents, such as Three Mile Island, Chernobyl and Fukushima, and nuclear weapons usage by military forces, the well-known atomic bombing of Hiroshima and Nagasaki, bring great controversy regarding the adaptation of nuclear power. As is presented in the paper, since the beginning of the new millennium the scheme of energy production and electricity production appears to have changed drastically. By using available data reported by BR, we illustrated that the production of energy and electricity has increased over the last 22 years (2000–2021) due to excessive demand; however, what is more important to mention is the share of both electricity and energy derived from renewable forms such as solar, wind and hydroelectric power. It is shown that more and more countries adopt those sources of energy than did in previous decades. It is crucial to note that it is not the science that causes catastrophic events, but rather the errors of humans.
... Part of this issue may belong to the investor's sophistication, as Stålnacke (2019) points out. Additionally, the effects of natural events can influence the interpretation of future events (Halkos & Zisiadou, 2020). ...
... The next analyzed factor was the time proximity to the natural disaster. Evidence exists that natural disasters cause shocks in the markets, which in turn creates abnormal returns that last anywhere from 5 days to a few months (Koerniadi et al., 2016;Tao, 2014;Valizadeh et al., 2017), but since the markets strive for equilibrium, the abnormal returns are only short-term, and they do not cumulate (Halkos & Zisiadou, 2020). ...
This study investigated the stability and permanency of risk preference (personal risk tolerance) before, during, and after a natural disaster. The study found that risk preference is stable and that there is confusion, which is causing false positives, between elements of risk perception (analytical analysis of risk) and risk preference.
... However, this is not always the case. As it is mentioned by Halkos and Zisiadou (2020), specific corporations which can guarantee their high profitability such as corporations of the oil industry, do not face a negative impact of their share prices, indicating that investors may ignore the environmental disaster due to the fact of the high earnings through dividends. ...
... There is proven to be a connection between two or more, either natural or technological, disasters. A well-known example of such a combined disaster is the Fukushima Daiichi Nuclear Power Plant disaster occurred in 2011 as described by Halkos and Zisiadou (2020). An earthquake occurred in the ocean, created a tsunami that caused a flood which eventually led to the shutdown of the reactor of the power plant. ...
The purpose of this paper is to examine whether there is a possible hedging technique against a potential unexpected hazard, that can secure the capital invested by individuals or corporations. More specifically, the traditional hedging techniques are presented and illustrating whether they can be applicable against unexpected environmental disasters. Moreover, the evolution of hedging techniques regarding the catastrophe disasters are presented in the papers. After illustrating hazard-prone areas with the use of mapping visualization, techniques or catastrophe risk management and risk minimizations are proposed in an attempt to reduce the direct and indirect losses after a disastrous events while at the same time increase the trustworthiness of corporations and governments.
Supplementary information:
The online version contains supplementary material available at 10.1007/s41885-021-00085-4.
... For example, Adler (2001) argues that trust itself is a coordination mechanism that lowers transaction costs between firms. By contrast, if uncertainty increases this has financial consequences which may jeopardize the smooth functioning of an economy (Halkos and Zisiadou 2020). Nowadays, trust and reliability of commercial transactions through digital money is ensured through consumer protection laws and through specific practical norms and procedures regarding using machines for money transferring, such as ATMs, e-banking through authorized web-pages, money transfers from account to account, etc. ...
In the beginning of the second book of his Politeia (Republic) Plato in passage 2.358e–359a–c raises the issue of the administration of justice as a means of motivating people to behave fairly regarding their relationships and when cooperating with each other because, at the end, this is mutually beneficial for all of them. We argue that this particular passage could be seen as a part of a wider process of evolution and development of the institutions of the ancient Athenian economy during the Classical period (508–322 BCE) and could be interpreted through modern theoretical concepts, and more particularly, game theory. Plato argued that there are two players, each with two identical strategies, to treat the other justly or unjustly. In the beginning, each player chooses the “unjust” strategy, trying to cheat the other. In this context, which could be seen as a prisoner’s dilemma situation, both end with the worst possible outcome, that is, deceiving each other and this has severe financial consequences for both of them. Realizing this, in a repeated game situation, with increasing information on the outcome and on each other, they choose the “just” strategy so achieving the best outcome and transforming the game in a cooperative one. We analyze this, formulating a dynamic game which is related to international commercial transactions, after explaining how such a situation could really arise in Classical Athens. We argue that this is the optimal scenario for both parties because it minimizes the risk of deceiving each other and creates harmony while performing financial transactions.
The relationship between disasters triggered by natural hazards (DTNH) and terrorism is attracting renewed public and academic interest. This review article aims to unveil the key areas of focus and assess the structure of the network of scholars along with the academic communities that are producing research on the topic. We applied term co-occurrences and co-citation network analysis methodologies to a sample of 1027 academic documents on DTNH and terrorism that were published over a four-decade period. Two areas of focus (security and trauma) and four scholarly communities (political studies, economics, psychology, and sociology) emerged at the juncture of DTNH and terrorism. Due to an observed lack of collaboration between select communities, a promising future research agenda is proposed for achieving knowledge cross-fertilization and developing a truly cross-disciplinary research field. As the increasing occurrence of DTNH makes the stricken regions more vulnerable to terrorist acts, this literature review is timely and critical for cumulative knowledge building on DTNH and terrorism.
