A new study estimates the cost of a dirty bomb attack on Los Angeles’ business district at $16 billion — a significant percentage of that from economic fallout caused by psychological impact compared to injuries, business closures and cleanup.
“The economic effects of the public’s change in behavior are 15 times more costly than the immediate damage in the wake of a disaster,” study-coauthor Adam Rose said in a release about the University of Southern California study. ”“These findings illustrate that because the costs of modern disasters are so large, even small changes in public perception and behaviors may significantly affect the economic impact.”