Systemic Risk: Quats And Premature Failure In CPVC Pipes

This paper identifies a series of events leading up to a new cause of plumbing failures in CPVC pipe. The story demonstrates how unbalanced market forces can exacerbate a problem if information is too centralized and cannot reach solution providers in time.

Finally, we demonstrate how decentralized information may be superior to centralized information when confronting systemic risk exposures.

Beginning in the mid-1990s, the EPA began publishing mold remediation documents in response to flooding events. Soon after, they published on the health impact of mold, including allergic, asthma and respiratory ailments.

In the early 2000s, increased energy-efficiency certification led to buildings that were sealed tight.

This increased the mold problem as moisture from appliance, humans, condensation and showers was unable to escape from the interior of buildings.