Economic Valuation of on Site Material Damages of High Water on Economic Activities based in the City of Venice: Results from a Dose-Response-Expert-Based Valuation Approach

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. The paper focuses on the economic assessment of damages caused by high water in the city of Venice. In particular, we focus our attention on a valuation exercise that addresses the estimation of monetary, short period, on-site damages due to high water events on the different business activities located in Venice. On-site damages include both mitigation costs, which refer to all types of financial expenditure undergone to avert physical and material damages caused by flooding, and remediation costs, i.e. costs to be sustained for maintenance and substitution of affected building elements. Hence, the present study can be considered as a pioneering attempt to analytically quantify, from an economic point of view, on-site damages from high water. An integrated dose-response modelling and an expert-based valuation approach have been selected as the most suitable economic valuation methodology to shed light on the onsite damages. The main focus of the work is to assess dose-response relationships, which are able to describe the physical effects of high water on the different on-site damage categories, including inner and front doors maintenance, cleaning of pavements and maintenance of the walls. Bearing in mind such an economic valuation framework, we proceed with the estimation of on-site damages not only for the present high water situation (business as usual) but also extend the valuation exercise to three additional high water scenarios: (1) a climate change scenario; (2) a high water protection scenario; and, (3) a combined climate change and protection scenario. Estimation results show that the welfare loss due to on-site, short-term damages supported by the business activities ranges from 3.41 to 4.73 million Euro per year, respectively for the business as usual and climate change scenarios. Finally, we can conclude that the introduction of a public policy protection mechanism that defends the city of Venice from any flooding above 110 cm above the Punta della Salute Tidal Datum, such as the MOSE, will reduce the on-site damages supported by the business activities up to 2.87 million Euro per year. Terms of use: Documents in

Developing a framework for the assessment of current and future flood risk in Venice, Italy

“…The results of the scenario analysis highlight the importance of a fully functioning MOSE barrier and the damage mediating influence of the individual protection scenarios. In line with previous studies investigating the remaining flood risk under climate change with a fully functioning barrier(Nunes et al, 2005), the present study suggests that a fully closed MOSE barrier limits the effect of flooding for the considered meteorological flood event to very few buildings inside the old-town with very small damages for all considered sea level rise scenarios as shown in Tab. 10.Even though the applied methodology to represent preparedness and individual flood risk protection by means of different IPS and their effectiveness has mainly a conceptual value, some insights can be derived nevertheless: the warning level and how residents will respond to this in terms of individual protection in light of a (expected) functioning MOSE barrier appear to have significant influence on the expected damages as shown in Tab.…”

“…Moreover, only a few of studies on damage or loss modelling cover the old-town of Venice. Some studies investigated potential flood damages based on basic depth-damage relations to analyse the benefit of a functioning barrier (Fontini et al, 2008;Nunes et al, 2005), others looked into remaining flood risk for floods up to a level of 1.10 m ZMPS (Caporin and Fontini, 2014). These studies mainly focus on different closure scenarios of the MOSE barrier consider flood risk implicitly by using a maximum safeguard water level at the city of Venice (Umgiesser, 2020;Cavallaro et al, 2017;Umgiesser and Matticchio, 2006).…”

Welfare Improvisation from the Receiving Waters of Urban Wastewater Systems in the Context of the Water Framework Directive

“…The ecological services presenting a high, moderate low degree of knowledge, should be better valuated through the corresponding economic sectors. The assessment process could be then realized in reference to the shadow pricing or opportunity cost of the associated commodity (Nunes et al 2005). …”

Developing a framework for the assessment of current and future flood risk in Venice, Italy

“…Moreover, only a few studies on damage or loss modeling cover the old town of Venice. Some studies have investigated potential flood damage based on basic depthdamage relations to analyze the benefit of a functioning barrier (Fontini et al, 2008;Nunes et al, 2005), while others have looked into remaining flood risk for floods up to a level of 1.10 m ZMPS (Caporin and Fontini, 2014). These studies mainly focus on different closure scenarios of the MOSE barrier and consider flood risk implicitly by using a maximum safeguard water level in the city of Venice (Umgiesser, 2020;Cavallaro et al, 2017;Umgiesser and Matticchio, 2006).…”