If Mitigation Saves $6 Per Every $1 Spent, Then Why Are We Not Investing More? A Louisiana Perspective on a National Issue

Gall, Melanie; Friedland, Carol J.

doi:10.1061/(asce)nh.1527-6996.0000342

Cited by 14 publications

(3 citation statements)

References 36 publications

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“…Educating vulnerable populations about the effect of tropical cyclones (most expensive disasters) and severe storms (high-frequency disasters) can signi cantly reduce the economic impact and save American lives. A dollar invested by the federal government in disaster mitigation saves six dollars in recovery (Gall & Friedland, 2020). A proactive measure and numerical modeling approach can substantially mitigate the adverse effects of highly disruptive disasters such as cyclones, severe storms, and drought (Hoffmann & Muttarak, 2017).…”

Section: Discussion Conclusionmentioning

confidence: 99%

Analyzing the financial risk of billion-dollar disasters in the United States: Simulating the frequency and economic costs of U.S. natural disasters

Shukla

MacKenzie

2022

Preprint

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The number of billion-dollar natural disasters in the United States has increased from 28 in 1980-1989 to 105 in 2010-2018. During these same time periods, the total cost of these natural disasters increased from $172 billion to $755 billion. Generating probabilistic assessments of the cost of these billion-dollar natural disasters can provide insight into the financial risks posed by these disasters while accounting for the uncertainty and variation in these disasters. This article simulates the frequency and cost of billion-dollar disasters and analyzes the financial risk of these disasters in the United States. We use a probabilistic approach to quantify and create five models. These models are created by fitting probability distributions to the historical cost of billion-dollar disasters. The cost of each billion-dollar natural disaster and U.S. GDP from 1980 to 2018 are analyzed and used. The model that perhaps fits the data best and accounts for the recent increase in the cost and frequency of billion-dollar disasters forecasts that the expected annual cost of these disasters is $91 billion, with about a 1% chance that the annual costs could exceed $500 billion. Simulating the costs and frequency of natural disasters provides an understanding of the risks of different types of disasters to the United States. It helps policymakers allocate resources effectively to build a resilient nation.

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Section: Discussion Conclusionmentioning

confidence: 99%

Analyzing the financial risk of billion-dollar disasters in the United States: Simulating the frequency and economic costs of U.S. natural disasters

Shukla

MacKenzie

2022

Preprint

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“…However, financial resources are frequently allocated disproportionately to support recovery initiatives after a disaster rather than using a few resources to finance pre-disaster mitigation activities. According to research, disaster mitigation investing is cost-effective because it typically generates $6 in savings for every $1 invested (Gall and Friedland 2020).…”

Section: Introduction 1climate Change and Natural Disastersmentioning

confidence: 99%

Climate Change-Related Disaster Risk Mitigation through Innovative Insurance Mechanism: A System Dynamics Model Application for a Case Study in Latvia

Feofilovs,

Pagano,

Vannucci

et al. 2024

Risks

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This study explores how the System Dynamics modeling approach can help deal with the problem of conventional insurance mechanisms by studying the feedback loops governing complex systems connected to the disaster insurance mechanism. Instead of addressing the disaster’s underlying risk, the traditional disaster insurance strategy largely focuses on providing financial security for asset recovery after a disaster. This constraint becomes especially concerning as the threat of climate-related disasters grows since it may result in rising long-term damage expenditures. A new insurance mechanism is suggested as a solution to this problem to lower damage costs while safeguarding insured assets and luring new assets to be protected. A local case study utilizing a System Dynamics stock and flow model is created and validated by examining the model’s structure, sensitivity analysis, and extreme value test. The results of the case study performed on a city in Latvia highlight the significance of effective disaster risk reduction strategies applied within the innovative insurance mechanism in lowering overall disaster costs. The logical coherence seen throughout the analysis of simulated scenario results strengthens the established model’s plausibility. The case study’s findings support the innovative insurance mechanism’s dynamic hypothesis and show the main influencing factors on the dynamics within the proposed innovative insurance mechanism. The information this study can help insurance firms, policy planners, and disaster risk managers make decisions that will benefit local communities and other stakeholders regarding climate-related disaster risk mitigation.

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“…Pre-disaster mitigation and preparedness can reduce the disaster impact. For example, calculations from the United States demonstrated that a one-dollar pre-disaster mitigation investment could reduce 6-dollar losses from potential disasters (Gall & Friedland, 2020). Therefore, it is essential to discover the facilitators and barriers of pre-disaster mitigation and preparedness to reduce potential disaster losses in the uncertain world.…”

Section: Introductionmentioning

confidence: 99%

Why People Don't Prepare for Disasters? A National Survey from China

Han

Zhou

2021

Preprint

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Preparedness is important for reducing potential losses from various disasters. There are limited studies that investigated the concrete reasons for not adopting a specific preparedness action. This paper fills such a gap using representative national survey data from China. Seven disaster preparedness actions, namely "preparing food and water at home," "pay attention to disaster-related information," "making emergency plans," "being aware of nearest shelters," "being aware of building code," "participating in exercise or drills" and "being a volunteer for emergencies" are used as the measure of preparedness behaviors. Overall, the public has adopted more material-related preparedness actions, equipped with fewer awareness activities, and had the least community participation-related preparedness behaviors. The primary reasons for not adopting these actions are "not aware," "don't know where to buy or where to reach," and "the action is not useful, there is no necessary," while "costly," "need special knowledge," "don't have time," "need collaboration with others," "energy-consuming" and "not my responsibility" are the less chose reasons. Besides, trust in government, relocation due to disasters, living in urban areas, and a higher degree of socioeconomic status are positively correlated with higher probabilities of adopting all the seven preparedness activities. These findings highlight the importance of community outreach from emergency management professionals to increase the public's awareness of preparing for potential disasters. It is necessary to let the general public know the existence of these preparedness actions, and these actions can reduce losses.

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If Mitigation Saves $6 Per Every $1 Spent, Then Why Are We Not Investing More? A Louisiana Perspective on a National Issue

Cited by 14 publications

References 36 publications

Analyzing the financial risk of billion-dollar disasters in the United States: Simulating the frequency and economic costs of U.S. natural disasters

Analyzing the financial risk of billion-dollar disasters in the United States: Simulating the frequency and economic costs of U.S. natural disasters

Climate Change-Related Disaster Risk Mitigation through Innovative Insurance Mechanism: A System Dynamics Model Application for a Case Study in Latvia

Why People Don't Prepare for Disasters? A National Survey from China

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