Understanding the Economic Costs and Benefits of Catastrophes and Their Aftermath: A Review and Suggestions for the U.S. Federal Government

Abstract

The number and magnitude of devastating natural and human events make it imperative that we actively and systematically estimate the costs and benefits of policy decisions in affected localities, regions, states, and nations. Such strategic risk management preparedness efforts should forecast well into the future and include scenarios with and without enhanced engineered structures; with reduced vulnerability through land-use planning and design; with the impact of resiliency and mitigation; with evacuation and relocation; and with the costs and benefits of recovery and restoration. We describe different kinds of regional economic models that can be used in these preparedness planning efforts, explore critical data needs, and advocate a shared federal-state-local strategic planning effort to accomplish the objective.

Review article "Assessment of economic flood damage"

“…More efforts to collect flood damage data and the development of standardized methods have been constantly called for (e.g. Ramirez et al, 1988;Mileti, 1999;NRC, 1999;Yeo, 2002;WHO, 2002;Guha-Sapir and Below, 2002;Dilley et al, 2005;Handmer et al, 2005;Greenberg et al, 2007). The lack of reliable, consistent and comparable damage data is seen as a major obstacle for risk analyses and effective and long-term damage prevention (IFRCRCS, 1997;Changnon, 2003;Downton and Pielke, 2005).…”

“…For Germany, recently the object-oriented flood damage database HOWAS 21 has been set up, containing already more than 5500 damage cases of four economic sectors (as in April 2010, http://nadine.helmholtz-eos.de/HOWAS21.html, in German). There are many ways to measure the damages associated with a flood (Pielke, 2000), and accounting for all costs of disasters is complicated for different reasons (Downton and Pielke, 2005): first, indirect costs of disasters are difficult to measure and can often only be assessed by models (see Greenberg et al, 2007 for a review). Above all, disasters have direct and indirect benefits, e.g.…”

The flood of June 2013 in Germany: how much do we know about its impacts?

“…A monetary estimate can also be put on disruptions of operations, turnover losses or costs incurred by delivery detours. However, further indirect costs of disasters along production chains are difficult to measure and can often only be assessed by models (Greenberg et al, 2007;Meyer et al, 2013). Moreover, many losses (and benefits) associated with a flood event are intangible and difficult to monetise or even to count.…”

Hazard Mitigation Element Quality in Coastal Comprehensive Plans in a State with Strong Requirements for Hazard Mitigation Plan Elements

“…Physical location is a strong determinant of vulnerability to natural hazards, furthermore, increasing urbanization often leads to increased vulnerability to natural hazards (Greenberg, et al, 2007;Hamza & Zetter, 1998). Limiting development in areas known to be prone to natural hazards limits exposure to hazards, channels development to less hazard-prone areas, and may help to protect natural features of those areas that may act as hazard barriers Burby & Dalton, 1994).…”

“…Because physical location plays a significant role in hazard vulnerability, the land use component of CPs is critical; however, it is just one of many aspects of CP that can reduce vulnerability to natural hazards (Greenberg, Lahr, & Mantell, 2007).…”