Challenges and Opportunities for Economic Evaluation of Disaster Risk Decisions

Nicola Smith, Charlotte Brown (), Garry McDonald, Morag Ayers, Robert Kipp and Wendy Saunders
Additional contact information
Nicola Smith: Market Economics Ltd
Charlotte Brown: Resilient Organisations Ltd
Garry McDonald: Market Economics Ltd
Morag Ayers: Market Economics Ltd
Robert Kipp: Resilient Organisations Ltd
Wendy Saunders: GNS Science

Economics of Disasters and Climate Change, 2017, vol. 1, issue 1, No 7, 120 pages

Abstract: Abstract Decision-makers today are required to assess disaster risk management options in increasingly complex and uncertain environments. Disaster risk management typically involves significant investment to mitigate low probability or highly uncertain events. We argue that under these circumstances existing economic evaluation toolkits do not adequately support decision-making. Our paper outlines the key economic evaluation tools used in decision-making and, in turn, advances a research agenda for future development and application of these approaches. Priority challenges to be addressed include resilience thinking, multi-capital assessment, valuing the future, accounting for distributional equity, social appetite for risk, and deep uncertainty. We also recommend a strong focus on capacity and capability building to improve the risk literacy of decision-makers.

Keywords: Disaster risk; Economic evaluation; Decision-making; Deep uncertainty; Cost benefit analysis; Resilience (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (7)

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DOI: 10.1007/s41885-017-0007-0

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