Valuing non-market economic impacts from natural hazards

Research output: Contribution to journalReview article

Abstract

Prioritising investments to minimise or mitigate natural hazards such as wildfires and storms is of increasing importance to hazard managers. Prioritisation of this type can be strengthened by considering benefit and cost impacts. To evaluate benefits and costs, managers require an understanding of both the tangible economic benefits and costs of mitigation decisions, and the often intangible values associated with environmental, social and health-related outcomes. We review the state of non-market valuation studies that provide monetary equivalent estimates for the intangible benefits and costs that can be affected by natural hazard events or their mitigation. We discuss whether managers can usefully call upon these available estimates, with a view to using the benefit transfer approach to include non-market values in economic decision frameworks. Additional context-specific non-market valuation studies are required to provide a more accurate selection of value estimates for natural hazard decision making. Decision making would benefit from considering these values explicitly in prioritising natural hazard investments.

Original languageEnglish
JournalNatural Hazards
DOIs
Publication statusE-pub ahead of print - 22 Aug 2019

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natural hazard
economic impact
valuation
cost
mitigation
decision making
prioritization
wildfire
economics
hazard
decision

Cite this

@article{28c9e7ec619c44faa2e0aa632efddfa0,
title = "Valuing non-market economic impacts from natural hazards",
abstract = "Prioritising investments to minimise or mitigate natural hazards such as wildfires and storms is of increasing importance to hazard managers. Prioritisation of this type can be strengthened by considering benefit and cost impacts. To evaluate benefits and costs, managers require an understanding of both the tangible economic benefits and costs of mitigation decisions, and the often intangible values associated with environmental, social and health-related outcomes. We review the state of non-market valuation studies that provide monetary equivalent estimates for the intangible benefits and costs that can be affected by natural hazard events or their mitigation. We discuss whether managers can usefully call upon these available estimates, with a view to using the benefit transfer approach to include non-market values in economic decision frameworks. Additional context-specific non-market valuation studies are required to provide a more accurate selection of value estimates for natural hazard decision making. Decision making would benefit from considering these values explicitly in prioritising natural hazard investments.",
keywords = "Intangible values, Natural hazard mitigation, Non-market values, Prioritising investments, Willingness to pay",
author = "Rogers, {Abbie A.} and Dempster, {Fiona L.} and Hawkins, {Jacob I.} and Johnston, {Robert J.} and Boxall, {Peter C.} and John Rolfe and Kragt, {Marit E.} and Burton, {Michael P.} and Pannell, {David J.}",
year = "2019",
month = "8",
day = "22",
doi = "10.1007/s11069-019-03761-7",
language = "English",
journal = "Natural Hazards",
issn = "0921-030X",
publisher = "Springer",

}

Valuing non-market economic impacts from natural hazards. / Rogers, Abbie A.; Dempster, Fiona L.; Hawkins, Jacob I.; Johnston, Robert J.; Boxall, Peter C.; Rolfe, John; Kragt, Marit E.; Burton, Michael P.; Pannell, David J.

In: Natural Hazards, 22.08.2019.

Research output: Contribution to journalReview article

TY - JOUR

T1 - Valuing non-market economic impacts from natural hazards

AU - Rogers, Abbie A.

AU - Dempster, Fiona L.

AU - Hawkins, Jacob I.

AU - Johnston, Robert J.

AU - Boxall, Peter C.

AU - Rolfe, John

AU - Kragt, Marit E.

AU - Burton, Michael P.

AU - Pannell, David J.

PY - 2019/8/22

Y1 - 2019/8/22

N2 - Prioritising investments to minimise or mitigate natural hazards such as wildfires and storms is of increasing importance to hazard managers. Prioritisation of this type can be strengthened by considering benefit and cost impacts. To evaluate benefits and costs, managers require an understanding of both the tangible economic benefits and costs of mitigation decisions, and the often intangible values associated with environmental, social and health-related outcomes. We review the state of non-market valuation studies that provide monetary equivalent estimates for the intangible benefits and costs that can be affected by natural hazard events or their mitigation. We discuss whether managers can usefully call upon these available estimates, with a view to using the benefit transfer approach to include non-market values in economic decision frameworks. Additional context-specific non-market valuation studies are required to provide a more accurate selection of value estimates for natural hazard decision making. Decision making would benefit from considering these values explicitly in prioritising natural hazard investments.

AB - Prioritising investments to minimise or mitigate natural hazards such as wildfires and storms is of increasing importance to hazard managers. Prioritisation of this type can be strengthened by considering benefit and cost impacts. To evaluate benefits and costs, managers require an understanding of both the tangible economic benefits and costs of mitigation decisions, and the often intangible values associated with environmental, social and health-related outcomes. We review the state of non-market valuation studies that provide monetary equivalent estimates for the intangible benefits and costs that can be affected by natural hazard events or their mitigation. We discuss whether managers can usefully call upon these available estimates, with a view to using the benefit transfer approach to include non-market values in economic decision frameworks. Additional context-specific non-market valuation studies are required to provide a more accurate selection of value estimates for natural hazard decision making. Decision making would benefit from considering these values explicitly in prioritising natural hazard investments.

KW - Intangible values

KW - Natural hazard mitigation

KW - Non-market values

KW - Prioritising investments

KW - Willingness to pay

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U2 - 10.1007/s11069-019-03761-7

DO - 10.1007/s11069-019-03761-7

M3 - Review article

JO - Natural Hazards

JF - Natural Hazards

SN - 0921-030X

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