DRR Cost Benefit Analysis (CBA)

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Chris Piper

Chris Piper

TorqAid

10 August 2012, 09:51

Hi everyone,

A professional colleague of mine (based in Norway), Ilan Kelman, is collecting/collating information on Disaster Risk Management (DRM) Cost Benefit Analysis (CBA)..see below. Please note a couple of responses from other people on this particular humanitarian network.both the paper by Mechler (and others), and the recent book by Wisner and others. All this info is included in our TorqAid DRM selected Bibliography, this including a couple of articles I've recently updated (including our Effective DRR diagram). Please feel free to share this info around, and, if you have input on DRR CBA, please contact Ilan directly ..on ilan_kelman@hotmail.com

Disaster Risk Management (DRM) Selected Bibliography
http://www.torqaid.com/images/stories/DRMBibliographyMaster.pdf

Greetings, Chris. Thanks for the bib. You might want to add Wisner, B., Gaillard, JC and Kelman, I., eds., The Routledge Handbook of Hazards and Disaster Risk Reduction, London, Routledge, 2012 http://www.routledge.com/books/details/9780415590655/. The hardbound version is expensive, but the e-book is nearly available (after a delay due to a backlog at Routledge for uploading books, apparently). The e-book will be much, much less expensive, and even less for readers in low income countries as I have negotiated a discount with Routledge marketing people along the lines of the 'Science for Life' journal discount system. People interested in the last mentioned should write to me directly (not on the list server): benjamin4319@gmail.com. Cheers, BEN (Wisner)

Dear all, yes, the MMC study is comprehensive and based on multiple evidence, so the 1:4 seems somewhat robust. A few years back we did a review and came to the conclusion it is 1: 2-4
see http://climatetransitions.org/files/active/0/Guidance%20note%20on%20CBA%205-30-07%20final.pdf. Actually, I am just doing a review paper on this for the upcoming UK Foresight report on disasters, which would be available later this year. One message is that BC ratios vary a lot depending on circumstances, methodologies and type of projects. Best, Reinhard.

The World Bank has often been quoted that disaster risk reduction saves $7 (sometimes $4-7) for every $1 invested. Extensive effort from several colleagues has been unable to track down the original study. The World Bank no longer uses this ratio and recommends against quoting it. The earliest source for the ratio that we found is the 1995 paper at http://onlinelibrary.wiley.com/doi/10.1111/j.1467-7717.1995.tb00338.x/abstract stating (p. 183) "The World Bank and U. S. Geological Survey calculate that a predicted $400 billion in economic losses from natural disasters over the 1990s could be reduced by $280 billion with a $40 billion investment in prevention, mitigation and preparedness strategies." No reference is given. The paper was so long ago that the authors understandably cannot assist further. I seek your help: 1. To check if the 7:1 ratio originates from the $280 billion / $40 billion figures or other calculations. 2. To find the original World Bank / USGS study with the $280 billion / $40 billion numbers or with the 7:1 ratio. I am aiming to update the document at http://www.ilankelman.org/miscellany/MitigationSaves.rtf with the wealth of recent studies that have emerged on this topic. Thank you for any time and help. And please do not use the 7:1 ratio until we have solved the mystery! Ilan (researcher at CICERO = Centre for Climate & Environmental Research in oslo, Norway).ilan_kelman@hotmail.com

Cheers

Chris

Chris Piper
Director, TorqAid
PO Box 13, Torquay,
VIC 3228, Australia
Tel: + 61 (0) 412 497 317
www.torqaid.com
www.linkedin.com/companies/torqaid

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