Author(s): S. N. Jonkman; M. Kok; J. K. Vrijling
Linked Author(s):
Keywords: Flood risk; Flood protection; Economic optimisation; Cost benefit analysis
Abstract: At the beginning of the new century several strategies are proposed that aim at increasing the level of flood protection in the Netherlands. In this paper an economic method for the analysis of these strategies and their effectiveness is suggested. The method of economic optimisation takes into account the expenditure for a safer system and the expected (value of the) economic damage. In the economically optimal situation the total costs in the system, the sum of investments and expected economic damage, are minimised. The results following from the economic optimisation should be considered as a technical advice to policy makers. Several flood protection strategies applied or considered in the Netherlands, such as dike heightening, “Room for rivers” and flood insurance, have been schematised in the economic optimisation. The paper also shows how future developments, such as climate change and economic growth, can be taken into account in the method. From these schematisations criteria have been derived which can be applied for cost benefit analysis of alternatives.
Year: 2003