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Estimating Environmental Benefits of Natural Hazard Mitigation with Benefit Transfer: Results from a Benefit-Cost Analysis of FEMA Hazard Mitigation Grants

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  • John C. Whitehead
  • Adam Z. Rose

Abstract

This paper summarizes methods, data, and results associated with the first major attempt to evaluate the environmental benefits of FEMA natural hazards mitigation grants. The study relied heavily on the refinement of benefit transfer methods. Categories of benefits include water quality for recreational and commercial fishing, drinking water, outdoor recreation, hazardous waste, wetlands and aesthetic, health and safety benefits. Environmental and historic benefits proved to be a very minor proportion of the total benefits in dollar terms. Only a very small percentage of earthquake and wind-related hazards yielded environmental benefits, while a sizeable percentage of flood hazard grants did so. We also discuss the prospects that environmental benefits might have been much greater had data been available to analyze more environmental impacts. Key Words: Natural Hazard Mitigation, Environmental Benefits

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File URL: http://econ.appstate.edu/RePEc/pdf/wp0714.pdf
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Bibliographic Info

Paper provided by Department of Economics, Appalachian State University in its series Working Papers with number 07-14.

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Date of creation: 2007
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Handle: RePEc:apl:wpaper:07-14

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Web page: http://www.business.appstate.edu/departments/economics/
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