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Flood Proofing Low-Income Houses in India: an Application of Climate-Sensitive Probabilistic Benefit-Cost Analysis

Author

Listed:
  • Stefan Hochrainer-Stigler

    (IIASA - International Institute for Applied Systems Analysis)

  • JoAnne Linnerooth-Bayer

    (IIASA - International Institute for Applied Systems Analysis)

  • Junko Mochizuki

    (IIASA - International Institute for Applied Systems Analysis)

Abstract

Poor communities in high risk areas are disproportionately affected by disasters compared to their wealthy counterparts; yet, there are few analyses to guide public decisions on pro-poor investments in disaster risk reduction. This paper illustrates an application of benefit-cost analysis (BCA) for assessing investments in structural flood proofing of low-income, high-risk houses. The analysis takes account of climate change, which is increasingly viewed as an important consideration for assessing long-term investments. Specifically, the study focuses on the Rohini river basin of India and evaluates options for constructing non-permanent and permanent residential structures on a raised plinth to protect them against flooding. The estimates show a positive benefit-cost ratio for building new houses on a raised plinth, while the ratio is less than one for demolishing existing houses to rebuild on a raised plinth. Climate change is found to significantly affect the BCA results. From a policy perspective, the analysis demonstrates the potential economic returns of raised plinths for ‘building back better’ after disasters, or as a part of good housing design practice.

Suggested Citation

  • Stefan Hochrainer-Stigler & JoAnne Linnerooth-Bayer & Junko Mochizuki, 2019. "Flood Proofing Low-Income Houses in India: an Application of Climate-Sensitive Probabilistic Benefit-Cost Analysis," Economics of Disasters and Climate Change, Springer, vol. 3(1), pages 23-38, April.
    • Handle: RePEc:spr:ediscc:v:3:y:2019:i:1:d:10.1007_s41885-018-0032-7
    DOI: 10.1007/s41885-018-0032-7
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    Cited by:

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    2. Ayat Al Assi & Rubayet Bin Mostafiz & Carol J. Friedland & Robert V. Rohli & Arash Taghinezhad & Md Adilur Rahim, 2023. "Cost-effectiveness of federal CDBG-DR Road Home Program mitigation assistance in Jefferson Parish, Louisiana," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 117(2), pages 1291-1319, June.
    3. George Halkos & Antonis Skouloudis & Chrisovalantis Malesios & Nikoleta Jones, 2020. "A Hierarchical Multilevel Approach in Assessing Factors Explaining Country-Level Climate Change Vulnerability," Sustainability, MDPI, vol. 12(11), pages 1-14, May.
    4. Aishwarya Narendr & S. Vinay & Bharath Haridas Aithal & Sutapa Das, 2022. "Multi-dimensional parametric coastal flood risk assessment at a regional scale using GIS," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(7), pages 9569-9597, July.

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