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Cost-benefit analysis for flood risk management and water governance in the Netherlands; an overview of one century

Author

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  • Bos, Frits
  • Zwaneveld, Peter

Abstract

The Netherlands is a global reference for flood risk management. This reputation is based on a mix of world-class civil engineering projects and innovative concepts of water governance. For more than a century, cost-benefit analysis has been important for flood risk management and water governance in the Netherlands. It has helped to select the most effective and efficient flood risk projects and to coordinate and reconcile the interests of various policy areas, levels of government and private stakeholders. This paper provides for the first time an overview of this well-developed practice. This includes the cost-benefit analysis in the 1901 act for enclosure of the Zuiderzee, van Dantzig’s famous formula for the economically optimal strength of dikes and a whole set of cost-benefit analyses for More room for rivers and the Delta Program for the next century. Dutch practice illustrates how cost-benefit analysis can support and improve flood risk management and water governance; other countries may learn from this. Rough calculations indicate that investing in cost-benefit analysis has been a highly profitable investment for Dutch society.

Suggested Citation

  • Bos, Frits & Zwaneveld, Peter, 2017. "Cost-benefit analysis for flood risk management and water governance in the Netherlands; an overview of one century," MPRA Paper 80933, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:80933
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    References listed on IDEAS

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    1. Frits Bos, 2008. "The Dutch fiscal framework: History, current practice and the role of the central planning bureau," OECD Journal on Budgeting, OECD Publishing, vol. 8(1), pages 1-42.
    2. Ruud Brekelmans & Dick den Hertog & Kees Roos & Carel Eijgenraam, 2012. "Safe Dike Heights at Minimal Costs: The Nonhomogeneous Case," Operations Research, INFORMS, vol. 60(6), pages 1342-1355, December.
    3. Carel Eijgenraam & Jarl Kind & Carlijn Bak & Ruud Brekelmans & Dick den Hertog & Matthijs Duits & Kees Roos & Pieter Vermeer & Wim Kuijken, 2014. "Economically Efficient Standards to Protect the Netherlands Against Flooding," Interfaces, INFORMS, vol. 44(1), pages 7-21, February.
    4. Bos, Frits & Zwaneveld, Peter & van Puijenbroek, Peter, 2012. "Een snelle kosten-effectiviteitsanalyse voor het Deltaprogramma IJsselmeergebied: wat zijn de kosten en veiligheidsbaten van wel of niet meestijgen met de zeespiegel en extra zoetwaterbuffer? [A co," MPRA Paper 61507, University Library of Munich, Germany.
    5. Toonen, Theo A. J. & Dijkstra, Gerrit S. A. & Van Der Meer, Frits, 2006. "Modernization and reform of Dutch waterboards: resilience or change?," Journal of Institutional Economics, Cambridge University Press, vol. 2(2), pages 181-201, August.
    6. Frits Bos & Coen Teulings, 2013. "Short- and long-term forecasting by the Netherlands Bureau for Economic Policy Analysis (CPB): Science, witchcraft, or practical tool for policy?," OECD Journal on Budgeting, OECD Publishing, vol. 13(1), pages 45-56.
    7. Bos, Frits, 2006. "De Nederlandse collectieve uitgaven in historisch perspectief [Dutch public expenditure in historical perspective]," MPRA Paper 40602, University Library of Munich, Germany.
    8. Carel Eijgenraam, 2006. "Optimal safety standards for dike-ring areas," CPB Discussion Paper 62, CPB Netherlands Bureau for Economic Policy Analysis.
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    Citations

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    Cited by:

    1. Robinson, Peter John & Botzen, W. J. Wouter & Kunreuther, Howard & Chaudhry, Shereen J., 2021. "Default options and insurance demand," Journal of Economic Behavior & Organization, Elsevier, vol. 183(C), pages 39-56.
    2. F. J. H. Don, 2019. "The Influence of Jan Tinbergen on Dutch Economic Policy," De Economist, Springer, vol. 167(3), pages 259-282, September.
    3. Peter Zwaneveld & Gerard Verweij, 2018. "Economic Decision Problems in Multi-Level Flood Prevention: a new graph-based approach used for real world applications," CPB Discussion Paper 380.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    4. Frits Bos & Thomas van der Pol & Gerbert Romijn, 2018. "Should CBA’s include a correction for the marginal excess burden of taxation?," CPB Discussion Paper 370, CPB Netherlands Bureau for Economic Policy Analysis.
    5. Peter Zwaneveld & Gerard Verweij, 2018. "Economic Decision Problems in Multi-Level Flood Prevention: a new graph-based approach used for real world applications," CPB Discussion Paper 380, CPB Netherlands Bureau for Economic Policy Analysis.
    6. Pieter Bloemen & Tim Reeder & Chris Zevenbergen & Jeroen Rijke & Ashley Kingsborough, 2018. "Lessons learned from applying adaptation pathways in flood risk management and challenges for the further development of this approach," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 23(7), pages 1083-1108, October.
    7. Frits Bos & Thomas van der Pol & Gerbert Romijn, 2018. "Should CBA’s include a correction for the marginal excess burden of taxation?," CPB Discussion Paper 370.rdf, CPB Netherlands Bureau for Economic Policy Analysis.

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    More about this item

    Keywords

    History of cost-benefit analysis in the Netherlands; management of natural resources; optimal strength of dikes; value of statistical life; biodiversity; Lely; Tinbergen; van Dantzig; Eijgenraam; Zuiderzee Works; Delta Works; More room for rivers; Delta Program for the next century;
    All these keywords.

    JEL classification:

    • A1 - General Economics and Teaching - - General Economics
    • B0 - Schools of Economic Thought and Methodology - - General
    • C44 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Operations Research; Statistical Decision Theory
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

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