Project news - Economics of Natural Hazards

Newsletter 1, June 2015

This is the first of a series of project updates to keep our end users up to date on project activities. 

Project update

The project has two components. The first component focuses on estimating intangible values affected by natural hazards, and expressing them in monetary terms. The second aims to evaluate the benefits and costs of alternative management and policy options. 

Value tool 

The values that communities have for intangible benefits from the environment and biodiversity can be large. However, these values are rarely accounted for in decision making in any systematic manner. Methods for quantifying or estimating these intangible or non-market values exist, but they are not readily accessible to decision makers. The aim of this project is to build on these existing methods and established results to create a tool that would enable decision makers to estimate environmental and social benefits more easily.

Key researchers: David Pannell, Fiona Gibson and Abbie Rogers (currently on maternity leave)

Contact person: Fiona Gibson, fiona.gibson@uwa.edu.au

Integrated assessment

Different strategies involve various costs and benefits. The options can be complex, especially considering that decisions have both short-term and long-term consequences. Our integrated modelling work aims to systematically evaluate relevant management and policy options within an economic framework. The research will utilise technical, social, biological and policy information on natural hazards to explore the trade-offs involved. The outcomes from the research will allow managers and policy makers to identify alternatives that offer the greatest benefits, based on a broader set of criteria than is normally used.

Key researchers: David Pannell, Atakelty Hailu, Veronique Florec

Contact person: Veronique Florec, veronique.florec@uwa.edu.au

Research Advisory Forum activity 

David, Veronique and Fiona attended the Research Advisory Forum in Sydney on 8-9 April. Through several group discussions we identified that NSW RFS and DEWNR SA are keen to participate in the 'value tool' component and WA SEMCS and OBRM are keen to participate in the 'integrated assessment' component. DEWNR SA also expressed interest in improving the integrated assessment tool provided by Fiona and David through the Bushfire CRC.

It was agreed that our cluster 'Economics and Strategic Decisions' contribute to a joint case study in Victoria that has already been progressed through the Decision support system for assessment of policy and planning investment options for optimal natural hazard mitigation project, led by Holger Maier.

The 'value tool' team plans to collaborate with Victoria University on their project Mapping and understanding bushfire and natural hazards vulnerability and risks at the institutional scale, as both projects will be identifying values impacted by natural hazards. 

Research activites

Fiona and David participated in a two day workshop with non-market valuation experts for the 'value tool' component. An outline of the conceptual framework was done and issues around data availability and value measurement discussed.

Additionally, Fiona, Veronique and Jeff Durkin are currently undertaking a literature review for the project.