Risk Aversion, Inequality and Economic Evaluation of Flood Damages: A Case Study in Ecuador

Sustainability

Alessandro Pezzoli¹  Silvana Dalmazzone²  Vito Frontuto²  Francesco Salcuni² 

[1] Dipartimento Interateneo di Scienze, Progetto e Politiche del Territorio, Università di Torino e Politecnico di Torino, 10125 Torino, Italy;Dipartimento di Economia e Statistica, Università di Torino, 10153 Torino, Italy;

关键词: natural disasters;    flooding;    flood vulnerability;    inequality;    risk premium;    expected annual damages;   

DOI  :  10.3390/su122310068

来源: DOAJ

【 摘 要 】

While floods and other natural disasters affect hundreds of millions of people globally every year, a shared methodological approach on which to ground impact valuations is still missing. Standard Cost-Benefit Analyses typically evaluate damages by summing individuals’ monetary equivalents, without taking into account income distribution and risk aversion. We propose an empirical application of alternative valuation approaches developed in recent literature, including equity weights and risk premium multipliers, to a case study in Ecuador. The results show that accounting for inequality may substantially alter the conclusions of a standard vulnerability approach, with important consequences for policy choices pertaining damage compensation and prioritization of intervention areas.

【 授权许可】

Unknown