ADAPT – Towards an integrated tool for deciding about adaptation measures – case study: floods Follow-up committee meeting 6 October 2009 Evaluation of the direct tangible cost of flood damages Eve Giron – CEESE (ULB)

Methodology Categories of economic damages – the damage function Simulation of the economic damages in the CBA model First results Challenges - difficulties

Identification of categories of flood damages Economic damage categories Direct TangibleIntangible Indirect TangibleIntangible - Buildings - Household goods - Cars - … - Loss of life - Biodiversity loss - Spread of pollution & toxics - Stress / disruption of households & populations -Quality loss of water -… - Production losses - Market disturbances - Impact on land values - Lost income - … - Reduced competitiveness - Increased vulnerability of economic actors - Worry about the future - Stress - … Physical water contact No physical water contact

Y = (2x 2 + 2x )*HV/100 The damage function x = water level recorded during the flood in “m” Y = damage in € HV = House value in € (Example of the study of « Atlas du Rhin 2001 »)

Simulation of the economic damages in the CBA model 3 adaptation measures for the Dender case study The Dike The Weir The retention basin

First results Baseline scenario with a low CC scenario expected : € € Baseline scenario with a mean CC scenario expected : € € Baseline scenario with a high CC scenario expected : € € First adaptation measure: The dike

Challenges Damage assessment –Definition of impact boundaries (variety of scales) –Accounting indirect and non-market (intangible damage) impacts in monetary terms –Stock at risk inventory (inter alia data quality and dispersion) –Damage related to former flood events –(protection of privacy) –Database compatibility with assessment tools

ADAPT – Towards an integrated tool for deciding about adaptation measures – case study: floods Follow-up committee meeting 6 October 2009 Evaluation of direct costs of adaptation scenarios Hélène Joachain CEESE - ULB

ADAPT project - Evaluation of direct costs of adaptation scenarios Methodology: select relevant cost components (general guidelines) estimate selected cost components (literature) current prices of selected cost components (enquiry)

ADAPT project - Evaluation of direct costs of adaptation scenarios Cost (/unit)Cost (/Euro)TaxesRangeYear + lifetime Financial costs Capital costs - equipment costs - associated costs - purchase of land - planning - site preparation - building and civil works - depreciation costs Operating costs - material - labour - energy - additional: insurance, overheads Maintenance costs - material - labour - energy - additional: insurance, overheads Administrative costs (permits) Opportunity costs (prod. losses)

ADAPT project - Evaluation of direct costs of adaptation scenarios/ literature Example: Floodplain restoration Source: (Brouwer & van Ek, 2004, p. 13)

ADAPT project - Evaluation of direct costs of adaptation scenarios/ literature Source: (Brouwer & van Ek, 2004, p. 14)

ADAPT project - Evaluation of direct costs of adaptation scenarios/ case study Ourthe Example: passive Floodplains (Poulseur) Costs expected: purchase of land / opportunity costs (5 => 7 ha) low operational / maintenance costs (a priori) civil works costs (no) costs of incidental flooding (no) infrastructure costs (no) positive effect (valorisation?)

ADAPT project - Evaluation of direct costs of adaptation scenarios Difficulties encountered: -limited number of publications / macro level / assumptions -no database on costs of adaptation measures -mail/phone enquiry (general vs. specifications)  Limited availability of economic data, necessity of a standardized approach On going: -data generation: companies specialised in flood protection, public services -data processing: inflation/ discounting/ annuities -integration of data into extended CBA

ADAPT project - Evaluating the costs of adaptation measures / Bibliography Bibliography: Brouwer, R. & van Ek, R. (2004). Integrated ecological, economic and social impact assessment of alternative flood control policies in the Netherlands, Ecological Economics, 50, 1-21 pp. DEFRA / EA. (2005). Integrating Cost-Benefit Analysis and Multi-criteria Analysis of Flood and Coastal Erosion Risk, Management Projects, R&D Project Record FD2018/PR2 DEFRA / EA (2006). National evaluation of the costs of meeting coastal environmental requirements, R&D Technical Report FD2017/TR EEA European Environment Agency (1999). Guidelines for defining and documenting data on costs of possible environmental protection measures. [Marlowe, I., King, K.] Technical report No 27, 56pp. OCDE Organisation de Coopération et de Développement économiques (2006). Analyse Coûts-bénéfices et environnement. Développement récents. [Pearce, D., Atkinson, G., Mourato, S.], 335 pp. Turner, R.K., Burgess, D., Hadley, D., Coombes, E. & Jackson, N. (2007). A cos-benefit appraisal of coastal managed realignment policy, Global Environmental Change, 17, pp. WATECO (2003). Common Implementarion Strategy for the Water Framework Directive (2000/60/EC). Guidance document No 1 Economics and the Environment – The Implementation Challenge of the Water Framework Directive, Luxembourg, Office for Official Publications of the European Communities, 270 pp.

ADAPT project - questions