Economic Benefits of Disaster Risk Reduction

The major benefit of disaster risk reduction is the risk-adjusted reduced costs from disasters. Risk reduction programmes have additional direct costs which also must be considered when determining the ‘net’ economic benefits of these programmes. This section provides publicly-available papers and presentations which address the net economic benefits.

Economics of Disaster Prevention: Measuring the Costs and Benefits of Disaster Risk Reduction
– CSIS (2011)
Transcript of speakers from the World Bank, USAID, FEMA and the American Red Cross discussing the role of cost-benefit analysis in disaster management

Economics of “Natural” Disasters – Bridging Disaster Risk Reduction and Climate Adaptation Efforts and Strategies
– ISDR (2011)
Presentation promoting disaster risk reduction as an essential requirement for sustainable development and tool for climate change adaptation

2011 Global Assessment Report on Disaster Risk Reduction: Investing Today for a Safer Tomorrow
– GAR (2011)
The fifth chapter of the Global Assessment Report which discusses the benefits of public investment in disaster risk management, using evidence from Colombia, Mexico and Nepal

Why Do People Die in Earthquakes? The Costs, Benefits and Institutions of Disaster Risk Reduction in Developing Countries
– World Bank (2009)
Working paper on disaster risk reduction in developing countries and the potential for significant social and economic benefits with more investment in public disaster risk management

Background Paper on Assessment of the Economics of Early Warning Systems for Disaster Risk Reduction
– World Bank – UN Project on the Economics of Disaster Risk Reduction
Provides arguments for investing in early warning systems (EWS)

Tools for Mainstreaming Disaster Risk Reduction: Economic Analysis
– ProVention Consortium (2007)
Provides an economic analysis of disaster risk mitigation and guidance for implementing management strategies for development projects

Natural Disaster and Disaster Risk Reduction Measures : A Desk Review of Costs and Benefits
– Environmental Resources Management (2005)
Report reviews the costs and benefits of disaster risk reduction and suggests that mitigation efforts can result in positive economic returns and benefit social development