Chapter 8 - Cost-benefit analysis of a proposed coastal infrastructure for reducing storm surge-induced impact in the Upper Texas Coast

Abstract

Flood protection infrastructures such as storm surge barriers, levees, and dikes play important roles in reducing flood impacts on coastal communities. However, construction of a new structure remains a contentious public policy decision partly because it requires sizable investment to address infrequent disasters. In the United States, with a growing federal budget deficit, committing scarce resources to the construction of large flood infrastructures necessitates a comprehensive cost-benefit analysis (CBA). Using the Houston-Galveston region in Texas as a case study, this chapter reviews a framework to assess benefits associated with a storm surge barrier in terms of avoided damage to residential property and revenue loss to minimize cessation of petrochemical manufacturing operations. Integrating outputs of storm surge, property loss estimation model, and economic models (input–output and computable general equilibrium), this chapter demonstrates important benefits associated with the surge barrier not only for the Houston-Galveston communities, but also for the entire Texas state and the US economy. The chapter draws experience from cost-benefit analysis in the Netherlands and discusses several important aspects that can inform barrier design and CBA for the proposed coastal spine.