Abstract
Governments have been investing in extensive operations to minimize economic losses and casualties from natural disasters such as floods and storms. A suitable verification process is required to guarantee maximum effectiveness and efficiency of investments while ensuring sustained funding. Active investment can be expected by verifying the effectiveness of disaster prevention spending. However, the results of the budget invested in disaster-safety-related projects are not immediate but evident only over a period of time. Additionally, their effects should be verified in terms of the state or society overall, not from an individualistic perspective because of the nature of public projects. In this study, an economic analysis of the short- and long-term effects of investment in a disaster-safety-related project was performed and the effects of damage reduction before and after project implementation were analyzed to evaluate the short-term effects and a cost–benefit analysis was conducted to assess the long-term effects. The results show that disaster prevention projects reduce damages over both the short and long term. Therefore, investing in preventive projects to cope with disasters effectively is important to maximize the return on investment. This analysis can be used for developing effective disaster prevention projects.
Highlights
Economic losses due to natural disasters over the past 10 years (2007 to 2016) in South Korea have reached ~3.4 trillion won (3.4 billion USD) and the total restoration cost after such disasters has been more than ~7.1 trillion won (7.1 billion USD) (Annual Disaster Report for Natural Disaster and Social Disaster, 2007–2016)
Heavy rain accounted for 66% of the overall financial damages attributed to natural disasters, while typhoons took up another 42% [1]
There is a need for national-level disaster management plans that surpass individual-level actions because of the extensiveness and unpredictability of natural disasters and the damage they cause to safety controls
Summary
Economic losses due to natural disasters over the past 10 years (2007 to 2016) in South Korea have reached ~3.4 trillion won (3.4 billion USD) and the total restoration cost after such disasters has been more than ~7.1 trillion won (7.1 billion USD) (Annual Disaster Report for Natural Disaster and Social Disaster, 2007–2016). Heavy rain accounted for 66% of the overall financial damages attributed to natural disasters, while typhoons took up another 42% [1]. Developed countries are expressing increased demand for security from natural disasters as well as doubting the safety of flood control facilities as they continue to strengthen their systematic efforts for proper safety management [3]. South Korea has emphasized government-level prevention and preparation for natural disasters after becoming a developed country [4]. The South Korean government has invested in various disaster prevention projects, and such investments have been increasing in scale. The government has been progressively focusing on analyses to verify the effectiveness of its disaster prevention programs
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