Household Economic Losses of Urban Flooding

Abstract

This study examined the economic losses caused by urban flooding. It begins by identifying components of economic losses (i.e. direct costs and indirect costs) at different stages of the flood (i.e. before, during, and after) and then using appropriate ex post and ex ante estimations to measure economic losses. The opportunity-cost method was at the centre of economic analyses. In addition, factors affecting household economic losses were also assessed in the study. The study interviewed 250 households in flooded areas in Can Tho City. Results show that total annual economic losses due to flooding were 630.4 USD per household which represented 11.1% of household’s annual income. Ninety percent of economic losses were indirect costs. Total annual indirect costs per household were 567.8 USD and for before-, during-, and after-flood periods were 18.9 USD, 433.2 USD, and 115.7 USD, respectively. Meanwhile, total annual direct costs per household were 62.6 USD and 28.1 USD, 18.4 USD, and 16.1 USD, respectively, for before-, during-, and after-flood periods. Put differently, in the before-during-after flood analysis framework, results show that total annual before-flood costs were 47 USD, of which direct costs were 28.1 USD and indirect costs were 18.9 USD. Total annual during-flood costs were 451.5 USD in which direct costs were 18.4 USD and indirect costs were 433.2 USD. Total annual after-flood costs were 131.8 USD, of which direct costs were 16.1 USD and indirect costs were 115.7 USD. It also revealed that there were differences in cost structure at different stages of flooding. Results indicate that public awareness or concern levels regarding urban flooding, respondents’ education status, household location, and the probability of moving to another place to avoid the flood were factors statistically affecting the economic losses due to the flood.