Regional economic impacts of natural hazards – the case of the 2005 Alpine flood event in Tyrol (Austria)
Natural hazards have substantial impacts on economies on all scales. While the measurement of direct effects seems manageable, less is known about the dimensions of economic effects, especially on local and regional scales. The lack of standardized terminology, empirical data and methods currently h...
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| Format: | Article |
| Language: | English |
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Copernicus Publications
2014-02-01
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| Series: | Natural Hazards and Earth System Sciences |
| Online Access: | http://www.nat-hazards-earth-syst-sci.net/14/359/2014/nhess-14-359-2014.pdf |
| Summary: | Natural hazards have substantial impacts on economies on all scales. While
the measurement of direct effects seems manageable, less is known about the
dimensions of economic effects, especially on local and regional scales. The
lack of standardized terminology, empirical data and methods currently
hampers profound decision support. In our study of the 2005 flood event in
the Federal State of Tyrol (Austria), which triggered about 264 million
Euros in direct losses, we surveyed companies from all sectors of the economy
to identify the drivers of economic effects. The main aim of the study was to
assess the regional economic impacts on the gross regional product by the
2005 floods without macro-economic modelling techniques using bottom-up data.
Using basic quantitative and qualitative methods, we established and analysed
a data pool of questionnaire and interview results as well as direct loss
data. Based on this empirical evidence, we estimated the decline in gross
regional product in the study area at NUTS-3 level. We observed that
disrupted traffic networks, for instance, had very negative effects on the
regional economy. In addition, we identified economic winners of severe
hazard impacts and estimated the amount of increasing economic flows
(economic stimuli), based on compensation payments. Finally, the net effect
can be estimated balancing the negative and positive effects of the flood
event. The methods and results of this study can help to improve ex
post loss estimations, and with it, ex ante methods for the cost
efficiency of risk reduction measures, e.g. cost–benefit analysis. However,
much effort is needed to improve the data basis on economic effects measured
as a change in economic flows. |
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| ISSN: | 1561-8633 1684-9981 |