A Decision-Making Framework with the Application of Cost-Benefit Analysis for Flood Mitigation Management

Abstract

Flood events in socioeconomic areas can cause various negative effects. Flood protection has traditionally attracted a lot of attention, leading to significant expenditure for the Government. This paper will demonstrate how to apply Cost Benefit Analysis (CBA) and to assist decision makers in river flood investment. CBA is measured in terms of monetary value using the societal and environmental benefits and costs of flood mitigation projects. The methodological approach for this paper is combining both engineering and economic analysis. Flood map and mitigation measures generated from hydrodynamic modelling will be evaluated using CBA. The conclusion discusses aspects of CBA related to flood mitigation projects. If benefits outweigh the costs, the project is beneficial and will result in an increase in economic well-being. A decision-making framework for flood mitigation management is later developed combining both engineering and economic analysis. Since resources and budget are very limited, the framework can assist decision makers while making flood management decision.