Research leader

Dr Veronique Florec Research Leader
Atakelty Hailu
A/Prof Atakelty Hailu Research Leader

Research team

Prof David Pannell Research Team
Dr Abbie Rogers Research Team

End User representatives

Ed Pikusa End-User
Mike Wouters
Mike Wouters End-User
Tim Groves End-User
Murray Carter End-User
Mal Cronstedt End-User
Suellen Flint
Suellen Flint End-User
Holly Foster
Holly Foster End-User

The 2015 Productivity Commission’s report on natural disaster funding arrangements in Australia found that governments overinvest in post-disaster reconstruction and underinvest in mitigation activities that would limit the impact of natural disasters. Given the multitude of natural hazards that require mitigation and response from government agencies and the tighter budgets at both state and national levels, natural hazards managers are increasingly under pressure to justify the use and allocation of resources for mitigation efforts.

Governments need to ensure that the benefits justify the cost and that they are getting the best value for money out of these investments. However, most existing government decisions are not informed by formal analyses examining the value for money of the alternatives. There are several reasons for this.

  1. Economic analyses of natural hazard management options are rare for some hazards.
  2. Many of the benefits of natural hazard management are intangible (or non-market), such as lives saved, health benefits, environmental benefits, and social values.
  3. There is a general lack of information to carry out economic analyses.
  4. Economic analysis of natural hazards can be complex, and there is a lack of economics capacity in the sector.

To date this study has addressed some of these issues by developing a tool for generating estimates of non-financial benefits (called the value tool) and undertaking integrated economic analysis of management options for floods in Adelaide and for prescribed burning in private land in South Australia’s Mount Lofty Ranges.

The next stage will build on this work and create tools that will help emergency service and land management agencies conduct and utilise more rigorous economic analyses of management options and identify the options that generate the best value for money. These new tools, which consider both market and non-market (intangible) values, will help meet important end-user needs. The intangible values will include social, environmental and health related values so that decisions are made to maximise the benefits to society in the management of natural hazards.

Expected outcomes will be:

  • An online platform for the value tool that will be updated and maintained after the study concludes so that end-users can easily integrate intangible values in their analyses.
  • Fill major knowledge gaps identified in the literature on intangible values that are affected by the management of natural hazards.
  • An economic analysis tool for the evaluation of the tangible and intangible costs/benefits of risk treatment options that enables end-users to evaluate and prioritise the treatment options that are likely to provide the best value for money.
  • Training materials relating to the application of economics to the assessment of natural hazard management options.
Year Type Citation
2019 Journal Article Florec, V., Burton, M., Pannell, D. J., Kelso, J. & Milne, G. Where to prescribe burn: the costs and benefits of prescribed burning close to houses. International Journal of Wildland Fire (2019). doi:https://doi.org/10.1071/WF18192
2019 Report Florec, V., Rogers, A., Hailu, A. & Pannell, D. J. Economics of Natural Hazards Annual Report 2017-2018. (Bushfire and Natural Hazards CRC, 2019).
2019 Report Florec, V., Rogers, A., Hailu, A. & Pannell, D. J. Economics of natural hazards annual report 2018-2019. (Bushfire and Natural Hazards CRC, 2019).
2018 Conference Paper Florec, V., Rogers, A., Hailu, A. & Pannell, D. J. Filling the gaps: how economics can help make important decisions when information is missing. AFAC18 (Bushfire and Natural Hazards CRC, 2018).
2018 Conference Paper Bates, J. Research proceedings from the 2018 Bushfire and Natural Hazards CRC and AFAC Conference. Bushfire and Natural Hazards CRC & AFAC annual conference 2017 (Bushfire and Natural Hazards CRC, 2018).
2017 Conference Paper Rumsewicz, M. Research proceedings from the 2017 Bushfire and Natural Hazards CRC and AFAC Conference. Bushfire and Natural Hazards CRC & AFAC annual conference 2017 (Bushfire and Natural Hazards CRC, 2017).
2017 Conference Paper Florec, V. & Pannell, D. J. Where do we put our dollars? Economic analysis of different bushfire management options in Western Australia. AFAC17 (Bushfire and Natural Hazards CRC, 2017).
2017 Conference Paper Rogers, A., Gibson, F. L., Florec, V., Hailu, A. & Pannell, D. J. Including the intangible benefits of bushfire mitigation in economic analyses: a 'value tool' for informed decision making. AFAC17 (Bushfire and Natural Hazards CRC, 2017).
2017 Journal Article Florec, V., Chalak, M. & Hailu, A. Integrating intangible values in economic analyses of flood mitigation: a case study of the Brown Hill and Keswick creeks catchment in Adelaide. Australian Journal of Emergency Management 32, (2017).
2017 Report Pannell, D. J., Hailu, A., Florec, V., Rogers, A. & Gibson, F. L. Economics of natural hazards: annual project report 2016-17. (Bushfire and Natural Hazards CRC, 2017).
2017 Report Chalak, M., Florec, V., Hailu, A., Gibson, F. L. & Pannell, D. J. Integrating non-market values in economic analyses of flood mitigation: a case study of the Brown Hill and Keswick creeks catchment in Adelaide. (Bushfire and Natural Hazards CRC, 2017).
2016 Conference Paper Rumsewicz, M. Research proceedings from the 2016 Bushfire and Natural Hazards CRC and AFAC conference. Bushfire and Natural Hazards CRC & AFAC annual conference 2016 (Bushfire and Natural Hazards CRC, 2016).
2016 Conference Paper Chalak, M., Florec, V., Hailu, A., Gibson, F. L. & Pannell, D. J. Integrated economic assessment of flood management options for Adelaide. AFAC16 (Bushfire and Natural Hazards CRC, 2016).
2016 Conference Paper Gibson, F. L., Pannell, D. J., Rogers, A., Kragt, M. & Hailu, A. Non-market valuation in the economic analysis of natural hazards. AFAC16 (Bushfire and Natural Hazards CRC, 2016).
2016 Report Gibson, F. L. et al. Non-market valuation in the economic analysis of natural hazards. (School of Agricultural and Resource Economics, Unviersity of Western Australia, 2016). at <http://ageconsearch.umn.edu/record/236941>
2016 Report Pannell, D. J. et al. Economics of natural hazards: Annual project report 2015-2016. (Bushfire and Natural Hazards CRC, 2016).
2015 Report Pannell, D. J. Economics of natural hazards annual project report 2014. (Bushfire and Natural Hazards CRC, 2015).
2015 Report Pannell, D. J., Hailu, A., Gibson, F. L. & Florec, V. Economics of natural hazards: Annual project report 2014-2015. (Bushfire and Natural Hazards CRC, 2015).
Date Title Download Key Topics
27 Mar 2014 Economics of natural hazards PDF icon 891.55 KB (891.55 KB) economics, emergency management, prescribed burning
10 Apr 2015 Economics of Natural Disasters 2015 NSW RAF Presentation PDF icon 618.22 KB (618.22 KB) economics, multi-hazard, policy
17 May 2016 Economics of Natural Hazards File 14.46 MB (14.46 MB) economics, emergency management, multi-hazard
30 Aug 2016 Non-market valuation in the economic analysis of natural hazards - Atakelty Hailu PDF icon 1.03 MB (1.03 MB) economics, mitigation, multi-hazard
30 Aug 2016 Integrated economic assessment of flood management options for Adelaide - Atakelty Hailu PDF icon 1.48 MB (1.48 MB) decision making, economics, flood
27 Oct 2016 Economics and strategic decisions - cluster overview File 0 bytes (0 bytes) decision making, economics, policy
15 Dec 2016 What can economics offer emergency services? PDF icon 891.78 KB (891.78 KB) decision making, economics, policy
18 Apr 2017 Including Intangible Values in Natural Hazards Decision Making PDF icon 712.27 KB (712.27 KB) economics, multi-hazard, policy
07 Jul 2017 Understanding the value and challenges of risk mitigation PDF icon 4.17 MB (4.17 MB) economics, mitigation, resilience
07 Sep 2017 Where do we put our dollars? Economic analysis of different bushfire management options in Western Australia PDF icon 1.54 MB (1.54 MB) economics, emergency management, fire
07 Sep 2017 Including the intangible benefits of bushfire mitigation in economic analyses: a 'value tool' for informed decision-making PDF icon 1.01 MB (1.01 MB) decision making, economics, mitigation
09 Nov 2017 Investing in prescribed burning: how much should we spend? PDF icon 267.53 KB (267.53 KB) economics, policy, prescribed burning
17 Apr 2018 Economics of natural hazards PDF icon 4.06 MB (4.06 MB) decision making, economics, multi-hazard
07 Sep 2018 AFAC18 - Continuing the conversation: A changing world File 0 bytes (0 bytes) climate change, decision making, emergency management
18 Sep 2018 How economics can help make important decisions when information is missing PDF icon 1.42 MB (1.42 MB)
09 Jul 2019 Helping decision makers get value for money from public investments in natural hazard mitigation economics, planning, policy
Economics of natural hazards
25 Aug 2014
The project tackles a range of economics issues, including estimation of non-financial benefits from hazard...
Economics of Natural Hazards: Valuing Intangibles
18 Aug 2015
Natural disasters impact many things that people value: life, health, belongings, poprerty, essential...
Veronique Florec Conference Poster 2016
12 Aug 2016
This project evaluates the tangible and intagible costs and benefits of natural hazards and mitigation...
Appreciating the whole picture: including intangible values in decision making
29 Jun 2017
Natural Hazards impact many things that people value: life, health, amenity, safety, recreation and the...
Quick economic analysis tool: An efficient way to value mitigation
18 Sep 2018
In order to help natural hazards managers with the prioritisation of mitigation options and the efficient...
27 Aug 2019
When there is not enough information or time available to conduct indepth analyses of trade-offs between...