Assessing the Economic Value of Early Warning Systems
Proceedings of the 8th International Conference on Information Systems for Crisis Response and Management, 2011
10 Pages Posted: 17 May 2011 Last revised: 10 Aug 2011
Date Written: May 12, 2011
As of today, investments into early warning systems are, to a large extent, politically motivated and “disaster-driven.” This means that investments tend to increase significantly if a disaster strikes, but are often quickly reduced in the following disaster-free years. Such investment patterns make the continuous operation, maintenance and development of the early warning infrastructure a challenging task and may lead to sub-optimal investment decisions. The paper presented here proposes an economic assessment model for the tangible economic impact of early warning systems. The model places a focus on the false alert problematic and goes beyond previous approaches by incorporating some socio-cultural factors (qualitatively estimated as of now). By doing so, it supports policymakers (but also private investors) in their investment decisions related to early warning applications.
Keywords: disaster management, early warning systems, investment decisions, assessment model
JEL Classification: H40, H59, L86
Suggested Citation: Suggested Citation