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

See all articles by Michael Klafft

Michael Klafft

Independent

Ulrich Meissen

affiliation not provided to SSRN

Date Written: May 12, 2011

Abstract

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

Klafft, Michael and Meissen, Ulrich, Assessing the Economic Value of Early Warning Systems (May 12, 2011). Proceedings of the 8th International Conference on Information Systems for Crisis Response and Management, 2011. Available at SSRN: https://ssrn.com/abstract=1843258

Michael Klafft (Contact Author)

Independent ( email )

No Address Available

Ulrich Meissen

affiliation not provided to SSRN ( email )

Register to save articles to
your library

Register

Paper statistics

Downloads
140
Abstract Views
722
rank
206,600
PlumX Metrics