Policy-Relevant Assessment Method of Socio-Economic Impacts of Floods: An Italian Case Study

37 Pages Posted: 12 Dec 2012

See all articles by Fabio Farinosi

Fabio Farinosi

Fondazione Eni Enrico Mattei

Lorenzo Carrera

Fondazione Eni Enrico Mattei

Alexandros Maziotis

Fondazione Eni Enrico Mattei

Jaroslav Mysiak

Fondazione Eni Enrico Mattei (FEEM)

Fabio Eboli

Fondazione Eni Enrico Mattei (FEEM); CMCC - Centro Euro-Mediterraneo sui Cambiamenti Climatici

Gabriele Standardi

Fondazione Eni Enrico Mattei

Date Written: December 11, 2012

Abstract

This paper estimates the direct and indirect socio-economic impacts of the 2000 flood that took place in the Po river basin (Italy) using a combination of Computable General Equilibrium (CGE) model and Spatial and Multi-Criteria Analysis. A risk map for the whole basin is generated as a function of hazard, exposure and vulnerability. The indirect economic losses are assessed using the CGE model, whereas the direct social and economic impacts are estimated with spatial analysis tools combined with Multi-Criteria Analysis. The social impact is expressed as a function of physical characteristics of the extreme event, social vulnerability and adaptive capacity. The results indicate that the highest risk areas are located in the mountainous and in the most populated portions of the basin, which are consistent with the high values of hazard and vulnerability. Considerably economic damages occurred to the critical infrastructure of all the sectors with the industry/commercial sector having the biggest impact. A negative variation in the country and industry Gross Domestic Product (GDP) was also reported. Our study is of great interest to those who are interested in estimating the economic impact of flood events. It can also assist decision makers in pinpointing factors that threaten the sustainability and stability of a risk-prone area and more specifically, to help them understand how to reduce social vulnerability to flood events.

Keywords: Risk Assessment, Flood, Economic Impacts, Social Impact, Impact Assessment

JEL Classification: Q2, Q25

Suggested Citation

Farinosi, Fabio and Carrera, Lorenzo and Maziotis, Alexandros and Mysiak, Jaroslav and Eboli, Fabio and Standardi, Gabriele, Policy-Relevant Assessment Method of Socio-Economic Impacts of Floods: An Italian Case Study (December 11, 2012). FEEM Working Paper No. 87.2012, Available at SSRN: https://ssrn.com/abstract=2187776 or http://dx.doi.org/10.2139/ssrn.2187776

Fabio Farinosi (Contact Author)

Fondazione Eni Enrico Mattei ( email )

Campo S. M. Formosa, Castello 5252
Venezia, 30122
Italy

Lorenzo Carrera

Fondazione Eni Enrico Mattei ( email )

C.so Magenta 63
Milano, 20123
Italy

Alexandros Maziotis

Fondazione Eni Enrico Mattei ( email )

C.so Magenta 63
Milano, 20123
Italy

Jaroslav Mysiak

Fondazione Eni Enrico Mattei (FEEM) ( email )

C.so Magenta 63
Milano, 20123
Italy

Fabio Eboli

Fondazione Eni Enrico Mattei (FEEM) ( email )

Corso Magenta 63
20123 Milan
Italy

CMCC - Centro Euro-Mediterraneo sui Cambiamenti Climatici ( email )

via Augusto Imperatore, 16
Lecce, I-73100
Italy

Gabriele Standardi

Fondazione Eni Enrico Mattei ( email )

Corso Magenta 63
20123 Milan
Italy

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