Capturing the Co-Benefits of Disaster Risk Management on the Private Sector Side

In most countries, the private sector owns the vast majority of the buildings and a considerable portion of the infrastructure at risk. However, most investment in disaster risk management is made by the public sector, with the private sector laggi...

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Bibliographic Details
Main Author:	Rose, Adam
Format:	Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2016
Subjects:	EQUITY IMPLICATIONS MONETARY POLICY CAPITAL MARKETS UNEMPLOYMENT RATES SUBSTITUTION ECONOMIC GROWTH TECHNOLOGICAL PROGRESS GREENHOUSE GASES ENVIRONMENTAL PROTECTION MULTIPLIERS CARBON INCOME POWER STATIONS PROBABILITY OF OCCURRENCE STORMS ECONOMIC CONSEQUENCES INTEREST RATE PROPERTY RIGHTS DISCOUNT RATE TIMBER RESOURCE ALLOCATION EMISSIONS COST‐BENEFIT ANALYSIS REVENUES ENVIRONMENTAL DECISIONS COST‐SAVINGS INSURANCE POLICIES INCENTIVES EQUILIBRIUM ASYMMETRIC INFORMATION MODELS DAMAGES PRICE MARKET FAILURE COMMON GOOD SUSTAINABLE DEVELOPMENT TAX REDUCTION HURRICANES ECONOMIC ANALYSIS ECONOMIC ACTIVITY PRESENT VALUE ELECTRIC UTILITIES EXPLOITATION UNINTENDED CONSEQUENCES OIL TRADEOFFS DEVELOPMENT ECONOMICS DECISION‐MAKING NATURAL CAPITAL REBATES REPLACEMENT COSTS OPTIONS EXTERNALITIES DEBT CARBON TAXES MARKETS POLLUTION BENEFIT ANALYSIS IMPORTS TAX REVENUES DIVIDENDS SUBSIDIES FINANCE EFFICIENCY FISHING TAXES NO‐REGRETS STRATEGY INVESTMENT DECISIONS MARKET INTEREST RATE CLIMATE VARIABILITY RESOURCES RE‐INSURANCE ENVIRONMENTAL PERFORMANCE UNEMPLOYMENT EQUITY BENEFIT‐COST ANALYSIS MARKET PRICES POLICIES CLIMATE CHANGE ENVIRONMENTAL GOODS ENVIRONMENTAL MANAGEMENT VALUES VALUE COST‐EFFECTIVENESS POLICY MAKERS FOREIGN DIRECT INVESTMENT CREDIT EXTREME EVENTS CLIMATE DEMAND ABATEMENT SUSTAINABLE GROWTH FINANCIAL INSTRUMENTS ENVIRONMENTS EXPENDITURES PROPERTY PRIVATE GOODS COMMON PROPERTY RESOURCES ENERGY USE ENVIRONMENT MARKET FOREIGN EXCHANGE FINANCIAL LOSSES POLICY ECONOMICS COMMON PROPERTY ENERGY EFFICIENCY INSURANCE FISHERIES TRADE POLLUTION TAXES LAND TRANSFER PAYMENTS INCENTIVE SYSTEMS DRINKING WATER HURRICANE PUBLIC PARTICIPATION ALLOCATION SUPPLY SPILLOVER EFFECTS REVENUE POLLUTION CONTROL EMPIRICAL EVIDENCE NO‐REGRETS” STRATEGY INVESTMENTS RISK MANAGEMENT OFFSETS ECOLOGICAL ECONOMICS RISK AVERSION PROFITS ENVIRONMENTAL PUBLIC GOOD WETLANDS LAND‐USE COST ANALYSIS HAZARDOUS WASTES PRICES NEGATIVE EXTERNALITIES PUBLIC GOODS PRODUCTION COSTS BENEFITS COMMERCIAL FISHING ECONOMIES ECONOMIC PERSPECTIVE ADVERSE SELECTION
Online Access:	http://documents.worldbank.org/curated/en/2016/04/26213110/capturing-co-benefits-disaster-risk-management-private-sector-side http://hdl.handle.net/10986/24208

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Summary:	In most countries, the private sector owns the vast majority of the buildings and a considerable portion of the infrastructure at risk. However, most investment in disaster risk management is made by the public sector, with the private sector lagging far behind. The situation represents missed opportunities for businesses to capture not only higher levels of the direct benefits of disaster risk management, but also a broader set of co-benefits to themselves and society as a whole. These co-benefits include ways of lowering production costs, improving the health of workers, and contributing to general economic stability. Ironically, many of these co-benefits are more tangible and immediate than ordinary disaster risk management benefits, which may not appear until a disaster has struck many years after the investment has been made. This study analyzes several important facets of private sector investment in disaster risk management, primarily from an economic perspective. It is intended as a first step toward promoting greater investment in disaster risk management by identifying potential co-benefits, explaining why they are not always pursued, and suggesting ways to integrate them into private sector decision-making. The latter includes government incentives, justified on the grounds that many private sector investments have extensive co-benefits, many of which pay dividends to society as a whole.

Capturing the Co-Benefits of Disaster Risk Management on the Private Sector Side

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