Economic evaluation of torrent hazards: uses and borderlines when applied to decision-making for preventive management

Abstract

The objective of this empirical work was to contribute to define methodologic difficulties and possible uses of the economic evaluation carried out in order to help decision-making for torrent hazards preventive management. The cost-benefit analysis (CBA) has been the tool selected here and applied to a torrent watershed for various remedial measures against floods. We have pointed out the main sources of uncertainty impacting the CBA. They are a lot. As a consequence, at this stage, CBA should be considered as a decision-making tool, among the other one, and poorly reliable. A relevant use for it could be the comparative evaluation of some different protective devices. Somehow, it is important to show the results of any CBA clearly joined with the assumed hypothesis, the carried out simplifications, and the assessed uncertainties.