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Investment in Disaster Risk Management in Europe Makes Economic Sense

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World Bank
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1. About this Background Report

This Background Report accompanies a summary report, which forms part of the World Bank’s technical assistance project undertaken with the European Commission’s Directorate-General for European Civil Protection and Humanitarian Aid Operations (DG ECHO) and financed under the Union Civil Protection Mechanism (UCPM) Annual Work Programme 2020.
This report is the output produced under Component 1 “Retrospective analysis of the costs and benefits of selected disaster risk management (DRM) investments”, with the aim to showcase the benefits of investing in the prevention of disaster risks. This background paper covers (a) methodological approaches for the economic assessment of investments for Disaster Risk Management and Climate Change and (b) summaries of all the case studies featured in this report. It first provides a detailed description of the approaches for the selection of case studies and an overview of all the case studies featured in the report, which can be categorized into three types based on the analysis undertaken: full quantitative analysis, partial quantitative analysis based on the literature, and qualitative analysis.
Then it presents selected results from the analysis, focusing on main pieces of analysis and comparing results in light of the literature. Sections start with an introduction to hazard risks worldwide in the EU, include a summary of findings and then present selected detailed analysis for illustration.