Economic analysis of the costs of flooding

Figures & data

Table 1. Capital damage, output loss and net output loss as a percent of pre-flood gross domestic product (GDP).

Recovery period (years)	Capital damage (% of GDP)	Output loss (% of GDP)	Net output loss (% of GDP)	Capital damage plus output loss (% of GDP)	Capital damage plus net output loss (% of GDP)
(1) Displaced workers partially re-employed
1	1%	0.15%	0.10%	1.15%	1.10%
2	5	1.33	0.92	5.91	5.50
3	10	3.40	2.27	13.40	12.27
4	20	8.34	5.76	28.34	25.76
(2) Displaced workers all re-employed
2	5	0.78	0.37	5.78	5.37
(3) Displaced workers unemployed until re-hired
2	5	1.71	1.30	6.71	6.30

Note:

Displaced workers who are not re-employed are re-hired in their original jobs as their employers’ damaged capital is repaired or replaced. Net output loss equals output loss minus the return that would have been earned on damaged capital if there had been no flooding. Output losses occur throughout the flood and recovery periods. They are discounted to the time of the flood.

Source: Author’s calculations. See text for further details.

Table 2. Output loss and net output loss as a percent of pre-flood gross domestic product (GDP) by length of recovery period: Capital damage at 5% of pre-flood GDP and partial re-employment of displaced workers.

Recovery period (years)	Output loss (% of GDP)	Net output loss (% of GDP)	Capital damage plus output loss (% of GDP)	Capital damage plus net output loss (% of GDP)
1	0.73%	0.50%	5.73%	5.50%
2	1.33	0.92	6.33	5.92
3	1.96	1.38	6.96	6.38
4	2.47	1.82	7.47	6.82

Note:

Some displaced workers are re-employed and others are unemployed until re-hired by their original employers. See Table 1 for further notes.

Source: Author’s calculations. See text for further details.