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Household economic losses of urban flooding: case study of Can Tho City, Vietnam

Vo Thanh Danh

Case study, 39 pages

This study examines the economic losses caused by urban flooding. It begins by identifying components of economic losses (i.e. direct costs and indirect costs) at different stages of the flood (i.e. before, during and after) and then using appropriate ex-post and ex-ante estimations to measure economic losses. The opportunity-cost method was used. In addition, factors affecting household economic losses were also assessed in the study. The study interviewed 250 households in flooded areas in Can Tho City, Vietnam. Results show that total annual economic losses due to flooding were US$ 642 per household which represented 11 per cent of each household’s annual income. Ninety per cent of economic losses were indirect costs. Total annual indirect costs per household were US$ 578 and for before-, during- and after-flood periods were US$ 19, US$440 and US$ 118 respectively. Meanwhile, total annual direct costs per household were US$ 64 and US$29, US$19 and US$ 16 respectively for before-, during- and after-flood periods. Put differently, in the before-during-after flood analysis framework, results show that total annual before-flood costs were US$ 48, of which direct costs were US$ 29 and indirect costs were US$ 19. Total annual during-flood costs were US$ 460 in which direct costs were US$ 19 and indirect costs were US$ 441. Total annual after-flood costs were US$ 134, of which direct costs were US$ 16 and indirect costs were US$ 118. It also revealed that there were differences in cost structure at different stages of flooding. Results indicate that public awareness or concern levels regarding urban flooding, respondents’ education status, household location and the probability of moving to another place to avoid the flood were factors statistically affecting the economic losses due to the flood.

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The Asian Cities Climate Change Resilience Network (ACCCRN) is an eight-year, multi-country initiative working with cities across the world to increase resilience to climate change. IIED is a regional partner within ACCCRN.

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