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Establishing the cost effectiveness of a range of resilience and resistance measures in reducing flood risk - FD2657

Description
The project provides an economic assessment of the role, effectiveness and the costs and benefits of propertylevel flood protection. The study reviews new evidence and updates the existing evidence base on the costs and benefits of property-level resistance and resilience measures and addresses:

• the full suite of benefits from different kinds of resistance and resilience measures and how these are captured in approaches to flood risk, including reduced physical damage from floodwater, delayed time for water to enter property, faster repair and return to property, enhanced property prices, availability of insurance and mortgages and reduced local authority emergency response and recovery costs;

• a critical appraisal of intangible benefits arising from PLP schemes, such as reduced demands on family GPs and the overall health service as stress levels fall with increased levels of flood protection. Local community cohesion and wider health and well-being benefits from reduced damage and levels of anxiety caused by the threat of flooding are also explored;

• an analysis of the costs relative to the benefits, including when they are fully realised and the level of residual risk from the type of measures deployed and the consequences for the resident of failure to deploy;

• the analysis of property-level flood protection measures using economic appraisal techniques as set out in
Defra’s Policy Statement on Appraisal (Defra, 2009) and the Environment Agency’s Flood and Coastal Erosion Risk Management Guidance (FCERM-AG, EA 2010). Comparison is made with other approaches to flood protection offering a comparable level of protection;

• recommendations about the risk or frequency of flooding (i.e. the level of risk at which different forms of property level protection may be appropriate) and level of local participation in such schemes in areas at flood risk, that would represent best value for Government intervention, from an economic perspective;

A particular emphasis is given to the review of the emerging product market, the development of innovative products such as “fit and forget” measures and the role and impacts of the Kitemark scheme aimed at providing reassurance about quality and effectiveness. The risk threshold where such passive protection becomes more economic than measures requiring manual intervention by the householder is explored.

From 2012, property-level protection becomes a recognised means of addressing local flood risk, mainstreamed within the FCRM budget. This study helps inform future Government policy of providing property protection alongside the new Partnership Funding arrangements. It also helps guide the ongoing work to develop the roadmap towards 2013 when the current agreement between Government and insurers expires
Objective
This further research is required to undertake an economic analysis of PLP and assess the overall effectiveness of the PLP approach. The study objectives are:
• To inform the mainstreaming of PLP into Government policy alongside Partnership Funding
• To review the new evidence and update the existing economic evidence base
• To provide an independent economic appraisal and assess the full suite of benefits from different kinds of resistance and resilience measures
• To carry out a critical appraisal of intangible benefits arising from PLP schemes
• To analyse the costs relative to the benefits using economic appraisal techniques , including when they are fully realised and the level of residual risk
• To make recommendations about the risk of flooding, the level of local participation and the passive/active threshold that would represent best value for Government intervention
• To review practice across UK and the EC and assess the benefits of the PLP ‘industry’ to the UK
Project Documents
• FRP - Final Report : FD2657   (2521k)
• SUP - Supplementary Report : 130930 table showing payback period on installing PLP   (61k)
Time-Scale and Cost
From: 2011

To: 2013

Cost: £44,750
Contractor / Funded Organisations
J B A Consulting
Keywords
Flood Management              
Fields of Study
Flood and Coastal Erosion Risk Management