Flood Response Surge Support for NRRA - Task 4: Economic Value at Risk Assessment Tool

NRRA requested surge team to develop a means to produce a defensible, evidence-based estimate of total economic impact of disasters for the recent flood events in Northern NSW and southern Queensland in February and March 2022 . Although the primary objective was to be quantify the total economic impact for the entire flood event, the team developed an approach that would enable estimation of value at risk and value impacted at higher spatial resolution or granularity that could also be used to inform policy and program design. The aim was to develop a minimum viable product (MVP) for immediate use by the NRRA. An approach was developed to estimating economic value at risk for administrative areas and then use flood extent to calculate percent of each administrative area impacted by the hazard, to estimate economic value impacted. Gross Value Added (GVA) by each administrative area (ASGS SA2 level) was selected as the headline economic value at risk figure. The GVA for each administrative area can be aggregated to a headline figure of total economic impact. The approach was intended to be rapid and robust, and to provide a preliminary view of direct impacts soon after a disaster occurs. The outputs include: A) An Economic value-at-risk data stack (including a range of economic data - jobs, productivity by worker, property reconstruction value, inter-regional and sectoral economic activity and built environment data) B) A calculation sheet to calculate value impacted based on value at risk (GVA) and input parameters to quantify hazard within each administration unit Both outputs are contained within a Microsoft Excel document. Acknowledgement: This publication was developed by the CSIRO on behalf of the Australian Climate Service, a Type F Commonwealth entity hosted by the Bureau of Meteorology and delivered through a partnership between the Bureau of Meteorology, Australian Bureau of Statistics, CSIRO and Geoscience Australia. Important disclaimer: CSIRO advises that the information contained in this publication comprises general statements based on scientific research. The reader is advised and needs to be aware that such information may be incomplete or unable to be used in any specific situation. No reliance or actions must therefore be made on that information without seeking prior expert professional, scientific and technical advice. To the extent permitted by law, CSIRO (including its employees and consultants) excludes all liability to any person for any consequences, including but not limited to all losses, damages, costs, expenses and any other compensation, arising directly or indirectly from using this publication (in part or in whole) and any information or material contained in it.