This Economic Guide provides a standard economic methodology for evaluating investment decisions aimed to improve the ability of communities to adapt to, withstand, and quickly recover from disasters. The Economic Guide is designed for use in conjunction with the NIST Community Resilience Planning Guide for Buildings and Infrastructure Systems, which provides a methodology for communities to develop long-term plans by engaging stakeholders, establishing performance goals for buildings and infrastructure systems, and developing an implementation strategy, by providing a mechanism to prioritize and determine the efficiency of resilience actions. Using the methodology described, in this report frames the economic decision process by identifying and comparing the relevant present and future streams of costs and benefitsthe latter realized through cost savings and damage loss avoidanceassociated with new capital investment into resilience to those future streams generated by the status-quo. Topics related to non-market values and uncertainty are also explored. This report provides context for increasing resilience capacity through focusing on those investments that target key social goals and objectives, and providing selection criteria that ensure reduction of risks as well as increases in resilience. Furthermore, the methodological approach aims to enable the built environment to be utilized more efficiently in terms of loss reduction during recovery and to enable faster and more efficient recovery in the face of future disasters.
Citation: Special Publication (NIST SP) - 1197Report Number:
NIST Pub Series: Special Publication (NIST SP)
Pub Type: NIST Pubs
Benefit-cost analysis, buildings, communities, constructed facilities, disaster resilience, economic analysis, economic decision tool, life-cycle costing, natural and man-made hazards, present expected value, resilience, risk assessment, vulnerability