Identifying and Quantifying the Resilience Dividend using Computable General Equilibrium Models: A Methodological Overview

Published

December 14, 2017

Author(s)

Jennifer F. Helgeson, Juan F. Fung, Cheyney M. O'Fallon, David H. Webb, Harvey Cutler

Abstract

This paper introduces the concept of accounting for the net co-benefits (the resilience dividend) associated with community-level resilience planning. Two solutions to the same resilience issue may often have different associated co-benefits that accrue on a day-to-day basis even if a disruptive event has not yet occurred. Thus, assessing potential community resilience projects requires taking (positive or negative) co-benefits (i.e., the resilience dividend) into account. Without including such benefits, the total value of a resilience project may be underestimated. But to date, quantification of the net co-benefits of resilience planning is not often addressed in the literature, as it is not a straight-forward task. We overview a methodology developed using spatial computable general equilibrium (SCGE) models to quantify and assess the distributional effects of the resilience dividend arising from a proposed resilience plan. In turn, such assessments can be used in benefit cost analyses (BCAs) and other economic project assessments when comparing among potential resilience projects. Good decision-making requires prioritizing feasible projects with the greatest overall net-benefit to the community. We provide a way for co-benefits to be quantified and subsequently accounted for in formal assessment by communities choosing among resilience plans.

Proceedings Title

Identifying and Quantifying the Resilience Dividend using Computable General Equilibrium Models:
A Methodological Overview

Conference Dates

December 13-15, 2017

Conference Location

Brussels

Conference Title

2nd International workshop on Modelling of Physical, Economic and Social Systems for Resilience
Assessment

Pub Type

Conferences

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Keywords

resilience dividend, community resilience, co-benefits, co-costs, adaptation, mitigation, computable general equilibrium (CGE) model, SCGE model, community planning

Citation

Helgeson, J. , Fung, J. , O'Fallon, C. , Webb, D. and Cutler, H. (2017), Identifying and Quantifying the Resilience Dividend using Computable General Equilibrium Models: A Methodological Overview, Identifying and Quantifying the Resilience Dividend using Computable General Equilibrium Models: A Methodological Overview, Brussels, -1, [online], https://tsapps.nist.gov/publication/get_pdf.cfm?pub_id=924427 (Accessed April 23, 2024)