Journal of Finance and Economics

Journal of Finance and Economics

ISSN: 2291-4951 (Print)    ISSN: 2291-496X (Online)

Volume 4 (2016), No. 3, Pages 1-11

DOI: 10.12735/jfe.v4n3p01

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Cost-Benefit Analysis of Disaster Mitigation Infrastructure: The Case of Seawalls in Otsuchi, Japan

Kimberly Burnett1  Christopher Wada1  Aiko Endo2  Makoto Taniguchi2 

1University of Hawaii Economic Research Organization, University of Hawaii at Manoa, USA
2Research Department, Research Institute for Humanity and Nature, Japan


To Cite this Article     Article Views: 912     Downloads: 480  Since deposited on 2016-08-01


Disaster management problems often pose the same types of challenges that environmental governance problems do; they involve decision-makers at various levels and can transcend political boundaries. We conduct a benefit-cost analysis of a disaster adaptation strategy in Otsuchi, which was undertaken shortly after the 2011 Tohoku earthquake and tsunami devastated the region. Results indicate that present value net benefits from the planned seawall are positive, even if expected damages are low, provided that the wall is capable of reducing damage by at least 50%. A hybrid method of governance may, however, be effective at increasing the benefit-cost ratio.

JEL Classifications: D61, Q5

Keywords: tsunami, benefit-cost analysis, Otsuchi, seawall, Tohoku, governance

To Cite this Article: Burnett, K., Wada, C., Endo, A., & Taniguchi, M. (2016). Cost-benefit analysis of disaster mitigation infrastructure: The case of seawalls in Otsuchi, Japan. Journal of Finance and Economics, 4(3), 1-11.

Copyright © Kimberly Burnett et al.

Creative Commons License
This article is published under license to Science and Education Centre of North America. This is an Open Access article distributed under the terms of the Creative Commons Attribution 4.0 International License.

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Cost-Benefit Analysis of Disaster Mitigation Infrastructure: The Case of Seawalls in Otsuchi, Japan