Singing in the rain: Valuing the economic benefits of avoiding insecurity from urban flooding

Avoiding households' fear of urban flooding damages during heavy rain is a benefit component often overlooked in cost-benefit analysis (CBA) of measures preventing these damages. A contingent valuation (CV) survey shows that the monetary value of the welfare gain to Norwegian households from avoiding this insecurity, can be substantial. Households who feel exposed and live close to areas with previous urban flooding, have higher willingness-to-pay in terms of increased municipal charges, to avoid insecurity than those that live further away. We discuss how such measures of "closeness to flooding" can be used in future CBAs of measures preventing urban flooding. Adding the benefits of reduced insecurity in CBAs could justify higher investment in urban flood prevention.