Valuation Study

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Typhoon Damage to Households

Attributes

Medium: Animals, Plants and/or Others

Country: Vietnam

Analytical Framework(s): Economic Analysis

Study Date: 2009

Publication Date: 2010

Major Result(s)

Resource/Environmental Good VND
(2009)
VND
(2014)1
USD
(2014)2
HH property damage (house) 2,890,000.00 4,065,825.40 190.32
Production damage (crop) 1,970,000.00 2,771,514.20 129.74
Production damage (livestock and poultry) 610,000.00 858,184.60 40.17
HH property damage (others) 420,000.00 590,881.20 27.66
HH property damage (appliance) 320,000.00 450,195.20 21.07
Forgone income (loss of business) 190,000.00 267,303.40 12.51
Other damage/loss 150,000.00 211,029.00 9.88
Production damage (fishing) 120,000.00 168,823.20 7.90
Injured 80,000.00 112,548.80 5.27
Production damage (aquaculture farm) 50,000.00 70,343.00 3.29
Business 40,000.00 56,274.40 2.63
HH property damage (vehicle/boat) 30,000.00 42,205.80 1.98
Disease/illness 30,000.00 42,205.80 1.98
HH property damage (amenities) 20,000.00 28,137.20 1.32
Forgone income (loss of income/wages) 10,000.00 14,068.60 0.66
Total loss 6,950,000.00 9,777,677.00 457.70

About the Inflation Adjustment: Prices in Vietnam (VND) changed by 40.69% from 2009 to 2014 (aggregated from annual CPI data), so the study values were multiplied by 1.41 to express them in 2014 prices. The study values could be expressed in any desired year (for example, to 2025) by following the same inflation calculation and being sensitive to directional (forward/backward) aggregations using your own CPI/inflation data.

Study Note: This study identifies the adaptation behaviors of local institutions and households in order to determine a set of adaptation possibilities appropriate to Central Viet Nam. The constraints and barriers to implementing a set of adaptation possibilities have been analyzed from different angles, such as the economic status and education level of each household or the adaptation mechanisms of local organizations. The study also outlines lessons learned and policy recommendations for climate change adaptation at a household level in Central Viet Nam.

Study Details

Reference: Phong Tran, Tran Huu Tuan, Bui Dung The, Bui Duc Tinh. 2010. Adaptation Behaviors of Communities and Households to Extreme Climate Events in Quang Nam Province, Viet Nam: Towards a Set of Possible Adaptation Measures. EEPSEA Research Report, No. 2010-RR9.

Summary: Using Quang Nam as a case study province, this report argues that it is essential to understand the coping behaviors of households in the face of a changing climate and accompanying extreme events. This study identifies the adaptation behaviors of local institutions and households in order to determine a set of adaptation possibilities appropriate to Central Viet Nam. The constraints and barriers to implementing a set of adaptation possibilities have been analyzed from different angles, such as the economic status and education level of each household or the adaptation mechanisms of local organizations. This study also outlines lessons learned and policy recommendations for climate change adaptation (CCA) at a household level in Central Viet Nam. The findings reveal that there are various local government units (LGUs), agencies and community organizations involved in adaptation to climate change from provincial to commune level. The Center for Storm and Flood Control plays the most important role in planning and preparedness for adaptation to climate change events. Full-time local staff work in the area of climate change in government units and community organizations. A limited budget, limited knowledge/expertise and a lack of equipment suited to adaptation for climate change events are the main constraints on these local government units and community organizations. At household level, traditional risks such as annual typhoons and floods are ever-present, while new risks, thought to be caused by climate change, are increasing, putting traditional disaster-coping mechanisms under pressure. Households need financial and technical assistance to prevent or minimize the impacts of climate change-induced events. There is a big gap between expected adaptation options and their actual implementation during an extreme climate-change event. The barriers and constraints to implementing climate change adaptation options are various. However, they can be summarized as follows: there are a high percentage of non-disaster resistant houses and infrastructure; there is insufficient access to disaster risk management information and planning; there is a lack of mutual help between people; traditional coping mechanisms are under pressure; there is a lack of emergency response equipment and trained personnel; people have low and instable incomes; and there is limited access to financial resources.

Site Characteristics: Located in the heart of Viet Nam, Quang Nam is one of the poorest provinces in the country. In recent years the province has been affected by more frequent, intense, and extreme climate events. Climate change events such as Xangsane typhoon in 2006, historic floods in 2007, and typhoon Ketsana in 2009, have had a variety of adverse impacts on socio-economic development, particularly in poor communities in disaster-prone areas. Located in disaster-prone areas of Dai Loc, with two main rivers, Vu Gia and Thu Bon, about 2 km to the north of Ai Nghia (the main town in Dai Loc District), Dai Hoa and Dai Cuong are low-lying communes which are vulnerable to climate change-related disasters such as typhoons and floods. Large areas of Dai Hoa and Dai Cuong are home to paddy fields and other food crops, such as maize, watermelon, bananas and various varieties of vegetables, which are the main sources of income for local people.

Comments: Based upon a household survey and discussions with local people, a set of suggestions to overcome these challenges has been recommended. One of the most important recommendations is to improve the housing sector to protect human lives and property, as safe housing could significantly contribute to the resilience of households and is the first defense against the impacts of climate-induced disasters. It is also recommended that support and rescue teams be established in each community, that better emergency information systems and disaster-planning mechanisms are instituted, that awareness of climate change is raised in local communities, that rural infrastructure be upgraded, that environmental sanitation be improved, and that improved productivity and the resulting increase in household incomes are pursued as priorities.

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