Economic consequences of floods: impacts in urban areas

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Economic consequences of floods: impacts in urban areas SWITCH Paris Conference Paris, 24 th 26 th January 2011

Economic consequences of floods: impacts in urban areas Institutions: Authors Vanessa Cançado Nilo Nascimento Ricardo Ruiz Aknowledgements Leise Kelli de Oliveira Farney Alcântara Brenner Maia-Rodrigues Matheus Jung

METHODOLOGY The model focuses on the households and their economic relations within the city (consumption, work) Floods will affect these relations

METHODOLOGY Urban system A. River system B. Household system C. Production-distribution system D. Transport system

METHODOLOGY The city is represented by 4 integrated systems: 1. river system: flood modelling (return period, depth, velocity and duration) 2. household system: agent based model and network analysis (socio-economic characteristics of residents, their consumption practices and household assets) 3. production-distribution system: agent based model and network analysis (characteristics of firms and the labor demand) 4. transport system: simulation model (time and distance of displacement)

METHODOLOGY Everyday situation flood Direct damage models (susceptibility and vulnerability factors) Breakpoints (roads, people, homes affected, service, commerce, industry, etc) Socioeconomic data Economic model (behavioral changes) Traffic allocation model (change of travel routes) Model of economic impact of flooding Socioeconomic impacts

METHODOLOGY A prototype was created to simulate the economic relations between families and firms It is a hybrid model: virtual city + real socio-economic information's census (Belo Horizonte) Aggregating the information of all agents of each system, the model should be able to show the behavior of the municipal income, the stock of household assets and the value added to the economy

THE PROTOTYPE (model: Netlogo) Others (divided into 74 regions) Surrounding Impacted area

THE PROTOTYPE (model: Netlogo)

THE PROTOTYPE Region of direct impact and surroundings: 14,315 households ( 20.530 workers) 5,050 firms average income: 1,546 Euro/month Others regions of the city: 74 regions: clusters of firms and 164,379 households 19,084 firms. average income: 1,544 Euro/month Equilibrium of the model : Labors supply = Labor demand Others (divided into 74 regions) Surrounding Impacted area Salaries = income = expenditure

METHODOLOGY: spatial distribution of households and fims Households distributed according to Belo Horizonte census Firms distributed according to different data bases and 11 criteria: Commerce, services and industries: Municipal data base (GIS) Hospitals and schools (up to high school): GIS Universities, museums, libraries: phone directory

METHODOLOGY Socioeconomic data: household matrix 12 types of families 82 variables: Dwelling characteristics (e.g.: location, dwelling area, build characteristics) Family income Types of expenditures (59 types) Dwelling content (TV, cars, furniture, etc) Census data (IBGE, 2000, 2003)

METHODOLOGY Socioeconomic data: family members matrix 58 variables Physical characteristics (e.g.: age, gender, health conditions, mobility) Functions in the household (e.g.: occupation code, work hours, etc) Education Income Census data

METHODOLOGY Socioeconomic data: firm matrix 88 types of activities: Types of offer: 3 types of spatial distribution (e.g.: bakery, hospital) 3 types of good characteristics: essential, necessary, luxurious Frequency of consumption: daily, weekly, monthly, rare Number of employees Census data, business data

METHODOLOGY Relationship between agents (matrixes) Work and study allocations: Random selection of the firm by workers working in the firm field limit: number of employees per firm Closest fundamental school, plus random selection of school for higher level other criteria: domain of studies, school capacity Household Firm Consumption Work 1 Household Work 2 Education etc

METHODOLOGY Relationship between agents (matrixes) Expenditure allocation decision: The agent choose the firm according to those that are able to furnish the good X (1-59 options) Distance accepted by the agent to travel in order to buy the good X (depends on good characteristics and on spatial distribution of firms) Household Firm Consumption Work 1 Household Work 2 Education etc

METHODOLOGY The river system Rainfall-runoff simulation: HEC-HMS Hydraulic simulation: HEC-RAS unsteady flow, 1-D Risk scenarios: T=5 y, 25 y, 100 y Floodplain mapping: ArcGis 9.2 Rainfall duration: 2 hours (flash flood characteristics) Hydrograph base time: at about 8 hours

METHODOLOGY Traffic simulation Modelling only the impacted and surrounding area Model Integration 5.1 Road capacity: 700 vehicles/hour.line -HCM Highway Capacity Manual (TRB, 2000). Velocity limits: 60km/h (main roads); 40km/h (local roads) Road length: 49,71 km (55 links) Flood occurring in two different moments: 10h and 17h

% de veículos METHODOLOGY Traffic simulation Vehicles flow according to Belo Horizonte Municipal data (traffic authority) in areas similar to those in the model Vehicles flow time distribution according to Belo Horizonte Municipal data 8% 7% 6% 5% 4% 3% 2% 1% 0% 0:00 2:24 4:48 7:12 9:36 12:00 14:24 16:48 19:12 21:36 0:00 Hora do dia

METHODOLOGY Traffic simulation

EXPECTED RESULTS Expecting to observe changes over time on: household income consumption and displacement patterns before, during and after flooding Assessment of flood economic impacts and the time for recovering

RESULTS Flood modelling

RESULTS Direct impacts T = 5 y T = 25 y T = 100 y Flooded households 980 1,252 1,919 Flood inhabitants 3,332 4,256 6,525 Flooded firms 624 865 1,288 Road system (flooded links) 13 13 13

RESULTS Direct impacts Risk scenario Household mean income Direct damage (average) Recovery time - years (median) T = 5 y 628 5,100 3.6 T = 25 y 641 6,100 4.2 T = 100 y 641 5,750 3.9

RESULTS Household recovering time T = 5 years T = 100 years

RESULTS Spatial distribution of impacts: variation on sales

RESULTS Firm indirect losses

RESULTS Traffic impact

RESULTS Traffic impact (T = 100 years, flood at 5 pm) Variable Current scenario Flooding scenario Traffic jam dissipation time - 3h 40 min Average velocity 39.55 km/h 9.07 km/h Fuel consumption 0.32 l/km 0.754 l/km CO 2 emissions 742.8 g/min 1759.9 g/min HC emissions 0.072 g/min 0.131 g/min NO x emissions 0.309 g/min 0.422 g/min Average additional time - 26.5 min

RESULTS Traffic impact: costs (Euro) for T = 100 y Time Fuel Pollutants Current scenario T = 100 y 100,573 25,511 86 (0%) 357,558 (256%) 52,516 (106%) 125 (46%)

Researches on floods at UFMG: Conclusions Conclusions: Improving knowledge of flood impacts on households and on the economic system: Direct damages to households Disturbance on expenditures and income fluxes Disturbances to traffic Losses on value added by firms Time and space simulation of flood impacts Perspectives of application for other environmental studies

Perspectives Perspectives: Providing elements for improving decision making on flood management Developing indicators of flood vulnerability Contributing to promote public participation on flood management