Full-cost accounting of coastal disasters in the United States: Implications for planning and preparedness

As coastal disasters become more frequent and costly, a full assessment of costs becomes more important. This paper aims to identify costs of coastal disasters to human, social, built and natural capital and their associated services at the local site of a disaster and in the regions and nations that respond for relief and recovery. The spatial and temporal magnitude and scale of costs is captured differently in typical cost accounting and a more comprehensive approach, full-cost accounting. The difference between these approaches will be demonstrated using Hurricane Katrina (2005) as a case study, though we do not attempt to perform a full-cost accounting of this actual event. We examine how disaster planning and preparedness becomes more cost effective when the full cost of disasters is calculated. A full-cost accounting of coastal disasters sets the stage for rigorous comparisons of strategies for post-disaster development. The rudimentary analysis of this paper indicates that continued population development as well as the maintenance of current settlements in particular regions along the coasts may not be in the national interest. In this way, full-cost accounting could help reduce vulnerability to future disasters.