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Economical analysis of cyclonic risk : applying to La Réunion and Madagascar

Centre d'Économie et de Management de l'Océan Indien - SAINT-DENIS - 2020

This ReNovRisk-Impact project aims to assess the costs of damage caused by cyclones in La Reunion and Madagascar islands. We differentiate between direct ( microeconomic) and indirect (macroeconomic) aspects. The first step is to provide a monetary estimate of the damage caused by cyclones on La Reunion Island. In a second step, we assess these same costs for future cyclones, i.e. considering climate change. Finally, indirect costs will be assessed through inter-sectoral effects. Indeed, while cyclones are not expected to hit La Reunion Island more frequently, they are nevertheless expected to be more intense. This assessment will therefore enable us to define thresholds of avoided damage for future cost-benefit analyses. We furthermore seek to identify the characteristics of populations which are vulnerable to cyclones in order to determine whether this vulnerability goes beyond an existing social and economic vulnerability.