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Risk cost benefit analysis framework under climate change-related disasters: Case of sea dyke in Vietnamese Mekong Delta

Vo Thanh Danh[1]


The paper aims to measure the benefits of sea dyke construction in Vietnamese Mekong Delta. A risk cost benefit analysis framework is developed to valuate benefits or losses avoided of flood, storm, and salinity intrusion by climate change’s impact. The study specifies probability distribution functions in simulation process to incorporate these risk factors into the analysis. There are five dyke options associated with three hypotheses of the scales of sea dyke systems proposed for selection. Results shows that the benefits of storm and flood avoided dominated in dyke options. Based on the NPV decision rule, results indicates that large dyke options are preferred. It shows evidences to support the necessity to have a concrete sea dyke system for the Vietnamese Mekong Delta in the context of globally climate change.


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[1] PGs.Ts, Khoa Kinh tế-QTKD, Trường đại học Cần Thơ