Reevaluating the benefit of flood risk management for flood-prone livelihoods

As flood risk is projected to increase, effective flood risk management (FRM) is crucial not only for mitigating direct flood damage but also for contributing to the long-term improvement of livelihoods and hence the socioeconomic development of flood-prone areas in developing countries. While many studies have assessed avoided damage as the benefit of flood countermeasures, few recognize the impact on improvements in livelihood resulting from risk reduction. We present a novel framework that captures the dynamic relationship between decreasing flood risk perception and improvements in household livelihoods. Using the case of flood-prone Bago, Myanmar, we apply this framework to evaluate 127 flood management strategies under different assumptions of future climate change and socioeconomic features. We show that the benefits of improved livelihoods, when quantified alongside avoided flood losses, have a significant impact enough to change the cost-efficiency rankings of flood management strategies. The findings highlight the importance of incorporating livelihood improvements into FRM decision making to promote the sustainable development in flood-prone areas.