Prioritising resilience policies to reduce welfare losses from natural disasters: A case study for coastal Bangladesh

Quantified flood risk assessments focus on asset losses, neglecting longer-term impacts to household welfare via income and consumption losses. The extent of welfare losses depends upon resilience - the ability to anticipate, resist, cope, recover and learn from a shock. Here, we use a novel welfare loss modelling framework and perform a high-resolution spatial analysis in coastal Bangladesh to quantify welfare losses from a tropical cyclone under present and future climatic and socio-economic conditions. We further test various adaptation options that are intended to enhance resilience. Results show that poor households experience, on average, 7% of the asset losses, but 42% of the welfare losses. Combining dike heightening, post-disaster support and stronger housing can reduce welfare losses by up to 70%, and foster sustainable development by benefitting the poor, increasing resilience and demonstrating robustness under socio-economic and climatic uncertainties. Thus, a welfare orientated perspective helps to identify adaptation options that enhance resilience and leave no-one behind.