By Janek Ratnatunga and Ana Sopanah
This paper sets out to value the total public financing needed to somewhat alleviate the economic, environmental and social losses of an unprecedented human disaster using a mixed-valuation method, termed ‘Contingent Loss Assessment’ that integrates the economic loss assessment of the disaster with a contingent valuation of the environmental and social costs.
The focus of the paper is to provide a comparison between the economic predictions of the disaster financing required, and the amount of disaster financing that will better alleviate the human suffering observed, using contingent valuation method (CVM) predictions. Using the case of the ‘Lapindo’ mudflow disaster in Indonesia, it is argued that the incremental financing required, an extra $200 million flowing directly to those affected, is not an amount that is beyond the scope of those who have undertaken the responsibility of providing compensation to those affected.Content reserved for CMA Australia members. Please log in to see the content. Your Username is your email address registered with CMA Australia. Your Password is you Member Id Number which starts from either MID/CID. This is printed on your certificate/renewal notice/invoice. You are required to input the full Id including MID/CID. User Name:_________________________ (your email address; e.g. firstname.lastname@example.org)Password: __________________________(your CID or MID number without spaces. e.g CID-003015)If you are having problems, members are requested to contact email@example.com to get log in details.