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Economic Valuation of Damages and Adaptation Strategies During Extreme Event: The Case of Sta. Cruz Subwatershed


This study focused on the valuation of damage to and coping mechanisms of households from different elevations to an extreme climate event, i.e, strong typhoon. Elevations of the study sites’ location were determined based on meters above sea level (MASL). A site with MASL above 408 meters was classified as high elevation; 20 – 407 as medium elevation and those with 10 – 20 meters as low elevation. Among the damages valued include losses to crops and livestock, damage to house and properties, illness and days unable to work. Coping mechanisms performed by the households before, during and after the typhoon were also valued. The market-based approach, cost of illness and foregone income were used to value the damage. On the other hand, coping mechanisms were valued using the market-based approach such as replacement costs and avertive expenditures. Primary data were collected through face-to-face interviews among 186 respondents using pre-tested household survey questionnaires. In addition focus group discussions (FGDs) among barangays (village) officials, women group, health workers and members of the disaster risk reduction and management committee were undertaken to supplement the information gathered from the household survey. Results showed that on the average, households in high elevation incurred the highest damage while those at the low elevation had the lowest. In general, losses from crops and livestock contributed more than half (53%) to the total damage while the cost of illness had the lowest with 8%. Those at the high elevation had the highest average value of damage per household while those located in the low elevation had the lowest. For coping mechanism, the highest expenses were incurred after the typhoon. The values also differ by the location of households. In contrast to the value of damage, for coping mechanisms, households at the low elevation spent more than those living in the high elevation.

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