A Macroeconomic Analysis of Torrent and Avalanche Control

Due to its topographic situation Austria is exposed to a high number of natural dangers such as floods, avalanches, landslides, mudflows and rock slides. The Torrent and Avalanche Control Authority in Austria is implementing measures to protect from these dangers. Such measures include building protective structures for falling objects, compiling plans of dangerous areas, and other such services. This study analyses selected effects of these activities: the economic consequences of investment in protective measures and damaging events; the development of the capital stock of protective facilities and the determinants of costs due to damage from natural disasters. According to the results the measures being used are effective in avoiding damage. Above all what has been successful is that the speedy development of plans of danger areas meant that the settlement of people in these areas could be avoided.