Devastating floods could cripple regional economies for years, new model reveals
The researchers developed a method to measure both direct and hidden economic impacts of floods. They combined analyzing physical damage caused by flooding with a detailed economic model. By focusing on the 2000 Po river flood in Italy, the study considered various scenarios of how regions could be affected. The outcomes showed that besides visible losses, there were also significant hidden financial consequences. The model could reveal both positive and negative effects in different parts of the country. Assessing these subtle impacts is crucial for fully grasping the economic aftermath of natural disasters.