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RESEARCH PRODUCT

Economic valuation of the maximum acceptable risk

subject

description

Vulnerability plays a critical role in implementing the Inondabilité method. Its quantification is based on the concept of maximum acceptable risk, to be applied to each of the land uses in the floodplain. To define such a limit of risk on an objective basis requires to identify a level of maximum acceptable loss and to complete a micro-economic analysis of the activity as a whole, including its objectives, resources, restraints and results, at a more or less high degree of detail. More attention is devoted to the technico-economic background, the financial capacity and the system of information-perception-adaptation of the agent, which are the main factors influencing the level of maximum acceptable loss, and then the level of maximum acceptable risk as expressed by the agent in the public decision process. A methodology is proposed mainly for the case of an agricultural activity.