Evaluating betterment projects

In the past decade Australia has experienced a series of large-scale, severe natural disasters including catastrophic bushfires, widespread and repeated flooding, and intense storms and cyclones. There appears to be a prima facie case for rebuilding damaged infrastructure to a more disaster resilient (that is, to 'betterment') standard. The purpose of this paper is to develop and illustrate a consistent and readily applied method for advancing proposals for the betterment of essential public assets, which can be used by governments at all levels to determine the net benefits of such proposals. Case study results demonstrate that betterment investments have the potential to deliver a positive economic return across a range of asset types and regions. Results, however, are highly sensitive to underlying assumptions; in particular the probability of the natural disaster affecting the infrastructure in the absence of betterment.