Economic costs of hurricane Alex in Nuevo León, Mexico David Mendoza Tinoco,a Alba Verónica Méndez Delgado b and Alfonso Mercado Garcíaa a The College of Mexico, Mexico, b Autonomous University of Coahuila, Mexico. Email addresses:
[email protected],
[email protected] and
[email protected], respectively. Date received: August 29, 2018. Date accepted: February 4, 2019. Abstract The periodic heavy flooding which Mexico experiences impacts negatively on its economic development. Adaptation and risk-management measures are predominantly based on cost evaluation, which therefore needs to be comprehensive. This paper evaluates the total economic cost of Hurricane Alex in the state of Nuevo León in 2010, which was the most devastating natural phenomenon recorded during the last 50 years. Therefore, for the first time in Mexico, a methodology was applied which factors in both direct costs (material damage) and indirect costs (productivity losses) in the affected region’s economy (MIP). This methodology was based on the input-output model. The results suggest that total costs were $20.5 billion MXN, of which 29% (6 billion) were indirect costs. Keywords: natural disasters; indirect costs; risk management; tropical cyclones; input- output model. 1. INTRODUCTION During the past few years, the intensity and frequency of hydrometeorological natural disasters have increased as a consequence of climate change1 . Among these natural disasters, those that affect Mexico most are tropical cyclones and consequent extreme flooding2 . The hydrographic characteristics and geographic distribution of large urban agglomerations increases the country’s vulnerability in the face of these natural phenomena. In recent years calculations have been disseminated regarding Mexico’s vulnerability to hydrometeorological events.