Forecasting hazards, averting disasters

African Risk Capacity Cost Benefit Analysis (Clarke and Vargas Hill, 2013). A cost–benefit analysis of the 

African Risk Capacity facility looked at the impact of late response as compared to an early response. In 

this analysis, the main costs to immediate and long-term welfare are assumed to come from reductions 

in consumption, losses of productive assets (as a result of direct losses or distress sales) and investment 

opportunities foregone. The study estimates late response losses at $1,294 per household, and early response 

losses at $49 per household.