Implementation of measures in the hinterland : transaction costs and economic instruments

Abstract

Reducing flood risk by implementing measures upstream to “keep rain where it falls” will require adaptation in the landscape of the hinterlands (see also Bourke et al., Chapter 2 in this volume). In order to have a meaningful impact on the rate of water discharge, the sites of these hinterland measures will, in all probability, have to be both spatially distributed and numerous. This large number of small, distributed measures is in contrast to the more concentrated and extensive flood plain measures which serve to temporarily store water during extreme events. All types of land-use changes for implementation of diverse flood risk reduction measures will require agreements with landowners with respect to the distribution of both benefits and costs. However, in the hinterlands the different features of these measures places further emphasis on understanding the nature of the barriers which arise for landholders and the wise use of economic instruments to overcome them.