Tag Archives: Disability Adjusted Life Years

The Age of Innocence

Professor Ilan Noy holds a unique ”Chair in the Economics of Disasters” at the Victoria University of Wellington, New Zealand. He has proposed in a couple of research papers that instead of counting disaster deaths and economic costs, we should report the “expected life-years” lost, not only for human casualties but also for the life-years of work that will be required to repair all the damage to buildings and infrastructure.

The idea is based on the World Health Organization’s Disability Adjusted Life Years (DALYs) lost through disease and injury (WHO 2013). The motivation is to escape from the distortion introduced by measuring the impact of global disasters in dollars, as loss from the richest countries will always dominate this metric. Noy’s proposal converts injuries into life-years lost, based on how long it takes for the injured to return to complete health, while also factoring the degree of permanent disability multiplied by its duration. This is topped up by a “welfare reduction weight” for all those exposed to a disaster. The final component of the index attempts to capture how many years of human endeavor is lost to recovering the buildings and assets destroyed in the disaster.

There is plenty to argue over in terms of how deaths, injury and damage should be combined. In particular, the assumption that additional work to rebuild a city, is the same as a shortened life, seems somewhat reductive.

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