Articles | Volume 21, issue 6
Hydrol. Earth Syst. Sci., 21, 2967–2986, 2017
https://doi.org/10.5194/hess-21-2967-2017
Hydrol. Earth Syst. Sci., 21, 2967–2986, 2017
https://doi.org/10.5194/hess-21-2967-2017

Research article 19 Jun 2017

Research article | 19 Jun 2017

Moving beyond the cost–loss ratio: economic assessment of streamflow forecasts for a risk-averse decision maker

Simon Matte et al.

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Interactive discussion

Status: closed
Status: closed
AC: Author comment | RC: Referee comment | SC: Short comment | EC: Editor comment
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Peer-review completion

AR: Author's response | RR: Referee report | ED: Editor decision
ED: Reconsider after major revisions (further review by Editor and Referees) (19 Jan 2017) by Uwe Ehret
AR by Anna Wenzel on behalf of the Authors (06 Mar 2017)  Author's response
ED: Referee Nomination & Report Request started (09 Mar 2017) by Uwe Ehret
RR by Anonymous Referee #1 (04 Apr 2017)
ED: Publish subject to minor revisions (further review by Editor) (11 Apr 2017) by Uwe Ehret
AR by Marie-Amélie Boucher on behalf of the Authors (20 Apr 2017)  Author's response    Manuscript
ED: Publish as is (24 Apr 2017) by Uwe Ehret
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Short summary
In this study we set the basis of an alternative framework to replace the popular cost-loss ratio for the economic assessment of flood forecasting systems. The C-L ratio implicitly considers the decision maker to be risk-neutral, whereas it is rarely the case in real-life emergency situations. Instead of the cost-loss ratio, we propose using a utility function. We show that the decision-maker’s level of risk aversion is a crucial factor in the assessment of the economic value of flood forecasts.