Unexpectedly Intriguing!
25 August 2016

With so much destructive flooding in Louisiana during the past week, we couldn't help but think back to this past June, when the region around Houston, Texas experienced a tremendous amount of rainfall that also led to significant flooding and lots of property damage.

But one resident in the town of Rosharon, Texas beat the flood, using some remarkable technology developed in Louisiana for the purpose of preventing property damage. The following video tells the tale.

At $8,300, the cost of the residential AquaDam may seem high, but for those who live in flood prone areas, where flooding can cause property damage that can exceed several hundred thousand dollars, it may be a pretty reasonable investment. And the best part is that with the right combination of pumps, homeowners could actually use the same water that might otherwise destroy the value of their homes to protect them.

The question of whether its worth the cost however comes down to a combination of how much risk there is of property damaging flooding and the impact of how costly it could be. To estimate if it is worth the cost, as a general rule of thumb, you can multiply the cost of potential property damage by the probability that flooding will damage the property over an extended period of time. If that number is greater than or equal to the cost of using technology like the Aqua Dam to mitigate against the potential for damage, then it makes sense to invest in the technological solution.

It's not quite that cut and dried however, because there is a lot to be said for peace of mind if that number only falls short by a relatively small percentage, where choosing to invest in technology to overcome such a risk would come down to a personal choice.

The same principles apply for adaptation to climate change, where one could argue that this kind of technology could be more cost-effectively applied to provide additional protection to a levee, which if overtopped by flood waters, could easily result in millions of dollars of damage to an entire community. That may be especially true when the alternative course of action may involve an even more costly project to build up the levee.

Then again, the cost of the kind of technology to deal with such hazards may be so prohibitive that property owners may simply choose to buy extra insurance protection to pay for what it costs to clean up and recover after the damage happens, if and when it does.

And that's the rub. It all comes down to placing a bet on the statistical likelihood of something bad happening, which may or may not when it matters most to you. How much are you willing to wager to win on a choice like that? And how much are you willing to risk losing if you fall on that other side of the bet?

Update: Matt Kahn applies a little more complex math than what we described above to identify what kinds of people would choose to live in areas prone to flooding in the absence of government subsidized insurance protection (and by extension, since the math would be similar, technological protection).

Labels: ,

About Political Calculations

Welcome to the blogosphere's toolchest! Here, unlike other blogs dedicated to analyzing current events, we create easy-to-use, simple tools to do the math related to them so you can get in on the action too! If you would like to learn more about these tools, or if you would like to contribute ideas to develop for this blog, please e-mail us at:

ironman at politicalcalculations.com

Thanks in advance!

Recent Posts

Stock Charts and News

Most Popular Posts
Quick Index

Site Data

This site is primarily powered by:

This page is powered by Blogger. Isn't yours?

CSS Validation

Valid CSS!

RSS Site Feed

AddThis Feed Button


The tools on this site are built using JavaScript. If you would like to learn more, one of the best free resources on the web is available at W3Schools.com.

Other Cool Resources

Blog Roll

Market Links

Useful Election Data
Charities We Support
Shopping Guides
Recommended Reading
Recently Shopped

Seeking Alpha Certified

Legal Disclaimer

Materials on this website are published by Political Calculations to provide visitors with free information and insights regarding the incentives created by the laws and policies described. However, this website is not designed for the purpose of providing legal, medical or financial advice to individuals. Visitors should not rely upon information on this website as a substitute for personal legal, medical or financial advice. While we make every effort to provide accurate website information, laws can change and inaccuracies happen despite our best efforts. If you have an individual problem, you should seek advice from a licensed professional in your state, i.e., by a competent authority with specialized knowledge who can apply it to the particular circumstances of your case.