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PROBABILISTIC-BASED HURRICANE RISK ASSESSMENT AND ...

PROBABILISTIC-BASED HURRICANE RISK ASSESSMENT AND ...

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due to climate change. Similar research is needed to investigate the potential effects ofclimate change on hurricane risk assessments in the U.S.1.1.2.1 Monte Carlo Simulation (MCS)A Monte Carlo Simulation (MCS) can be used to estimate the damage risk to incorporatethe epistemic uncertainty in change in hurricane wind speed, i.e. the wind increase is avariable. How climate change will affect regional climates and pertinent variables(epistemic uncertainty) is not well known, limiting the ability to predict consequentialeffects.Figure 1.1 shows the results of the MCS for the annual damage in Miami-Dade County,Florida, assuming a mean increase in wind speed of 5% with COV of 0.50 in year 50.This figure is for illustration purposes only, as significant refinement is required toestimate probability distributions for future mean temperatures or other climatic variables(e.g. the COV for changes in wind speed) when new information is available (IPCC2007). A presentation like this figure can also be modified to represent the cumulativedamage of a region to allow making statements with certain confidence level, such as “Iam 95% confident that the wind damage for this region will be under $1.0 billion for anincrease in wind speed of 5% over 50 years”. Such statement can be very useful in riskcommunication for decision making.7

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