Abstract. Floods are among the most disastrous environmental hazards, causing devastating tangible and intangible impacts. The psychological impact, which can be classified as intangible damage, is a crucial part of well-being assessment. The psychological impact of flooding has begun to receive attention in recent years; however, the complexity of measuring it makes it less attractive to be considered in damage empirical assessment and risk studies. The present study seeks to evaluate willingness to pay for the psychological impact of flooding experienced by households and business premises, and the different factors that could be determining variables of the psychological impact. A total of 217 respondents has participated in the empirical face-to-face survey conducted in different vulnerable places in Peninsular Malaysia. Through the willingness to pay (WTP) method, only 107 and 34 respondents from residential and business premises, respectively, expressed their agreement to spend on flood management efforts. The study found that flood durations and family sizes are statistically significant contributors to psychological impact for households, reflecting the intangible damages to the residential sector. The results suggest a greater investment to support affected people's welfare by improving communities' resilience and consolidated management during flood events from different authorities. These will enhance flood risk reduction efforts and reduce the psychological impacts on people at risk of flooding. The findings also revealed a key challenge of inferring intangible flood damages for business sectors through empirical evidence.
Kabirzad et al. (Tue,) studied this question.