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<br />quantified although empirical data is badly needed. Other benefits <br />should be included in the economic analysis of DOPC projects (see <br />Table II-I) and techniques for doing this are being developed. <br />Reduction in average annual flood damage is one of the goals of <br />DOPC. However, the damage reduction benefit should be regarded as <br />important to the extent that the damage reduction goal is important, <br />but not more. An important consideration is that damage reduction <br />primarily benefits the few property owners in the flood plain, If <br />the DOFC project is funded from general taxes, income will be trans- <br />ferred from the taxpayers to flood plain occupants, creating incentive <br />to occupy the flood plain. <br />It is suspected that damage reduction has been given priority <br />in evaluation of DOFC projects because of its visibility. Nevertheless, <br />the accuracy with which potential damages can be estimated is dependent <br />on the availability of reliable depth-damage relationships which are <br /> <br /> <br />only in an early stage of development [5]. <br /> <br /> <br />Economic analysis of major DOFC projects should proceed as <br /> <br /> <br />outlined by James and Lee [9] or by Rice [13]. The latter is to be <br /> <br /> <br />preferred because he presents detailed data and estimating curves for <br /> <br /> <br />direct use. The results of the analysis should be used with perspective, <br /> <br /> <br />however, considering first the DOFC objectives and then letting tangible, <br /> <br /> <br />quantifiable benefits take their proper place in the decisionmaking <br /> <br /> <br />sequence. <br /> <br />Evaluation of Minor DOFC Projects <br />The problem of evaluating minor DOFC projects is not currently one <br />which can usually be solved using benefit-cost analysis. Referring to <br />Figure 11-4, it was shown that the prinicpal benefits for minor DOFC <br /> <br />35 <br />