Building & infrastructure

Building Exposure Model (BEM)

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In a nutshell

The BEM provides information on the economic value of the built environment, including social infrastructure in the health and education sectors for each country and territory of the world. 
 

The number of persons subdivided by socio‐economic class living in a specific construction type in a determined geographical location is used as a base for distributing the exposed economic value of the building stock. In other words, population data will be used to obtain information on the constructed area.

For example, a certain percentage of people, employed in the industrial sector per a determinate country, will be related to the proportion of industrial buildings in that country.

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Infrastructure Exposure Model (IEM)

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In a nutshell

The approach combines a top-down valuation of the infrastructure for each country and a bottom-up distribution of cost within the individual elements of each sector.

The top-down part of the valuation is constructed by assuming that the infrastructure represents some fraction of the country’s capital stock. Such fraction is approximated here as a function of the distribution of the country’s wealth from produced, natural and intangible capital stocks. 

The bottom-up part of the approach valuates individual elements in the territory of each country, using consumption, access, and capacity indicators for each sector, and indicative prices of elements. 

At the end, the total value obtained from the bottom-up approach is scaled to fit the top-down valuation, meaning that the top-down value remains as the true country total infrastructure cost, while the bottom-up values serve as a tool for price distribution into individual elements.