Economic justification of investment in defense against torrential floods on the example of the Ljuboviđa river

Torrential floods have caused great material and economic damage in Serbia, in the past and even more frequently nowadays. Definitely, the reduction of negative consequences can be achieved by taking preventive measures which include integral basin arrangement. The economic justification of investment in the protection against torrential floods includes a specific approach, especially when it comes to technical facilities in this area. On the basis of the example of flood control on a part of the river Ljuboviđa, variants of protection were selected on the basis of economic criteria. On the basis of the techniques of avoided damage, evaluation of the economic effects of provided embankments for flood control was done using dynamic methods: the cost-benefit relationship and net present value. It was concluded that the second option is more economical, even though it does not protect the whole area from floods, because a part of that role would be taken over by the intended dam in the upper flow of this river.