Rising sea levels are expected to cause an increased risk of coastal flooding in many regions and adaptation to these threats is necessary to avoid considerable losses. Yet, such measures will typically only be implemented if they are economically efficient, that is, if the benefits in terms of avoided damages exceed the implementation costs. By employing extreme value theory we perform a cost-benefit analysis for a specific protection measure in a case study region in Kalundborg (Denmark) and calculate the amortisation times for several sea level scenarios and discount rates. It is shown that the assumed climate sensitivity and the choice of discount rate, which are of similar importance, are very crucial for the outcome, whereas the underlying emissions scenario plays a minor role. In general, the results suggest that the investment is profitable, but will not be amortised before 2050. Furthermore, the relationships between sea level rise, the protection height and the expected annual damages in Kalundborg are investigated and described.

Author names: 
Boettle, M.
Rybski, D.
Kropp, J.P.
Year: 
2013
Reference: 

Boettle, M.; Rybski, D.; Kropp, J.P. (2013). Adaptation to sea level rise: Calculating costs and benefits for the case study Kalundborg, Denmark. In: Schmidt-Thomé, P. and Klein, J. (eds.). Climate change adaptation in practice: From strategy development to implementation (pp. 25-34). Hoboken NJ: John Wiley & Sons Ltd.

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