Cost-benefit analysis in climate change adaptation: the use of participatory methodologies

Cost-benefit analysis, as an economic evaluation tool of public or private projects, has evolved significantly in the last 200 years following the developments in terms of economics, namely Environmental Economic, and developments in project analysis and public policy evaluation.

Economic evaluation of structural and non-structural flood risk management measures: examples from the Mulde River.

The concept of flood risk management, promoted by the EU Floods Directive, tries to mitigate flood risks not only by structural, hydraulic engineering measures, but also by non-structural measures, like, e.g., land-use planning, warning and evacuation systems. However, few methods currently exist for the economic evaluation of such non-structural measures and, hence, their comparison with structural measures.

Multi-criteria decision analysis in adaptation decision-making: A flood case study in Finland

Decision-making for the purpose of adaptation to climate change typically involves multiple stakeholders, regions and sectors as well as multiple objectives related to the use of resources and perceived benefits. Standard cost–benefit analysis can be argued to take into account easily monetised effects only. Multi-criteria decision analysis (MCDA) embedded in participatory processes can therefore play an important role in defining the decision context and exploring stakeholders’ preferences.

Adaptation to sea level rise: Calculating costs and benefits for the case study Kalundborg, Denmark

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.

Adaptation to extreme rainfall with open drainage system: An integrated hydrological cost-benefit analysis.

This paper presents a cross-disciplinary framework for assessment of climate change adaptation to increased precipitation extremes considering pluvial flood risk as well as additional environmental services provided by some of the adaptation options. The ability of adaptation alternatives to cope with extreme rainfalls is evaluated using a quantitative flood risk approach based on urban inundation modeling and socio-economic analysis of corresponding costs and benefits. A hedonic valuation model is applied to capture the local economic gains or losses from more water bodies in green areas.

Effectiveness of flood damage mitigation measures: Empirical evidence from French flood disasters

Recent destructive flood events and projected increases in flood risks as a result of climate change in many regions around the world demonstrate the importance of improving flood risk management. Flood-proofing of buildings is often advocated as an effective strategy for limiting damage caused by floods. However, few empirical studies have estimated the damage that can be avoided by implementing such flood damage mitigation measures.

Adaptation in the UK: a decision-making process

This report contributes to the theoretical framework of the Committee on Climate Change Adaptation Sub-Committee’s work on assessing the preparedness of the UK to meet the risks and opportunities arising from climate change.

Climate change uncertainty: building flexibility into water and flood risk infrastructure

Infrastructure for water, urban drainage and flood protection has a typical lifetime of 30–200 years and its continuing performance is very sensitive to climate change. Investment decisions for such systems are frequently based on state-of-the-art impact assessments using a specified climate change scenario in order to identify a singular optimal adaptive strategy. In a non-stationary world, however, it is risky and/or uneconomic to plan for just one climate change scenario as an average or best estimate, as is done with the use of the Predict-Then-Adapt method.