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Cost Benefit Analysis Lessons from Practice: Towards Climate Change Resilient Cities Fawad Khan Senior Associate, ISET World Urban Forum Rio de Janeiro,

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Presentation on theme: "Cost Benefit Analysis Lessons from Practice: Towards Climate Change Resilient Cities Fawad Khan Senior Associate, ISET World Urban Forum Rio de Janeiro,"— Presentation transcript:

1 Cost Benefit Analysis Lessons from Practice: Towards Climate Change Resilient Cities Fawad Khan Senior Associate, ISET World Urban Forum Rio de Janeiro, Brazil 23 March 2010

2 Overview CBA of Climate Resilience How to do a CBA –Qualitative –Quantitative Issues and learning

3 Risk and Potential Impacts

4 CBA

5 Integrated flood protection in Semarang, Indonesia  City subject to seaside inundation due to land subsidence and riverine flooding in rainy season  Land subsidence caused by (illegal) groundwater extraction Elevation in 2003 Elevation in 2013 (scenario)

6 Costs and Benefits of the proposed Resilience Actions in Semarang City Proposed Resilience Actions COSTSBENEFITS EconomicSocialEnvironmen tal OtherEconomicSocialEnvironment al Other Check damLand acquisition Landholder resistency Risk of water distribution Create little impact to environment Provide new livelihood in fisheries sector Provide water stock in drought seasson Create new ecosystem Polder systemHigh OM prevent accessibilit y to sea Encroachment Increase tension in areas with no polder system Coastal ecosystem degradation Support economic activity of the regions Provide public space for city Reduce impact of Sea Level Rise CreditsUnpaid credits Community burden to pay monthly pay (physicologic al stress) Economic productivity Reduce loss of asset Increase health and amenity

7 Index Ranking of Benefits and Costs R ank from 1 to 10, with 10 being the highest cost or best benefit AND 1 being the lowest cost or least benefit Proposed Resilience Action COSTSBENEFITS B/C Ratio Comparison EconomicSocialEnv’tOther TOTAL C EconomicSocialEnv’tOther TOTAL B

8 Quantitative Methodology +inventory of assets

9 Methodology +inventory of assets

10 Methodology +inventory of assets

11 Quantitative Methodology +inventory of assets

12 Structural Measures

13 Best Estimate and Sensitivity Analysis

14 Qualitative vs. Quantitative Wrong Question! Data limitation vs. reality check Distributional vs. financial feasibility Qualitative for range of choices Quantitative for financing/investing Multi-criteria analysis

15 Multi-criteria Analysis

16 THANK YOU For more Information on CBA:


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