1. Monetizing Resilience Benefits in Economic Development Shifting Policies/ Investment For Efficiency and Resiliency Joshua Reyneveld Managing Director

2. 20 th ->21 st Cent 20th Century Economy Environment

3. 20 th ->21 st Cent 21st Century Environment Economy

4. Eartheconomics Microeconomics Macroeconomics

5. Built CapitalSocial CapitalHuman CapitalNatural Capital Four Types of Capital

6. 1.Envision Long Term: Think 100 years out Climate Change/Resiliency Region’s Carrying Capacity Looking Forward-Building Resiliency

7. 1.Envision Long Term: Think 100 years out Climate Change/Resiliency Region’s Carrying Capacity 2.Include monetary value of nature’s goods & services Without nature there is no regional economy We’re using up nature-not growing it as we expand the economy Looking Forward-Building Resiliency

8. 1.Envision Long Term: Think 100 years out Climate Change/Resiliency Region’s Carrying Capacity 2.Include monetary value of nature’s goods & services Without nature there is no regional economy We’re using up nature-not growing it as we expand the economy 3.After Step 1 & 2--Plan for next 25 years Improves Growth Management and Planning Recognizes Solutions must be at the Scale of Problems Looking Forward-Building Resiliency

9. 9 Built CapitalSocial CapitalHuman CapitalNatural Capital FOUR TYPES OF CAPITAL

10. 10 BENEFIT-COST ANALYSIS OVERVIEW 10 Army Corps of Engineers FEMA HUD - NDRC Federal Benefit Cost Approaches More Inclusive Resiliency value Economic revitalization value Lifecycle costs + Ecosystem Benefits (2012) (If BCR>0.75) + Resiliency value + Social & Ecosystem value + Qualitative Values Rate = 3.375% Rate = 7.00% w/alt Rate = 7.00% w/alt

11. 11 BENEFIT-COST ANALYSIS OVERVIEW 11 No Action* (Baseline) No Action* (Baseline) Action vs. * No Action does not mean that costs and benefits won’t change over time. Framing the Analysis

12. 12 BENEFIT-COST CATEGORIES 12 Lifecycle Resiliency Environmental Social Economic Revitalization Economic Revitalization Categories are Interrelated and Synergistic

13. 13 BENEFIT-COST ANALYSIS OVERVIEW 13 Identify Quantitative Assessment Quantitative Assessment Monetized Effect Is the cost or benefit relevant to the project? Can the cost or benefit be quantified in physical terms – is the data available? Can a dollar value be assigned to the cost or benefit? (total, per-acre, per-person, per-event, etc.) Assessing the Costs and Benefits

14. 14 BENEFIT-COST ANALYSIS OVERVIEW 14 Identify Quantitative Assessment Quantitative Assessment Monetized Effect High-Level BCA Steps  Define the Details (project scope, components, and phases)  Identify Stakeholders  Determine Benefit/Cost Categories  Establish Expected Project Life  Gather Field Data (survey, physical, historic, etc)  Review Available Literature and Federal Data Sources  Gather Construction/Remediation Details and Costs  Develop GIS Maps and Other Resources  Build Simple Models to Predict and Understand Quantities  Define Valuation Approach and Assumptions  Collect Appropriate Values from Primary Research and Literature  Build Simple Financial Spreadsheets and Enter Data  Verify that Data is Realistic and Answers Necessary Questions Describe Quantitative and Qualitative Results and Findings

15. 15 BENEFIT-COST EXAMPLES 15

16. 16 SAMPLE COSTS AND BENEFIT CATEGORIES # 16 Lifecycle Resiliency Environmental Social Economic Revitalization Property Acquisition Soil Remediation Plant Installation and Care Site Improvements (paths, etc.) Flood Risk to Commercial Property Flood Risk to Residential Property Ecosystem Function Volunteer Engagement Mental/Physical Health Recreation (Fishing, Birding) Cultural Value Groundwater recharge Reduced Soil Erosion Carbon Sequestration Fish/Bird Habitat Air Quality Tree Cover Biological Control of Invasives Neighboring Property Values Local Jobs from Construction Investment ‘Trickle Down’ to Local Businesses # Note that Items could represent a cost in one scenario and a benefit in another though important not to double count. Habitat Restoration for Flood Mitigation

17. 17 SAMPLE COSTS AND BENEFIT CATEGORIES # 17 Lifecycle Resiliency Environmental Social Economic Revitalization Property Damage Casualties Risk to Water/Energy Supply Recreation and Tourism Community Cohesion Mental Health Aesthetic Value Erosion Control Water Filtration Carbon Sequestration Habitat Local Mitigation Jobs and Investment Property Values Insurance Claims # Note that Items could represent a cost in one scenario and a benefit in another though important not to double count. Fire Adaptation Fire Fighting and Cleanup

18. 18 Built CapitalSocial CapitalHuman CapitalNatural Capital FOUR TYPES OF CAPITAL

19. 19 THANK YOU! QUESTIONS? Joshua Reyneveld jreyneveld@eartheconomics.org 19