Author(s): Alexandra Humphrey Cifuentes; Alexus Van Der Weyden
Linked Author(s):
Keywords: Resilience Adaptation Adaptive planning Water security Real options analysis Rela options economics Climate change Drought Flooding Economics Valuation Social Cultural Environmental
Abstract: To support our communities and natural environments in the face of variable local climates and risk of either flooding or drought, it is critical our decisions are resilient and adaptive. However, the likelihood and consequence of many of these risks are uncertain, which can make planning challenging, and increase the potential for ‘regret’. Frontier Economics has developed an economic framework to value the tangible and intangible economic, social, cultural and environmental benefits and costs of resilience to natural disasters. Using advanced techniques such as Real Options Economics, we can analyse decision-making that considers and values flexibility. As an example, we look at decision-making for building a permanent seawall for coastal flood resilience, and for drought resilience.
Year: 2025