Enabling Adaptation: Economic Evaluation Methodologies
Adolf Stroombergen, Judy Lawrence (2021). Economic evaluation methodologies to support proactive adaptation to sea-level rise. Wellington, New Zealand: Resilience to Nature’s Challenges National Science Challenge - Enabling Coastal Adaptation programme.
Abstract
The report builds on and should be read alongside the 2017 National Coastal Hazards and Climate Guidance for Local Government, by elaborating how to apply decision tools under uncertainty and changing risk. It thus informs the policy and practitioner community when advising on risk reduction in a changing climate.
The authors propose guidance for the use of appropriate economic evaluation tools to support proactive adaptation to Sea-Level Rise, focussing on how Real Options Analysis (ROA) can augment and complement the Dynamic Adaptive Policy Pathways approach. We develop a basic ROA tool that could be used in a wide variety of situations.