Economic analysis of climate-proofing investment projects / Asian Development Bank.

Format:

Book

Author/Creator:

Laplante, Benoît, 1960- author.

Asian Development Bank, author.

Losenno, Cinzia G. R. (Cinzia Giuseppina Rosa), author.

Rufo, Loreta S., author.

Contributor:

Asian Development Bank, publisher, copyright holder.

Language:

English

Subjects (All):

Climatic changes.

Power resources.

Physical Description:

1 online resource (93 p.)

Edition:

1st ed.

Place of Publication:

Manila, Philippines : Asian Development Bank, 2015.

Language Note:

In English.

Summary:

Climate change represents an increasing threat to the continued development of the people, preservation of ecosystems, and economic growth of Asia and the Pacific. Mainstreaming climate risk management in all aspects of development is thus key to an effective transition to climate-resilient development pathways. ADB's climate risk management framework aims to reduce risks resulting from climate change to investment projects in Asia and the Pacific. A key step in this framework is the technical and economic valuation of climate-proofing measures. This report describes the conduct of the cost-benefit analysis of climate proofing investment projects. An important message is that the presence of uncertainty about climate change does not invalidate the conduct of the economic analysis of investment projects, nor does it require a new type of economic analysis. However, the presence of uncertainty does require a different type of decision-making process in which technical and economic expertise combine to present decision makers with the best possible information on the economic efficiency of alternative designs of investment projects.

Contents:

Cover; Contents; Tables, Figures, and Boxes; TABLES; 1 Economic Impact of Climate Change, Climate Proofing, and Residual Damage; 2 Assessment Criteria and Decision Rule; 3 Estimated Costs of Climate Proofing Investment Projects in the Transport Sector; FIGURES; 1 Flowchart for Assessing Climate Risk of Projects; 2 Steps for Climate Risk Management of Investment Projects; 3 How Will Climate Change Impact the Project?; 4 Economic Impact of Climate Change; 5 Impact of Climate Change and of Climate Proofing; 6 Decision Rule; 7 Cost-Benefit Analysis versus Least-Cost Analysis

8 From Climate Projections to Net Present Value9 Projected Changes in Temperature and Precipitation; BOXES; 1 On the Use of Economic Analysis in World Bank Projects; 2 Climate Change Vulnerability Assessment: A Combined Cycle Power Plant in Viet Nam; 3 Examples of Climate Proofing Investment Projects; 4 Example 1: Computing the Economic Cost of Climate Change; 5 Example 2: Computing the Economic Impact of Climate Proofing; 6 Adaptation and Residual Damage; 7 Example 3: Residual Damage; 8 Cost of Climate Change, Benefits of Climate Proofing, and Residual Damages in Europe

9 Example 4: Accounting for Ancillary Benefits of Ecosystem-Based Approaches to Climate Proofing10 Example 5: Ancillary Benefits and Project Lifetime; 11 Net Present Value versus Benefit-Cost Ratio; 12 Central Mekong Delta Connectivity Project; 13 Investing in a Hydropower Project: Climate Change and Monte Carlo Simulation; 14 Example 6: Optimal Timing of Implementation of a Climate-Proofing Measure; 15 Real Option; 16 Robust Adaptation to Climate Change; Abbreviations; Foreword; Executive Summary; Introduction; A Commitment to Climate Change; Asian Development Bank Response

Scope of the ReportDefining "Climate Proofing"; Target Audience; Structure of the Report; Part A: Setting the Stage: The Role of Economic Analysis and the Impacts of Climate Change; The Role of Economic Analysis; What Economic Analysis Is; What Economic Analysis Is Not; Conducting a Climate Risk and Vulnerability Assessment of Investment Projects; Climate Proofing Investment Projects; Part B: Economic Analysis of Climate Proofing Investment Projects: Overall Concepts and Principles; Cost of Climate Change versus Benefits of Climate Proofing; Cost of Climate Change at Project Level

Benefits of Climate ProofingResidual Damage; Ancillary Benefits and Ecosystem-Based Climate-Proofing Measures; Maladaptation; Time Horizon; Economic (Social) Discount Rate; Decision Rule; Least-Cost Analysis; Part C: Economic Analysis and Decision Making with Uncertain Climate Change; Sensitivity Analysis; Probabilistic (or Quantitative) Risk Analysis; Scenario Analysis; Real Option Analysis; Robust Adaptation to Climate Change; Economic Analysis Guiding Decision Making; Conclusions; References; Appendix 1 Time Horizons in Economic Analysis of ADB-Financed Projects

Appendix 2 On the Discount Rate

Notes:

Description based upon print version of record.

Includes bibliographical references.

Description based on online resource; title from PDF title page (ebrary, viewed June 22, 2016).

ISBN:

9789292570781

9292570781

OCLC:

945038735