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A CRITICAL REVIEW OF COST-BENEFIT ANALYSIS FOR CLIMATE CHANGE ADAPTATION IN CITIES

This study systematically reviews the scientific literature ([Formula: see text]) on cost-benefit analysis (CBA) of adaptation measures in cities and similar urban environments. The review is conducted to assess existing or proposed actions for dealing with impacts of drought, heat waves, sea-level rise, and pluvial and fluvial flooding. It includes over 30 measures related to structural, services, technological, informational and ecosystem-based approaches. The main findings demonstrate that CBA of adaptation measures across urban environments must contend with numerous long-term socioeconomic and climate change uncertainties. Subsequently, this has led to inconsistencies in valuation frameworks related to, for example, planning horizons, discount rates, non-market considerations and future scenarios. Results also indicate a clear gap in the literature on the economic valuation of adaptation measures in the Global South. Furthermore, few studies integrate equity dimensions while planning for adaptation. Extensions of CBA to account for key uncertainties will help policy makers to allocate (often scarce) resources more efficiently and limit the likelihood of maladaptation. Further inclusion of the magnitude and distributional effects of non-market impacts and greater civil society engagement in policy dialogues will also be vital for promoting just and equitable measures that balance adaptation alongside other policy goals such as mitigation, economic development, health and well-being.