No.10 How Could the Benefits of Climate Change Adaptation Be Incorporated Into Economic Evaluation of Development Projects?
The summary of this policy note is as follows.
● Quantifying the economic benefits of climate change adaption may help attract more investments in projects with high adaptation benefits.
● Quantification often faces the challenge of representing uncertainties of many possible futures including those related to climate change impacts.
● There are methods available that help quantify the adaptation benefits of projects amidst uncertainties, and a case study of irrigation development projects in Kenya illustrates their usefulness.
● Using such an evaluation method, the analysis of this case study visually demonstrated that development of irrigation infrastructure and introduction of improved farming methods in the study area could reduce vulnerability of farmers’ income and rice production there to future uncertainties, including potential negative impacts of climate change.