Cost-benefit and equity analysis of nature-based solutions in Haiti, India, Indonesia and Uganda

This study performs an economic efficiency and equity analysis of four recent Ecosystem-based Disaster Risk Reduction (Eco-DRR) interventions in Haiti, India, Indonesia, and Uganda. Our analysis aims at contributing to the development of methodological best practices for assessing both the economic-...

Full description

Saved in:
Bibliographic Details
Main Authors: Marta Vicarelli, Anamaria Georgescu, Karen Sudmeier-Rieux
Format: Article
Language:English
Published: Elsevier 2024-12-01
Series:Nature-Based Solutions
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S2772411524000879
Tags: Add Tag
No Tags, Be the first to tag this record!
_version_ 1846119322776240128
author Marta Vicarelli
Anamaria Georgescu
Karen Sudmeier-Rieux
author_facet Marta Vicarelli
Anamaria Georgescu
Karen Sudmeier-Rieux
author_sort Marta Vicarelli
collection DOAJ
description This study performs an economic efficiency and equity analysis of four recent Ecosystem-based Disaster Risk Reduction (Eco-DRR) interventions in Haiti, India, Indonesia, and Uganda. Our analysis aims at contributing to the development of methodological best practices for assessing both the economic-effectiveness and the distributional impacts of nature-based solutions, with a particular focus on marginalized or underserved communities. Nature-based solutions (NbS) are emerging as possible strategies to mitigate disaster risk while providing additional benefits to biodiversity and sustainable economic growth. However, there is limited scientific evidence about the cost-effectiveness and equity outcomes of NbS. For each ecosystem-based intervention examined we performed an economic efficiency assessment through a quantitative cost-benefit analysis (CBA). Our estimates show that at the 5th year since the project implementation, the interventions in Haiti and India generated positive net benefits, assuming hazard-related yearly losses in properties and GDP per capita in the project areas as low as 0.5 %. We observe the same outcomes in Indonesia and Uganda at the 10th year since the project implementation, assuming yearly losses equivalent to 1 % or higher and adopting a 3 % discount rate. When we include additional benefits from carbon capture and sequestration and pollution reduction the CBA net benefits estimates are positive at the 10th year mark for every discount rate adopted. Extensive qualitative interviews of local stakeholders corroborate the CBA results and provide insights on the numerous additional benefits experienced, which in the future could be measured and monetized if monitored over time. A qualitative analysis of the distributional effects of the interventions was performed to complement the economic efficiency assessment. This equity analysis indicates an enhancement in inclusivity, economic equality, participation, and capacity building among local stakeholders. In particular, the Eco-DRR interventions implemented resulted in significant education, health, safety and economic improvements for women, children, and economically vulnerable members of the local communities.
format Article
id doaj-art-53d02822f23e4e41b9948e589234a6bc
institution Kabale University
issn 2772-4115
language English
publishDate 2024-12-01
publisher Elsevier
record_format Article
series Nature-Based Solutions
spelling doaj-art-53d02822f23e4e41b9948e589234a6bc2024-12-17T05:02:09ZengElsevierNature-Based Solutions2772-41152024-12-016100196Cost-benefit and equity analysis of nature-based solutions in Haiti, India, Indonesia and UgandaMarta Vicarelli0Anamaria Georgescu1Karen Sudmeier-Rieux2Department of Economics and School of Public Policy, Department of Economics, University of Massachusetts Amherst, Crotty Hall, 412 North Pleasant Street, Amherst, MA 01002, United States; CMCC Foundation - Euro-Mediterranean Center on Climate Change, Italy; Corresponding author.Department of Economics and School of Public Policy, Department of Economics, University of Massachusetts Amherst, Crotty Hall, 412 North Pleasant Street, Amherst, MA 01002, United StatesTH Koln University of Applied Sciences, GermanyThis study performs an economic efficiency and equity analysis of four recent Ecosystem-based Disaster Risk Reduction (Eco-DRR) interventions in Haiti, India, Indonesia, and Uganda. Our analysis aims at contributing to the development of methodological best practices for assessing both the economic-effectiveness and the distributional impacts of nature-based solutions, with a particular focus on marginalized or underserved communities. Nature-based solutions (NbS) are emerging as possible strategies to mitigate disaster risk while providing additional benefits to biodiversity and sustainable economic growth. However, there is limited scientific evidence about the cost-effectiveness and equity outcomes of NbS. For each ecosystem-based intervention examined we performed an economic efficiency assessment through a quantitative cost-benefit analysis (CBA). Our estimates show that at the 5th year since the project implementation, the interventions in Haiti and India generated positive net benefits, assuming hazard-related yearly losses in properties and GDP per capita in the project areas as low as 0.5 %. We observe the same outcomes in Indonesia and Uganda at the 10th year since the project implementation, assuming yearly losses equivalent to 1 % or higher and adopting a 3 % discount rate. When we include additional benefits from carbon capture and sequestration and pollution reduction the CBA net benefits estimates are positive at the 10th year mark for every discount rate adopted. Extensive qualitative interviews of local stakeholders corroborate the CBA results and provide insights on the numerous additional benefits experienced, which in the future could be measured and monetized if monitored over time. A qualitative analysis of the distributional effects of the interventions was performed to complement the economic efficiency assessment. This equity analysis indicates an enhancement in inclusivity, economic equality, participation, and capacity building among local stakeholders. In particular, the Eco-DRR interventions implemented resulted in significant education, health, safety and economic improvements for women, children, and economically vulnerable members of the local communities.http://www.sciencedirect.com/science/article/pii/S2772411524000879Cost-benefit analysisEquityNature-based solutions
spellingShingle Marta Vicarelli
Anamaria Georgescu
Karen Sudmeier-Rieux
Cost-benefit and equity analysis of nature-based solutions in Haiti, India, Indonesia and Uganda
Nature-Based Solutions
Cost-benefit analysis
Equity
Nature-based solutions
title Cost-benefit and equity analysis of nature-based solutions in Haiti, India, Indonesia and Uganda
title_full Cost-benefit and equity analysis of nature-based solutions in Haiti, India, Indonesia and Uganda
title_fullStr Cost-benefit and equity analysis of nature-based solutions in Haiti, India, Indonesia and Uganda
title_full_unstemmed Cost-benefit and equity analysis of nature-based solutions in Haiti, India, Indonesia and Uganda
title_short Cost-benefit and equity analysis of nature-based solutions in Haiti, India, Indonesia and Uganda
title_sort cost benefit and equity analysis of nature based solutions in haiti india indonesia and uganda
topic Cost-benefit analysis
Equity
Nature-based solutions
url http://www.sciencedirect.com/science/article/pii/S2772411524000879
work_keys_str_mv AT martavicarelli costbenefitandequityanalysisofnaturebasedsolutionsinhaitiindiaindonesiaanduganda
AT anamariageorgescu costbenefitandequityanalysisofnaturebasedsolutionsinhaitiindiaindonesiaanduganda
AT karensudmeierrieux costbenefitandequityanalysisofnaturebasedsolutionsinhaitiindiaindonesiaanduganda