[I. Coastal Manasement and Coastal Defense
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Chapter III : Economic Implications of
Adaptive Measures
1
Introduction
The potential economic implications of responses to sea-level and temperature
rise over periods of 50 to 100 years are extremely difficult to quantify. The
variables to be considered include both the cost of the strategies themselves and
the effects of those costs on national economies. Thus far, only the cost of
protecting against floods and erosion has been estimated worldwide.
Considerably more research needs to be done.
The cost of an adaptive response is site-specific. The nationwide impact of such
costs will be greater on rural, subsistence economies, often found in coastal areas
in developing countries. Losses of resources such as biologically productive
wetland areas and important mangrove stands and their products would
compound such hardship. Reduction in the productivity of fisheries and the loss
of land, resources and jobs are a further consideration. Significant costs can also
be associated with the establishment and operation of the institutional
mechanisms necessary to implement retreat or accommodation strategies. Finally,
and especially if structural response options were exercised, operation and
maintenance costs are a factor.
A fundamental element in the decision-making process is a cost-benefit
assessment to weigh the life cycle costs and economic returns of the various
alternatives 12 Not all of the important factors are totally quantifiable in monetary
terms, however. This is particularly so for cultural, environmental and social
factors. Nevertheless, these non quantifiable aspects must be evaluated and given
due consideration in an equitable trade of analysis in order to formulate and
implement an acceptable adaptive response.