Climate Change Adaptation and Mitigation (CChAM) Framework Learning Events

ADSS Special Seminar | Economic Analysis of Selected Adaptation Options to Flooding
By Ms. Jaimie Kim Bayani Arias

LOS BAÑOS, Philippines – Flooding has been one of the major concerns in lakeshore communities like those of the municipalities in the Province of Laguna. This problem has become more pronounced because of more intense typhoons and heavier rains brought about by climate change. In this regard, two adaptation options—Early Warning Systems (EWS) and building modification—that will minimize the impacts of climate change hazards were proven to be more economically feasible.

Assistant Professor Jaimie Kim B. Arias of the College of Economics and Management of the University of the Philippines Los Baños (UPLB) piloted an economic analysis of the different adaptation options that surfaced from pre-conducted community engagement and collaboration in the the Sta. Cruz River Watershed. The site includes the municipalities of Sta. Cruz, Victoria, and Pila and parts of Pagsanjan and Calauan, as the study site for their project. According to Prof. Arias, some of these lakeshore municipalities experience long-term flooding that could last for four months. The said watershed is also home to the top three most vulnerable barangays in Laguna, based on the vulnerability assessment and mapping conducted by Engr. Vicente Ballaran Jr. of the UPLB College of Engineering and Agro-Industrial Technology.

Prof. Arias noted that there are many projects that respond to climate change hazards but due to limited resources, these projects compete for scarce funding. Economic analysis, therefore, is a valuable tool to help local government units (LGUs) choose which project or adaptation option to implement. In this particular study, Prof. Arias mentioned that an adaptation option can be implemented if the aggregate benefit exceeds the aggregate cost and can improve society’s welfare.

In line with this, two sets of adaptation options were identified depending on the scope of implementation. For the lakeshore municipalities in the Sta. Cruz River Watershed, the adaptation option that was subjected to economic analysis was EWS. In order to measure the efficiency of EWS, Prof. Arias employed economic tools like benefit cost analysis (BCA) for assessment and contingent valuation method (CVM) for benefit valuation.

Read more

Parent Category: CChAMSEA