Simplified Guidelines for Social Cost-Benefit Analysis of Climate Change Adaptation Projects on a Local Scale

Locally Led Adaptation & Resilience

Disaster Risk & Humanitarian Action

Cost-Benefit Analysis (CBA) is one of the major tools used to analyze the relative efficacy and effectiveness of public interventions. Although CBA is a widely used tool for socio-economic appraisal and evaluation of interventions, there is a lack of capacity to undertake such analyses in developing countries – particularly at a local level. Nonetheless CBA can be a powerful tool for local governments and NGOs in developing countries to select, eliminate, or improve climate change adaptation and development approaches at a local and/or community-level. The data collection systems required for CBA can also provide useful information for planning, as well as self-standing indicators.

This guidance, prepared by CARE and nef consulting, intends to build the capacity of local governments and NGOs to undertake such analyses, by presenting a simplified evaluative framework. It focuses primarily on climate change adaptation interventions, but can also be useful for appraising and evaluating development projects more broadly (e.g. health interventions, education programs, etc.). This guidance follows a case-study approach whereby we present elements of our recent application of CBA to community-based adaptation in Niger in order to illustrate the process step-by-step.