Strengthening New Infrastructure Assets : A Cost-Benefit Analysis
This paper explores the benefits and the costs of strengthening infrastructure assets to make them more resilient, reducing the repair costs and infrastructure disruptions caused by natural hazards. Strengthening infrastructure assets in low- and m...
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World Bank, Washington, DC
2019
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| Online Access: | http://documents.worldbank.org/curated/en/962751560793977276/Strengthening-New-Infrastructure-Assets-A-Cost-Benefit-Analysis http://hdl.handle.net/10986/31916 |
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okr-10986-319162022-09-20T00:13:48Z Strengthening New Infrastructure Assets : A Cost-Benefit Analysis Hallegatte, Stephane Rozenberg, Julie Rentschler, Jun Nicolas, Claire Fox, Charles INFRASTRUCTURE INFRASTRUCTURE INVESTMENT COST-BENEFIT ANALYSIS WATER SUPPLY CLIMATE CHANGE IMPACT RESILIENT INFRASTRUCTURE This paper explores the benefits and the costs of strengthening infrastructure assets to make them more resilient, reducing the repair costs and infrastructure disruptions caused by natural hazards. Strengthening infrastructure assets in low- and middle-income countries would increase investment needs in power, transport, and water and sanitation by between $11 billion and $65 billion a year, i.e. 3 percent of baseline infrastructure investment needs. The uncertainty pertaining to the costs and benefits of infrastructure resilience makes it difficult to provide a single estimate for the benefit-cost ratio of strengthening exposed infrastructure assets. To manage this uncertainty, this paper explores the benefit-cost ratio in 3,000 scenarios, combining uncertainties in all parameters of the analysis. The benefit-cost ratio is higher than 1 in 96 percent of the scenarios, larger than 2 in 77 percent of them, and higher than 4 in half of them. The net present value of these investments over the lifetime of new infrastructure assets -- or, equivalently, the cost of inaction -- exceeds $2 trillion in 75 percent of the scenarios and $4.2 trillion in half of them. Moreover, climate change makes the strengthening of infrastructure assets even more important, doubling the median benefit-cost ratio. 2019-06-20T15:06:58Z 2019-06-20T15:06:58Z 2019-06 Working Paper http://documents.worldbank.org/curated/en/962751560793977276/Strengthening-New-Infrastructure-Assets-A-Cost-Benefit-Analysis http://hdl.handle.net/10986/31916 English Policy Research Working Paper;No. 8896 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper |
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Digital Repository |
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Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
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English |
| topic |
INFRASTRUCTURE INFRASTRUCTURE INVESTMENT COST-BENEFIT ANALYSIS WATER SUPPLY CLIMATE CHANGE IMPACT RESILIENT INFRASTRUCTURE |
| spellingShingle |
INFRASTRUCTURE INFRASTRUCTURE INVESTMENT COST-BENEFIT ANALYSIS WATER SUPPLY CLIMATE CHANGE IMPACT RESILIENT INFRASTRUCTURE Hallegatte, Stephane Rozenberg, Julie Rentschler, Jun Nicolas, Claire Fox, Charles Strengthening New Infrastructure Assets : A Cost-Benefit Analysis |
| relation |
Policy Research Working Paper;No. 8896 |
| description |
This paper explores the benefits and the
costs of strengthening infrastructure assets to make them
more resilient, reducing the repair costs and infrastructure
disruptions caused by natural hazards. Strengthening
infrastructure assets in low- and middle-income countries
would increase investment needs in power, transport, and
water and sanitation by between $11 billion and $65 billion
a year, i.e. 3 percent of baseline infrastructure investment
needs. The uncertainty pertaining to the costs and benefits
of infrastructure resilience makes it difficult to provide a
single estimate for the benefit-cost ratio of strengthening
exposed infrastructure assets. To manage this uncertainty,
this paper explores the benefit-cost ratio in 3,000
scenarios, combining uncertainties in all parameters of the
analysis. The benefit-cost ratio is higher than 1 in 96
percent of the scenarios, larger than 2 in 77 percent of
them, and higher than 4 in half of them. The net present
value of these investments over the lifetime of new
infrastructure assets -- or, equivalently, the cost of
inaction -- exceeds $2 trillion in 75 percent of the
scenarios and $4.2 trillion in half of them. Moreover,
climate change makes the strengthening of infrastructure
assets even more important, doubling the median benefit-cost ratio. |
| format |
Working Paper |
| author |
Hallegatte, Stephane Rozenberg, Julie Rentschler, Jun Nicolas, Claire Fox, Charles |
| author_facet |
Hallegatte, Stephane Rozenberg, Julie Rentschler, Jun Nicolas, Claire Fox, Charles |
| author_sort |
Hallegatte, Stephane |
| title |
Strengthening New Infrastructure Assets : A Cost-Benefit Analysis |
| title_short |
Strengthening New Infrastructure Assets : A Cost-Benefit Analysis |
| title_full |
Strengthening New Infrastructure Assets : A Cost-Benefit Analysis |
| title_fullStr |
Strengthening New Infrastructure Assets : A Cost-Benefit Analysis |
| title_full_unstemmed |
Strengthening New Infrastructure Assets : A Cost-Benefit Analysis |
| title_sort |
strengthening new infrastructure assets : a cost-benefit analysis |
| publisher |
World Bank, Washington, DC |
| publishDate |
2019 |
| url |
http://documents.worldbank.org/curated/en/962751560793977276/Strengthening-New-Infrastructure-Assets-A-Cost-Benefit-Analysis http://hdl.handle.net/10986/31916 |
| _version_ |
1764475360895827968 |