2021-11-15 GC Agenda - Item 7 - Attachment 2 - Coastal Hazards Adaptation Plan with tracked changes

included to provide greater certainty and confidence that these actions should not form part of a
coastal hazards adaptation plan for Noosa.
                                              Reference Box #4

                                   Understanding ‘cost-benefit analysis’


 A cost -benefit analysis is a method by which organizations can analyse and compare competing
 investment opportunities or decisions.

 To do this, a model is built that incorporates the benefits of a particular action (e.g. investing in a specific
 adaptation measure), as well as the associated costs, and subtracts the costs from the benefits. An
 example of such a model is shown in the figure below. When completed, a cost -benefit analysis will yield
 results that can be used to inform reasonable decisions regarding the feasibility of a particular course of
 action. In the case of the CHAP, the decision tool known as Net Present Value (NPV) is used to illustrate
 the long-term value of a particular project. In simple terms, NPV is a method of calculating the total
 return on investment for a project or expenditure by comparing the total benefits expected to result
 from the investment and translating those returns into today’s dollars, so that a decision can be made on
 whether the project is worthwhile.

 OrganizationsOrganisations rely on cost -benefit analysisanalyses to support decision making because it
 providesthey provide an objective, evidence-based view of the issue being evaluated— – without the
 influences of opinion, politics, or bias. By providing an unclouded view of the consequences of a decision,
 a cost -benefit analysis is an invaluable tool for councils allocating significant resources, making decisions
 that have significant consequences, and creating long-term plans.

 The cost-benefit analyses performed as part of the CHAP’s development have been done in alignment
 with the requirements prescribed under the QCoast2100 program.




The analysis of adaptation options completed as part of Phases 6 and 7 revealed a common set of
preferred adaptation measures across localities with similar risks, as well as those that would not
be feasible or were considered unsuitable for the Noosa coastal zone.


Noosa Council – Coastal Hazards Adaptation Plan                                                          Page 35