2021-11-15 GC Agenda - Item 7 - Attachment 1 - Coastal Hazards Adaptation Plan

          Noosa Shire Council



  Having gathered information on potential adaptation options, an important next step in the project was
  to undertake more detailed and rigorous socio-economic analyses (known as a cost-benefit analysis)
  of the short-listed options using a range of social, environmental and economic criteria, data and other
  information. This component was critical to informing the selection of the adaptation actions presented
  in this plan.
  For the most part, options included for this final stage of analysis were those that scored highly
  within the ‘Investigate Further’ category. In addition, based on feedback from Council staff and the
  community, it was determined that a number of options rated as ‘Unfeasible’ should also be 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.
       Organisations rely on cost-benefit analyses to support decision making because they 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.


                                                         Management               Management
                                                           actions                   costs



           Protection of       Protection of      Creation of public       Change in            change in
            built assets          beach              open space         recreational use         tourism



             Avoided         Existence benefits        Amenity           Recreational            Tourism
           damage costs          (including            benefits          use benefits            benefits
                               environmental
                                  benefits



Page 32