2021-10-08 SM - Item 1 - Attachment 1 - Draft Coastal Hazards Adaptation Plan

                                              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 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.

 Organizations rely on cost benefit analysis to support decision making because it provides 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, 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 considered unsuitable for the Noosa coastal zone.




Noosa Council – Coastal Hazards Adaptation Plan                                                         Page 25