Header

UZH-Logo

Maintenance Infos

Equity and cost-effectiveness of multilateral adaptation financeare they friends or foes?


Stadelmann, Martin; Persson, Asa; Ratajczak-Juszko, Izabela; Michaelowa, Axel (2012). Equity and cost-effectiveness of multilateral adaptation financeare they friends or foes? CIS Working Paper 73, University of Zurich.

Abstract

This paper analyses potential criteria to allocate international funding for adaptation to climate change, as a response to one of the main governance challenges of international adaptation funding - the prioritization of project proposals given scarce funding. Based on the review of the equity and cost-effectiveness literature and relevant policy documents, we identify three indicators for equity (vulnerability level, poverty, number of beneficiaries), and three indicators for cost-effectiveness (economic savings in absolute and relative terms, human lives saved). Applying these simple indicators to information provided in 16 project documents considered by the Adaptation Fund Board (AFB) in 2011, we find that projects approved by the AFB rank high according to one cost-effectiveness indicator (absolute economic savings), while they rather rank low according to all equity and further cost-effectiveness indicators. Furthermore, we analyse whether ‘equity’ and ‘cost-effectiveness’ are two contradicting principles, or if ways can be found to reconcile both principles in multilateral adaptation finance. We conclude from both theory and the 16 analysed projects that a pure economic definition of cost-effectiveness is in contradiction with equity but trade-offs between equity and cost-effectiveness can be limited if relative wealth savings, and other indicators, e.g. human health, are used as indicator for cost-effectiveness.

Abstract

This paper analyses potential criteria to allocate international funding for adaptation to climate change, as a response to one of the main governance challenges of international adaptation funding - the prioritization of project proposals given scarce funding. Based on the review of the equity and cost-effectiveness literature and relevant policy documents, we identify three indicators for equity (vulnerability level, poverty, number of beneficiaries), and three indicators for cost-effectiveness (economic savings in absolute and relative terms, human lives saved). Applying these simple indicators to information provided in 16 project documents considered by the Adaptation Fund Board (AFB) in 2011, we find that projects approved by the AFB rank high according to one cost-effectiveness indicator (absolute economic savings), while they rather rank low according to all equity and further cost-effectiveness indicators. Furthermore, we analyse whether ‘equity’ and ‘cost-effectiveness’ are two contradicting principles, or if ways can be found to reconcile both principles in multilateral adaptation finance. We conclude from both theory and the 16 analysed projects that a pure economic definition of cost-effectiveness is in contradiction with equity but trade-offs between equity and cost-effectiveness can be limited if relative wealth savings, and other indicators, e.g. human health, are used as indicator for cost-effectiveness.

Statistics

Citations

17 citations in Microsoft Academic

Downloads

3 downloads since deposited on 14 Feb 2018
3 downloads since 12 months
Detailed statistics

Additional indexing

Item Type:Working Paper
Communities & Collections:06 Faculty of Arts > Institute of Political Science
Dewey Decimal Classification:320 Political science
Uncontrolled Keywords:climate change, adaptation, finance, equity, cost-effectiveness
Language:English
Date:2012
Deposited On:14 Feb 2018 13:38
Last Modified:31 Jul 2018 05:07
Series Name:CIS Working Paper
Number of Pages:31
ISSN:1662-7504
OA Status:Green
Free access at:Official URL. An embargo period may apply.
Official URL:https://www.ethz.ch/content/dam/ethz/special-interest/gess/cis/cis-dam/Research/Working_Papers/WP_2012/2012_WP73_Stadelmann_Persson_Ratajczak_Michaelowa.pdf
Related URLs:http://www.cis.ethz.ch/research/working-papers.html (Organisation)
https://www.recherche-portal.ch/ZAD:default_scope:ebi01_prod009689832 (Library Catalogue)

Download

Download PDF  'Equity and cost-effectiveness of multilateral adaptation financeare they friends or foes?'.
Preview
Content: Published Version
Language: English
Filetype: PDF
Size: 1MB