IDEAS home Printed from https://ideas.repec.org/p/wbk/wbrwps/8896.html
   My bibliography  Save this paper

Strengthening New Infrastructure Assets : A Cost-Benefit Analysis

Author

Listed:
  • Hallegatte,Stephane
  • Rozenberg,Julie
  • Maruyama Rentschler,Jun Erik
  • Nicolas,Claire Marion
  • Fox,Charles James Edward

Abstract

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.

Suggested Citation

  • Hallegatte,Stephane & Rozenberg,Julie & Maruyama Rentschler,Jun Erik & Nicolas,Claire Marion & Fox,Charles James Edward, 2019. "Strengthening New Infrastructure Assets : A Cost-Benefit Analysis," Policy Research Working Paper Series 8896, The World Bank.
  • Handle: RePEc:wbk:wbrwps:8896
    as

    Download full text from publisher

    File URL: http://documents.worldbank.org/curated/en/962751560793977276/pdf/Strengthening-New-Infrastructure-Assets-A-Cost-Benefit-Analysis.pdf
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Arturo Aburto-Medina & Esmaeil Shahsavari & Leadin S. Khudur & Sandy Brown & Andrew S. Ball, 2020. "A Review of Dry Sanitation Systems," Sustainability, MDPI, vol. 12(14), pages 1-9, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:8896. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Roula I. Yazigi (email available below). General contact details of provider: https://edirc.repec.org/data/dvewbus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.