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CSERGE, School of Environmental Sciences, University of East Anglia, Norwich NR4 7TJ, UK
b
Agri-Food and Bioscience Institute Belfast, Belfast BT9 5PX, UK
c
Upstream, London WC2A 1HR, UK
Received 25 July 2006; received in revised form 25 May 2007; accepted 28 May 2007
Abstract
European coasts are coming under increasing threat as a result of climate change from erosion and flooding. While coastal defences
such as sea walls have been constructed since Roman times to protect human settlements from the sea, it is now increasingly recognised
that these defences are unsustainable. The security provided by hard engineered defences has encouraged development on the coast, and
the defences themselves have led to the loss of intertidal habitat and the natural protection it provides.
An alternative to maintaining hard defences (hold-the-line) to protect land from increasing sea levels is managed realignment, where
the engineered defences are deliberately breached. By allowing the coastline to recede to a new line of defence further inland, intertidal
habitat is created providing natural protection from flooding and erosion.
The study evaluates the economic efficiencyusing costbenefit analysisof various managed realignment scenarios compared to a
strategy of holding-the-line within the Humber estuary in North-east England. The results of this analysis show that managed
realignment can be more economically efficient than holding-the-line over a sufficiently long time periodgenerally greater than 25
years. Sensitivity analysis demonstrates that results are more sensitive to the amount and value of intertidal habitat generated than they
are to the amount and value of carbon stored by this habitat. Costbenefit analysis is viewed as one component of a wider policy
appraisal process within integrated coastal management.
r 2007 Elsevier Ltd. All rights reserved.
Keywords: Costbenefit analysis; Managed realignment; Coastal zone management; Ecosystem services; Flood defence
1. Introduction
Traditional sea defence and coastal erosion strategies in
England and Wales have sought to provide long-run
engineered hold-the-line fixed protection for people,
property and other assets against the vagaries of dynamic
coastal environments. Since at least Roman times the
British coast has been heavily modified by flood and
coastal defences (Davidson et al., 1991) to protect existing
human activities on coastal land and to claim land for
agricultural, industrial, port and residential development
(Doody, 2004; French, 1997). Currently, the English
coastline is protected by over 2000 km of flood defences;
!Corresponding author. Tel.: +44 1603 592551; fax: +44 1603 593739.
0959-3780/$ - see front matter r 2007 Elsevier Ltd. All rights reserved.
doi:10.1016/j.gloenvcha.2007.05.006
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1. Scoping Stage
Multi-Criteria Assessment
2. Analysis Stage
3. Evaluation Stage
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Table 1
Details of areas suitable for realignment
Scenarios
HTL
BAU
PT
DG
EDG
405.3
405.3
0.0
64.6
0.0
0
405.3
396.8
7.0
61.9
80.0
38.4
405.3
361.6
30.8
42.2
1320.9
634.1
405.3
318.2
69.0
38.2
2332.4
1119.4
405.3
284.5
102.7
34.0
7493.6
3597.1
Due to uncertainty over the loss of intertidal habitat due to coastal squeeze over the next 50 years, it is assumed that no further coastal squeeze takes
place. Therefore, the HTL scenario as the baseline scenario assumes no loss of intertidal habitat and no carbon sequestration, and that habitat creation
and sequestration in the other scenarios are relative to this base.
b
Estimates of the carbon storage capacity of newly created inter-tidal habitat are derived from Andrews et al. (2000).
c
Intensively managed arable land is a net source of carbon (Renwick et al., 2002) and we assume that the agricultural land that is sacrificed to
realignment is managed in this way. Note, however, that minimal, or no-till management practices can reduce carbon emissions from agricultural soils or
even convert them to carbon sinks on a scale that is equivalent to, or greater than, the carbon storage potential of intertidal habitat.
T
X
t0
C sq
t
i
1 h sq sq
sq
sq
t l C r;t C m;t C br;t ,
l r
where
is the present value of total cost of status quo
defences at time t (million), r the discount rate, lsq the
length of the status quo defences (km), C sq
r;t the replacement
cost of the unsatisfactory status quo defences at time t (/k)
(these are identified in Environment Agency (2000) and for
this example we assume that unsatisfactory defences are all
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Fig. 3. Areas suitable for managed realignment in the Humber estuary under the various scenarios.
where NPV mr
t is the net present value (NPV) of managed
realignment in comparison to hold-the-line for a given
stretch of coastline at time t ( million).
7. CBA results and sensitivity analysis
C mr
t
T
X
t0
1
agr
mr
mr
l mr C mr
k;t C m;t a Lagr;t ! Be;t ',
l rt
where C mr
is the present value of total cost of managed
t
realignment at time t (million), r the discount rate, lmr
the length of the managed realigned defences (km), C mr
k;t the
capital cost of realignment at time t (/km), C mr
m;t the
maintenance cost of realignment at time t (/km/yr), amr
the area of intertidal habitat created by realignment (ha),
Lagr
agr;t the forgone agricultural land value if realignment
takes place (/ha) and Be,t the environmental value gain
associated with realignment e.g. habitat services, functions
and products (/ha).
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Table 2
Values used to estimate the costs and benefits of realignment
Table 4
Year in which NPV (scenario costs-HTL costs) becomes positive under
alternative discount rates and alternative cost and benefit value scenarios
Costs/benefits
Value
878,159/km
Scenario
4790/ha
5458/ha
3560/km/yr
668,441/km
621/ha/yr
45/tC
All values are converted to 2005 prices using the GDP deflators published
by HM treasury (http://www.hm-treasury.gov.uk/).
a
Costs based on contemporary realignment schemes (Halcrow, 2000).
b
Based on sale prices (DEFRA, 2004) and adjusted downwards for the
effects of the single farm payment following Penning-Rowsell et al. (2005).
c
Maintenance costs are taken from Black and Veatch/Halcrow (2005).
These are assumed to increase in the future due to the effects of climate
change. Following current government guidance (Penning-Rowsell et al.,
2005) maintenance costs are increased by a factor of 1.5 for the period
between 20 and 50 years into the future and by a factor of 2 for years
further into the future.
d
Only the costs of replacing unsatisfactory defences (Defra, 2001) not
affected by realignment are included.
e
Assumed to be gained immediately, although in practice habitat
establishment may take some time before maturity is achieved.
f
See costbenefit analysis results section.
Table 3
Net present values ( million) at 25, 50 and 100 years for the BAU, PT,
DG and EDG scenarios as compared to the HTL scenario using a
declining discount rate
Decliningb
Gammac
Scenario
Business-as-usual
NPV BAU
NPV HTL
NPV(BAU)NPV(HTL)
Policy targets
NPV PT
NPV HTL
NPV(PT)NPV(HTL)
Deep green
NPV DG
NPV HTL
NPV(DG)NPV(HTL)
Extended deep green
NPV EDG
NPV HTL
NPV(EDG)NPV(HTL)
25 years
50 years
100 years
!74.15
!70.40
!3.75
!89.33
!86.01
!3.32
!103.93
!100.93
!3.00
!73.23
!70.40
!2.83
!82.22
!86.01
3.79
!92.27
!100.93
8.66
!97.32
!70.40
!26.92
!101.42
!86.01
!15.41
!107.92
!100.93
!6.99
!94.30
!70.40
!23.90
!74.48
!86.01
11.53
!63.83
!100.93
37.1
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