Does it pay?

Governments and donors alike might think that mitigation is a ‘good idea’, but to answer the question ‘will they pay?’, requires evidence of the likely returns on investments made in the project.Cost-benefit analysis (CBA) provides a framework for monetising the costs and benefits associated with different projects – either at the project appraisal stage, or as an ex-post assessment.

Conducting a survey of community benefits allowed us to estimate both the direct and indirect benefits (using both revealed preference and stated preference – contingent valuation – methods). The results  showed that the  benefit-cost ratio of the landslide hazard reduction project was 1.7:1 without drain maintenance (assuming a 7 year drain design life), rising to a benefit-cost ratio of 2.7:1 with maintenance (conservatively assuming a 20 year design life).