Quantifying the cost of climate change impacts on local government assests

On the basis of an extensive literature review and rigorous methodology developed in collaboration with the Local Government Association (LGA) South Australia (SA), IPWEA, University of South Australia (UniSA), Bureau of Meteorology (BOM), Coast Protection Board of South Australia, Municipal Association Victoria (MAV), Western Australian LGA (WALGA), and ten collaborating Councils, this National Climate Change Adaptation Research Facility (NCCARF) Settlements and Infrastructure funded research project has developed a financial simulation model and supporting decision tools to provide a clear, comparative analysis of the financial impacts of climate change on three major asset classes of importance to Australian Local Government – sealed roads (hotmix and spray sealed) and unsealed roads. The integrated financial modelling includes options pricing and uncertainty analysis to deal with the highly variable nature of data inputs that describe the not-static components of climate change scenarios and impacts on the useful life of roads, and economic and price fluctuations. The model will provide Local Government with the capacity to regularly update the cost analysis and outputs have been designed to interface with the existing tools developed to support the IIMM to create a simple user friendly front-end that can be used by Local Government.