Estimating benefits of investing in resilience of coastal infrastructure in small island developing states: An application to Barbados

Small Island Developing States (SIDS) are the least responsible for climate change, though they bear a disproportionate burden in terms of vulnerability to climate-induced disasters. The economies of many SIDS are also highly dependent on tourism, much of which occurs in potentially hazardous coastal areas and are closely linked to environmental quality. Despite the importance of catalyzing investment in coastal infrastructure to reduce vulnerability and enhance resilience, there is a paucity of research exploring the economic returns to investment to substantiate a business case for this investment. This paper addresses this research gap and develops a model for estimating the economic benefits of shoreline stabilization and illustrates the approach with an application to a US$24.2 million coastal infrastructure investment in Barbados. Results show that the investment generated significant benefits for both tourists and residents, as well as reduced beach erosion and property damage. The approach is versatile facing data constraints, provides evidence to support decisions to scale-up existing investments, and can support and inform the design of new investments.