INFFEWS Training │ Valuing the benefits for water sensitive investments using the Benefit

Valuing the benefits of water sensitive investments using the Benefit: Cost Analysis Tool and the Value Tool

The first step to funding and financing water sensitive investments is valuing them. You can do this using the INFFEW tools – the Benefit: Cost Analysis Tool and the Value Tool – created by the CRC for Water Sensitive Cities.

Benefit: Cost Analysis Tool – This tool compares the benefits of a water sensitive project with its costs, to assess whether it’s worthwhile. The training covers:

• uses of benefit–cost analysis (BCA), types of benefits and costs, and sources of data
• BCA decision criteria, with-project versus without-project scenarios, attribution, representing behaviour, uncertainty, project risks
• accounting for time (discounting), time frame for the BCA, common mistakes
• BCA and decision making
• worked application of the BCA tool

Value Tool – This tool gives practitioners away of valuing the benefits of water sensitive projects that are not traded in markets (e.g. the amenity, recreation and environmental benefits). The training covers:

• an overview of non-market valuation
• how non-market valuations are used in benefit–cost analysis
• background on benefit transfer methods
• description of the Value Tool and features
• worked application of benefit transfer for a water sensitive project using the Value Tool.