Adapting to uncertainty | The economics of climate resilience in energy

Our economist Alexandra Humphrey Cifuentes recently shared her experiences in valuing the economic, social and environmental impacts of climate resilience in the electricity sector with Ausgrid. It’s part of her role on their Climate Adaptation and Resilience Experts (CARE) panel.

Her session looked at:

• The need to be able to identify (and justify) when and where we should invest in resilience
• The inherent uncertainty of climate-related risks and how to measure with uncertainty
• What information is required to perform economic evaluation
• The various techniques available to consider risk and uncertainty such as sensitivity analysis, expected net present value analysis and adaptive pathways / real options analysis
• How this analysis can feed into regulatory processes and funding discussions

If you’d like to find out how economics can help prepare your business or sector for climate resilience, please reach out to Alexandra.