The Business Case for Resilience
The public and private sectors have a shared interest in investing in proactive flood protection and climate adaptation. In October 2020, the Urban Land Institute (ULI) released a study— “The Business Case for Resilience in Southeast Florida” – commissioned by the Southeast Florida Regional Climate Change Compact and the business community to systematically assess the economic impact of investments in resilience in Miami-Dade, Palm Beach, Broward, and Monroe Counties.
“The Business Case for Resilience in Southeast Florida” seeks to answer key questions about how to respond to flooding from sea level rise, including the costs and benefits of different adaptation actions, and what actions can be taken today to promote economic resilience.
Key findings include:
- Lack of adaptation investment now will have major consequences for the economic wellbeing of the region. Adaptation implemented now will avoid $3.2 billion in structural losses regionally from tidal inundation in 2040.
- Additionally, it can protect $7.7 million in tax revenue losses from 10-year storm events and $385 million in tax revenue from daily tidal inundation by 2070. Damage and losses can be reduced. Investing in adaptation provides direct benefits in the form of avoided losses to property, as well as indirect benefits such as reductions in insurance premiums, stable property values, and tax revenues.
- Community-wide adaptation measures have net benefits for the region. Investing in sea walls, dune restoration and beach nourishment, and berm construction provide significant benefits in the form of avoided tax losses and broad economic benefits to the community, demonstrating a 2:1 return on investment (ROI).
- Property and real estate values can be preserved and increase in value with building-level adaptation. The ROI for individual adaptation strategies is 4:1.
- Jobs and economic activity can be preserved and generated. Adaptation investments will support new construction, operations, and maintenance jobs.
Key findings for Miami-Dade County:
Building-level adaptations such as floodproofing, elevation, and the addition of permeable surfaces will generate $9 for every $1 invested and support 3,190 job years, which is one job per person each year, through 2040.
Community-wide adaptations, including green infrastructure, sea walls, and dune enhancement, will generate $5 for each $1 invested and support 15,200 job years through 2040.