Equity, economic efficiency and institutional capacity in adapting coastal settlements

Australia has one of the lowest population densities in the developed world (ABS 2012) and a long and sparsely populated coastline. Institutional capacity for adaptation at the local government scale is vital in Australia, because it is at this scale that many discussions around adaptation occur and decisions are made. In parallel to the institutional analysis, an economic model is created to calculate the distribution of the expected costs of storm surge inundation and the potential benefits of adaptation in terms of avoided costs. The chapter considers the three most discussed economically model-able adaptation options within the 'protect' (seawall), 'accommodate' (changed minimum floor heights) and 'retreat' (retreat) categories.