Cost-Benefit Analysis of the Tuvalu PACC Project evaluates the economic viability of climate adaptation measures aimed at improving water security in vulnerable communities. The analysis focuses on interventions such as community water storage systems (cisterns) compared to a “business-as-usual” scenario relying on emergency desalination during droughts.
The CBA assesses capital and operating costs alongside key benefits, including increased water availability, reduced incidence of waterborne diseases, and avoided time and travel costs for water collection. Results show positive economic performance, with a benefit–cost ratio above 1 and a positive net present value, indicating that the intervention delivers net social benefits.
Sensitivity analysis confirms that the project remains viable under changing climate conditions. Overall, the study demonstrates that community-based water infrastructure is a cost-effective and resilient adaptation strategy for small island contexts like Tuvalu.
