Document Type

Research Report

Publication Date

4-2018

Keywords

Climate Resilience Finance, Equity and Climate Justice, Market Failure, Public-Private Partnership

Disciplines

Business | Development Studies | Economics | Environmental Studies | Finance and Financial Management | Natural Resource Economics | Urban Studies and Planning

Abstract

This report explores the challenges of financing climate-resilience investments in the Boston region. As risks from storm surge, sea level rise, and extreme weather increase, there is growing urgency for pre-disaster investments to reduce physical risk, reduce social vulnerability, and increase capacity for emergency response and disaster recovery. However, these investments face significant barriers, including market failures, capital budget constraints, and misaligned incentives. The report identifies a range of funding mechanisms appropriate at different scales, including general obligation bonds, resilience fees, property tax surcharges, stormwater fees, tax increment financing, business improvement districts, and insurance-based funding. It evaluates these mechanisms using guiding principles that include revenue generation potential, economic effectiveness, public-private partnerships, administrative effectiveness, fairness and equity, and appropriate alignment of incentives. The report highlights that resilience financing must address equity concerns by ensuring that cost burdens reflect both the ability to pay and the benefits provided. It builds on the work of the Climate Ready Boston initiative and aims to support continued discussion on how the Greater Boston region can mobilize financial resources to enhance resilience in the face of climate risks.

Comments

PROJECT SUPPORT

Emily Moothart, Sustainable Solutions Lab

PROJECT TEAM

Milton Bevington, David Cash, Wayne Cobleigh, Carolyn duPont, Jack Kartez, Paul Kirshen, Steve Loren, John Macomber, John Markowitz, Sam Merrill, Stacy VanDeveer, Nichole Weber, Julie Wormser

REVIEWERS

Kathy Abbott, Nasser Brahim, Wayne Cobleigh, John Cleveland, Carly Foster, Mia Mansfeld, Bud Ris, Carl Spector, Kelli Turston, Michael T. Wilson

Community Engaged/Serving

Part of the UMass Boston Community-Engaged Teaching, Research, and Service Series. //scholarworks.umb.edu/engage

Publisher

Sustainable Solutions Lab

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