The Economic Impact of Climate Change on Road Infrastructure in Ghana

Abstract

This paper estimates the economic impact of climate change on road infrastructure using the stressor-response methodology. Our analysis indicates that it could cumulatively (2020-2100) cost Ghana $473 million to maintain and repair damages caused to existing roads as a result of climate change (no adapt scenario). However, if the country adapts the design and construction of new road infrastructure, expected to occur over the asset's lifespan (adapt scenario), the total cumulative cost could increase to $678.47 million due to the initial costs of adaptation. This investment provides lower costs on a decadal basis later in the infrastructure lifespan. This creates the planning question of whether lower decadal costs in the future are a priority or if minimizing initial costs is a priority. The paper addresses this question through decadal and average annual costs up to the year 2100 for the ten regions, using the potential impacts of 54 distinct potential climate scenarios.