Technical Policy Briefing Notes - 5
Portfolio Analysis
Introduction
Policy Briefs
Portfolio Analysis
Introduction
There is increasing policy interest in the appraisal of
options, as adaptation moves from theory to practice. At the same time,
it is recognised that the appraisal of climate change adaptation
involves a number of major challenges, particularly the consideration
of uncertainty in the climate impacts addressed. In response, a number
of existing and new decision support tools are being considered for
adaptation.
The European Commission FP7 funded MEDIATION project (Methodology for Effective Decision-making on Impacts and AdaptaTION) is looking at adaptation decision support tools, in line with its objectives to advance the analysis of impacts, vulnerability and adaptation, and to promote knowledge sharing through a MEDIATION Adaptation Platform. To complement the information on the Platform, a series of Policy Briefing Notes have been produced on Decision Support Methods for Climate Change Adaptation.
An overview of all the decision support tools reviewed is provided in Policy Briefing Note 1: Method Overview, which summarises each method, discusses the potential relevance for adaptation and provides guidance on their potential applicability. The methods considered include existing appraisal tools (cost-benefit analysis, cost-effectiveness analysis and multicriteria analysis), as well as techniques that more fully address uncertainty (real options analysis, robust decision making, portfolio analysis and iterative risk (adaptive) management). It also includes complementary tools that can assist in adaptation assessment, including analytical hierarchic processes, social network analysis and adaptation turning points. Additional information on each method is presented in a series of separate Policy Briefing Notes.
This Policy Brief (Note 5) provides a summary of Portfolio Analysis. It provides a brief synthesis of the approach, its strengths and weaknesses, the relevance for adaptation, how it considers uncertainty, and presents case study examples. It is stressed that this note only provides an overview: more detailed information is available in MEDIATION deliverables, and sources and links on the MEDIATION Adaptation Platform.
The European Commission FP7 funded MEDIATION project (Methodology for Effective Decision-making on Impacts and AdaptaTION) is looking at adaptation decision support tools, in line with its objectives to advance the analysis of impacts, vulnerability and adaptation, and to promote knowledge sharing through a MEDIATION Adaptation Platform. To complement the information on the Platform, a series of Policy Briefing Notes have been produced on Decision Support Methods for Climate Change Adaptation.
An overview of all the decision support tools reviewed is provided in Policy Briefing Note 1: Method Overview, which summarises each method, discusses the potential relevance for adaptation and provides guidance on their potential applicability. The methods considered include existing appraisal tools (cost-benefit analysis, cost-effectiveness analysis and multicriteria analysis), as well as techniques that more fully address uncertainty (real options analysis, robust decision making, portfolio analysis and iterative risk (adaptive) management). It also includes complementary tools that can assist in adaptation assessment, including analytical hierarchic processes, social network analysis and adaptation turning points. Additional information on each method is presented in a series of separate Policy Briefing Notes.
This Policy Brief (Note 5) provides a summary of Portfolio Analysis. It provides a brief synthesis of the approach, its strengths and weaknesses, the relevance for adaptation, how it considers uncertainty, and presents case study examples. It is stressed that this note only provides an overview: more detailed information is available in MEDIATION deliverables, and sources and links on the MEDIATION Adaptation Platform.
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