Using Vensim Simulation Software to assess the socioeconomic impact of climate information services used in connection with disaster risk reduction initiatives in Africa

Abstract

ACPC has developed a socioeconomic benefits framework that allows stakeholders to assess the impact of climate information services (CIS) on policy development and resource allocation processes. By expressing the outcomes, in terms of socioeconomic benefits, of CIS investments and application in monetary terms, the framework illustrates whether the benefits of policies outweigh the amount of money invested in them. In this way, it is easier for policy makers to justify ongoing or future investments in CIS. The socioeconomic benefits framework outlines the steps that must be completed to identify and use indicators in support of an integrated sectoral analysis of the socioeconomic benefits stemming from CIS. Some of those steps are relevant to climate vulnerability assessments, while others are more relevant in adaptation and policy formulation/assessments. Those steps facilitate efforts to conduct an integrated cost-benefit analysis that takes into account relevant social, economic and environmental factors and expected policy outcomes. The cost-benefit analysis looks at three key components, namely investments, avoided costs and added benefits. It also provides for an economic evaluation of any environmental impacts. The socioeconomic benefits of CIS frameworks using systems dynamics was developed using Vensim software, designed by Ventana Systems Inc. The software allows users to conceptualize, document, simulate, analyze, and optimize models of complex dynamic systems. Vensim software provides a flexible approach to model creation and allows users to include ideas, build diagrams and create formal simulation models.