Cost-Benefit Analysis of Climate Change Mitigation and Adaptation Measures: A Case Study of Three Dairy Production Farms in Costa Rica

Climate change was historically attributed to natural causes; however, since the Industrial Revolution, anthropogenic activities have become established as the main source of greenhouse gas (GHG) emissions. In Costa Rica, this issue is exacerbated by the high dependence on hydrocarbons and the persistence of agricultural and livestock practices with low environmental performance, which highlights the need to implement comprehensive mitigation and adaptation strategies oriented toward environmental and productive sustainability. The present study was developed based on workshops within the framework of the Low-Carbon Livestock Development Strategy (EDGBC), through which mitigation and adaptation measures were weighted in three dairy farms, as well as a cost-benefit analysis of their implementation. Two scenarios were analyzed, with and without investments associated with Nationally Appropriate Mitigation Actions (NAMA), using financial indicators such as net present value (NPV), internal rate of return (IRR), cost-benefit ratio (C/B), net profit m (NPM), return on investment (ROI), and investment payback period (IPP). The results show positive financial indicators across all scenarios. NPV values are higher in scenarios with NAMA investments, while IRR, C/B ratio, and ROI are relatively higher in scenarios without such investments. Additionally, scenarios with investments show better performance in terms of NPM and an IPP of less than one year. In conclusion, the implementation of mitigation and adaptation strategies in the case of the three farms under study strengthens competitiveness, promotes sustainability, and supports the transition to a more efficient, low-carbon, and environmentally responsible production model.