Economics of Adaptation to Climate Change (original) (raw)
Related papers
Fundamental questions on the economics of climate adaptation: Outlines of a new research programme
In view of the failure of international negotiations on climate protection and the improbability of a trend reversal in the climate changes that have already occurred, the option of climate change adaptation is becoming more and more important in climate change policy. A large number of countries have already initiated a process of adaptation by drafting strategies or catalogues of measures. Hence there is an urgent need to support this process at the scientific level. The discipline of economics has a key role to play in this context, especially with regard to the design, evaluation and selection of adaptation measures and instruments. The still relatively young field of research into the economics of adaptation is growing at a considerable pace and already exhibits a wide range of methodological approaches and research questions. Against this background, the present report aims to undertake a systematic structuring and synthesis of the individual research studies in order to provi...
Adapting to Climate Change: Costs, Benefits, and Modelling Approaches
International Review of Environmental and Resource Economics, 2011
This paper provides a summary and a critical survey of the methodologies and results of the literature on the economics of adaptation. We divide the literature into two broad areas of research. First, we examine the studies that analyse adaptation from a bottom-up perspective. Second, we introduce the studies that examine adaptation using a top-down approach. The first group of studies investigates cost and benefits of adaptation at the sectoral, regional and global level. The second group includes theoretical literature on the relationship between mitigation and adaptation as well as emerging insights from some global Integrated Assessment Models (IAMs), which have recently been extended to include adaptation as an alternative and complementary policy option to mitigation. This latter development has raised issues that represent new challenges for the research community. In particular, understanding how to integrate the vast amount of information provided by the bottomup literature on climate change impacts and adaptation into global
The article is based on a detailed literature review pertaining to conceptual and methodological issues of climate change impact and vulnerability assessment. The impact of climate change differs among geographical regions owing to the abject difference in the levels of income, production and consumption pattern, availability and use of technology, etc. The initial impact assessment studies, which were based on estimating economic costs of climate change, were limited to a certain extent in finding the diverse impacts at different regions. There are a number of measurement constraints in terms of scientific and economic uncertainties. Further, for a long time, the mitigation policy approach has received major academic attention in the climate change policy literature, whereas the adaptation approach is only entertained while conducting vulnerability assessment. Vulnerability assessment on the other hand is integrated in nature, covering a large research domain from risk hazard literature to poverty literature.
Assessing the cost of adaptation to climate change
2009
Several recent studies have reported adaptation costs for climate change, including for developing countries. They have similar-sized estimates and have been influential in discussions on this issue. However, the studies have a number of deficiencies which need to be transparent and addressed more systematically in the future. A re-assessment of the UNFCCC estimates for 2030 suggests that they are likely to be substantial under-estimates. The purpose of this report is to illustrate the uncertainties in these estimates rather than to develop new cost estimates, which is a much larger task than can be accomplished here. The main reasons for under-estimation are that: (i) some sectors have not been included in an assessment of cost (e.g. ecosystems, energy, manufacturing, retailing, and tourism); (ii) some of those sectors which have been included have been only partially covered; and (iii) the additional costs of adaptation have sometimes been calculated as ‘climate mark-ups’ against low levels of assumed investment. In some parts of the world low levels of investment have led to a current adaptation deficit, and this deficit will need to be made good by full funding of development, without which the funding for adaptation will be insufficient. Residual damages also need to be evaluated and reported because not all damages can be avoided due to technical and economic constraints. There is an urgent need for more detailed assessments of these costs, including case studies of costs of adaptation in specific places and sectors.
Assessing the Economic Impacts of Climate Change - An Updated CGE Point of View
SSRN Electronic Journal, 2012
The present research describes a climate change integrated impact assessment exercise, whose economic evaluation is based on a CGE approach and modeling effort. Input to the CGE model comes from a wide although still partial set of up-to-date bottom-up impact studies. Estimates indicate that a temperature increase of 1.92°C compared to preindustrial levels in 2050 could lead to global GDP losses of approximately 0.5% compared to a hypothetical scenario where no climate change is assumed to occur. Northern Europe is expected to benefit from the evaluated temperature increase (+0.18%), while Southern and Eastern Europe are expected to suffer from the climate change scenario under analysis (-0.15% and-0.21% respectively). Most vulnerable countries are the less developed regions, such as South Asia, SouthEast Asia, North Africa and Sub-Saharan Africa. In these regions the most exposed sector is agriculture, and the impact on crop productivity is by far the most important source of damages. It is worth noting that the general equilibrium estimates tend to be lower, in absolute terms, than the bottom-up, partial equilibrium estimates. The difference is to be attributed to the effect of market-driven adaptation. This partly reduces the direct impacts of temperature increases, leading to lower damage estimates. Nonetheless these remain positive and substantive in some regions. Accordingly, marketdriven adaptation cannot be the solution to the climate change problem.