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Will Adaptation Delay the Transition to Clean Energy Systems? An Analysis with AD-MERGE

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  • Olivier Bahn, Kelly de Bruin, and Camille Fertel

Abstract

Climate change is one of the greatest environmental challenges facing our planet in the foreseeable future, yet, despite international environmental agreements, global GHG emissions are still increasing. In this context, adaptation measures can play an important role in reducing climate impacts. These measures involve adjustments to economic or social structures to limit the impact of climate change without limiting climate change itself. To assess the interplay of adaptation and mitigation, we develop AD-MERGE, an integrated assessment model that includes both reactive ('flow') and proactive ('stock') adaptation strategies as well as a range of mitigation (energy) technologies. We find that applying adaptation optimally delays but does not prevent the transition to clean energy systems (carbon capture and sequestration systems, nuclear, and renewables). Moreover, applying both adaptation and mitigation is more effective than using just one.

Suggested Citation

  • Olivier Bahn, Kelly de Bruin, and Camille Fertel, 2019. "Will Adaptation Delay the Transition to Clean Energy Systems? An Analysis with AD-MERGE," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4).
    • Handle: RePEc:aen:journl:ej40-4-debruin
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    Cited by:

    1. Rising, James A. & Taylor, Charlotte & Ives, Matthew C. & Ward, Robert E.t., 2022. "Challenges and innovations in the economic evaluation of the risks of climate change," LSE Research Online Documents on Economics 114941, London School of Economics and Political Science, LSE Library.
    2. De Bruin, Kelly & Kiran Krishnamurthy, Chandra, 2021. "Optimal Climate Policy with Fat-tailed Uncertainty: What the Models Can Tell Us," Papers WP697, Economic and Social Research Institute (ESRI).
    3. Qian Ding & Jianbai Huang & Jinyu Chen, 2023. "Time-Frequency Spillovers and the Determinants among Fossil Energy, Clean Energy and Metal Markets," The Energy Journal, , vol. 44(2), pages 259-286, March.
    4. de Bruin, Kelly & Ayuba, Victoria, 2020. "What does Paris mean for Africa? An Integrated Assessment analysis of the effects of the Paris Agreement on African economies," Papers WP690, Economic and Social Research Institute (ESRI).
    5. Li, Yangfan & Zhang, Xiaoyun, 2023. "Recycling scheme of carbon pricing for inclusive decarbonization and energy transition: A recursive computable general equilibrium analysis in China," Renewable Energy, Elsevier, vol. 217(C).
    6. Natali Hritonenko & Victoria Hritonenko & Yuri Yatsenko, 2020. "Games with Adaptation and Mitigation," Games, MDPI, vol. 11(4), pages 1-16, December.
    7. Rising, James A. & Taylor, Charlotte & Ives, Matthew C. & Ward, Robert E.T., 2022. "Challenges and innovations in the economic evaluation of the risks of climate change," Ecological Economics, Elsevier, vol. 197(C).

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    JEL classification:

    • F0 - International Economics - - General

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