Measuring Climate Adaptation: Methods and Evidence

This article examines methods for measuring climate adaptation and discusses the empirical evidence. The primary methods for measuring climate adaptation are cross-sectional analysis, simulations, and intertemporal panel data. The empirical evidence in the literature suggests that adaptation can be effective at eliminating a large fraction of potential damage from changes in mean climate but not short-term climate variation. Much of the adaptation will likely be incremental and reactive, responding to climate as it changes over time. Private actors have their own incentives to adapt to climate change and are likely to change their behavior if it makes them better off. But government action is needed to ensure that markets are efficient and to support public adaptations, especially those related to water supply, coastal defense, human health, and environmental protection.