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Adaptation to Climate Change: Formulating Policy under Uncertainty

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  • Dobes, Leo

Abstract

Economists were able to formulate and recommend policy approaches for reducing emissions of greenhouse gases (mitigation) by drawing on an existing body of economic theory related to externalities. However, no comparably straightforward approach has yet emerged in the adaptation literature, possibly due to the diffuse nature of climatic effects that may occur in very diverse geographical locations. By acknowledging that the hallmark of future climate change effects is uncertainty, rather than readily identifiable and deterministic outcomes, it is possible to formulate coherent policy approaches. Recognising that there are differing degrees of uncertainty is a key aspect to making policy formulation more realistic.

Suggested Citation

  • Dobes, Leo, 2012. "Adaptation to Climate Change: Formulating Policy under Uncertainty," Working Papers 249390, Australian National University, Centre for Climate Economics & Policy.
    • Handle: RePEc:ags:ancewp:249390
    DOI: 10.22004/ag.econ.249390
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    Full references (including those not matched with items on IDEAS)

    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Climate Change Adaptation in Pacific island countries: Donors, Big Men, Real Options
      by Matthew Dornan in Development Policy Blog on 2012-02-01 01:00:17
    2. Crawford School Working Papers in January 2012
      by David Stern in Stochastic Trend on 2012-02-03 00:03:00
    3. Top Three Crawford Working Papers in March 2012
      by David Stern in Stochastic Trend on 2012-04-02 15:14:00

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    More about this item

    Keywords

    Environmental Economics and Policy; Risk and Uncertainty;

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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