Aiding Decision Making to Reduce the Impacts of Climate Change

Utilizing theory and empirical insights from psychology and behavioural economics, this paper examines individuals’ cognitive and motivational barriers to adopting climate change adaptation and mitigation measures that increase consumer welfare. We explore various strategies that take into account the simplified decisionmaking processes used by individuals and resulting biases. We make these points by working through two examples: (1) investments in energy efficiency products and new technology and (2) adaptation measures to reduce property damage from future floods and hurricanes.

The Costs of Adaptation to Climate Change for Water Infrastructure in OECD Countries

There is concern that climate change may greatly increase the costs of providing water infrastructure in rich countries, but the estimates available cannot be compared across countries. This paper develops and applies a top-down approach to estimate the costs of adapting to climate change on a consistent basis for different climate scenarios. The analysis separates (a) the costs of maintaining service standards for a baseline projection of demand, and (b) the costs of changes in water use and infrastructure as a consequence of changes in climate patterns.

Willingness of Homeowners to Mitigate Climate Risk through Insurance

Climate change is projected to increase flood risks in certain regions due to an increase in both precipitation and sea level rise. In addition, socio-economic scenarios project an increase in urbanization in flood prone areas, which results in a higher damage potential. The combined effect of climate and land use change on flood risks requires innovative adaptation policies to cope with rising risks. Increasingly, attention is paid to the role insurance can play in mitigating damage by providing incentives to policyholders to undertake damage reducing measures.

Measuring climatic impacts on energy consumption: A review of the empirical literature

This paper reviews the literature on the relationship between climate and the energy sector. In particular,we primarily discuss empirical papers published in peer-reviewed economics journals focusing on how climate affects energy expenditures and consumption. Climate will affect energy consumption by changing how consumers respond to short run weather shocks (the intensive margin) as well as how people will adapt in the long run (the extensivemargin).

The scope for adaptation to climate change : what can we learn from the impact literature?

Neither the costs nor the benefits of adaptation to climate change have been systematically studied so far. This paper discusses the extent to which the vast body of literature on climate change impacts can provide insights into the scope and likely cost of adaptation. The ways in which the impacts literature deals with adaptation can be grouped into four categories: no adaptation, arbitrary adaptation, observed adaptation (analogues), and modeled adaptation (optimization). All four cases are characterized by the simple assumptions made about the mechanisms of adaptation.

Ökonomie des Klimawandels integrierte ökonomische Bewertung der Instrumente zur Anpassung an den Klimawandel.

This study has the overall objective to make proposals for action for the implementation of the National Adaptation Strategy of the German federal government addressing finance and incentive structures. On that account, the current state of research on the economics of climate change and the adaptation to it is assessed, an overview on specific policy measures is given, and possible evaluation criteria of these instruments are created. By means of a illustrative multi-criterion analysis, specific instruments are evaluated.

Coping with uncertainty in the inland navigation market: the impact of climate change.

In this paper a model is developed to study an inland waterway market’s production uncertainty due to fluctuating water-levels. Aspects that are studied are climate change and adaptation strategies against climate change. As an example of private adaptation the optimal barge-size, and as an example of public adaptation the optimal amount to investment in infrastructure are derived. We find that the trend to increase barge sizes in the Western European market is theoretically justified.

Adaptation à court et à long terme de l’agriculture au risque de sécheresse : une approche par couplage de modèles biophysiques et économiques.

In this article, we analyse the impact of drought risk on agriculture. We use a biophysical crop growth model (STICS) in order to simulate crop yield under various climatic scenarios. A micro-economic model which optimises, under climate uncertainty, land allocation across crops and irrigation is developed to reflect farmer’s behaviour. This framework is used to assess the impact of drought risk on a representative French farmer located in the Midi-Pyrénées region (South-West of France). We first show that, on the short run, the private cost of a drought can be high.

The implications of climate change for extreme weather events and their socio-economic consequences in Finland.

This publication reports on the main findings the entire TOLERATE project, which was an integrated natural science – social science project for the assessment of climate changed induced changes of extreme weather events and their socialeconomic consequences at a regional level. It includes regional projections of changes in climate conditions in Finland, with special reference to (short) periods with extremely abundant and extreme scant precipitation respectively. Based on these projections changes in river flood risks are assessed for two water shed areas by means of hydrological models.

Optimal location of new forests in a suburban region

This paper looks at the optimal location of new forests in a suburban region under area constraints. The GIS-based methodology takes into account use benefits such as timber, hunting, carbon sequestration and recreation, non-use benefits (both bequest and existence values), opportunity costs of converting agricultural land, as well as planting and management costs of the new forest. The recreation benefits of new forest sites are estimated using function transfer techniques.

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