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Designing climate change adaptation policies : an economic framework

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  • Hallegatte, Stephane
  • Lecocq, Franck
  • de Perthuis, Christian

Abstract

Adaptation has long been neglected in the debate and policies surrounding climate change. However, increasing awareness of climate change has led many stakeholders to look for the best way to limit its consequences and has resulted in a large number of initiatives related to adaptation, particularly at the local level. This report proposes a general economic framework to help stakeholders in the public sector to develop effective adaptation strategies. To do so, it lays out the general issues involved in adaptation, including the role of uncertainty and inertia, and the need to consider structural changes in addition to marginal adjustments. Then, it identifies the reasons for legitimate public action in terms of adaptation, and four main domains of action: the production and dissemination of information on climate change and its impacts; the adaptation of standards, regulations and fiscal policies; the required changes in institutions; and direct adaptation actions of governments and local communities in terms of public infrastructure, public buildings and ecosystems. Finally, the report suggests a method to build public adaptation plans and to assess the desirability of possible policies.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 5568.

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Date of creation: 01 Feb 2011
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Handle: RePEc:wbk:wbrwps:5568

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Related research

Keywords: Climate Change Economics; Wetlands; Climate Change Mitigation and Green House Gases; Adaptation to Climate Change; Science of Climate Change;

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References

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  1. Hallegatte, Stephane & Hourcade, Jean-Charles & Dumas, Patrice, 2007. "Why economic dynamics matter in assessing climate change damages: Illustration on extreme events," Ecological Economics, Elsevier, vol. 62(2), pages 330-340, April.
  2. Jean-Charles Hourcade & Philippe Ambrosi & Stéphane Hallegatte & Franck Lecocq & Patrice Dumas & Minh Ha-Duong, 2003. "Optimal control models and elicitation of attitudes towards climate damages," Post-Print halshs-00000966, HAL.
  3. Timothy C. Irwin, 2007. "Government Guarantees : Allocating and Valuing Risk in Privately Financed Infrastructure Projects," World Bank Publications, The World Bank, number 6638, October.
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  6. World Bank, 2010. "Economics of Adaptation to Climate Change : Ethiopia," World Bank Other Operational Studies 12504, The World Bank.
  7. Andrea Bigano & Francesco Bosello & Roberto Roson & Richard Tol, 2008. "Economy-wide impacts of climate change: a joint analysis for sea level rise and tourism," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 13(8), pages 765-791, October.
  8. Prema-chandra Athukorala & Budy P. Resosudarmo, 2005. "The Indian Ocean Tsunami: Economic Impact, Disaster Management and Lessons," Departmental Working Papers 2005-05, The Australian National University, Arndt-Corden Department of Economics.
  9. Claude Henry, 1984. "La microéconomie comme langage et enjeu de négociations," Revue Économique, Programme National Persée, vol. 35(1), pages 177-198.
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Cited by:
  1. Kai A. Konrad & Marcel Thum, 2012. "The Role of Economic Policy in Climate Change Adaptation," CESifo Working Paper Series 3959, CESifo Group Munich.
  2. Heuson, Clemens & Gawel, Erik & Gebhardt, Oliver & Hansjürgens, Bernd & Lehmann, Paul & Meyer, Volker & Schwarze, Reimund, 2012. "Ökonomische Grundfragen der Klimaanpassung: Umrisse eines neuen Forschungsprogramms," UFZ Reports 02/2012, Helmholtz Centre for Environmental Research (UFZ).
  3. Samuel Fankhauser & Raluca Soare, 2013. "An economic approach to adaptation: illustrations from Europe," Climatic Change, Springer, vol. 118(2), pages 367-379, May.
  4. Oberlack, Christoph & Neumärker, Bernhard, 2013. "A diagnostic approach to the institutional analysis of climate adaptation," The Constitutional Economics Network Working Papers 01-2013, University of Freiburg, Department of Economic Policy and Constitutional Economic Theory.
  5. Heuson, Clemens & Gawel, Erik & Gebhardt, Oliver & Hansjürgens, Bernd & Lehmann, Paul & Meyer, Volker & Schwarze, Reimund, 2012. "Fundamental questions on the economics of climate adaptation: Outlines of a new research programme," UFZ Reports 05/2012, Helmholtz Centre for Environmental Research (UFZ).
  6. Strand, Jon, 2014. "Implications of a lowered damage trajectory for mitigation in a continuous-time stochastic model," Energy Economics, Elsevier, vol. 42(C), pages 43-49.
  7. Oberlack, Christoph & Neumärker, Bernhard, 2011. "Economics, institutions and adaptation to climate change," The Constitutional Economics Network Working Papers 04-2011, University of Freiburg, Department of Economic Policy and Constitutional Economic Theory.

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