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Strategic adaptation to climate change in Europe

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  • Fankhauser, Sam
  • Soare, Raluca

Abstract

This paper analyses the priorities and challenges for Europe as it adapts to the impacts of climate change. Whatever the ultimate level of warming we will experience, adaptation will be a permanent feature of decision making from now on. As such it is important to go about it in a strategic, rational way. A strategic approach to adaptation involves setting priorities, both spatially (where to adapt) and inter-temporally (when to adapt). The paper reviews the available evidence on Europe's exposure, sensitivity and adaptive capacity to indicate geographic adaptation priorities. In terms of intertemporal priorities, it recommends fast-tracking two types of action: Win-win measures that yield an immediate return, such as water efficiency, and strategic decisions on infrastructure and planning that have long-term consequences for Europe's vulnerability profile. A strategic approach to adaptation involves careful project design to ensure adaptation measures are cost-effective (how to adapt). An important complication in this respect is the deep level of uncertainty that still exists about future climate change at the local level. This puts a premium on flexible designs that can be adjusted when new information becomes available. The final element of a strategic approach to adaptation is division of labour between the state on the one hand, and private actors (households and firms) on the other (who should adapt). The paper argues that the traditional functions of the state - the provision of public goods, creation of an enabling environment and protection of the vulnerable - also apply to adaptation.

Suggested Citation

  • Fankhauser, Sam & Soare, Raluca, 2012. "Strategic adaptation to climate change in Europe," EIB Working Papers 2012/01, European Investment Bank (EIB).
  • Handle: RePEc:zbw:eibwps:201201
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    File URL: https://www.econstor.eu/bitstream/10419/88098/1/772218994.pdf
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    References listed on IDEAS

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    Cited by:

    1. Johan Eyckmans & Sam Fankhauser & Snorre Kverndokk, 2016. "Development Aid and Climate Finance," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 63(2), pages 429-450, February.
    2. Lázaro Touza, Lara E. & Zoghby, Michel S., 2014. "Climate Change: Risky Business? /Cambio Climático: ¿Un negocio de alto riesgo?," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 32, pages 1043-1070, Septiembr.
    3. Amare, Mulubrhan & Waibel, Herman, 2014. "Climate Variability, Shocks and Non-farm Employment: Evidence from Rural Households in Northeast Thailand," 54th Annual Conference, Goettingen, Germany, September 17-19, 2014 187571, German Association of Agricultural Economists (GEWISOLA).

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    More about this item

    JEL classification:

    • H12 - Public Economics - - Structure and Scope of Government - - - Crisis Management
    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
    • H84 - Public Economics - - Miscellaneous Issues - - - Disaster Aid
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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