IDEAS home Printed from https://ideas.repec.org/a/ekz/ekonoz/2020103.html
   My bibliography  Save this article

Portfolio analysis as a means of managing uncertainties in climate change adaptation: some initial reflections

Author

Listed:
  • Alistair Hunt

    (Department of Economics, Unversity of Bath, UK)

  • Filippo Fraschini

    (Catholic University, Milan)

Abstract

In order to counteract the challenge of climate uncertainties in investment planning, Portfolio Analysis (PA) aggregates diverse adaptation measures in different portfolios. Thus, instead of considering a single intervention, it attempts to identify the best portfolios according to their performance in relation to economic efficiency as well as risk (variance of the economic performance over different scenarios). However, whilst PA is recognised as having the potential for bringing about a more holistic economic analysis of adaptation, it remains rarely used. Our assessment of the key strengths and limitations of PA suggests that wider adoption of a portfolio approach will primarily depend on stakeholder recognition that by being selective about the numbers and composition of portfolios considered, data and analytical capacity constraints can be overcome.

Suggested Citation

  • Alistair Hunt & Filippo Fraschini, 2020. "Portfolio analysis as a means of managing uncertainties in climate change adaptation: some initial reflections," EKONOMIAZ. Revista vasca de Economía, Gobierno Vasco / Eusko Jaurlaritza / Basque Government, vol. 97(01), pages 63-81.
    • Handle: RePEc:ekz:ekonoz:2020103
    as

    Download full text from publisher

    File URL: https://www.euskadi.eus/web01-a2reveko/es/k86aEkonomiazWar/ekonomiaz/downloadPDF?R01HNoPortal=true&idpubl=93®istro=7
    File Function: complete text
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    economic assesment; portfolio analysis; uncertainty;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ekz:ekonoz:2020103. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Iñaki Treviño (email available below). General contact details of provider: https://edirc.repec.org/data/debages.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.