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Protection versus retreat: the economic costs of sea-level rise

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  • S Fankhauser

Abstract

The author analyses the relative role of protection (or damage mitigation) expenditures within the total costs associated with raised sea levels induced by climate change. A rule of thumb is derived to approximate the optimal level of protection. Economic efficiency requires that protection expenditures are designed such that the sum of protection costs plus remaining land-loss damage is minimised. The optimal protection level will depend on the relative importance of dryland loss compared with the costs of accelerated wetland loss plus protection expenditures. This framework is then used to estimate the damage-cost functions associated with a sea-level rise for the countries of the OECD.

Suggested Citation

  • S Fankhauser, 1995. "Protection versus retreat: the economic costs of sea-level rise," Environment and Planning A, Pion Ltd, London, vol. 27(2), pages 299-319, February.
  • Handle: RePEc:pio:envira:v:27:y:1995:i:2:p:299-319
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    Cited by:

    1. Jonathan Pycroft & Jan Abrell & Juan-Carlos Ciscar, 2016. "The Global Impacts of Extreme Sea-Level Rise: A Comprehensive Economic Assessment," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 64(2), pages 225-253, June.
    2. Delavane B. Diaz, 2016. "Estimating global damages from sea level rise with the Coastal Impact and Adaptation Model (CIAM)," Climatic Change, Springer, vol. 137(1), pages 143-156, July.
    3. repec:gam:jsusta:v:9:y:2017:i:8:p:1495-:d:109208 is not listed on IDEAS
    4. Yuri Yatsenko, 2015. "Models and Games with Adaptation and Mitigation," CEEES Paper Series CE3S-01/15, European University at St. Petersburg, Department of Economics.
    5. Jochen Hinkel & Detlef Vuuren & Robert Nicholls & Richard Klein, 2013. "The effects of adaptation and mitigation on coastal flood impacts during the 21st century. An application of the DIVA and IMAGE models," Climatic Change, Springer, vol. 117(4), pages 783-794, April.
    6. Bosello, Francesco & De Cian, Enrica, 2014. "Climate change, sea level rise, and coastal disasters. A review of modeling practices," Energy Economics, Elsevier, vol. 46(C), pages 593-605.
    7. Anthony Bonen & Willi Semmler & Stephan Klasen, 2014. "Economic Damages from Climate Change: A Review of Modeling Approaches," SCEPA working paper series. SCEPA's main areas of research are macroeconomic policy, inequality and poverty, and globalization. 2014-3, Schwartz Center for Economic Policy Analysis (SCEPA), The New School.
    8. Kopp, Robert E. & Golub, Alexander & Keohane, Nathaniel O. & Onda, Chikara, 2012. "The influence of the specification of climate change damages on the social cost of carbon," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy (IfW), vol. 6, pages 1-40.

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