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The Role of the Government in Adaptation to Climate Change

Author

Listed:
  • Daniel Osberghaus
  • Astrid Dannenberg
  • Tim Mennel
  • Bodo Sturm

    (Department of Business Administration, Leipzig University of Applied Sciences, PO Box 301166, 04251 Leipzig, Germany)

Abstract

Given the scarcity of resources, an economic approach is necessary in order to determine an optimal strategy of adaptation to climate change. In this paper we develop an economic framework for the study of adaptation which allows distinguishing between decentralised adaptation by private agents, on the one hand, and centralised adaptation measures by the government, on the other hand. The paper is in two parts: in the first we present the neoclassical view of adaptation policy, which is based on the paradigm of market failure. In the second part we deal with challenges and complements of the neoclassical view arising from the introduction of equity principles, security of supply concerns, and a polycentric approach to the provision of public goods. The analysis is illustrated with examples of adaptation measures in Germany.

Suggested Citation

  • Daniel Osberghaus & Astrid Dannenberg & Tim Mennel & Bodo Sturm, 2010. "The Role of the Government in Adaptation to Climate Change," Environment and Planning C, , vol. 28(5), pages 834-850, October.
    • Handle: RePEc:sae:envirc:v:28:y:2010:i:5:p:834-850
    DOI: 10.1068/c09179j
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    References listed on IDEAS

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    Cited by:

    1. Gabriel Bachner & Birgit Bednar-Friedl & Nina Knittel, 2019. "How does climate change adaptation affect public budgets? Development of an assessment framework and a demonstration for Austria," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 24(7), pages 1325-1341, October.
    2. 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.
    3. Gawel, Erik & Heuson, Clemens & Lehmann, Paul, 2012. "Efficient public adaptation to climate change: An investigation of drivers and barriers from a Public Choice perspective," UFZ Discussion Papers 14/2012, Helmholtz Centre for Environmental Research (UFZ), Division of Social Sciences (ÖKUS).
    4. Osberghaus, Daniel & Finkel, Elyssa & Pohl, Max, 2010. "Individual adaptation to climate change: The role of information and perceived risk," ZEW Discussion Papers 10-061, ZEW - Leibniz Centre for European Economic Research.
    5. Paul Lehmann & Miriam Brenck & Oliver Gebhardt & Sven Schaller & Elisabeth Süßbauer, 2015. "Barriers and opportunities for urban adaptation planning: analytical framework and evidence from cities in Latin America and Germany," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 20(1), pages 75-97, January.
    6. Löschel, Andreas & Reif, Christiane & Kesternich, Martin & Koesler, Simon & Osberghaus, Daniel & Korioth, Stefan, 2011. "Lösungsansätze zur systemeffizienten Ausgestaltung der nationalen Mittelverwendung der Einnahmen aus der Versteigerung von Zertifikaten im Rahmen des EU-ETS: Endbericht, März 2011," ZEW Expertises, ZEW - Leibniz Centre for European Economic Research, number 110535.
    7. Paul Watkiss, 2015. "A review of the economics of adaptation and climate-resilient development," GRI Working Papers 205, Grantham Research Institute on Climate Change and the Environment.
    8. Lehmann, Paul & Brenck, Miriam & Gebhardt, Oliver & Schaller, Sven & Süßbauer, Elisabeth, 2012. "Understanding barriers and opportunities for adaptation planning in cities," UFZ Discussion Papers 19/2012, Helmholtz Centre for Environmental Research (UFZ), Division of Social Sciences (ÖKUS).
    9. Christoph Oberlack, 2017. "Diagnosing institutional barriers and opportunities for adaptation to climate change," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 22(5), pages 805-838, June.
    10. 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).
    11. Gawel, Erik & Lehmann, Paul & Strunz, Sebastian & Heuson, Clemens, 2018. "Public Choice barriers to efficient climate adaptation – theoretical insights and lessons learned from German flood disasters," Journal of Institutional Economics, Cambridge University Press, vol. 14(3), pages 473-499, June.
    12. 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).
    13. Hudson, Paul & Botzen, W.J. Wouter & Feyen, Luc & Aerts, Jeroen C.J.H., 2016. "Incentivising flood risk adaptation through risk based insurance premiums: Trade-offs between affordability and risk reduction," Ecological Economics, Elsevier, vol. 125(C), pages 1-13.
    14. 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.
    15. P. P. Stoll & W. P. Pauw & F. Tohme & C. Grüning, 2021. "Mobilizing private adaptation finance: lessons learned from the Green Climate Fund," Climatic Change, Springer, vol. 167(3), pages 1-19, August.

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