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All hands on deck: polycentric governance for climate change insurance

Author

Listed:
  • Connor P. Spreng

    (World Bank Group)

  • Benjamin K. Sovacool

    (University of Sussex)

  • Daniel Spreng

    (ETH Zurich)

Abstract

In this essay, we argue that it is possible to significantly complement and improve our collective response to climate change by harnessing the combined capacities of key actors across the public and private sector. We apply the concepts of liability, market mechanisms, preferential market access, and polycentric governance toward a new type of climate change insurance for CO2. The quest to apply insurance principles to climate change dates back multiple decades. But ideas for employing the industry’s ability to help avoid or minimize and, if necessary, compensate for uncertain costs in the future at scale, across national boundaries, and as part of a broader regime, seem to be lacking. We propose an approach that complements and combines ongoing efforts within a polycentric governance structure to reduce CO2 emissions, increase resilience to and compensate damages from climate change on a global scale.

Suggested Citation

  • Connor P. Spreng & Benjamin K. Sovacool & Daniel Spreng, 2016. "All hands on deck: polycentric governance for climate change insurance," Climatic Change, Springer, vol. 139(2), pages 129-140, November.
    • Handle: RePEc:spr:climat:v:139:y:2016:i:2:d:10.1007_s10584-016-1777-z
    DOI: 10.1007/s10584-016-1777-z
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    References listed on IDEAS

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    1. Swenja Surminski & Laurens M. Bouwer & Joanne Linnerooth-Bayer, 2016. "How insurance can support climate resilience," Nature Climate Change, Nature, vol. 6(4), pages 333-334, April.
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    Cited by:

    1. Jordan K. Lofthouse & Roberta Q. Herzberg, 2023. "The Continuing Case for a Polycentric Approach for Coping with Climate Change," Sustainability, MDPI, vol. 15(4), pages 1-24, February.
    2. Sovacool, Benjamin K. & Tan-Mullins, May & Abrahamse, Wokje, 2018. "Bloated bodies and broken bricks: Power, ecology, and inequality in the political economy of natural disaster recovery," World Development, Elsevier, vol. 110(C), pages 243-255.
    3. Benjamin M. Abraham, 2021. "Ideology and non-state climate action: partnering and design of REDD+ projects," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 21(4), pages 669-690, December.
    4. Dana R. Fisher & Philip Leifeld, 2019. "The polycentricity of climate policy blockage," Climatic Change, Springer, vol. 155(4), pages 469-487, August.
    5. Tiffany H. Morrison & W. Neil Adger & Katrina Brown & Maria Carmen Lemos & Dave Huitema & Terry P. Hughes, 2017. "Mitigation and adaptation in polycentric systems: sources of power in the pursuit of collective goals," Wiley Interdisciplinary Reviews: Climate Change, John Wiley & Sons, vol. 8(5), September.

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