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Adaptation Can Help Mitigation: An Integrated Approach to Post-2012 Climate Policy

Author

Listed:
  • Francesco Bosello

    (University of Milan and Fondazione Eni Enrico Mattei)

  • Carlo Carraro

    (University of Venice, CEPR, CESifo and Fondazione Eni Enrico Mattei)

  • Enrica De Cian

    (University Ca’ Foscari of Venice and Fondazione Eni Enrico Mattei)

Abstract

The latest round of international negotiations in Copenhagen led to a set of commitments on emission reductions which are unlikely to stabilise global warming below or around 2°C. As a consequence, in the absence of additional ambitious policy measures, adaptation will be needed to address climate-related damages. What is the role of adaptation in this setting? How is it optimally allocated across regions and time? To address these questions, this paper analyses the optimal mix of adaptation and mitigation expenditures in a cost-effective setting in which countries cooperate to achieve a long-term stabilisation target (550 CO2-eq). It uses an Integrated Assessment Model (AD-WITCH) that describes the relationships between different adaptation modes (reactive and anticipatory), mitigation, and capacity-building to analyse the optimal portfolio of adaptation measures. Results show the optimal intertemporal distribution of climate policy measures is characterised by early investments in mitigation followed by large adaptation expenditures a few decades later. Hence, the possibility to adapt does not justify postponing mitigation, although it reduces its costs. Mitigation and adaptation are thus shown to be complements rather than substitutes.

Suggested Citation

  • Francesco Bosello & Carlo Carraro & Enrica De Cian, 2011. "Adaptation Can Help Mitigation: An Integrated Approach to Post-2012 Climate Policy," Working Papers 2011.69, Fondazione Eni Enrico Mattei.
  • Handle: RePEc:fem:femwpa:2011.69
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    1. Benchekroun, H. & Marrouch, W. & Ray Chaudhuri, A., 2011. "Adaptation Effectiveness and Free-Riding Incentives in International Environmental Agreements," Other publications TiSEM 6409b168-c0ad-44e5-88bf-6, Tilburg University, School of Economics and Management.
    2. Annemiek K. Admiraal & Andries F. Hof & Michel G. J. Elzen & Detlef P. Vuuren, 2016. "Costs and benefits of differences in the timing of greenhouse gas emission reductions," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 21(8), pages 1165-1179, December.
    3. Ingmar Schumacher, 2019. "Climate Policy Must Favour Mitigation Over Adaptation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 74(4), pages 1519-1531, December.
    4. Pam Berry & Sally Brown & Minpeng Chen & Areti Kontogianni & Olwen Rowlands & Gillian Simpson & Michalis Skourtos, 2015. "Cross-sectoral interactions of adaptation and mitigation measures," Climatic Change, Springer, vol. 128(3), pages 381-393, February.
    5. Enrica De Cian & Filippo Pavanello & Teresa Randazzo & Malcolm Mistry & Marinella Davide, 2019. "Does climate influence households' thermal comfort decisions?," Working Papers 2019:02, Department of Economics, University of Venice "Ca' Foscari".
    6. Glanemann, Nicole, 2014. "The Optimal Climate Policy of Mitigation and AdaptationːA Real Options Theory Perspective," WiSo-HH Working Paper Series 15, University of Hamburg, Faculty of Business, Economics and Social Sciences, WISO Research Laboratory.
    7. Hari Bansha Dulal, 2019. "Cities in Asia: how are they adapting to climate change?," Journal of Environmental Studies and Sciences, Springer;Association of Environmental Studies and Sciences, vol. 9(1), pages 13-24, March.
    8. 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.
    9. Anil Markandya & Enrica De Cian & Laurent Drouet & Josué M. Polanco-Martìnez & Francesco Bosello, 2016. "Building Uncertainty into the Adaptation Cost Estimation in Integrated Assessment Models," Working Papers 2016.21, Fondazione Eni Enrico Mattei.
    10. Karen Fisher-Vanden & Ian Sue Wing & Elisa Lanzi & David Popp, 2013. "Modeling climate change feedbacks and adaptation responses: recent approaches and shortcomings," Climatic Change, Springer, vol. 117(3), pages 481-495, April.
    11. Lucy Kinski & Ariadna Ripoll Servent, 2022. "Framing Climate Policy Ambition in the European Parliament," Politics and Governance, Cogitatio Press, vol. 10(3), pages 251-263.
    12. Anil Markandya & Enrica Cian & Laurent Drouet & Josué M. Polanco-Martínez & Francesco Bosello, 2019. "Building Risk into the Mitigation/Adaptation Decisions simulated by Integrated Assessment Models," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 74(4), pages 1687-1721, December.
    13. 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.
    14. Gabriel Bachner & Birgit Bednar-Friedl & Nina Knittel, 2018. "How public adaptation to climate change affects the government budget: A model-based analysis for Austria in 2050," Graz Economics Papers 2018-17, University of Graz, Department of Economics.

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    More about this item

    Keywords

    Climate Change Impacts; Mitigation; Adaptation; Integrated Assessment Model;
    All these keywords.

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • 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
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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