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From Coping with Natural Disasters in the Past to a Model of Future Optimal Adaptation

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Listed:
  • Bucher, Raphael
  • Guelden Sterzl, Jasmin

Abstract

The aim of this paper is to gain insights from studying adaptation to natural disasters in the past in order to analyze optimal adaptation in Switzerland in the future. Most adaptation measures already undertaken in Switzerland are so-called reactive measures. They may be eective, but not necessarily ecient. We propose that future climate change asks for proactive measures to combat market damages in an ecient way. We come up with modeling adaptation as a cumulative stock in a computable general equilibrium (CGE) model called ADAPT-CH. We nd that with an investment of up to 0.9% of the GDP, a little more than 58% of the exogenously given climate damages in Switzerland can be prevented until 2060.

Suggested Citation

  • Bucher, Raphael & Guelden Sterzl, Jasmin, 2011. "From Coping with Natural Disasters in the Past to a Model of Future Optimal Adaptation," MPRA Paper 34237, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:34237
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    References listed on IDEAS

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    1. B. Smit & I. Burton & R.J.T. Klein & R. Street, 1999. "The Science of Adaptation: A Framework for Assessment," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 4(3), pages 199-213, September.
    2. Whalley, John & Yeung, Bernard, 1984. "External sector closing rules in applied general equilibrium models," Journal of International Economics, Elsevier, vol. 16(1-2), pages 123-138, February.
    3. de Bruin, Kelly C. & Dellink, Rob B. & Tol, Richard S.J., 2007. "AD-DICE: An Implementation of Adaptation in the DICE Mode," Climate Change Modelling and Policy Working Papers 9548, Fondazione Eni Enrico Mattei (FEEM).
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    Keywords

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    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth

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