Getting Real about Adapting to Climate Change: Using ‘Real Options’ to Address the Uncertainties

Leo Dobes ()

Agenda - A Journal of Policy Analysis and Reform, 2008, vol. 15, issue 3, 55-72

Abstract: Scientists predict that some climate change is already inevitable, even if greenhouse emissions are stabilised. Adaptation strategies will be of comparable importance to reducing emissions. However, the specific effects of climate change are currently unknowable, especially at the local level. Given this uncertainty, deterministic adaptation strategies are inappropriate. Rather than building ‘worst-case scenario’ sea walls, for example, strong foundations can be laid — so that walls can be built (or not built) in future to match actual climatic conditions without incurring unnecessary upfront expense. Other examples of such ‘real options’ are provided to illustrate the feasibility of the approach.

Date: 2008
References: View complete reference list from CitEc
Citations: View citations in EconPapers (13)

Downloads: (external link)
http://press-files.anu.edu.au/downloads/press/p87771/pdf/15-3-AR-1.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:acb:agenda:v:15:y:2008:i:3:p:55-72

Access Statistics for this article

More articles in Agenda - A Journal of Policy Analysis and Reform from Australian National University, College of Business and Economics, School of Economics Contact information at EDIRC.
Bibliographic data for series maintained by ().