Adaptation as Investment: Balancing Public and Private Roles in Climate Adaptation

Maria Waldinger and Franziska Wintersteller

EconPol Forum, 2025, vol. 26, issue 02, 19-25

Abstract: Key MessagesAdaptation to climate change is an investment decision with unique challenges including uncertainty, long time horizons, and market imperfections that hinder optimal private action.Public sector involvement should address market failures while avoiding moral hazard and the crowding out of private investment through targeted knowledge dissemination and incentives.Significant disparities in adaptive capacity between and within countries create fundamental inequities in climate resilience, necessitating special policy consideration.Effective adaptation policy requires balancing public enablement with private investment through collaborative approaches that address market failures while ensuring equitable outcomes.

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.cesifo.org/DocDL/econpol-forum-2025-2- ... u-climate-policy.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:ces:epofor:v:26:y:2025:i:02:p:19-25

Access Statistics for this article

EconPol Forum is currently edited by Chang Woon Nam

More articles in EconPol Forum from CESifo Contact information at EDIRC.
Bibliographic data for series maintained by Klaus Wohlrabe ().