Adaptation, mitigation and risk-taking in climate policy

Heike Auerswald (), Kai Konrad and Marcel Thum
Additional contact information
Heike Auerswald: Technische Universität Dresden

Journal of Economics, 2018, vol. 124, issue 3, No 3, 269-287

Abstract: Abstract The future consequences of climate change are highly uncertain and estimates of economic damages differ widely. Governments try to cope with these risks by investing in mitigation and adaptation measures. In contrast to most of the existing literature, we explicitly model the decision of risk averse governments on mitigation and adaptation policies. We also consider the interaction of the two strategies in presence of uncertainty. Mitigation efforts of a single country trigger crowding out as other countries will reduce their mitigation efforts. This may even lead to lower mitigation on the global scale. In contrast, a unilateral commitment to large adaptation efforts benefits the single country and can reduce the global risk from climate change at the expense of other countries.

Keywords: Climate change; Adaptation; Mitigation; Risk-taking (search for similar items in EconPapers)
JEL-codes: H41 H87 Q54 Q58 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://link.springer.com/10.1007/s00712-017-0579-8 Abstract (text/html)

Related works:
Working Paper: Adaptation, Mitigation and Risk-Taking in Climate Policy (2011)
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:kap:jeczfn:v:124:y:2018:i:3:d:10.1007_s00712-017-0579-8

DOI: 10.1007/s00712-017-0579-8

Access Statistics for this article

Journal of Economics is currently edited by Giacomo Corneo

More articles in Journal of Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().