Better predictions, better allocations: scientific advance and adaptation to climate change
Mark Freeman
Ben Groom
R.J. Zeckhauser
2134/18795
https://repository.lboro.ac.uk/articles/journal_contribution/Better_predictions_better_allocations_scientific_advance_and_adaptation_to_climate_change/9502316
Climate science initially aspired to improve understanding of what the
future would bring, and thereby produce appropriate public policies and
effective international climate agreements. If that hope is dashed, as now
seems probable, effective policies for adapting to climate change become
critical. Climate science assumes new responsibilities by helping to foster
more appropriate adaptation measures, which might include shifting
modes or locales of production. This theoretical article focuses on two
broader tools: consumption smoothing in response to the risk of future
losses, and physical adaptation measures to reduce potential damages. It
shows that informative signals on the effects of climate change facilitate
better decisions on the use of each tool, thereby increasing social welfare.
2015-09-18 10:25:32
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Business and Management not elsewhere classified