FEEM working papers "Note di lavoro" series
2007 .051

Ad-Dice: An Implementation of Adaptation in The Dice Model


Autori: Kelly Chloe de Bruin, Rob B Dellink, Richard S.J. Tol
Serie: Climate Change and Sustainable Development
Editor: Carlo Carraro
Tipo: Journal
Parole chiave: Integrated Assessment Modelling,Adaptation,Climate Change
Numero JEL: Q25,Q28
JEL: Climatic Change
Pagine: Vol. 95, No. 1-2, pp. 63-81
Data: 07/2009

Abstract

Integrated Assessment Models (iams) have helped us over the past decade to understand the interactions between the environment and the economy in the context of climate change. Although it has also long been recognized that adaptation is a powerful and necessary tool to combat the adverse effects of climate change, most iams have not explicitly included the option of adaptation in combating climate change. This paper adds to the iam and climate change literature by explicitly including adaptation in an iam, thereby making the trade-offs between adaptation and mitigation visible. Specifically, a theoretical framework is created and used to implement adaptation as a decision variable into the dice model. We use our new ad-dice model to derive the adaptation cost functions implicit in the dice model. In our set-up, adaptation and mitigation decisions are separable and ad-dice can mimic dice when adaptation is optimal. We find that our specification of the adaptation costs is robust with respect to the mitigation policy scenarios. Our numerical results show that adaptation is a powerful option to combat climate change, as it reduces most of the potential costs of climate change in earlier periods, while mitigation does so in later periods.

Download file
Scarica il file PDF

FEEM Newsletter

Iscriviti per rimanere aggiornato.

I Suoi dati saranno trattati dalla Fondazione Eni Enrico Mattei. – Titolare del trattamento – per ricevere via posta elettronica la newsletter della Fondazione. Il conferimento dell’indirizzo e-mail è necessario alla fornitura del servizio. La invitiamo a consultare la Privacy Policy per ottenere maggiori informazioni a tutela dei Suoi diritti.

Questo Sito utilizza cookie tecnici e analytics, nonché consente l’invio di cookie di profilazione di terze parti.
Chiudendo questo banner o comunque proseguendo la navigazione sul Sito manifesti il tuo consenso all’uso dei cookie. Per ulteriori informazioni e per esprimere scelte selettive in ordine all’uso dei cookie vedi la   Cookie PolicyOk