What is the right policy or incentive to encourage climate change adaptation?
One could simply pick the one that is politically expedient and implement it. If it doesn’t work, make adjustments and try again. In many instances, this is exactly how public policy is defined, despite what is in textbooks or what best practice would suggest.
Clearly, this kind of reactive approach has its limits. It doesn’t necessarily result in the most economically efficient choices being made.
Understanding the economics of climate change adaptation is critical. In a world with competing demands for limited resources, governments can ask critical questions to form the most efficient policy. ... Read more