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Economists were able to formulate and recommend policy approaches for reducingemissions of greenhouse gases (mitigation) by drawing on an existing body of economictheory related to externalities. However, no comparably straightforward approach hasyet emerged in the adaptation literature, possibly due to the diffuse nature of climaticeffects that may occur in very diverse geographical locations. By acknowledging that thehallmark of future climate change effects is uncertainty, rather than readily identifiableand deterministic outcomes, it is possible to formulate coherent policy approaches.Recognising that there are differing degrees of uncertainty is a key aspect to makingpolicy formulation more realistic.

Keywords: adaptation ; climate change ; risk ; uncertainty ; unknown unknowns

Subject(s): Environmental Economics and Policy

Risk and Uncertainty

Issue Date: 2012-01

Publication Type: Working or Discussion Paper

PURL Identifier:

Total Pages: 18

JEL Codes: G11; H43; O44; Q54

Record appears in: Australian National University > Centre for Climate Economics & Policy (CCEP) > Working Papers

Autor: Dobes, Leo


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