Adoption Versus Adaptation, with Emphasis on Climate Change

Posted: 22 Sep 2012

See all articles by David Zilberman

David Zilberman

University of California, Berkeley - Department of Agricultural & Resource Economics

Jinhua Zhao

Michigan State University

Amir Heiman

The Hebrew University of Jerusalem, Dept. of Environmental Economics and Management

Date Written: August 2012

Abstract

This article presents lessons from the rich adoption literature for the nascent research on adaptation. Individuals' adoption choices are affected by profit and risk considerations and by credit and biophysical constraints. New technologies spread gradually, reflecting heterogeneity among potential adopters, processes of learning and technological improvement, and policies and institutions. Adaptation is the response of economic agents and societies to major shocks. We distinguish between reactive and proactive adaptation. The latter is important in the context of climate change and consists of mitigation, reassessment, and innovation that aim to affect the timing and location of shocks. Adaptation strategies also include adoption of innovation and technology transfer across locations, insurance and international trade, and migration and invasions. Recent research emphasizes multidisciplinary collaborations; historical analysis; and the roles of returns to scale of key technologies, social networks, behavioral economics, path dependency, and ex ante adjustment in explaining patterns of adoption and adaptation.

Suggested Citation

Zilberman, David and Zhao, Jinhua and Heiman, Amir, Adoption Versus Adaptation, with Emphasis on Climate Change (August 2012). Annual Review of Resource Economics, Vol. 4, Issue 1, pp. 27-53, 2012. Available at SSRN: https://ssrn.com/abstract=2149972 or http://dx.doi.org/10.1146/annurev-resource-083110-115954

David Zilberman

University of California, Berkeley - Department of Agricultural & Resource Economics ( email )

Berkeley, CA 94720
United States

Jinhua Zhao

Michigan State University ( email )

Department of Economics
Department of Ag., Food and Resource Economics
East Lansing, MI 48824
United States

HOME PAGE: http://www.msu.edu/~jzhao

Amir Heiman

The Hebrew University of Jerusalem, Dept. of Environmental Economics and Management ( email )

P.O. Box 12
Rehovot, 76100
Israel

Register to save articles to
your library

Register

Paper statistics

Abstract Views
386
PlumX Metrics