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The Role of Economic Policy in Climate Change Adaptation

32 Pages Posted: 8 Oct 2012  

Kai A. Konrad

Max Planck Institute for Tax Law and Public Finance; Social Science Research Center Berlin (WZB); Centre for Economic Policy Research (CEPR); CESifo (Center for Economic Studies and Ifo Institute for Economic Research); IZA Institute of Labor Economics

Marcel P. Thum

Dresden University of Technology - Faculty of Economics and Business Management; CESifo (Center for Economic Studies and Ifo Institute) - Ifo Institute

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Date Written: October 8, 2012

Abstract

This paper assesses the role of the public sector in adaptation to climate change. We first offer a definition and categorization of climate change adaptation. We then consider the primary economic principles that can guide the assignment of adaptation tasks to either the private or the public sector, as well as those guiding assignment within the public sector itself. We find that the role of the state in adaptation policy is limited. We identify information policy, the provision of a suitable regulatory framework in some markets, the formation of human capital and policies that foster economic growth and technological and medical knowledge as the main areas in which the public sector has a role in climate change adaptation.

Keywords: climate change, adaptation, Schelling conjecture, subsidiarity

JEL Classification: H54, Q54, Q58

Suggested Citation

Konrad, Kai A. and Thum, Marcel P., The Role of Economic Policy in Climate Change Adaptation (October 8, 2012). Working Paper of the Max Planck Institute for Tax Law and Public Finance No. 2012-08. Available at SSRN: https://ssrn.com/abstract=2158578 or http://dx.doi.org/10.2139/ssrn.2158578

Kai A. Konrad (Contact Author)

Max Planck Institute for Tax Law and Public Finance ( email )

Marstallplatz 1
Munich, 80539
Germany

HOME PAGE: http://www.tax.mpg.de/en/pub/home.cfm

Social Science Research Center Berlin (WZB) ( email )

Reichpietschufer 50
Berlin, 10785
Germany

HOME PAGE: http://www.wzb.eu/mp/fff/people/kai_konrad.en.htm

Centre for Economic Policy Research (CEPR)

90-98 Goswell Road
London, EC1V 7RR
United Kingdom

CESifo (Center for Economic Studies and Ifo Institute for Economic Research)

Poschinger Str. 5
Munich, 81679
Germany

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, 53072
Germany

Marcel Thum

Dresden University of Technology - Faculty of Economics and Business Management ( email )

Mommsenstrasse 13
Dresden, D-01062
Germany

CESifo (Center for Economic Studies and Ifo Institute) - Ifo Institute ( email )

Poschinger Str. 5
Munich, 01069
Germany

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