Economic decision-models for climate adaptation: a survey

Authors:

  • Elin Kågebro
  • Maria Vredin Johansson

Publish date: 2008-06-26

Report number: FOI-R--2530--SE

Pages: 60

Written in: Swedish

Keywords:

  • Climate
  • Climate Change
  • Adaptation
  • Economic Decision Models
  • Cost-Benefit Analysis
  • Cost-Effect Analysis
  • Multi-Criteria Analysis

Abstract

Several of the adaptations to the climate change we are about to experience will occur successively and voluntarily in response to the climate change experienced. In many cases these adaptations will work perfectly but, for investments and activities with relatively long life-times (say more than 25 years) and for investments and activities that are sensitive to climate extremes, climate change requires increased planning and foresight. In these situations economic decisionmodels can aid the decision-makers through providing well-founded bases for the decisions, as well as tools for prioritizations. In this report we describe the most common economic decision-models: costbenefit analysis (CBA), cost-effectiveness analysis (CEA) and multi-criteria analysis (MCA). The descriptions will form a foundation for the continuing work on generating tools that can be useful for local decision-makers in their pursuit of coping with climate change within the Climatools programme.