Economics of Climate Change Adaptation in Europe (ECONADAPT)

Overview

A critical theme of the project is to support the application of adaptation economics in the period following the publication of the EU’s 2013 Adaptation Strategy, focusing on key decision areas that need enhanced economic information, and on the key users of such information. Key decision areas include: management of extreme weather events modified by climate change that have high impact costs in the short term; appraisal of projects where the costs of climate risks are borne over long time periods; appraisal of flows of large-scale EU funds where the case for climate resilience needs to be made; macro-economic effects of climate change risks and adaptation strategies at Member State and EU levels, and; appraisal of overseas development assistance aimed at reducing the damage costs of climate risks in less developed countries. The project will work intensively with stakeholders from e.g. relevant DGs, Member States, Regional or local policy makers, and seek to learn from, and inform, experience. The methods and approaches will be co-developed with the diverse user groups engaged in using economic data within adaptation decision making. A two-tier approach is proposed to provide detailed guidance and empirical data: first, to other economists or private sector organisations with adaptation needs, and second, to other users who may want to use ‘light-touch’ methods, with the empirical data to help in scoping decision making outcomes. A strong link will be made with the European Climate Adaptation Platform (Climate-ADAPT), with the guidance and economic information designed for a wide range of users.

IIASA is one of fourteen partners collaborating on the project that is being coordinated by University of Bath, UK.

IIASA Research

IIASA Researches are working on identifying risks and uncertainty related to economic development and climate change, improvement and elaboration of economic decision methods under uncertainty for various categories of problems, assessment of applicability of tools for policy making.

As a policy case study, IIASA is conducting an assessment of the fiscal consequences of extreme weather events in the EU. Irrespective of attributing climate change to changes in losses, disaster risks impose large fiscal costs, and are contingent liabilities largely unrecognized in fiscal planning today. IIASA is further developing a methodology for modeling fiscal risk under climatic and socioeconomic change, which will be tested and cross-checked with key stakeholders in EU Member States and the EU Commission.

Last edited: 20 March 2017