An Excellent Review Paper Focused on The Economics of Climate Change Adaptation
RFF's Carolyn Kousky has written an excellent paper on what we know about the economics of climate change adaptation. I would have liked to have seen more discussion of endogenous innovation in anticipation of the opportunities and challenges that climate change will pose but perhaps Carolyn will work on that question in the future. For teachers of environmental economics who wrestle with how to teach the "economics of climate change" and don't want to present Integrated Assessment Models, this piece offers a valuable teaching tool. It highlights the many adjustment margins. Putting on my urban economics hat, I would have also liked to have seen her have more a of a discussion about the spatial aspects to climate change and how our thinking about adaptation changes when we acknowledge that locations differ with respect to how they will be affected by climate change. This introduces migration of firms and households into the discussion and forms the basis for my Climatopolis book.