Background and Goals
Regional climate models show that adverse effects cause by climate change - such as heat waves or severe rain events - are set to increase in Germany. The federal government wants to support the various players in adapting to these climate effects by setting up financing and incentive structures. Therefore, this project is intended to come up with economically sound proposals for the design of political adaptation instruments. Examples include spatial planning instruments and insurance concepts for private players. The proposals are based on analysis of economic climate change data and modelling of climate costs in Germany. The focus is on a cross-sectoral integrated assessment, incorporating losses that are not normal in the market into cost/benefit analyses.
The research project has the overall objective of proposing applicable measures in the area of defining financing and incentive structures for implementing the federal government's national adaptation strategy. These measures should have an economic and specialist justification and be communicated to the appropriate decision makers. In this context, the project has the following individual objectives:
Objective 1: Creation of a critical analysis of current research on the economics of climate change, particularly adaptation to climate change.
Objective 2: Formulation of a systematic overview of specific EU, federal government and state policy instruments to promote macro-economically efficient adaptation processes, including both existing instruments and new instruments to be implemented.
Objective 3: Derivation of recommended actions for adaptation of existing policy instruments and identification of practicable proposals for the possible design of new instruments at the specified levels, based on economic and specialist arguments.
Steps in the process of adaptation to climate change
Step 1: Understand and describe climate change
As the project is primarily concerned with the characteristics of policy instruments and the options for evaluating them, the analysis is not based on a specific climate scenario.
- Altered rainfall patterns
- Higher average temperatures
- Sea level rise und storm surges
frequency and intensity of extreme climatic events
Step 2a: Identify and assess risks - climate effects and impact
Climate change will have a significant influence on living and economic conditions in Germany, e.g. due to increased storm and flood damage, heat waves and severe rain events.
Step 3: Develop and compare measures
Economically sound proposals will be drawn up for the design of adaptation policy instruments.
German Environment Agency (UBA)
Centre for European Economic Research (ZEW)