Detailed Economic Analysis of Individual Policy Instruments and Measures for Climate Change Adaptation

Climate change affects Germany in various ways, for example by increased storms, heat waves and extreme rainfall. The research project analyses to what degree adaption measures and instruments can reduce the expected damage from climate change. This reduction is compared to the costs of the measure and its impacts on growth, employment and sectoral added value.
Beside economic impacts, the measures and instruments have further welfare effects on environment, society and distribution. For example, clearing damage from a storm increases economic growth, while avoiding the damage would be better in many aspects for environment and society. The research project develops an extended perspective on welfare effects, which allows conclusions about the total impact that the measures and instruments have on environment and society.
The research team also analyses interdependencies between measures and instruments and side effects on other policy areas. In this way, it identifies a policy mix that offers high effectiveness and cost efficiency as well as positive effects on economy, environment, society and distribution.