November 28, 2010

Adaptation and Mitigation in Long-Term Climate Policies

by Thierry Brechet, Natali Hritonenko and Yuri Yatsenko

- The paper analytically explores the optimal policy mix between mitigation and environmental adaptation against climate change at a macroeconomic level. The constructed economic-environmental model is formulated as a social planner problem with the adaptation and abatement investments as separate decision variables. The authors prove the existence of a unique steady state and provide a comparative static analysis of the optimal investment. Data calibration and numerical simulation are provided to illustrate theoretical outcomes.

Brechet, T., N. Hritonenko and Y. Yatsenko (2010). "Adaptation and Mitigation in Long-Term Climate Policies." Core Discussion Paper No. 2010.65, Oct 2010.