2020
DOI: 10.1007/s13280-020-01342-8
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Investing in climate change adaptation and mitigation: A methodological review of real-options studies

Abstract: Uncertain future payoffs and irreversible costs characterize investment in climate change adaptation and mitigation. Under these conditions, it is relevant to analyze investment decisions in a real options framework, as this approach takes into account the economic value associated with investment time flexibility. In this paper, we provide an overview of the literature adopting a real option approach to analyze investment in climate change adaptation and mitigation, and examine how the uncertain impacts of cl… Show more

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Cited by 45 publications
(22 citation statements)
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“…Likewise, climate change mitigation measures and the economic weight that carrying them out would imply have been analysed in order to assess the final economic balance, comparing the benefits of adaptation with those of mitigation; the former would imply seeking additional resources to better address diseases, reducing vulnerability and increasing resilience capacity; while the latter would imply a reduction in the danger and risk associated with environmental variables [ 67 , 68 , 69 ].…”
Section: Methodsmentioning
confidence: 99%
“…Likewise, climate change mitigation measures and the economic weight that carrying them out would imply have been analysed in order to assess the final economic balance, comparing the benefits of adaptation with those of mitigation; the former would imply seeking additional resources to better address diseases, reducing vulnerability and increasing resilience capacity; while the latter would imply a reduction in the danger and risk associated with environmental variables [ 67 , 68 , 69 ].…”
Section: Methodsmentioning
confidence: 99%
“…The observed "business as usual" seems, thus, a reasonable result but also a reasonable farm strategy in view of anticipated tighter regulations. Expected continuous or even increasing future P needs due to climate change, associated risks and necessary costly adaptations in arable production can be additional reasons for conservative strategies [52].…”
Section: Temporal Changes Were Negligiblementioning
confidence: 99%
“…Also, UHI is associated with global warming and moreover has been found to synergistically act with heatwaves and amplify their impacts 22 24 . Considering the projections linked to the ongoing climate change, the livability of cities will be seriously endangered 25 . In fact, according to IPCC’s Representative Concentration Pathway (RCP) 8.5, global warming is expected to reach up to 1.5° above pre-industrial levels by 2050, and up to 2.0°–4.9° by 2100 as compared to 1861–1880 26 , 27 .…”
Section: Introductionmentioning
confidence: 99%