Skip to main content

Abstract

In spite of the recent global effort in mitigating greenhouse gases, the temperature of the earth continues to increase because we are already committed past emissions. Therefore, adapting to the changing climate is an immediate challenge that requires choosing a successful strategy. This chapter reviews classical decision-making methods and discusses their limitations when applied to climate change adaptation planning. Three novel decision-making methods, robust decision making (RDM), real option analysis (ROA), and dynamic adaptive policy pathways (DAPP), are discussed, and their applications are then introduced in water resources planning under different climate change scenarios. Such methods should be either “robust” or “adaptive” for decision makers to capture the nonstationary and uncertain characteristics of climate change. As its name indicates, the RDM method focuses on the “robust” perspective and chooses an alternative that performs satisfactorily over a wide range of scenarios. In contrast, both the ROA and DAPP methods focus on the “adaptive” perspective and have a decision tree framework where risk is spread over time. ROA allows decision makers to delay or abandon the chosen alternative rather than just implementing it without modification, while DAPP introduces the tipping point concept that offers a systematic way of when to switch between alternatives. However, these advanced decision-making methods are resource intensive; thus, a continuous administrative effort and institutional as well as technical supports are required for their success in the climate change era.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 129.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 169.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 169.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • Adger WN (2006) Vulnerability. Glob Environ Chang 16(3):268–281

    Article  Google Scholar 

  • Adger WN et al (2005) Successful adaption to climate change across scales. Glob Environ Chang 15(2):77–86. doi:10.1016/j.gloenvcha.2004.12.005

    Article  Google Scholar 

  • Alliance W.U.C. (WUCA) (2010) Incorporating climate change uncertainties into water planning, decision support planning methods, San Francisco, CA, January

    Google Scholar 

  • Birkmann J (2013) Measuring vulnerability to natural hazards: towards disaster resilient societies. In: Birkmann J (ed) Measuring vulnerability to promote disaster-resilient societies: conceptional frameworks and definitions. United Nations University, New York, pp 9–54

    Google Scholar 

  • Bloom EW (2014) Changing midstream: providing decision support for adaptive strategies using robust decision making: applications in the Colorado River basin. Pardee Rand Graduate School, Rand Corporation, PhD Dissertation

    Google Scholar 

  • Borison A, Hamm G (2008) Real options and urban water resource planning in Australia. Water Services Association of Australia (WSAA), April

    Google Scholar 

  • Brown C (2013) Decision-scaling for robust planning and policy under climate uncertainty. Expert Perspectives Series Written for the World Resources Report, 2011

    Google Scholar 

  • Brown C, Baroang KM (2011) Risk assessment, risk management, and communication. Methods for climate variability and change. Treatise Water Sci Elsevier 1:189–199

    Article  Google Scholar 

  • Brown C, Wilby RL (2012) An alternate approach to assessing climate risks. Eos 93(41):401–402. doi:10.1029/2012EO410001

    Article  Google Scholar 

  • Carlsson C, Fullér R (1996) Fuzzy multiple criteria decision making: recent developments. Fuzzy Sets Syst 78(2):139–153

    Article  Google Scholar 

  • Chung ES, Kim Y (2014) Development of fuzzy multi-criteria approach to prioritize locations of treated wastewater use considering climate change scenarios. J Environ Manag 146:505–516

    Article  Google Scholar 

  • Chung ES, Lee KS (2009) Prioritization of water management for sustainability using hydrologic simulation model and multicriteria decision making techniques. J Environ Manag 90(3):1502–1511

    Article  Google Scholar 

  • Dessai S (2005) Robust adaptation decisions amid climate change uncertainties. PhD. University of East Anglia, Norwich

    Google Scholar 

  • Dessai S, Hulme M (2004) Does climate adaptation policy need probabilities? Clim Policy 4(2):107–128

    Article  Google Scholar 

  • Dessai S, Hulme M (2007) Assessing the robustness of adaptation decisions to climate change uncertainties: a case study on water resources management in the East of England. Glob Environ Chang 17(1):59–72

    Article  Google Scholar 

  • Dessai S et al (2009) Climate prediction: a limit to adaptation. Adapting to climate change: thresholds, values, governance, pp 64–78

    Google Scholar 

  • Dewar JA et al (1993) Assumption-based planning: a planning tool for very uncertain times. RAND CORP MR-114-A, Santa Monica

    Google Scholar 

  • Dodgson JS et al (2009) Multi-criteria analysis: a manual. Department for Communities and Local Government, London

    Google Scholar 

  • Ducey MJ, Larson BC (1999) A fuzzy set approach to the problem of sustainability. For Ecol Manag 115(1):29–40

    Article  Google Scholar 

  • Giles J (2002) Scientific uncertainty: when doubt is a sure thing. Nature 418(6897):476–478

    Article  CAS  Google Scholar 

  • Greco S et al (1999) The use of rough sets and fuzzy sets in MCDM. Multicriteria decision making. Springer US, Boston, pp 397–455

    Google Scholar 

  • Grove D et al (2013) Adapting to a changing Colorado river: making future water deliveries more reliable through robust management strategies. AGU Fall Meeting Abstracts, vol 1, p 1407

    Google Scholar 

  • Haasnoot M et al (2011) A method to develop sustainable water management strategies for an uncertain future. Sustain Develop 19(6):369–381. doi:10.1002/sd.438

    Article  Google Scholar 

  • Haasnoot M et al (2012) Exploring pathways for sustainable water management in river deltas in a changing environment. Clim Chang 115(3–4):795–819

    Article  Google Scholar 

  • Haasnoot M et al (2013) Dynamic adaptive policy pathways: a method for crafting robust decisions for a deeply uncertain world. Glob Environ Chang 23(2):485–498. doi:10.1016/j.gloenvcha.2012.12.006

    Article  Google Scholar 

  • Hall JW et al (2012) Robust climate policies under uncertainty: a comparison of robust decision making and info‐gap methods. Risk Anal 32(10):1657–1672

    Article  Google Scholar 

  • Hallegatte S (2009) Strategies to adapt to an uncertain climate change. Glob Environ Chang 19(2):240–247. doi:10.1016/j.gloenvcha.2008.12.003

    Article  Google Scholar 

  • Hallegatte S et al (2012) Investment decision making under deep uncertainty-application to climate change. PRWP, 6193

    Google Scholar 

  • Hunt A, Watkiss P (2013) Portfolio analysis: decision support methods for adaptation. MEDIATION Project, Briefing Note 5. Funded by the EC’s 7FWP

    Google Scholar 

  • Hurwicz L (1945) The theory of economic behavior. Am Econ Rev 35(5):909–925

    Google Scholar 

  • Hyde KM et al (2005) A distance-based uncertainty analysis approach to multi-criteria decision analysis for water resource decision making. J Environ Manag 77(4):278–290

    Article  CAS  Google Scholar 

  • IPCC (2001) Climate change 2001: impacts, adaptation and vulnerability. Summary for Policy Makers, World Meteorological Organisation, Geneva

    Google Scholar 

  • IPCC (2005) Guidance notes for lead authors of the IPCC fourth assessment report on addressing uncertainties. Cambridge University Press available via, Cambridge, UK, http://www.ipcc.ch/pdf/assessment-report/ar4/wg1/ar4uncertaintyguidancenote.pdf

    Google Scholar 

  • Jeon SM (2013) A new approach of prioritizing the location for climate change adaptation strategy using fuzzy multi-criteria decision making. Seoul National University of Science and Technology, Master Thesis

    Google Scholar 

  • Jeuland M, Whittington D (2013) Water resources planning under climate change: a “real options” application to investment planning in the Blue Nile (No. dp-13-05-efd)

    Google Scholar 

  • Johnson TE, Weaver CP (2008) A framework for assessing climate change impacts on water and watershed systems. Environ Manag 43(1):118–134

    Article  Google Scholar 

  • Kang BS et al (2013) A sensitivity analysis approach of multi-attribute decision making technique to rank flood mitigation projects. KSCE J Civ Eng 17(6):1529–1539

    Article  Google Scholar 

  • Kelly PM, Adger WN (2000) Theory and practice in assessing vulnerability to climate change and facilitating adaptation. Clim Chang 47(4):325–352

    Article  Google Scholar 

  • Kim Y, Chung ES (2014) An index-based robust decision making framework for watershed management in a changing climate. Sci Total Environ 473:88–102

    Article  Google Scholar 

  • Kim Y, Chung ES (2015) Robust prioritization of climate change adaptation strategies using the VIKOR method with objective weights., JAWRA J Am Water Resour Assoc

    Google Scholar 

  • Kim Y et al (2015) Iterative framework for robust reclaimed wastewater allocation in a changing environment using multi-criteria decision making. Water Resour Manag 29(2):295–311

    Article  Google Scholar 

  • Kunreuther H et al (2014) Integrated risk and uncertainty assessment of climate change response policies. Climate change 2014. Mitigation of climate change. Contribution of Working Group III to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change, 2:151–205

    Google Scholar 

  • Kwadijk JCJ et al (2010) Using adaptation tipping points to prepare for climate change and sea level rise: a case study in the Netherlands. WIREs Clim Change 1(5):729–740

    Article  Google Scholar 

  • Lau KT et al (2006) The potential use of the Black-Scholes model in urban drainage risk management. Doctoral dissertation, MSc thesis, Department of Civil and Environmental Engineering, Imperial College of Science, Technology and Medicine

    Google Scholar 

  • Lempert RJ, Grove DG (2010) Identifying and evaluating robust adaptive policy responses to climate change for water management agencies in the American west. Technol Forecast Soc Chang 77(6):960–974

    Article  Google Scholar 

  • Lempert RJ, Schlesinger ME (2000) Robust strategies for abating climate change. Clim Chang 45(3):387–401

    Article  Google Scholar 

  • Lempert RJ et al (2003) Shaping the next one hundred years: new methods for quantitative, long-term policy analysis. Tech. Rep RAND CORP MR-1626-RPC

    Google Scholar 

  • Lempert RJ et al (2004) Characterizing climate-change uncertainties for decision-makers. Clim Chang 65(1):1–9

    Article  Google Scholar 

  • Lempert RJ et al (2006) A general, analytic method for generating robust strategies and narrative scenarios. Manag Sci 52(4):514–528

    Article  Google Scholar 

  • Lempert RJ et al (2013) Ensuring robust flood risk management in Ho Chi Minh City. PRWP, 6465

    Google Scholar 

  • Lesnikovski AC et al (2015) How are we adapting to climate change? A global assessment. Mitig Adapt Strat Glob Chang 20(2):277–293. doi:10.1007/s11027-013-9491-x

    Article  Google Scholar 

  • Liu KF (2007) Evaluating environmental sustainability: an integration of multiple-criteria decision-making and fuzzy logic. Environ Manag 39(5):721–736

    Article  Google Scholar 

  • Loomes G, Sugden R (1982) Regret theory: an alternative theory of rational choice under uncertainty. Econ J :805–824

    Google Scholar 

  • Loucks et al (2005) Water resources systems planning and management: an introduction to methods, models and applications. UNESCO, Paris

    Google Scholar 

  • McMahon TA (2007) Review of Gould–Dincer reservoir storage–yield–reliability estimates. Adv Water Resour 30(9):1873–1882

    Article  Google Scholar 

  • McMahon TA (2011) A simple methodology for estimating mean and variability of annual runoff and reservoir yield under present and future climates. J Hydrometeorol 12(1):135–146

    Article  Google Scholar 

  • Metlay D (2000) From tin roof to torn wet blanket: predicting and observing groundwater movement at a proposed nuclear waste site. In: Sarewitz D (ed) Prediction: science, decision making, and the future of nature. Island Press, Covelo, CA, pp 199–208

    Google Scholar 

  • Michailidis A, Mattas K (2007) Using real options theory to irrigation dam investment analysis: an application of binomial option pricing model. Water Resour Manag 21(10):1717–1733

    Article  Google Scholar 

  • Moss RH, Schneider SH (2000) Uncertainties in the IPCC TAR—recommendations to lead authors for more consistent assessment and reporting, In: Pachauri R, Taniguchi T, Tanaka K (eds) Guidance papers on the cross cutting issues of the third assessment report of the IPCC. World Meteorological Organization, Geneva, pp 33–51

    Google Scholar 

  • Myers SC (1977) Determinants of corporate borrowing. J Financ Econ 5(2):147–175. doi:10.1016/0304-405X(77)90015-0

    Article  Google Scholar 

  • Neufville R (2003) Real options dealing with uncertainty in systems planning and design. Integrat Ass 4(1):26–34. doi:10.1076/iaij.4.1.26.16461

    Article  Google Scholar 

  • NPCC (2010) Climate change adaptation In: Rosenzweig C, Solecki W (eds) New York City: building a risk management response. Ann NY Acad Sci 1196:1–354

    Google Scholar 

  • NRC (2010) Adapting to the impacts of climate change. Washington, DC. doi: 10.17226/12783

    Google Scholar 

  • Orlove B (ed) (2009) Adapting to climate change: thresholds, values, governance. Cambridge University Press, Cambridge, pp 131–180

    Book  Google Scholar 

  • Pelling M (2011) Adaptation to climate change: from resilience to transformation. Routledge, London

    Google Scholar 

  • Philles YA, Andriantiatsaholiniaina LA (2011) Sustainability: an ill-defined concept and its assessment using fuzzy logic. Ecol Econ 37(3):435–456

    Article  Google Scholar 

  • Porthin M et al (2013) Multi-criteria decision analysis in adaptation decision-making: a flood case study in Finland. Reg Environ Chang 13(6):1171–1180

    Article  Google Scholar 

  • Preston BL et al (2011) Climate adaptation planning in practice: an evaluation of adaptation plans from three developed nations. Mitig Adapt Strat Glob Chang 16(4):407438. doi:10.1007/s11027-010-9270-x

    Article  Google Scholar 

  • Ranger N et al (UKCIP) (2010) Adaptation in the UK: a decision making process. Environment Agency

    Google Scholar 

  • Reeder T, Ranger N (2011) How do you adapt in an uncertain world?: lessons from the Thames Estuary 2100 project. WRI, Washington, DC

    Google Scholar 

  • Ryu Y (2014) Application of real options valuation to water resources planning considering climate change uncertainty. Seoul National University, Master Thesis

    Google Scholar 

  • Sanneh ES et al (2014) Prioritization of climate change adaptation approaches in the Gambia. Mitig Adapt Strat Glob Chang 19(8):1163–1178

    Article  Google Scholar 

  • Sarewitz D, Pielke RA Jr (2000) Breaking the global-warming gridlock. Atl Mon 286(1):55–64

    Google Scholar 

  • Savage LJ (1954) The foundations of statistics, 2nd edn. Wiley, New York

    Google Scholar 

  • Schneider SH (2001) What is ‘dangerous’ climate change? Nature 411(6833):17–19

    Article  CAS  Google Scholar 

  • Smit B et al (2000) An anatomy of adaptation to climate change and variability. Clim Chang 45(1):223–251

    Article  Google Scholar 

  • Song JY, Chung ES (2016) Robustness, uncertainty and sensitivity analyses of the TOPSIS method for quantitative climate change vulnerability: A case study of flood damage. Water Resour Manag. doi:10.1007/s11269-016-1451-2

  • Stainforth DA et al (2007) Confidence, uncertainty and decision-support relevance in climate predictions. Philos Trans R Soc A 365(1857):2145–2161

    Article  CAS  Google Scholar 

  • Steinschneider S, Brown C (2012) Dynamic reservoir management with real-option risk hedging as a robust adaptation to nonstationary climate. Water Resour Res. 48(5). doi: 10.1029/2011WR011540

  • Stevenson WJ, Ozgur C (2007) Introduction to management science with spreadsheets and student CD. McGraw-Hill Inc, New York

    Google Scholar 

  • Tompkins EL et al (2010) Observed adaptation to climate change. UK evidence of transition to a well-adapting society. Glob Environ Chang 20(4):627–635. doi:10.1016/j.gloenvcha.2010.05.001

    Article  Google Scholar 

  • Turner SWD et al (2013) Linking climate projections to performance: a yield-based decision scaling assessment of a large urban water resources system. Water Resour Res 50(4):3553–3567

    Article  Google Scholar 

  • Turskis Z, Zavadskas EK (2011) Multiple criteria decision making (MCDM) methods in economics: an overview. Technol Econ Develop Econ 2:397–427

    Google Scholar 

  • UNFCCC (United Nations Framework Convention on Climate Change) (2002) Annotated guidelines for the preparation of national adaptation programs of action. United Nations, New York

    Google Scholar 

  • Vadrevu KP et al (2010) Fire risk evaluation using multicriteria analysis – a case study. Environ Monit Assess 166(1–4):223–239

    Article  Google Scholar 

  • van der Pol TD et al (2014) Optimal dike investments under uncertainty and learning about increasing water levels. J Flood Risk Manag 7(4):308–318

    Article  Google Scholar 

  • Wald A (1949) Statistical decision functions. Ann Math Stat 20(2):165–205

    Article  Google Scholar 

  • Walker WE et al (2001) Adaptive policies, policy analysis, and policy-making. Eur J Oper Res 128(2):282–289. doi:10.1016/S0377-2217(00)00071-0

    Article  Google Scholar 

  • Walker WE et al (2013) Adapt or perish: a review of planning approaches for adaptation under deep uncertainty. Sustainability 5(3):955–979. doi:10.3390/su5030955

    Article  Google Scholar 

  • Watkiss P, Hunt A (2013) Method overview: decision support methods for adaptation, Briefing Note 1. Summary of Methods and Case Study Examples from the MEDIATION Project. Funded by the EC’s 7FWP

    Google Scholar 

  • Watkiss P et al (2013) Real options analysis: decision support methods for adaptation, MEDIATION Project, Briefing Note 4. Funded by the EC’s 7FWP

    Google Scholar 

  • Weaver CP et al (2013) Improving the contribution of climate model information to decision making: the value and demands of robust decision frameworks. Wiley Interdisciplinary Reviews. Clim Chang 4(1):39–60

    Google Scholar 

  • Werners et al (2013) Adaptation turning points: decision support methods for adaptation, MEDIATION Project, Briefing Note 9. Funded by the EC’s 7FWP

    Google Scholar 

  • Wheeler SM (2008) State and municipal climate change plans: the first generation. J Am Plan Assoc 74(4):481–496. doi:10.1080/01944360802377973

    Article  Google Scholar 

  • Willows R, Connell R (2003) Climate adaptation: risk, uncertainty and decision-making. UKCIP Technical Report. UK Climate Impacts Programme

    Google Scholar 

  • Woodward M et al (2014) Adaptive flood risk management under climate change uncertainty using real options and optimization. Risk Anal 34(1):75–92

    Article  Google Scholar 

Download references

Acknowledgment

This research was supported by Basic Science Research Program through the National Research Foundation (NRF) funded by the Ministry of Science, ICT, and Future Planning (NRF-2013R1A1A2073677) and also supported by a grant from Advanced Water Management Research Program funded by the Ministry of Land, Infrastructure and Transport (14WMP-B082564-01) of Korea. Special thanks goes to Professor Joern Birkmann of University of Stuttgart and LG Yonam Foundation who supported the sabbatical leave of the first author when a major part of this chapter was written.

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Young-Oh Kim .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2017 Springer Science+Business Media Singapore

About this chapter

Cite this chapter

Kim, YO., Chung, E.S. (2017). Adaptation to Climate Change: Decision Making. In: Kolokytha, E., Oishi, S., Teegavarapu, R. (eds) Sustainable Water Resources Planning and Management Under Climate Change. Springer, Singapore. https://doi.org/10.1007/978-981-10-2051-3_8

Download citation

Publish with us

Policies and ethics