Theoretical Discussion of Adaptation to Climate Change and Application to the SEADICE Model

Abstract

This chapter discusses the concept of adaptation to climate change and then applies it to the SEADICE model to draw some conclusions with regard to the application of adaptation concepts to dynamic optimisation integrated models of climate change economics. It is in essence a form of positive analysis (the purpose of which is to predict or estimate the likelihood) where the key question is ‘what adaptations are likely?’ This chapter initially provides general descriptions of some of the concepts of adaptation used in the sciences, and ultimately climate change economics before concluding with an application of climate change adaptation to the SEADICE model. In between these topics, the chapter attempts to make three important arguments, that the concept of autonomous adaptation is an important distinction to make, that it is dependent on the level of technology and that economic growth models with endogenous technical progress are suited to representing autonomous adaptation to climate change.