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Adaptations to climate change: Extre...
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Lee, Sangjun.
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Adaptations to climate change: Extreme events versus gradual changes.
紀錄類型:
書目-電子資源 : Monograph/item
正題名/作者:
Adaptations to climate change: Extreme events versus gradual changes./
作者:
Lee, Sangjun.
面頁冊數:
132 p.
附註:
Source: Dissertation Abstracts International, Volume: 76-05(E), Section: A.
Contained By:
Dissertation Abstracts International76-05A(E).
標題:
Environmental economics. -
電子資源:
http://pqdd.sinica.edu.tw/twdaoapp/servlet/advanced?query=3668983
ISBN:
9781321443943
Adaptations to climate change: Extreme events versus gradual changes.
Lee, Sangjun.
Adaptations to climate change: Extreme events versus gradual changes.
- 132 p.
Source: Dissertation Abstracts International, Volume: 76-05(E), Section: A.
Thesis (Ph.D.)--Michigan State University, 2014.
This item must not be sold to any third party vendors.
As extreme weather events become more prominent, there is growing interests among public and academic society in the relation between those events and climate change. While several current studies provide evidence about how climate change appears to be creating more frequent and more severe extreme events, relatively little is known about adaptation strategies compared with strategies for gradual climate change. This dissertation focuses on adaptation strategies in response to changes in the pattern of frequency and magnitude of extreme events.
ISBN: 9781321443943Subjects--Topical Terms:
535179
Environmental economics.
Adaptations to climate change: Extreme events versus gradual changes.
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Source: Dissertation Abstracts International, Volume: 76-05(E), Section: A.
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Advisers: Jinhua Zhao; Suzanne Thornsbury.
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As extreme weather events become more prominent, there is growing interests among public and academic society in the relation between those events and climate change. While several current studies provide evidence about how climate change appears to be creating more frequent and more severe extreme events, relatively little is known about adaptation strategies compared with strategies for gradual climate change. This dissertation focuses on adaptation strategies in response to changes in the pattern of frequency and magnitude of extreme events.
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This dissertation consists of three essays focused on adaptation decision making under climate change including explicit consideration of extreme events. The first essay establishes a theoretical model of adaptation, capturing the different effects of gradual climate change uncertainties versus extreme events. Employing a real options framework where underlying stochastic processes capture effects of extremes, land use decisions are examined given increased frequency and severity of extreme weather events as well as gradual climate change. Findings show that when decision makers are allowed to optimize dynamically and to learn, gradual change and extreme events can lead to different adaptation incentives as well as different likelihoods of adaptation occurring even when traditional net present value (NPV) calculations are equal; even if both exhibits same expected damage, gradual change imposes higher incentive to switch than the extreme events but the realized action may be dominated by the extreme events.
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The second essay applies a real options land use conversion model to decisions in the Michigan tart cherry industry where exposure and vulnerability to extreme events has increased since 2000. Empirical yield and price processes are estimated using historical tart cherry yield and price data from 1946 to 2012. Exit decisions from farming are examined under gradual change and extreme events. Consistent with theoretical results from the first essay, the empirical assessment indicates extreme events dominate gradual change in adaption actions in the industry. Results imply that assessments of exposure and vulnerability to extremes such as spring frosts can provide valuable information to the growers.
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The third essay examines the government role in designing and implementing effective policy to support individual enterprises under the effects of extreme events. Three popular forms of subsidies to support an enterprise's revenue under climate change risks are compared for effectiveness given the same cost to government: i) fixed amount subsidy; ii) fixed rate subsidy; and iii) insurance support. Empirical simulation shows that an insurance subsidy outperforms the other policy measures as it successfully transfers climate-driven risks to the government. Heavy-tail distribution of extremes, which indicates more drastic extreme events in the future, may increase government costs rapidly. Thus insurance policy needs to be designed to impose individual enterprises' own investments to protective measures in compensation of the government's risk sharing.
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