The paper "Catastrophic Risk, Precautionary Abatement, and Adaptation Transfers" by F. Bosello, E. De Cian and L. Ferranna was presented by Professor F. Bosello (FEEM and Euro-Mediterranean Center on Climate Change) at the second biennial "European Climate Change Adaptation Conference" that was hosted in Copenhagen in 2015.
In this short video, Prof. F. Bosello explains the motivation underlying the research.
Prof. Fancesco Bosello
“Catastrophic Risk, Precautionary Abatement, and Adaptation Transfers”
"In the field of international climate change policies, both theory and practice show that international environmental agreements on mitigation are very difficult to achieve. Mitigation is very costly, and it is difficult to convince countries to participate. In recent years the literature and the economic theories have been trying to understand if the possibility to couple adaptation to mitigation in environmental agreements could increase the feasibility of these agreements - in particular, if the support of adaptation by developed to developing countries could convince them somehow, or make them more willing to abate or to mitigate. This issue has been studied mainly with theoretical approaches, not with empirical applied approaches. This is why we use this applied methodology to test this assumption, and what we found is quite interesting. The main result is that indeed if developed countries are willing to support adaptation expenditure and adaptation needs in developing countries, then provided that developing countries accept to use part of these funds also for the investment in new technologies for mitigation activities, mitigation in developing countries is going to improve and global emissions will be reduced. However, there is a problem. The problem is that mitigation seems much more costly than adaptation, so the support of adaptation is not sufficient to foster huge increase in abatement in developing countries. Therefore, the conclusion is that supporting adaptation is very important, especially under an equity and distributional point of view, but this support is not sufficient in scale to foster mitigation in developing countries or to induce them to mitigate a lot. Something could be achieved, but not that much, so developing countries should be compensated by the mitigation effort with some additional means, and this is the main result of our research."
FEEM Nota di Lavoro 2014.108