Selected for the Global Economic Symposium 2011

Climate change will be a major international policy issue for decades to come. Mitigation has been the main focus of research and policy-making thus far, but adaptation to climate change has moved up in the policy agenda. Results of simulation models suggest that the negative effects of climate change disproportionately fall on the developing world, and some argue that such effects already started being visible in the form of agricultural damage, displacement of people by flood, etc. Moreover, the poor have very limited capacities and resilience to cope with climate change. Focusing on adaptation in low-income countries can therefore yield a large benefit in terms of social welfare. The conditions in low-income countries are different from the ones in developed countries, calling for research and planning tailored to individual countries. Possible solutions for the problem of climate change adaptation in the developing world include technology transfer, financing mechanisms for adaptation, grass roots initiatives and national adaptation plans. These solutions can be part of policy-making or private initiatives.