Engaging a moving target: Adapting to rates of climate change

Abstract:

Climate change is affecting the planet and its human and natural systems at an increasing rate. As temperatures continue to rise, the international community has increasingly been considering adaptation measures to prepare for future climate change. However, most discussion around adaptation strategies has focused on preparedness for some expected amount of climate change impacts, e.g. 2 meters sea level rise.

In this study, we discuss adaptation to rates of change as an alternative conceptual framework for thinking about adaptation. Adaptation is not only about adapting to amounts of change, but the rate at which these changes occur is also critically important. We ground our discussion with an example of optimal coastal investment in the face of ongoing sea level rise.

Sea level rise threatens coastal assets. Finite resources could be devoted to building infrastructure further inland or to building coastal defense systems. A possible policy response could be to create a “no-build” coastal buffer zone that anticipates a future higher sea level. We present a quantitative model that illustrates the interplay among various important factors (rate of sea level rise, discount rate, capital depreciation rate, attractiveness of coastal land, etc). For some cases, strategies that combine periodic defensive investments (e.g. dikes) with planned retreat can maximize welfare when adapting to rates of climate change. In other cases, planned retreat may be optimal.

It is important to prepare for ongoing increasing amounts of climate change. Preparing for a fixed amount of climate change can lead to a suboptimal solution. Climate is likely to continue changing throughout this century and beyond. To reduce adverse climate impacts, ecosystems and human systems will need to continuously adapt to a moving target.