While the small available literature attempting to quantify the
water-related impacts of and adaptation to climate change takes some
important first steps, it either leaves out adaptation entirely, or assumes thatwater resources are traded in competitivewatershed-levelmarkets
whichwill reach new, dynamically efficient equilibria in response to the
new precipitation and temperature regimes induced by climate change.
Neither set of assumptions is realistic. One option would be to integrate
both of these classes of results into existing IAMs. The “no adaptation”
models may provide an upper bound on adaptation costs (though the
possibility of maladaptation due to exacerbation of existing inefficiencies would suggest otherwise), and the “efficient adaptation” models
may provide a lower bound.
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