Economics of Coastal Adaptation Solutions

The economics of adaptation to climate change relies heavily on the ability to compare the benefits of adaptation options with their costs under potentially enormous uncertainty.  This paper will compare benchmark estimates derived under assumptions of perfect economic efficiency supported by actuarially fair insurance with estimates derived under more realistic assumptions about imperfections in our abilities to spread risk.  Underlying theory will be explored and applied to case studies involved in protecting developed and undeveloped coastal property given uncertain sea level rise and associated risk driven by coastal storms in and around the Boston area.