Designing Climate Adaptation Funding Portfolios for Equity and Efficiency
This project seeks to explain how climate adaptation projects mitigate the unequal effects of climate change. They plan to model efficient investment in climate adaptation from a global perspective to inform how the United States should fund global activities to mitigate climate change. They will develop and calibrate a multiregion, multisector spatial equilibrium model that incorporates heterogenous exposure to climate change and adaptive capacity to deal with climate change. They will use the model to explore the equity-efficiency frontier of adaptation funding. Importantly, the model will account for global production networks, which play a key role in the propagation of shocks. They seek to understand how these shocks propagate across countries and affect workers with different characteristics, such as education level or race.