Designing Climate Adaptation Funding Portfolios for Equity and Efficiency

Grant description:

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.