Uncertain climate results and a rational climate policy

In the opinion of Heike Auerswald, Technical University of Dresden, Kai A. Konrad, Max-Planck-Institute for Tax Law and Public Finance, and Marcel Thum, Technical University of Dresden and Ifo Dresden, not only the global importance of the problem plays a role in the climate policies of individual countries but also the great uncertainty regarding potential future damage. Unilateral climate-policy action in a world of risk-averse decision-makers can actually lead to an increase in global greenhouse gas emissions. They recommend a strategy concentrated on adaptation measures. These not only protect one’s own country from the consequences of climate change but also force other stakeholders to increase investment in emission abatement and thus reduce the global risks from climate change.