International mitigation and adaptation strategies for climate change policy: An integrated assessment approach

This study also concludes that the use of cost-benefit analysis to determine an optimal climate target is limited. The most important reason for this is that value judgements about the welfare of future generations – and with this the discounting method – has a much larger effect on the results than uncertainties in climate projections.

Finally, the thesis deals with financing adaptation in developing countries. According to international agreements, rich countries have to help finance adaptation in poorer countries which are most vulnerable to climate change. An Adaptation Fund has been established to accommodate this. This fund is fed by a share of proceeds from mitigation projects in poor countries financed by rich countries (so-called CDM projects). The thesis shows that such a mechanism is not effective and that additional financing mechanisms are necessary. A much larger transfer of funds from rich to poor countries could be reached if poor countries join a global system of emission trading.