VCCCAR Project: framing adaptation in the Victorian context - options for assessing the cost of climate change for adaptation policy in Victoria

Working paper 2:

This report focuses on assessing the impacts of climate change only, not the wider topic of the economics of mitigation, industry or economy-wide adjustment to a carbon price, or the costs of adaptation to climate change. Points regarding costing climate change impacts for adaptation decision-making are introduced in the first section, followed by a summary of climate change impact economic analyses undertaken for Victoria. The next section outlines the methodologies available for costing climate change impacts and their strengths and weaknesses. This is followed by a discussion of some critical issues associated with such analyses. Interspersed throughout the report are examples of analyses undertaken internationally. In the final section, the report considers possible directions for economic assessment of climate change impacts in Victoria.