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Adaptation as a Decision Making Under Deep Uncertainty

A Unique Challenge for Policymakers?

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Abstract

Climate change will fundamentally alter the nature of climate risks that we face as a society. The only viable approach to limit the impacts of climate change is to reduce global greenhouse gas emissions. But, due to the lags in the climate system, the world is already committed to further changes from historical emissions alone. The only way to reduce the impacts of this unavoidable climate change is through adaptation. Adaptation brings with it both new and old challenges for decision makers. This chapter describes the major new challenge introduced by climate change as deep uncertainty about the future evolution of climate. This means that policymakers can no longer rely on traditional approaches for managing uncertainty. The past can no longer be assumed to be an adequate guide to the future. Not considering the true nature of the uncertainties in decision making today can lead to maladaptations, putting lives at risk, and wasting investments. Long-term investments and policies, like public infrastructure and sectoral planning, with long lead times and high sunk costs, have the highest potential for maladaptation. Not considering long-term climate risks from the outset in these decisions can lock-in future vulnerability and unnecessary costs. This chapter suggests that, despite these challenges, in many cases, adaptation will be no more difficult than many other areas of public decision making. Many elements of adaptation plans, particularly in the near-term, are not necessarily highly sensitive to climate change uncertainties. Further, for long-term decisions, through employing a broad range of adaptation measures, considering flexibility up front, and sequencing measures to best cope with uncertainty, it is possible to build robust adaptation plans. By employing such principles in planning from the outset it is possible to reduce risk today and maintain flexibility to cope well with future climate changes.

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Notes

  1. 1.

    Exceptions are where local adaptation aims to reduce the effects of global impacts of climate change; for example, building local resilience to global food price shocks.

  2. 2.

    Statistical non-stationarity means that the statistical characteristics of a risk, such as a hurricane hitting the US Gulf Coast, are changing over time; for example, the average probability of landfall every season and its annual variability can no longer be assumed to be fixed with respect to time.

  3. 3.

    A ‘big surprise’ might be, for example, a natural process analogous to carbon feedbacks or dynamic instability of ice sheets (which were until recently unforeseen but are now known to have a potentially significant influence on future impacts), or a human process, such as technological innovation or unforeseen economic developments.

  4. 4.

    Robustness is defined here as an adaptation option’s ability to perform adequately across a wide variety of possible futures.

  5. 5.

    Sunk costs are past costs that cannot be recovered, making decisions effectively irreversible. Most public infrastructure involves costs that cannot be recovered.

  6. 6.

    For example, a health-care system that invests in measures to account for a range of possible future climate-related diseases across all plausible futures may be less well equipped to deal with any one individually.

  7. 7.

    Flexibility is defined as an adaptation’s ability to be adjusted to new information or circumstances in the future.

  8. 8.

    Also known as the policy-first, bottom-up, or assess risk of policy approach (e.g., [15]).

  9. 9.

    This is a narrower definition of no-regrets than is used in some previous studies and does not imply ‘no-regrets’ in terms of zero costs or zero tradeoffs with other investments.

  10. 10.

    Defra guidance calls for a “consistent and risk-neutral approach to considering climate change impacts” and emphasizes the use of managed adaptive approaches based on no-regrets actions where possible to maintain flexibility. A precautionary approach, consistent with a level of acceptable risk, is discussed where flexibility is not possible. Defra 2006 supplementary note on climate change defines time-evolving climate change allowances and sensitivity ranges to be used in project appraisal to ensure consistency and comparability [10].

  11. 11.

    For example, urbanization can reduce natural drainage (increasing runoff and reducing filtration), increasing the risk of surface water flooding.

  12. 12.

    The last time that central London was inundated was in 1928. The last major flood occurred in 1953, when there was extensive damage and loss of life in the eastern part of the Estuary.

  13. 13.

    Costs of the no-minimum and greatest-response (new barrage) adaptation options under the central sea level rise scenario.

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Acknowledgements

The author wishes to acknowledge the co-authors of the 2010 report Adaptation in the UK: A decision making process, funded by the Adaptation Sub-Committee, from which many of the concepts and examples in this chapter are drawn; Antony Millner, Simon Dietz, Sam Fankhauser, Ana Lopez, and Giovanni Ruta. Thanks also to Tim Reeder, Jonathan Fisher, Jim Hall, Bill Donovan, and Mark Ellis-Jones for information on the TE2100 project; to Dave Stainforth and Lenny Smith for helpful discussions on uncertainty; and to the Secretariat of the Adaptation Sub-Committee, in particular, Sebastian Catovsky, Neil Golborne, Steve Smith, and Kiran Sura. Ranger was supported by funding from the UK Economics and Social Research Council (ESRC) and Munich Re as part of the Centre for Climate Change Economics and Policy.

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Ranger, N. (2011). Adaptation as a Decision Making Under Deep Uncertainty. In: Linkov, I., Bridges, T. (eds) Climate. NATO Science for Peace and Security Series C: Environmental Security. Springer, Dordrecht. https://doi.org/10.1007/978-94-007-1770-1_6

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