I thank two anonymous referees, John Freebairn, Rod Keenan and participants at numerous seminars for their comments. More than usually any wrong views expressed here are mine. A less technical exposition of the main arguments here is in Clarke (2014). Financial support for this research was provided by the Victorian Centre for Climate Change Adaptation Research (VCCAR).
Planning Urban Water Investments with an Uncertain Climate†
Version of Record online: 4 DEC 2013
© 2013 The Economic Society of Australia
Economic Papers: A journal of applied economics and policy
Volume 32, Issue 4, pages 426–439, December 2013
How to Cite
Clarke, H. (2013), Planning Urban Water Investments with an Uncertain Climate. Economic Papers: A journal of applied economics and policy, 32: 426–439. doi: 10.1111/1759-3441.12055
- Issue online: 4 DEC 2013
- Version of Record online: 4 DEC 2013
- urban water;
- climate change;
Policies for assessing the effects of climate change risk and uncertainty on urban water provision are analysed with reference to Australia. The emphasis is on analytical insights derived from use of low-order real option and stochastic dynamic programming models. Attention is also paid to insurance and portfolio approaches and to issues raised by uncertainty, gross ignorance and catastrophic risks.