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Projects Climate change economics

The aim of our research on climate change economics is to improve understanding of interactions between climate change and the economy to guide the design of climate change mitigation and adaptation policies.

Examples are studies on the economic consequences of sea level rise, extreme heat, and natural disasters, such as flooding, which are used in cost-benefit analyses of adaptation strategies, including nature based solutions.

Below an overview

Projects

  • Improving preparedness for low-probability/high-impact flood risk (2014-present)

    The aim of the project is to contribute to the design of new flood insurance arrangements that offer sufficient coverage and incentivize flood risk reduction. To do so, this project will advance our scientific understanding of developments in flood risks and related uncertainties, economic evaluation of insurance arrangements, and individual behaviour with respect to flood risks. This research will have implications for other low-probability/high-impact risks.

    Contact information: Prof. Wouter Botzen 

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  • REmote Climate Effects and their Impact on European sustainability, Policy and Trade – RECEIPT (2019-2021)

    In an interconnected world, Europe’s economy will be increasingly affected by climate change impacts that occur beyond its border. The movement of goods and services, people and capital occurs at ever increasing rates and volumes. This complex network reveals Europe’s globalized climate exposure, vulnerability and risk structure, through which both gradual and sudden impacts of climatic features at any location on the world (hurricanes, droughts, melting ice sheets) propagate, ultimately impacting Europe’s socio-economic welfare.

    Contact information: Prof. Wouter Botzen

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  • Climate Adaptation Modelling, Directorate General for Climate Action, EU (2019-2021)

    The project includes:

    • a comprehensive assessment of climate adaptation model and tool methods, including recommendations for future research and a database detailing the use of individual models and tools,
    • a recommended approach for future work on climate adaptation to inform the next EU Commission climate adaptation strategy,
    • a series of use cases and case studies to highlight the potential application of rapid analysis of reviewed models and tools for policy and decision making.

    This study was conducted in collaboration with Centro Euro-Mediterraneo sui Cambiamenti Climatici (CMCC), Deltares, Paul Watkiss Associates (PWA).

    Contact information: Prof. Wouter Botzen, Rhian Ebrey, Marleen de Ruiter and Prof. Jeroen Aerts.

  • CO-designing the Assessment of Climate CHange costs – COACCH (2017-2021)

    CO-designing the Assessment of Climate CHange costs  (COACCH) is an EU H2020 project that aims to produce an improved downscaled assessment of the economic costs of climate change in Europe that is of direct use to end users from the research, business, investment, and policy making community. Damage costs are assessed with a «sectoral» perspective  including agriculture, fishery, forestry, infrastructure and transportation, trade, health, and ecosystems. Climate and socio-economic «tipping points» are identified and their consequences are assessed under different climate and socio-economic scenarios. IVM contributes to the project with its integrated assessment models DIFI and CLIMRISK. 

    Contact information: Prof. Wouter Botzen and Dr Onno Kuik.

    Policy brief 1: The Economic Cost of Climate Change in Europe: Synthesis Report on State of Knowledge and Key Research Gaps. Policy brief by the COACCH project. Editors: Paul Watkiss, Jenny Troeltzsch, Katriona McGlade. Published May, 2018.

    Policy brief 2: The Economic Cost of Climate Change in Europe: Synthesis Report on Interim Results. Policy brief by the COACCH project. Editors: Paul Watkiss, Jenny Troeltzsch, Katriona McGlade, Michelle Watkiss. Published October, 2019.

  • Effectiveness of local climate policy in Breda and Wageningen (2019-2020)

    For the municipal Courts of Auditors in Breda and Wageningen IVM has carried out evaluation studies on the climate policies of these cities. Both have ambitious climate objectives, but the studies show that additional efforts will be needed to achieve them. The reports can be found here for Breda and here for Wageningen. 

    Contact information: Frans Oosterhuis.

  • Climate mortality in cities (2020)

    Climate change is projected to increase the frequency and severity of heat stress in many regions. Temperature rise as a result of climate change is expected to have major impacts on human health, and mortality in particular. Death tolls from heat may rise due to climate change when humans are unable to adapt to the heat. This has economic implications since it has been estimated that climate change impacts on health have large costs. This seed money project of the Amsterdam Sustainability Institute project aims to improve upon existing mortality projections for Europe, by conducting a comprehensive analysis of how global warming is expected to affect future mortality in cities, while accounting for the additional warming from the Urban Heat Island. We will produce probabilistic temperature projections that account for their uncertainty originating from climate sensitivity and warming projections from different Global Circulation Models. Moreover, we will update temperature-mortality curves and improve the realism of assumptions about adaptation to warming based on findings from a previous Amsterdam Sustainability Institute (ASI) project, and recent estimates from other literature.

    This project is a collaboration between Prof. Wouter Botzen and Predrag Ignjacevic of IVM and Prof. Hein Daanen and Mireille Folkerts of the Department Human Movement Sciences, Faculty of Behavioural and Movement Sciences, VU Amsterdam.

  • Drivers of climate-related human mortality and economic impacts (2019)

    The aim of this seed money project of the Amsterdam Sustainability Institute is to improve our understanding of the drivers of climate-related human mortality in the Netherlands, vulnerable subgroups of the population, and the economic valuation of climate change impacts on mortality. Improved insights into the meteorological causes of mortality and vulnerable subgroups can aid the design of adaptation policies to limit mortality during extreme weather conditions, such as early warning systems and heat emergency management plans. Estimates of the economic costs of climate change related mortality can contribute to awareness of the impacts of climate change and serve as input for cost-benefit analyses of climate change adaptation and mitigation policies. Economic studies have found that health risks make up a substantial proportion of the economic impacts of heat in cities and from climate change in general, which highlights there is an economic rationale for improving our understanding of drivers and mitigating factors of climate-related mortality. 

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  • High-end climate impacts and extremes – HELIX (2013-2017)

    The Helix project aims to contribute to the design of new flood insurance arrangements that offer sufficient coverage and incentivize flood risk reduction. To do so, this project will advance our scientific understanding of developments in flood risks and related uncertainties, economic evaluation of insurance arrangements, and individual behaviour with respect to flood risks. This research will have implications for other low-probability/high-impact risks. This project has received funding from the European Union’s 7th Framework Programme for research, technological development and demonstration. 

    Website: www.helixclimate.eu.

    Contact information: Prof. Wouter Botzen