Aarhus Universitets segl

No. 229: What should a contribution model for climate adaptation look like?

Panduro, T.E. 2022. Hvordan skal en bidragsmodel for klimatilpasning se ud? Aarhus Universitet, DCE – Nationalt Center for Miljø og Energi, 33 s. - Teknisk rapport nr. 229. http://dce2.au.dk/pub/TR229.pdf

Summary

The report presents a theoretical framework for whom that benefits from a given climate adaptation project. Based on welfare economic utility theory, it discusses how contribution models should be constructed so that beneficiaries of climate adaptation initiatives are also those who contribute to implementation and maintenance costs of the climate adaptation measure.

The report concludes that contribution models should be based on individual utility fairness, where fairness is assessed based on whether the individual is better off after the climate adaptation project is implemented than before the climate adaptation project is implemented, when the contribution is also included in the assessment. The benefit of climate adaptation measures is calculated as the reduced exposure to flooding that otherwise would lead to tangible and intangible costs for households and companies. A contribution model should be based on these benefits since other possible benefits are negligible.