On analytical models of optimal mixture of mitigation and adaptation investmentst

Determining the optimal combination of mitigation and adaptation investments is an important topic in policy making to combat climate change. Some analytical results on the relationship between the optimal ratio of adaptation to mitigation and development level have been reported in the literature. In this article, we examine this relationship in greater detail using a simple model with general return functional forms and analytically show that the relationship can take various forms. The results suggest a desirable design of empirical studies on adaptation measures. In addition, the insights obtained in the simple model are useful to understand more complicated models. (C) 2018 Elsevier Ltd. All rights reserved.