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This paper describes how relatively detailed knowledge about probabilities of natural hazards can be used to make decisions to develop areas and control the risk within hazard zones. The assessment serves two purposes. First, it shows how information can support decisions. Second, decision criteria put leads on what information is required. This is helpful to identify unavailable information. We show by an example from a land-slide prone area in Norway how a relatively reliable estimate of the probability of slides ends up in a rather uncertain estimate of the risk. Uncertainty about the risk represented by natural hazards imply great challenges to the development of adaptation policies to meet climate change, but they are required. We develop a simplified criterion for optimal adaptation, and estimate the added social value required to defend development in hazard prone areas instead of developing a risk-free alternative. The value is estimated between 0 and 0.40 Euros per Euro invested in the case area, depending on type of slide, category of asset and other costs that occur in the wake of slides. [ABSTRACT FROM AUTHOR]

Adaptation is an important element on the climate change policy agenda. Integrated assessment models, which are key tools to assess climate change policies, have begun to address adaptation, either by including it implicitly in damage cost estimates, or by making it an explicit control variable. We analyze how modelers have chosen to describe adaptation within an integrated framework, and suggest many ways they could improve the treatment of adaptation by considering more of its bottom-up characteristics. Until this happens, we suggest, models may be too optimistic about the net benefits adaptation can provide, and therefore may underestimate the amount of mitigation they judge to be socially optimal. Under some conditions, better modeling of adaptation costs and benefits could have important implications for defining mitigation targets. [ABSTRACT FROM AUTHOR]

This paper proposes methods to assess the socioeconomic impacts of climate change within the framework of national accounting and macroeconomic models. The methods are illustrated with examples. The framework of national accounting serves several important purposes in the assessment of the national impacts of climate change. First, an accounting system requires that assumptions and output from independent sector studies of impacts be standardised and made comparable. Second, it serves as a checkpoint for the availability and quality of information about impacts of climate change. Third, it provides a starting point for more extensive macroeconomic analysis of impacts. [Copyright &y& Elsevier]