Adapting to Climate Change: Markets and the Management of an Uncertain Future

Agriculture, Policies

Adapting to Climate Change: Markets and the Management of an Uncertain Future

Kahn reviews findings on how climate change and extreme weather events affect key sectors of the economy. Although he does not dismiss the need to curb rising temperatures, he suggests that American society is getting better at adapting to climate change. Weather shocks provide incentives for businesses to develop new products, such as resilient building materials and in-home battery backup systems. Big data allows utility providers to adjust electricity and water prices in response to weather events, encouraging consumers to modify their usage in environmentally friendly ways. To be sure, it’s not just up to markets to respond to climate change.

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