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Some rationales for risk sharing and financing adaptation.

L M Bouwer1, P Vellinga

  • 1Institute for Environmental Studies, Faculty of Earth and Life Sciences, Vrije Universiteit, De Boelelaan 1087, 1081 HV, Amsterdam, The Netherlands. laurens.bouwer@ivm.falw.vu.nl

Water Science and Technology : a Journal of the International Association on Water Pollution Research
|May 28, 2005
PubMed
Summary

Climate change and variability strain water systems and finances. Current disaster loss and adaptation cost-sharing mechanisms are insufficient, necessitating a structured reconsideration of financial arrangements for water management in all countries.

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Area of Science:

  • Environmental Science
  • Climate Change Economics
  • Water Resource Management

Background:

  • Climate variability and change pose significant threats to water systems and financial stability.
  • Existing mechanisms for sharing economic losses from weather-related hazards and adaptation costs are inadequate.
  • There is a critical need to address financial resilience in the face of climate impacts on water resources.

Purpose of the Study:

  • To examine rationales for financing disaster losses through public and private means.
  • To explore options for financing climate change adaptation, with a focus on water management.
  • To propose a structured reconsideration of financial arrangements for risk sharing and adaptation.

Main Methods:

  • Review of existing financial arrangements for disaster loss sharing.

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  • Analysis of different rationales for public and private financing mechanisms.
  • Exploration of adaptation financing options, particularly for water management.

    • Main Results:

    • Current financial arrangements for disaster losses and adaptation costs are insufficient.
    • Three distinct rationales for financing disaster losses are identified.
    • Various options for financing climate change adaptation in water management are discussed.

    Conclusions:

    • Financial arrangements for risk sharing and climate change adaptation require structured reconsideration.
    • A more integrated approach is needed to manage both disaster losses and adaptation costs.
    • These financial strategies are crucial for both developing and developed countries facing water management challenges.