Proceed with caution: Using a transaction cost framework and case study approach to explain how reactive adaptation to extreme climate events can lead to poor adaptation outcomes
(2014) In IIIEE Master thesis IMEN41 20141The International Institute for Industrial Environmental Economics
- Abstract
- The ‘policy window hypothesis’ in the context of extreme climate events, refers to a phenomenon whereby adaptation action is facilitated and occurs directly in response to extreme climate events. Despite the intuitive logic that extreme climate events may provide useful opportunities to design and implement successful adaptation policies, the literature suggests that this is not the case. With this thesis, the author aimed to uncover why reactive adaptation in response to policy windows opened by extreme climate events may result in poor adaptation outcomes. An explanatory framework based on concepts related to policy efficiency, new institutional economics and transaction costs was developed. The framework was then applied to the case... (More)
- The ‘policy window hypothesis’ in the context of extreme climate events, refers to a phenomenon whereby adaptation action is facilitated and occurs directly in response to extreme climate events. Despite the intuitive logic that extreme climate events may provide useful opportunities to design and implement successful adaptation policies, the literature suggests that this is not the case. With this thesis, the author aimed to uncover why reactive adaptation in response to policy windows opened by extreme climate events may result in poor adaptation outcomes. An explanatory framework based on concepts related to policy efficiency, new institutional economics and transaction costs was developed. The framework was then applied to the case of the 2011 Thai floods and the US$11 billion Master Plan for Water Resources Management that was developed in response. The findings suggest that failure to properly account for and manage the costs involved in the design of an adaptation policy program can lead to significant decision failures and implementation failures such as negative externalities and poorly designed or inappropriate measures. Such outcomes will involve additional actual and opportunity costs associated with resolving conflict and implementation delays. This is supported by documentary evidence from the Thai case study which suggests that the government’s poor management of decision-making processes was later reflected in substantial and costly decision failures. It is now likely that much of the Plan will be scrapped. Given the significant resources that were invested in the design and preliminary implementation of the Plan, not to mention the potential avoided damage and loss associated with recent past and future flood events, failure to implement the Plan represents a mix of additional actual and opportunity costs and a poor outcome for climate change adaptation in Thailand. The framework and case study findings presented in this thesis, suggest that in response to extreme climate events policymakers should explore opportunities for adaptation, but proceed with caution. The presence of pre-emptive policy options in national adaptation plans may be able to reduce the likelihood that decision-making costs are neglected when pressure arises to take advantage of policy windows that open in response to extreme climate events. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/4730612
- author
- Damen, Beau LU
- supervisor
- organization
- course
- IMEN41 20141
- year
- 2014
- type
- H2 - Master's Degree (Two Years)
- subject
- keywords
- Extreme Climate Events, Adaptation, Transaction Costs
- publication/series
- IIIEE Master thesis
- report number
- 2014:10
- ISSN
- 1401-9191
- language
- English
- id
- 4730612
- date added to LUP
- 2014-10-31 13:12:23
- date last changed
- 2014-10-31 13:12:23
@misc{4730612,
abstract = {{The ‘policy window hypothesis’ in the context of extreme climate events, refers to a phenomenon whereby adaptation action is facilitated and occurs directly in response to extreme climate events. Despite the intuitive logic that extreme climate events may provide useful opportunities to design and implement successful adaptation policies, the literature suggests that this is not the case. With this thesis, the author aimed to uncover why reactive adaptation in response to policy windows opened by extreme climate events may result in poor adaptation outcomes. An explanatory framework based on concepts related to policy efficiency, new institutional economics and transaction costs was developed. The framework was then applied to the case of the 2011 Thai floods and the US$11 billion Master Plan for Water Resources Management that was developed in response. The findings suggest that failure to properly account for and manage the costs involved in the design of an adaptation policy program can lead to significant decision failures and implementation failures such as negative externalities and poorly designed or inappropriate measures. Such outcomes will involve additional actual and opportunity costs associated with resolving conflict and implementation delays. This is supported by documentary evidence from the Thai case study which suggests that the government’s poor management of decision-making processes was later reflected in substantial and costly decision failures. It is now likely that much of the Plan will be scrapped. Given the significant resources that were invested in the design and preliminary implementation of the Plan, not to mention the potential avoided damage and loss associated with recent past and future flood events, failure to implement the Plan represents a mix of additional actual and opportunity costs and a poor outcome for climate change adaptation in Thailand. The framework and case study findings presented in this thesis, suggest that in response to extreme climate events policymakers should explore opportunities for adaptation, but proceed with caution. The presence of pre-emptive policy options in national adaptation plans may be able to reduce the likelihood that decision-making costs are neglected when pressure arises to take advantage of policy windows that open in response to extreme climate events.}},
author = {{Damen, Beau}},
issn = {{1401-9191}},
language = {{eng}},
note = {{Student Paper}},
series = {{IIIEE Master thesis}},
title = {{Proceed with caution: Using a transaction cost framework and case study approach to explain how reactive adaptation to extreme climate events can lead to poor adaptation outcomes}},
year = {{2014}},
}