Last Updated:
28 Oct 2021

The Costs of Adapting to Climate Change for Infrastructure

Discussion Paper No. 2

An approach to estimating the costs of adapting to climate change is presented along with results for major components of infrastructure. The analysis separates the price/cost and quantity effects of climate change. The first component measures how climate change alters the cost of a baseline program of infrastructure development via changes in design standards and operating costs. The second component measures the effect of climate changes on the long-run demand for infrastructure. The results indicate that the price/cost element is usually less than 1 percent of baseline costs, while the quantity effect may be negative for many countries.