Abstract
This study presents a comprehensive approach of real option analysis to climate adaptation policies aiming to mitigate flood risk. The framework focuses on pricing catastrophic risk in coastal regions, allowing for economic growth and uncertainty in the mean sea level rise. The framework also provides insights into the optimal investment timing, both for single investment projects and for optimal adaptation pathways, when multiple projects are feasible.
Original language | English |
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Place of Publication | Schaumburg, Illinois |
Publisher | Society of Actuaries Research Institute |
Number of pages | 101 |
Publication status | Published - Dec 2022 |