Answer to Question #54516 in Other Economics for Wendy
According to economic theory, under what circumstances should a government intervene in issues of climate change?
Adaptation to climate change is currently high on the agenda of EU bureaucrats exploring the regulatory scope of the topic. Climate change may potentially bring about changes in the frequency of extreme weather events such as heat waves, flooding or thunder storms, which in turn may require adaptation to changes in our living conditions. Adaptation to these conditions cannot stop climate change, but it can reduce the cost of climate change. Building dikes protects the landscape from an increase in sea level. New vaccines protect the population from diseases that may spread due to the change in the climate. Leading politicians, the media and prominent interest groups call for more efforts in adaptation.
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