nep-res 2026-04-06 papers

on Resource Economics

Issue of 2026–04–06
two papers chosen by
Maximo Rossi, Universidad de la RepÃÃººblica

Co-Managing Natural Catastrophic Risks by the Insurance Industry and Government By Liao, Yanjun (Penny); Whitlock, Zach; Kaiser, Brooks; Sølvsten, Simon
Climate Change Adaptation and Development: A Conceptual Framework By Cavatassi, Romina; Garg, Teevrat; Graff Zivin, Joshua; Paolantonio, Adriana; Vargas, David; Wollburg, Philip

Co-Managing Natural Catastrophic Risks by the Insurance Industry and Government

By:	Liao, Yanjun (Penny) (Resources for the Future); Whitlock, Zach (Resources for the Future); Kaiser, Brooks; Sølvsten, Simon
Abstract:	Escalating climate-related catastrophe losses are placing increasing strain on private insurance markets, raising concerns about the long-term insurability of natural hazards. This paper describes the evolving roles of private and public institutions in sustaining catastrophe risk transfer. We first examine private catastrophe risk transfer mechanisms and discuss how rising loss volatility and modeling uncertainty are constraining private market capacity. We then compare catastrophe insurance arrangements across 13 countries and US states, identifying four institutional regimes that differ in the extent and form of government involvement. Across these regimes, we analyze the economic logic underlying public sector involvement, with particular emphasis on its roles in expanding risk pooling and enabling cross-subsidization to sustain insurance markets. We also discuss complementary policies that improve data availability and promote risk mitigation. Our analysis provides a framework for understanding how public-private arrangements can sustain insurance availability and enhance financial resilience under worsening climate risk.
Date:	2026–03–27
URL:	https://d.repec.org/n?u=RePEc:rff:dpaper:dp-26-06

Climate Change Adaptation and Development: A Conceptual Framework

By:	Cavatassi, Romina (World Bank); Garg, Teevrat (University of California, San Diego); Graff Zivin, Joshua (UC San Diego); Paolantonio, Adriana (World Bank); Vargas, David (UC San Diego); Wollburg, Philip (World Bank)
Abstract:	Climate change is reshaping the economic environment in which households make decisions, generating diverse adaptive responses and increasing the need for data that can guide effective policy. Yet current measurement efforts remain fragmented, reflecting two key gaps: limited systematic data on household adaptation and the lack of a structured framework to interpret it. This paper addresses both by developing a literature-informed framework for diagnosing household-level climate adaptation, focusing on adjustments in income-generating activities as a primary response to climate risk. The framework follows four stages: mapping income streams, assessing exposure, identifying feasible responses, and analysing take-up alongside the constraints that limit adoption. It integrates both objective and subjective dimensions of exposure, recognising the role of perceptions, beliefs, and information. By situating decisions within broader institutional and economic contexts, the framework can inform survey design, improve diagnosis of adaptation gaps, and generate more policy-relevant and comparable data to support efforts to scale effective adaptation and strengthen household climate resilience.
Keywords:	climate change, adaptation, households, development
JEL:	Q54 O13 O12 D13 Q12 J22 D91 O18
Date:	2026–03
URL:	https://d.repec.org/n?u=RePEc:iza:izadps:dp18464

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