When a natural disaster hits, the affected households try to cope with its impacts. A variety of coping strategies may be employed, from reducing current consumption to disposing of productive assets. The latter strategies are especially worrisome, as they may reduce the capacity of the...

Many insurance and reinsurance contracts are contingent on events such as hurricanes, terrorist attacks or political upheavals whose probabilities are not known with precision. There is a body of experimental evidence showing that higher premiums are charged for these “ambiguous” contracts,...

Policy interest in the cost of adaptation is growing, but compared to the mitigation literature adaptation cost research is still in its infancy. Global adaptation cost estimates from more recent studies range from around $25 billion a year to well over $100 billion by 2015-2030. The wide range...