Estimating the costs of climate change impacts is the first step in the economic evaluation of adaptation options. Regardless of any future action on climate change mitigation, impacts of climate change in Victoria are already being felt and are likely to intensify in the future. Some effects of climate change could be positive, for example potential increases in agricultural production or reduced human deaths from extreme cold in some regions; but many impacts are likely to be negative, particularly with the projected increase in intensity and frequency of extreme events.
From a public policy perspective there is a demand for an economic analysis of the costs and benefits of climate change impacts that can then be compared with the potential costs of adaptation. These are important for assessing potential risks and making the case for government intervention. However assessing the economic impacts of climate change is challenging and resource intensive and there are a variety of potential approaches that can be used to make these assessments.
This document has been obtained from the Victorian Centre for Climate Change Adaptation Research (VCCCAR) online knowledge hub hosted by the University of Melbourne and has been listed in the Virtual Hub for Climate Change Innovation with the permission of the Climate Change Programs division of the Department of Environment, Land, Water and Planning (DELWP) and Professor Rod Keenan, School of Ecosystem and Forest Sciences, University of Melbourne. The VCCCAR program funded by the Victorian Government via the then Department of Environment and Primary Industries (later changed to DELWP), ceased activity in June 2014.