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In this report, policies for assessing effects of climate change risk and uncertainty on water-supply provision are discussed. The emphasis is on analytical insights derived using option-pricing arguments. Attention is also paid to portfolio approaches, problems of uncertainty and catastrophic risk.
This literature review constitutes the conceptual basis for the research project Decision Taking in Times of Uncertainty: Towards an Efficient Strategy to Manage Risk and Uncertainty in Climate Change Adaptation, funded by the Victorian Centre for Climate Change Adaptation Research (VCCCAR). The project seeks to...