The Adaptive Investment Effect: Evidence from Chinese Provinces


This paper investigates the “adaptive investment effect”, a redirection of investment towards adaptive capital in order to mitigate the negative effects of climate change. We find that the impact of investment on economic growth is reduced by between 27% and 37% in Chinese provinces investing more in adaptive capital. This implies that the benefits from mitigation policies are greater than existing studies suggest.

Economic Letters

A blog post summarising this paper can be found here.

Rhys J. Williams
Rhys J. Williams
PhD student in Economics

Rhys is a doctoral candidate in Economics at the University of Cambridge. His research interests are in empirical industrial organisation and related topics.