Abstract
In order to counteract the challenge of climate uncertainties in investment planning, Portfolio Analysis (PA) aggregates diverse adaptation measures in different portfolios. Thus, instead of considering a single intervention, it attempts to identify the best portfolios according to their performance in relation to economic efficiency as well as risk (variance of the economic performance over different scenarios). However, whilst PA is recognised as having the potential for bringing about a more holistic economic analysis of adaptation, it remains rarely used. Our assessment of the key strengths and limitations of PA suggests that wider adoption of a portfolio approach will primarily depend on stakeholder recognition that by being selective about the numbers and composition of portfolios considered, data and analytical capacity constraints can be overcome.
Original language | English |
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Pages (from-to) | 63-81 |
Number of pages | 19 |
Journal | Ekonomiaz |
Volume | 97 |
Issue number | 1 |
Publication status | Published - 2020 |
Keywords
- Economic assessment
- Portfolio analysis
- Uncertainty
ASJC Scopus subject areas
- Cultural Studies
- Sociology and Political Science
- Economics, Econometrics and Finance (miscellaneous)