Port adaptation to climate change and capacity investments under uncertainty
Abstract
Seaports are vulnerable to extreme weather and sea level rise driven by climate change. We study a port's optimal investment decisions in capacity and protection over time. A higher storm frequency may increase or decrease protection investment. There is an option value to waiting for better information about the rate of climate change. The port postpones protection if the storm frequency can change a lot.
- Publication:
-
Transportation Research Part B: Methodological
- Pub Date:
- October 2021
- DOI:
- Bibcode:
- 2021TRPB..152..180X
- Keywords:
-
- Climate change adaptation;
- Capacity investment;
- Investment timing;
- Irreversibility;
- Port facilities;
- Disaster prevention;
- Demand uncertainty