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This issue of IDEA covers some of the IDB’s recent research on climate change, including efforts on both the mitigation and adaptation fronts. That research includes both surprising findings and an underlying understanding that the region’s development must take into account -and will in many ways be shaped by- how it deals with this unique and inescapable issue.
This paper studies the allocation of total disaster risk reduction public spending among regions in Peru. The main objective of this work is to identify the main determinants of the distribution of these resources, and for this purpose an index of historical physical impacts of natural disasters, social vulnerability, and institutional capacity was created. It is found that historical impacts of c ... (View publication)
Tradable permit markets for carbon dioxide (C02) emissions respond to short-run fluctuations in economic activity. To provide stability, both price and quantity interventions have been proposed. This paper focuses on the relative performance of fixed versus intensity allowances in the presence of both productivity and energy price uncertainty. Both instruments achieve the same steady-state em ... (View publication)
Ongoing climate change will increase competition for water. Diversified demand for water—in contrast with the rigid design of water systems, institutions and infrastructure—could hinder the implementation of adaptation policies in water management for Latin American countries. In this context, weather derivatives are proposed as a complementary mechanism for the successful adoption of more efficie ... (View publication)
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