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A Framework for Understanding Adaptation by Manufacturing Industries
Abstract
This chapter discusses what constitutes adaptation responses by firms in the face of climate change. There are four integral components of adaptation activities undertaken by firms: assessment of risk, understanding of vulnerability, understanding the regulatory barriers to overcome the vulnerability, and, finally, adoption of policies to overcome the vulnerability. While it is easy to understand these components separately, their interdependencies make the overall picture more complicated. Also complicating the issue is the fact that most small and medium firms do not have the capacity and resources to predict the impact of such changes on their operations, and hence, to quickly make the adjustments necessary to overcome them. The response of firms also depends on the nature of the climate risk they face, whether it is sea-level rise, or temperature rise.
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