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Encouraging Climate Adaptation: Understanding Barriers to Financing Protective Measures for Climate-Related Disasters

This project addresses the challenge of motivating household-level climate adaptation in the face of increasingly frequent and costly climate-related disasters.

While governments, insurers, and financial institutions are offering incentives to encourage protective upgrades like flood-proofing or fire-resistant materials, uptake for financing among homeowners remains stubbornly low. Our research investigates the psychological and behavioral barriers that shape willingness to invest in such measures. The project includes empirical work using randomized controlled experiments with diverse samples to examine why homeowners may undervalue climate adaptation even when risks and financial benefits are clear. The project aims to generate insights that can inform both theory and practical strategies for increasing climate resilience.

Project leader Nurit Nobel.
Funded by Jan Wallanders & Tom Hedelius Wallander Scholarships and Vinnova.