'Test Driving' a Financing Instrument for Climate Adaptation: Analyzing Institutional Dilemmas using Simulation Gaming

Liz Root, Erwin van der Krabben, T.J.M. Spit

    Research output: Contribution to journalArticleAcademicpeer-review

    Abstract

    Urban physical public infrastructure is a frontline defense mechanism
    to manage and mitigate climate-related impacts. Market instruments
    are often cited as possible means to spread risk and reduce financial
    burdens on the public sector. The authors argue that existing research
    tends to focus on the technical issues of instruments and neglects
    considering institutional dynamics that may enable or constrain
    local market-based financing mechanisms. In this article, three core
    dilemmas (values uncertainty, planning horizon, and indirect benefits)
    are used to analyze the responses of practitioners to a possible
    financing instrument. The findings indicate that the practitioner’s
    responses to tax increment financing were largely shaped by the
    adaptation dilemmas and not the characteristics of the instrument per
    se. By mapping the dilemmas onto whether they would recommend
    it, participants imposed a financial barrier on climate adaptation
    investments. The authors conclude that a key imperative in the design
    of policy instruments is to pay attention to the congruency of informal
    institutions at the ‘street level’ in order to be in-step with the current
    sociopolitical conditions. The findings also point to four key attributes
    that a local market-based instrument would need to be aligned and
    responsive to the Dutch planning and development context.
    Original languageEnglish
    Pages (from-to)250-269
    Number of pages20
    JournalPlanning Practice and Research
    Volume31
    Issue number3
    DOIs
    Publication statusPublished - 2016

    Keywords

    • Climate adaptation
    • finance
    • neighborhood planning
    • public infrastructure
    • simulation gaming

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