We develop an aggregated model to study rational environmental adaptation policies that compensate negative consequences of certain environmental hazards and changes. The model distinguishes the three categories of adaptation measures that (a) compensate the decrease of the environmental amenity...

Moral hazards are ubiquitous. Green ones typically involve technological fixes: Environmentalists often see ‘technofixes' as morally fraught because they absolve actors from taking more difficult steps towards systemic solutions. Carbon removal and especially solar geoengineering are only the...