Bioeconomic models are analytical tools that integrate biophysical and economic models. These models allow for analysis of the biological and economic changes caused by human activities. The biophysical and economic components of these models are developed based on historical observations or theoretical relations. Technically these models may have various levels of complexity in terms of equation systems considered in the model, modeling activities, and programming languages. Often, biophysical components of the models include crop or hydrological models. The core economic components of these models are optimization or simulation models established according to neoclassical economic theories. The models are often developed at farm, country, and global scales, and are used in various fields, including agriculture, fisheries, forestry, and environmental sectors. Bioeconomic models are commonly used in research on environmental externalities associated with policy reforms and technological modernization, including climate change impact analysis, and also explore the negative consequences of global warming. A large number of studies and reports on bioeconomic models exist, yet there is a lack of studies describing the multiple uses of these models across different disciplines.
Babatunde O. Abidoye
To view climate change adaptation from an economic perspective requires a definition of adaptation, an economic framework in which to view adaptation, and a review of the literature on specific adaptations (especially in agriculture). A focus on tools for applying adaptation to developing countries highlights the difference between mitigation and the adaptation decision-making process. Mitigation decisions take a long-term perspective because carbon dioxide lasts for a very long time in the atmosphere. Adaptation decisions typically last the lifespan of the investments, so the time frame depends on the specific adaptation investment, but it is invariably short compared to mitigation choices, which have implications for centuries. The short time frame means that adaptation decisions are not plagued by the same uncertainty that plagues mitigation choices. Finally, most adaptation decisions are local and private, whereas mitigation is a global public decision. Private adaptation will occur even without large government programs. Public adaptations that require government assistance can mainly be made by existing government agencies. Adaptation does not require a global agreement.