Aaheim, A.A.AaheimDokken, T.T.DokkenHochrainer, S.S.HochrainerHof, A.A.HofJochem, E.E.JochemMechler, R.R.MechlerVuuren, D.P. vanD.P. vanVuurenet al.2022-03-042022-03-042010https://publica.fraunhofer.de/handle/publica/221169Most of the literature about adaptation and vulnerability deals with decision making on a local level. This chapter examines the possible relevance of developing national or global adaptation strategies, and shorts out possible challenges. Firstly, the challenge in balancing mitigation and adaptation is discussed. Adaptation is very efficient, but substantial damages will remain even after optimal adaptation. Large regional differences in adaptation costs indicate the importance of establishing an international adaptation regime. Secondly, a closer examination of the energy system identifies innovations required to utilise the full potential for adaptation, and emphasises that successful R&D strategies may turn challenges into a competitive advantage. Thirdly, the possible market barriers to adaptation are identified. It is shown that climate change is likely to increase migration of labour and capital to urban areas. This adaptation is, however, hampered because capital, labour and natural resources are immobile to a certain extent. Finally, depending on the economic and financial vulnerability of an economy and its key actors, and the extent and frequency of disasters, countries may exhibit differential economic follow-on effects after a disaster. It shown that increased frequencies and intensities of disasters, such as floods, may have substantial fiscal and macroeconomic consequences. An identification of governments' roles in adaptation strategies is important, but is far from comprehensive when it comes to potential issues. Public goods are used as a common denominator for the identification of subjects to which governments should pay attention. A lot of research remains before an extensive overview of adaptation options, which can be characterised as public goods on a national scale, can be provided.en303600book article