Volume 35, No.2, Winter 2016

Even though carbon emissions from U.S. power generation are at a 25-year low, thanks in part to fracking and cheap natural gas, global atmospheric concentrations of carbon dioxide are steadily increasing. The reality is that climate change is what some have called a “wicked problem”—solving it on a global scale would be economically devastating, politically unattainable, and practically impossible. That leaves us with the theme of this special issue of PERC Reports: adaptation. The real challenge is to avoid policies that distort prices, make society poorer, or prevent markets from adapting. Trade barriers, immigration restrictions, federal flood insurance, agricultural subsidies, and zoning regulations each impose obstacles to climate adaptation. This special issue challenges how we think about climate change and highlights the importance of markets and property rights in helping us adapt to our ever-changing world.