Adapting long-lived investments under climate change uncertainty

Does climate change adaptation require that investments are designed to be more robust? What about when is uncertain? if the changes faster? This decision problem difficult design of irreversible for their lifetime, instance, in construction industry. We study an investment starts, combined with option abandon. The determines investment’s robustness sustain detrimental conditions. find short-lived investments, optimal decreases faster, and increases uncertainty higher. For long-lived these effects reverse. has implications makers who plan infrastructure adaptation, adverse does not robust under identified circumstances.