Pricing Innovation in Climate Change Adaptation (CCA): Hedonic Valuation of R&D That Can Favor CCA

Ever since climate change became a collective concern, governments have diversified incentives encouraging firms to mitigate climate change by investing in new technology development. However, many decision makers still question their value and wonder what determines climate change adaptation (CCA) at the firm level. This chapter deals with two questions: What makes some firms more committed to CCA than others? To what extent do RD jessica.bouchard@enap.ca; moktar.lamari@enap.ca; eva. anstett@enap.ca # Springer-Verlag Berlin Heidelberg 2015 W. Leal Filho (ed.), Handbook of Climate Change Adaptation, DOI 10.1007/978-3-642-38670-1_27 1201 The model developed suggests that firms invest, on average, $5,358 a year to acquire new technologies related to climate change adaptation for each level of impact on CCA (10 levels used in our research). Our results are groundbreaking in terms of pricing the specific R&D impacts on CCA at the firm level. They indicate that the activities of research centers like technology transfer organizations make a difference in terms of CCA, especially to enable actions in the private sector. Our findings also help the public sector to improve its actions targeting CCA (e.g., tax credit or grants for firms acting in CCA).