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Research Reports
Building and Assessing Adaptive Capacity to Climate Change for the National Risk Management: Economic analysis of the extreme climate risks
Ⅰ. Introduction
1. Necessity and purpose of research
o Among the major risks, extreme weather or climate change policy failures are presented as the highest in terms of the degree of impact and likelihood of occurrence (WEF, 2022)
ㅇ Climate change is classified as a major risk that transfers or amplifies risks in many sectors, such as food crisis, water crisis, destruction of social infrastructure, and inequality

o It is necessary to quantify the economic impact of extreme climate events such as heat waves, cold waves, floods, and droughts by scenario analysis
ㅇ Risk analysis for the future uncertain climate and society/economics based on available data and methodology
ㅇ Analysis of the effects of adaptation policies for each scenario and development of policy decision support tools

2. Differentiation of research
o Quantify climate change risks by health, energy, water resources, and agriculture sectors and analyze the effects of adaptation policies
ㅇ Going beyond the relative analysis of existing vulnerabilities or risks, economic quantification of risks due to extreme climate by sector is applied by applying SSP scenarios
ㅇ Suggest the degree of damage by sector and the importance of adaptation through quantitative analysis of the effects of adaptation policies

3. Research purpose and performance system
o Development of a policy support tool that quantitatively analyzes the effects of climate change risks and adaptation policies
ㅇEstablishment of adaptation capacity evaluation system through cost-effectiveness analysis of adaptation policies according to future scenari