To Mitigate or To Adapt: How to combat with Climate Change

COMMENTS ARE WELCOME. The strategic interaction between mitigation and adaptation is analyzed with a non-cooperative game, where regions are players, and where mitigation and adap-tation are prefect substitutes in protecting against climate impacts. We allow for step by step decision making, where mitigation is chosen first and adaptation sec-ond, and where the benefits of mitigation accrue only in the future. If marginal costs of adaptation negatively depend on global mitigation and if regions are rel-atively rich in terms of income, they simultaneously invest in both mitigation and adaptation. However, if regions are relatively poor, they engage in mitigation only