the case of no cost and thus transition of settlement costs increase the social cost
of climate change. This translates into more negative impacts on consumers, who
bear the ultimate cost of reduced supply.
The final outcome of climate change is dependent on interactions among the
adjustment costs, fertilization effects, and land availability effects. As Quiggin and
Horowitz (2003) argue, the adjustment cost may be very substantial and could
represent a major element of climate change. Adjustment costs arising from climate
change can in any case be expected to be quite pervasive, extending through
complex chains of technological, agrarian, and demographic adaptation.