Editing IPCC:AR6/WGII/Chapter-10 (section)

==== 10.5.4.1 Point of Departure ====

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Estimates of adaptation costs and financial needs have evolved significantly since the previous IPCC assessments. These developments are based on improvements in the understanding of how the hazard interacts with the physical and socioeconomic elements, and how to capture these interactions in systematic modelling frameworks. The developments are also clearly reported especially in the area of addressing the underestimates in adaptation costs that the previous studies suffered from as the previous studies tended to rely on data from wealthy economies ( [[#Hochrainer-Stigler--2014|Hochrainer-Stigler et al., 2014]] ; [[#Carleton--2020|Carleton et al., 2020]] ). The adaptation cost estimates have also improved since the previous IPCC reports due to constant improvements in capturing the loss and damages of disaster events ( [[#Hochrainer-Stigler--2014|Hochrainer-Stigler et al., 2014]] ). The reliance of earlier studies on correlations to derive adaptation costs was addressed to some extent by addressing the endogeneity of disaster measures ( [[#Kousky--2014|Kousky, 2014]] ), especially by relying upon the physical measures of disasters such as wind speed, although more work is needed in this area.

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