Abstract:
Climate change is said to be responsible for increases in extreme weather events, however, the exact impact on the frequency or damage of such events is unknown. In this presentation we discuss a multi-criteria multi-stage stochastic programming model for disaster mitigation. In each period, a risk-averse central planner decides on investments that should be made so as to minimize future negative effects on the economy, environment and the society. This is modelled using stochastic dual dynamic programming, with the climate modelled as a Markov chain.