Climate change economics on a small island: new approaches for Tobago

For small islands like Tobago — that depend heavily on tourism driven by their natural ‘beauty’ — climate change poses a double-edged threat on supply and demand. Rising sea levels, increasing temperatures and more frequent and intense storms will damage the island’s natural assets, such as coral reefs and beaches. This could have a heavy impact on tourism, which will also be affected by climate policy in ‘source’ countries. But what exactly will that impact be? How much will it cost? And what can be done about it?