Under capitalism, society is organized so that the only reliable incentive to innovation is for someone to make money. We don't seem likely to do away with capitalism anytime soon, so combatting global warming, if we do it, will have to happen in a context of private profit. David Atkins at Political Animal thinks we have an unlikely ally:
And he points to a Christian Science Monitor report:
We might get some meaningful mitigation efforts out of this economic pressure, I suppose. How come I remain convinced that the people who've profited from our addiction to fossil fuels will pay less of the costs than the ordinary shlubs who find themselves blown away or flooded out?
So we probably should not be surprised that Shiller thinks the outlandish products of contemporary financial markets can help with climate adaptation. He wants more opportunities for Wall Street to make money from global catastrophe.
Shiller is obviously a brilliant guy, looking for a decent response to crisis from the sector of social activity that is his area of expertise. I find this sort of financial gamesmanship repulsive. I cling to an instinct that human beings were made for cooperation, not competition gone feral. But climate crisis will take all kinds.