National income is underpinned by a country's wealth--measured comprehensively to include all assets, produced capital, human capital, natural capital and net financial assets--and sustained economic growth over the long term requires investment in this broad portfolio of assets.

Adaptation to climate change includes addressing sea level rise and increased storm surges in many coastal areas. Mangroves can substantially reduce the vulnerability of the adjacent coastal land from inundation and erosion. However, climate change poses a large threat to mangroves.

Tourism was identified in the late 1980s as a sector with major potential for driving economic development in Zanzibar and has since grown enormously from roughly 19,000 annual visitors in 1985 to well over 200,000 by 2007. Although tourism is now one of the most important sectors of the economy, contributing roughly 25% to GDP, the impact of tourism on poverty reduction and the environment has been decidedly mixed. The rapid expansion of tourist infrastructure on the coast, combined with a population growth rate of over 3%, has put great pressure on coastal areas.

This study of the economics of adaptation to climate change follows the sector approach, with separate estimates of adaptation measures for infrastructure, water, agriculture, industrial forestry, fisheries, coastal zones, human health, and ecosystems.