and background Observations and direct measurements of the climate system over recent decades have provided evidence of global warming and longterm changes in the atmosphere, the ocean, the cryosphere, and the land surface (IPCC, 2013). Indeed, citing the IPCC report of 2013: “many of the observed changes are unprecedented over decades to millennia.” Some consequences of changes in the climate system are the increase of atmospheric carbon dioxide (CO2), rising temperatures and altered precipitation patterns. These disturbances affect the community as a whole and, in particular, private households whose main sources of revenues are from land and water resources (farmers, foresters, fishermen, etc.). Detailed descriptions of climate change effects on land and water resources are provided in several institutional and academic analyses (USDA, 2012; European-Commission, 2009; Backlund et al., 2008; European-Forest-Institute et al., 2008; Sohngen and Mendelsohn, 1998). With a special focus on the agricultural and forest sectors, previous studies describe evidence of abiotic disturbances (changes in fire occurrence, changes in wind storm frequency and intensity) and biotic disturbances (frequency and consequences of pest and disease outbreaks). Despite the growing public concern over climate change, actions undertaken by private firms and public institutions to deal with these threats are still highly inadequate. In this respect, it is relevant to mention the existence of both an “energy efficiency” and an “adaptation” gap. On the one hand, as evidence of the first gap, empirical analyses show that firms and individuals under-invest with respect to what would be optimal for the society in terms of energy-efficient equipment and technologies capable of reducing energy consumption and C02 emissions (Gillingham and Palmer, 2014; Brown, 2001; Jaffe and Stavins, 1994). On the other hand, according to the UNEP report of 2016, “the adaptation gap can be defined generically as the difference between the level of adaptation actually implemented and a societally set target or goal, which reflects nationally determined needs related to climate change impacts, as well as resource limitations and competing priorities.” (UNEP, 2016). The sub-optimal investment in energy-efficient technologies or adaptation projects by private firms and individuals may be explained by market failures. In such contexts, market failures can be caused by the presence of environmental externalities, market barriers, insufficient and incorrect information, credit constraints and incomplete financial markets (UNEP, 2016; Gillingham and Palmer, 2014; Jaffe and Stavins, 2005, 1994; Brown, 2001). These failures motivate government intervention that can take several forms. Traditional tools to deal with the presence of environmental externalities are Pigouvian taxes or subsidies, while credit constraints may be addressed through government financing programs (Gillingham and Palmer, 2014). Past programs and policies promoted by public entities included economic incentives and subsidies with the main goals of both removing barriers for the development of innovative procedures and boosting private incentives to invest in adaptation or energy-efficient technologies (Gillingham and Palmer, 2014; Filatova, 2014; Zhang and Maruyama, 2001).