While effective adaptation reduces climate change impacts, its fiscal consequences remain insufficiently understood. To fill this gap, this study assesses how public adaptation - through its costs and its interaction with climate impacts - affects macroeconomic outcomes and fiscal space in Spain, Austria, and the Netherlands. Using a computable general equilibrium model, we implement multiple climate impact channels and evaluate country specific adaptation portfolios, financed either through reallocating existing government expenditure or issuing domestic government bonds, under a range of climate scenarios by mid-century […]