Determinants of enterprise adaptation to climate change: a comparative perspective of neoclassical and institutional economics

Enterprises increasingly seek to adapt to climate change in order to reduce its adverse economic and environmental impacts. Yet, the determinants of such adaptive behaviour remain insufficiently explored, particularly from the perspective of economic theory. This study addresses the question of what factors drive or constrain adaptation decisions among enterprises, comparing the explanatory power of neoclassical and institutional economics. It further examines whether government intervention is essential for effective adaptation or whether market mechanisms can function autonomously, and to what extent adaptation requires the establishment of specific institutional frameworks. The article fills a research gap by integrating theoretical analysis with empirical evidence from Polish agricultural enterprises—one of the sectors most exposed to climate risks. The study applies a mixed-method approach, combining literature review, comparative analysis, and a diagnostic survey. The findings confirm that the imperfections of market mechanisms necessitate the creation of institutions to support adaptation processes.