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Public adaptation to climate change affects government budgets directly on the expenditure side, but also indirectly via changes in the tax base and government consumption patterns. While such indirect effects have been analyzed intensively for mitigation policies, similarly detailed model-based frameworks and studies for adaptation policy are still missing. The objectives of the present paper are (i) to fill this gap by proposing a general modeling framework that allows for a comprehensive analysis of effects of adaptation on federal budgets, both on the expenditure and the revenue side, as well as of macroeconomic effects and (ii) to demonstrate its usefulness by applying this framework to the case of Austria. We find that public adaptation can lead to substantial positive macroeconomic effects on gross domestic product (GDP), welfare, and employment. The results are robust with respect to assumptions about the …