Policy uncertainty and diffusion of carbon capture and storage in an optimal region

Abstract

The social cost of carbon (SCC) is the value of the climate change impacts from 1 tonne of carbon emitted today as CO₂, aggregated over time and discounted back to the present day. We used PAGE2002, the same probabilistic integrated assessment model as used by the Stern Review (Stern et al., 2006), to calculate the SCC and to examine how it varies with discount rate; and find that it is not sensitive to the path of emissions on which the tonne of carbon is superimposed. The mean value of the SCC is $43 per tonne under both a business-as-usual scenario, and under a scenario aimed at stabilizing CO₂ concentrations at 550 ppm. This counter-intuitive result is caused by the interplay between the logarithmic relationship between forcing and concentration, the nonlinear relationship of damage to temperature, and discounting. However, the SCC is sensitive to a number of scientific and economic inputs to the model. Two recent distributions for the sensitivity of climate to a doubling of atmospheric CO₂ (Murphy et al., 2004; Stainforth et al., 2005) increase the mean value of the SCC from $43 to $68 and $90 per tonne. Using a pure rate of time preference of 0.1% per year, as in the Stern Review, gives a mean SCC of $365 per tonne.     

Climate change mitigation scenarios and policies and measures: the case of Kazakhstan

This article illustrates the main difficulties encountered in the preparation of GHG emission projections and climate change mitigation policies and measures (P&M) for Kazakhstan. Difficulties in representing the system with an economic model have been overcome by representing the energy system with a technical-economic growth model (MARKAL-TIMES) based on the stock of existing plants, transformation processes, and end-use devices. GHG emission scenarios depend mainly on the pace of transition in Kazakhstan from a planned economy to a market economy. Three scenarios are portrayed: an incomplete transition, a fast and successful one, and even more advanced participation in global climate change mitigation, including participation in some emission trading schemes. If the transition to a market economy is completed by 2020, P&M already adopted may reduce emissions of CO₂ from combustion by about 85 MtCO₂ by 2030 – 17% of the emissions in the baseline (WOM) scenario. One-third of these reductions are likely to be obtained from the demand sectors, and two-thirds from the supply sectors. If every tonne of CO₂ not emitted is valued up to US$10 in 2020 and $20 in 2030, additional P&M may further reduce emissions by 110 MtCO₂ by 2030.     

Incremental CH4 and N2O mitigation benefits consistent with the US Government's SC-CO2 estimates

Benefit–cost analysis can serve as an informative input into the policy-making process, but only to the degree it characterizes the major impacts of the regulation under consideration. Recently, the US, amongst other nations, has begun to use estimates of the social cost of CO₂ (SC-CO₂) to develop analyses that more fully capture the climate change impacts of GHG abatement. The SC-CO₂ represents the aggregate willingness to pay to avoid the damages associated with an additional tonne of CO₂ emissions. In comparison, the social costs of non-CO₂ GHGs have received little attention from researchers and policy analysts, despite their non-negligible climate impact. This article addresses this issue by developing a set of social cost estimates for two highly prevalent non-CO₂ GHGs, methane and nitrous oxide. By extending existing integrated assessment models, it is possible to develop a set of social cost estimates for these gases that are consistent with the SC-CO₂ estimates currently in use by the US federal government.Policy relevanceWithin the benefit–cost analyses that inform the design of major regulations, all Federal agencies within the US Government (USG) use a set of agreed upon SC-CO₂ estimates to value the impact of CO₂ emissions changes. However, the value of changes in non-CO₂ GHG emissions has not been included in USG policy analysis to date. This article addresses that omission by developing a set of social cost estimates for two highly prevalent non-CO₂ GHGs, methane and nitrous oxide. These new estimates are designed to be compatible with the USG SC-CO₂ estimates currently in use and may therefore be directly applied to value emissions changes for these non-CO₂ gases within the benefit–cost analyses used to evaluate future policies.     

Greenhouse gas emissions caused by the international climate negotiations

Abstract

One and a half decades of climate negotiations have directly caused greenhouse gas emissions of about 150,000 t CO₂. At prevailing market prices, making the full negotiation process greenhouse-gas-neutral ex post would cost about US$0.5 million, which is a fraction of the cost of the conferences.     

Critical issues for the calculation of the social cost of CO2: why the estimates from PAGE09 are higher than those from PAGE2002

PAGE09 is an updated version of the PAGE2002 integrated assessment model (Hope 2011a). The default PAGE09 model gives a mean estimate of the social cost of CO₂ (SCCO₂) of $106 per tonne of CO₂, compared to $81 from the PAGE2002 model used in the Stern review (Stern 2007). The increase is the net result of several improvements that have been incorporated into the PAGE09 model in response to the critical debate around the Stern review: the adoption of the A1B socio-economic scenario, rather than A2 whose population assumptions are now thought to be implausible; the use of ranges for the two components of the discount rate, rather than the single values used in the Stern review; a distribution for the climate sensitivity that is consistent with the latest estimates from IPCC 2007a; less adaptation than in PAGE2002, particularly in the economic sector, which was criticised for possibly being over-optimistic; and a more theoretically-justified basis of valuation that gives results appropriate to a representative agent from the focus region, the EU. The effect of each of these adjustments is quantified and explained.     

Carbon dioxide sequestration: how much and when?

Carbon dioxide (CO₂) sequestration has been proposed as a key component in technological portfolios for managing anthropogenic climate change, since it may provide a faster and cheaper route to significant reductions in atmospheric CO₂ concentrations than abating CO₂ production. However, CO₂ sequestration is not a perfect substitute for CO₂ abatement because CO₂ may leak back into the atmosphere (thus imposing future climate change impacts) and because CO₂ sequestration requires energy (thus producing more CO₂ and depleting fossil fuel resources earlier). Here we use analytical and numerical models to assess the economic efficiency of CO₂ sequestration and analyze the optimal timing and extent of CO₂ sequestration. The economic efficiency factor of CO₂ sequestration can be expressed as the ratio of the marginal net benefits of sequestering CO₂ and avoiding CO₂ emissions. We derive an analytical solution for this efficiency factor for a simplified case in which we account for CO₂ leakage, discounting, the additional fossil fuel requirement of CO₂ sequestration, and the growth rate of carbon taxes. In this analytical model, the economic efficiency of CO₂ sequestration decreases as the CO₂ tax growth rate, leakage rates and energy requirements for CO₂ sequestration increase. Increasing discount rates increases the economic efficiency factor. In this simple model, short-term sequestration methods, such as afforestation, can even have negative economic efficiencies. We use a more realistic integrated-assessment model to additionally account for potentially important effects such as learning-by-doing and socio-economic inertia on optimal strategies. We measure the economic efficiency of CO₂ sequestration by the ratio of the marginal costs of CO₂ sequestration and CO₂ abatement along optimal trajectories. We show that the positive impacts of investments in CO₂ sequestration through the reduction of future marginal CO₂ sequestration costs and the alleviation of future inertia constraints can initially exceed the marginal sequestration costs. As a result, the economic efficiencies of CO₂ sequestration can exceed 100% and an optimal strategy will subsidize CO₂ sequestration that is initially more expensive than CO₂ abatement. The potential economic value of a feasible and acceptable CO₂ sequestration technology is equivalent – in the adopted utilitarian model – to a one-time investment of several percent of present gross world product. It is optimal in the chosen economic framework to sequester substantial CO₂ quantities into reservoirs with small or zero leakage, given published estimates of marginal costs and climate change impacts. The optimal CO₂ trajectories in the case of sequestration from air can approach the pre-industrial level, constituting geoengineering. Our analysis is silent on important questions (e.g., the effects of model and parametric uncertainty, the potential learning about these uncertainties, or ethical dimension of such geoengineering strategies), which need to be addressed before our findings can be translated into policy-relevant recommendations.     

The Climate Change Benefits of Reducing Methane Emissions

The PAGE95 integrated assessment model is used to calculate the marginal benefit of immediate cutbacks in methane emissions, and compare them with the benefits of carbon dioxide reductions and the costs of methane reduction measures. The main result is that immediate cutbacks of methane bring a marginal benefit of between $30 and $260 per tonne, with a mean value of $110 per tonne. This compares to a benefit of between $10 and $50 per tonne of carbon, with a mean value of $20, for immediate cutbacks of carbon dioxide (all values in 1990 dollars). A sectoral and regional breakdown finds that two-thirds of the benefit is non-economic and only about 5% of the benefit occurs in the European Union (EU) and 8% in the USA; the vast majority of the benefit is felt in other regions, particularly in the developing world. Analysis up to 2200 shows the benefit continuing throughout the next century, peaking after 2050, even though methane stays in the atmosphere for only about a decade. This is because the surface-troposphere system typically takes decades to regain equilibrium, owing principally to the thermal inertia of the oceans. Exploring a range of alternative assumptions shows that the benefit from methane reduction is most sensitive to the discount rate. Using a pure time preference rate of 2% per yr instead of 3% per yr, almost doubles the mean benefit to $190 per tonne; a rate of 1% per yr doubles the mean benefit again to $380 per tonne.     

Impacts of different diffusion scenarios for mitigation technology options and of model representations regarding renewables intermittency on evaluations of CO2 emissions reductions

This paper evaluated the impacts of climate change mitigation technology options on CO₂ emission reductions and the effects of model representations regarding renewable intermittency on the assessment of reduction by using a world energy systems model. First, different diffusion scenarios for carbon dioxide capture and storage (CCS), nuclear power, and wind power and solar PV are selected from EMF27 scenarios to analyze their impacts on CO₂ emission reductions. These technologies are important for reducing CO₂ intensity of electricity, and the impacts of their diffusion levels on mitigation costs are significant, according to the analyses. Availability of CCS in particular, among the three kinds of technologies, has a large impact on the marginal CO₂ abatement cost. In order to analyze effects of model representations regarding renewables intermittency, four different representations are assumed within the model. A simplistic model representation that does not take into consideration the intermittency of wind power and solar PV evaluates larger contributions of the energy sources than those evaluated by a model representation that takes intermittency into consideration. Appropriate consideration of renewables intermittency within global energy systems models will be important for realistic evaluations of climate change mitigation scenarios.     

Influence d'un changement climatique dû à une hausse de gaz à effet de serre sur l'agriculture au quebec

Abstract

This study, using a climate change scenario generated by the Canadian Climate Centre (CCC) general circulation model (GCM) examines the impacts of such a climate change on agriculture in southern Quebec. Using a crop model from the Food and Agriculture Organization (FAO), yield responses of a variety of cereals, legumes, oleaginous and special crops to climate change are analysed and discussed.

Results show that under the 2 × CO₂ climate scenario the growing season would be longer and accumulation of corn heat units and growing degree days would be more important than under actual climate (1961–1990). One of the more important results of this study is that, on the one hand yield of C₃ cereals would be lower and that of C₄ cereals higher in most agricultural regions. On the other hand, the direct fertilisation effect of increased CO₂ is not considered. It must be cautioned however that we can not generalise results obtained for one legume crop to all legumes.     

Global fossil energy markets and climate change mitigation – an analysis with REMIND

We analyze the dynamics of global fossil resource markets under different assumptions for the supply of fossil fuel resources, development pathways for energy demand, and climate policy settings. Resource markets, in particular the oil market, are characterized by a large discrepancy between costs of resource extraction and commodity prices on international markets. We explain this observation in terms of (a) the intertemporal scarcity rent, (b) regional price differentials arising from trade and transport costs, (c) heterogeneity and inertia in the extraction sector. These effects are captured by the REMIND model. We use the model to explore economic effects of changes in coal, oil and gas markets induced by climate-change mitigation policies. A large share of fossil fuel reserves and resources will be used in the absence of climate policy leading to atmospheric GHG concentrations well beyond a level of 550 ppm CO₂-eq. This result holds independently of different assumptions about energy demand and fossil fuel availability. Achieving ambitious climate targets will drastically reduce fossil fuel consumption, in particular the consumption of coal. Conventional oil and gas as well as non-conventional oil reserves are still exhausted. We find the net present value of fossil fuel rent until 2100 at 30tril.US$ with a large share of oil and a small share of coal. This is reduced by 9 and 12tril.US$ to achieve climate stabilization at 550 and 450 ppm CO₂-eq, respectively. This loss is, however, overcompensated by revenues from carbon pricing that are 21 and 32tril.US$, respectively. The overcompensation also holds under variations of energy demand and fossil fuel supply.     

Impacts of future Indian greenhouse gas emission scenarios on projected climate change parameters deduced from MAGICC model

The MAGICC (Model for the Assessment of Greenhouse gas Induced Climate Change) model simulation has been carried out for the 2000–2100 period to investigate the impacts of future Indian greenhouse gas emission scenarios on the atmospheric concentrations of carbon dioxide, methane and nitrous oxide besides other parameters like radiative forcing and temperature. For this purpose, the default global GHG (Greenhouse Gases) inventory was modified by incorporation of Indian GHG emission inventories which have been developed using three different approaches namely (a) Business-As-Usual (BAU) approach, (b) Best Case Scenario (BCS) approach and (c) Economy approach (involving the country’s GDP). The model outputs obtained using these modified GHG inventories are compared with various default model scenarios such as A1B, A2, B1, B2 scenarios of AIM (Asia-Pacific Integrated Model) and P50 scenario (median of 35 scenarios given in MAGICC). The differences in the range of output values for the default case scenarios (i.e., using the GHG inventories built into the model) vis-à-vis modified approach which incorporated India-specific emission inventories for AIM and P50 are quite appreciable for most of the modeled parameters. A reduction of 7% and 9% in global carbon dioxide (CO₂) emissions has been observed respectively for the years 2050 and 2100. Global methane (CH₄) and global nitrous oxide (N₂O) emissions indicate a reduction of 13% and 15% respectively for 2100. Correspondingly, global concentrations of CO₂, CH₄ and N₂O are estimated to reduce by about 4%, 4% and 1% respectively. Radiative forcing of CO₂, CH₄ and N₂O indicate reductions of 6%, 14% and 4% respectively for the year 2100. Global annual mean temperature change (incorporating aerosol effects) gets reduced by 4% in 2100. Global annual mean temperature change reduces by 5% in 2100 when aerosol effects have been excluded. In addition to the above, the Indian contributions in global CO₂, CH₄ and N₂O emissions have also been assessed by India Excluded (IE) scenario. Indian contribution in global CO₂ emissions was observed in the range of 10%–26%, 6%–36% and 10%–38% respectively for BCS, Economy and BAU approaches, for the years 2020, 2050 and 2100 for P50, A1B-AIM, A2-AIM, B1-AIM & B2-AIM scenarios. CH₄ and N₂O emissions indicate about 4%–10% and 2%–3% contributions respectively in the global CH₄ and N₂O emissions for the years 2020, 2050 and 2100. These Indian GHG emissions have significant influence on global GHG concentrations and consequently on climate parameters like RF and ∆T. The study reflects not only the importance of Indian emissions in the global context but also underlines the need of incorporation of country specific GHG emissions in modeling to reduce uncertainties in simulation of climate change parameters.     

An assessment of the potential impact of climate change on rice farmers and markets in Bangladesh

Bangladesh, the sixth largest rice producer in the world, has been identified as high risk from the effects of climate change. Many of the adverse impacts of climate change such as land inundation and changes in weather patterns and CO₂ levels will impact the agricultural sector. This study develops a partial-equilibrium multi-regional farm household model of Bangladesh rice and non-rice agricultural markets to quantify the impacts of climate change on consumption, production, prices, and farmers’ welfare. The model is calibrated to the Bangladesh rice market using Household Income and Expenditure Survey data. The model is simulated to analyze the impact of land reduction and productivity decline resulting from climate change. The results show that the decline in production in the coastal and northern regions offsets the production increase in the central and eastern regions, and the simulation predicts that total rice production for Bangladesh falls by about 2%. As total rice consumption falls and imports rise, the net effect leads to a rise in the rice price by 5.71% and a decline in farmers’ welfare. Sensitivity analysis shows that more- (less-) effective abatement technology could play a key role in mitigating (exacerbating) the price and welfare effects. The model predicts that many farmers in regions directly impacted by climate change could leave farming in search of off-farm work. Thus, the government can ease this transition by promoting urban development to provide more job options and technical training for farmers.     

Ocean acidification and climate change: synergies and challenges of addressing both under the UNFCCC

Ocean acidification and climate change are linked by their common driver: CO₂. Climate change is the consequence of a range of GHG emissions, but ocean acidification on a global scale is caused solely by increased concentrations of atmospheric CO₂. Reducing CO₂ emissions is therefore the most effective way to mitigate ocean acidification. Acting to prevent further ocean acidification by reducing CO₂ emissions will also provide simultaneous benefits by alleviating future climate change. Although it is possible that reducing CO₂ emissions to a level low enough to address ocean acidification will simultaneously address climate change, the reverse is unfortunately not necessarily true. Despite the ocean's integral role in the climate system and the potentially wide-ranging impacts on marine life and humans, the problem of ocean acidification is largely absent from most policy discussions pertaining to CO₂ emissions. The linkages between ocean acidification, climate change and the United Nations Framework Convention on Climate Change (UNFCCC) are identified and possible scenarios for developing common solutions to reduce and adapt to ocean acidification and climate change are offered. Areas where the UNFCCC is currently lacking capacity to effectively tackle rising ocean acidity are also highlighted.     

An emission pathway for stabilization at 6?Wm?2 radiative forcing

Representative Concentration Pathway 6.0 (RCP6) is a pathway that describes trends in long-term, global emissions of greenhouse gases (GHGs), short-lived species, and land-use/land-cover change leading to a stabilisation of radiative forcing at 6.0 Watts per square meter (Wm^?2) in the year 2100 without exceeding that value in prior years. Simulated with the Asia-Pacific Integrated Model (AIM), GHG emissions of RCP6 peak around 2060 and then decline through the rest of the century. The energy intensity improvement rates changes from 0.9% per year to 1.5% per year around 2060. Emissions are assumed to be reduced cost-effectively in any period through a global market for emissions permits. The exchange of CO₂ between the atmosphere and terrestrial ecosystem through photosynthesis and respiration are estimated with the ecosystem model. The regional emissions, except CO₂ and N₂O, are downscaled to facilitate transfer to climate models.     

A wedge-based approach to estimating health co-benefits of climate change mitigation activities in the United States

While it has been recognized that actions reducing greenhouse gas (GHG) emissions can have significant positive and negative impacts on human health through reductions in ambient fine particulate matter (PM_2.5) concentrations, these impacts are rarely taken into account when analyzing specific policies. This study presents a new framework for estimating the change in health outcomes resulting from implementation of specific carbon dioxide (CO₂) reduction activities, allowing comparison of different sectors and options for climate mitigation activities. Our estimates suggest that in the year 2020, the reductions in adverse health outcomes from lessened exposure to PM_2.5 would yield economic benefits in the range of $6 to $30 billion (in 2008 USD), depending on the specific activity. This equates to between $40 and $198 per metric ton of CO₂ in health benefits. Specific climate interventions will vary in the health co-benefits they provide as well as in potential harms that may result from their implementation. Rigorous assessment of these health impacts is essential for guiding policy decisions as efforts to reduce GHG emissions increase in scope and intensity.     

How much information is lost by using global-mean climate metrics? an example using the transport sector

Metrics are often used to compare the climate impacts of emissions from various sources, sectors or nations. These are usually based on global-mean input, and so there is the potential that important information on smaller scales is lost. Assuming a non-linear dependence of the climate impact on local surface temperature change, we explore the loss of information about regional variability that results from using global-mean input in the specific case of heterogeneous changes in ozone, methane and aerosol concentrations resulting from emissions from road traffic, aviation and shipping. Results from equilibrium simulations with two general circulation models are used. An alternative metric for capturing the regional climate impacts is investigated. We find that the application of a metric that is first calculated locally and then averaged globally captures a more complete and informative signal of climate impact than one that uses global-mean input. The loss of information when heterogeneity is ignored is largest in the case of aviation. Further investigation of the spatial distribution of temperature change indicates that although the pattern of temperature response does not closely match the pattern of the forcing, the forcing pattern still influences the response pattern on a hemispheric scale. When the short-lived transport forcing is superimposed on present-day anthropogenic CO₂ forcing, the heterogeneity in the temperature response to CO₂ dominates. This suggests that the importance of including regional climate impacts in global metrics depends on whether small sectors are considered in isolation or as part of the overall climate change.     

Response of Soybean and Sorghum to Varying Spatial Scales of Climate Change Scenarios in the Southeastern United States

This study examines how uncertainty associated with the spatial scale of climate change scenarios influences estimates of soybean and sorghum yield response in the southeastern United States. We investigated response using coarse (300-km, CSIRO) and fine (50-km, RCM) scale climate change scenarios and considering climate changes alone, climate changes with CO₂ fertilization, and climate changes with CO₂ fertilization and adaptation. Relative to yields simulatedunder a current, control climate scenario, domain-wide soybean yield decreased by 49% with the coarse-scale climate change scenario alone, and by26% with consideration for CO₂ fertilization. By contrast, thefine-scale climate change scenario generally exhibited higher temperatures and lower precipitation in the summer months resulting in greater yield decreases (69% for climate change alone and 54% with CO₂fertilization). Changing planting date and shifting cultivars mitigated impacts, but yield still decreased by 8% and 18% respectively for the coarse andfine climate change scenarios. The results were similar for sorghum. Yield decreased by 51%, 42%, and 15% in response to fine-scaleclimate change alone, CO₂ fertilization, and adaptation cases, respectively– significantly worse than with the coarse-scale (CSIRO) scenarios. Adaptation strategies tempered the impacts of moisture and temperature stress during pod-fill and grain-fill periods and also differed with respect to the scale of the climate change scenario.     

The millennial atmospheric lifetime of anthropogenic CO<Subscript>2</Subscript>

The notion is pervasive in the climate science community and in the public at large that the climate impacts of fossil fuel CO₂ release will only persist for a few centuries. This conclusion has no basis in theory or models of the atmosphere/ocean carbon cycle, which we review here. The largest fraction of the CO₂ recovery will take place on time scales of centuries, as CO₂ invades the ocean, but a significant fraction of the fossil fuel CO₂, ranging in published models in the literature from 20–60%, remains airborne for a thousand years or longer. Ultimate recovery takes place on time scales of hundreds of thousands of years, a geologic longevity typically associated in public perceptions with nuclear waste. The glacial/interglacial climate cycles demonstrate that ice sheets and sea level respond dramatically to millennial-timescale changes in climate forcing. There are also potential positive feedbacks in the carbon cycle, including methane hydrates in the ocean, and peat frozen in permafrost, that are most sensitive to the long tail of the fossil fuel CO₂ in the atmosphere.     

The danger of overvaluing methane’s influence on future climate change

Minimizing the future impacts of climate change requires reducing the greenhouse gas (GHG) load in the atmosphere. Anthropogenic emissions include many types of GHG’s as well as particulates such as black carbon and sulfate aerosols, each of which has a different effect on the atmosphere, and a different atmospheric lifetime. Several recent studies have advocated for the importance of short timescales when comparing the climate impact of different climate pollutants, placing a high relative value on short-lived pollutants, such as methane (CH₄) and black carbon (BC) versus carbon dioxide (CO₂). These studies have generated confusion over how to value changes in temperature that occur over short versus long timescales. We show the temperature changes that result from exchanging CO₂ for CH₄ using a variety of commonly suggested metrics to illustrate the trade-offs involved in potential carbon trading mechanisms that place a high value on CH₄ emissions. Reducing CH₄ emissions today would lead to a climate cooling of approximately ~0.5 °C, but this value will not change greatly if we delay reducing CH₄ emissions by years or decades. This is not true for CO₂, for which the climate is influenced by cumulative emissions. Any delay in reducing CO₂ emissions is likely to lead to higher cumulative emissions, and more warming. The exact warming resulting from this delay depends on the trajectory of future CO₂ emissions but using one business-as usual-projection we estimate an increase of 3/4 °C for every 15-year delay in CO₂ mitigation. Overvaluing the influence of CH₄ emissions on climate could easily result in our “locking” the earth into a warmer temperature trajectory, one that is temporarily masked by the short-term cooling effects of the CH₄ reductions, but then persists for many generations.