The Effects of Spatial Scale of Climate Scenarios on Economic Assessments: An Example from U.S. Agriculture

The appropriate level of spatial resolution for climate scenarios is a key uncertainty in climate impact studies and regional integrated assessments. To the extent that such uncertainty may affect the magnitude of economic estimates of climate change, it has implications for the public policy debates concerning the efficiency of CO₂ control options. In this article, we investigate the effects that different climate scenario resolutions have on economic estimates of the impacts of future climate changeon agriculture in the United States. These results are derived via a set of procedures and an analytical model that has been used previously in climate change assessments. The results demonstrate that the spatial scale of climate scenarios affects the estimates of both regional changes in crop yields and the economic impact on the agricultural sector as a whole. An assessment based on the finer scale climatological information consistently yielded a less favorable assessment of the implications of climate change. Regional indicators of economic activity were of opposite sign in some regions, based on the scenario scale. Such differences in economic magnitudes or signs are potentially important in examining whether past climate change assessments may misstate the economic consequences of such changes. The results reported here suggest that refinement of the spatial scale of scenarios should be carefully considered in future impacts research.     

Incorporating Catastrophes into Integrated Assessment: Science, Impacts, and Adaptation

Incorporating potential catastrophic consequences into integrated assessment models of climate change has been a top priority of policymakers and modelers alike. We review the current state of scientific understanding regarding three frequently mentioned geophysical catastrophes, with a view toward their implications for integrated assessment modeling. This review finds inadequacies in widespread model assumptions regarding the nature of catastrophes themselves and climate change impacts more generally. The possibility of greatly postponed consequences from near- and medium-term actions suggests that standard discounting practices are inappropriate for the analysis of climate catastrophe. Careful consideration of paleoclimate and geophysical modeling evidence regarding the possibility of changes in ocean circulation suggests a reframing of the source of climate change damages in economic models, placing changes in climate predictability, rather than gradual changes in mean values, at the focus of economic damage assessments. The implications of decreases in predictability for the modeling of adaptation are further discussed.     

可计算一般均衡框架下的气候变化经济影响综合评估

气候变化是21世纪人类面临的重大挑战之一,并对自然系统和社会经济系统造成了各种负面影响。对气候变化的影响进行经济评估是气候变化研究中的重要问题。而可计算一般均衡框架下的综合评估模型（CGE_IAMs）是评估气候变化经济影响的有效手段之一,文中对气候变化影响经济评估的主要CGE_IAMs进行了文献调研,并对这些模型进行了比较分析。研究表明不同模型在温室气体排放、气候参数的处理方式以及气候影响的引入机制等方面有着较大区别,因而各模型对气候变化影响的经济评估结果也有一定的差异。此外,当前CGE_IAMs在评估气候变化经济影响时存在支撑数据未及时更新、方法不细致以及评估不全面等问题。未来该领域的相关研究应该更加关注于模型与支撑数据的精细化和开源化,此外还应加强CGE_IAMs中经济模块与复杂气候模式的耦合。     

Turning climate change information into economic and health impacts

The PRUDENCE project has generated a set of spatially and temporally high-resolution climate data, which provides new opportunities for assessing the impacts of climate variability and change on economic and human systems in Europe. In this context, we initiated the development of new approaches for linking climate change information and economic studies. We have considered a number of case studies that illustrate how linkages can be established between geographically detailed climate data and economic information. The case studies included wheat production in agriculture, where regional climate data has been linked to farm enterprise data in an integrated model of physical conditions, production inputs and outputs, and farm management practices. Similarly, temperature data were used to assess consequences of extreme heat and excess mortality in urban areas. We give an introduction of an analytical approach for assessing economic impacts of climate change and discuss how economic concepts and valuation paradigms can be applied to climate change impact evaluation. A number of methodological difficulties encountered in economic assessments of climate change impacts are described and a number of issues related to social and private aspects of costs are highlighted. It is argued that, in particular, detailed climate information matters in relation to understanding how private agents react to observed climate data.     

The interpretation and highlights on mitigation of climate change in IPCC AR6 WGIII report北大核心CSCD

2022年4月4日,IPCC第六次评估报告第三工作组《气候变化2022:减缓气候变化》报告和决策者摘要发布。报告全面评估了2010年以来减缓气候变化领域的最新科学进展,为国际社会深度认识和理解全球温室气体排放情况、不同温升水平下的减排路径以及可持续发展背景下的气候变化减缓和适应行动等提供了重要科学依据。基于报告主要结论,围绕温室气体排放的区域差异、减缓路径分类、与土地利用相关的排放评估及CO去除技术评估等方面的亮点,文中提出在应对气候变化减缓政策行动中,中国应坚定“双碳”战略目标,在综合考虑经济发展阶段和资源禀赋差异背景下,将可持续发展、公平和消除贫困植根于社会发展愿景中实施减缓路径,并加快提升气候变化综合评估核心科学技术的研发进度,以进一步提升国际影响力和话语权。     

Methodological framework of the PESETA project on the impacts of climate change in Europe

The PESETA project makes a high-resolution integrated assessment of the effects of climate change in Europe in the following impact categories: agriculture, river floods, coastal systems, tourism and human health. Many relevant methodological decisions underlie the multi-disciplinary assessment, such as the selection of the climate scenarios and the economic valuation of the physical impacts. The main purpose of this article is to document the methodological framework of the PESETA project, identifying also where further research is required. How the different sources of uncertainty have been addressed in the project is explicitly analysed, including the climate change scenarios and the various sectoral methodologies.     

The economics of climate change impacts and policy benefits at city scale: a conceptual framework

Cities are particularly vulnerable to climate change and climate extremes in part because they concentrate many activities, people and wealth in limited areas. As a result they represent an important scale for assessment and understanding of climate change impacts. This paper provides a conceptual and methodological framework for urban economic impact assessment of climate change. The focus of the paper is on model-based analysis of future scenarios, including a framing of uncertainty for these projections, as one valuable input into the decision-making process. The paper highlights the main assessment difficulties, methods and tools, and selected examples across these areas. A number of challenges are unique to climate change impact assessment and others are unique to the problem of working at local scales. The paper also identifies the need for additional research, including the need for more integrated and systemic approaches to address climate change as a part of the urban development challenge as well as the need to assess the economic impacts of climate change and response policy at local scale.     

Assessing climate change impacts in the European north

Global climate change and its regional manifestation will result in significant impacts in the European North. However, in order to determine the consequences of such impacts, a holistic, integrated assessment is needed. This paper sets the stage for the remainder of this volume by describing an attempt to derive such an assessment for the Barents Sea Region through the EU-funded BALANCE project. The paper explains some of the major methodologies employed in the study. It also provides insight into major results obtained and attempts to answer a number of overarching questions. It will be shown that climate change does present a significant threat to environmental and societal integrity in the study region. However, it will also be shown that stakeholders regard other drivers of future changes (economical, political developments) at least as equally important for their personal lives.     

The coupling of optimal economic growth and climate dynamics

In this paper, we study optimal economic growth programs coupled with climate change dynamics. The study is based on models derived from MERGE, a well established integrated assessment model (IAM). We discuss first the introduction in MERGE of a set of “tolerable window” constraints which limit both the temperature change and the rate of temperature change. These constraints, obtained from ensemble simulations performed with the Bern 2.5-D climate model, allow us to identity a domain intended to preserve the Atlantic thermohaline circulation. Next, we report on experiments where a two-way coupling is realized between the economic module of MERGE and an intermediate complexity “3-D-” climate model (C-GOLDSTEIN) which computes the changes in climate and mean temperature. The coupling is achieved through the implementation of an advanced “oracle based optimization technique” which permits the integration of information coming from the climate model during the search for the optimal economic growth path. Both cost-effectiveness and cost-benefit analysis modes are explored with this combined “meta-model” which we refer to as GOLDMERGE. Some perspectives on future implementations of these approaches in the context of “collaborative” or “community” integrated assessment modules are derived from the comparison of the different approaches.     

Climate change impacts: accounting for the human response

The assessment of potential impacts of climate change is progressing from taxonomies and enumeration of the magnitude of potential direct effects on individuals, societies, species, and ecosystems according to a limited number of metrics toward a more integrated approach that also encompasses the vast range of human response to experience and risk. Recent advances are both conceptual and methodological, and include analysis of some consequences of climate change that were heretofore intractable. In this article, I review a selection of these developments and represent them through a handful of illustrative cases. A key characteristic of the emerging areas of interest is a focus on understanding how human responses to direct impacts of climate change may cause important indirect and sometimes distant impacts. This realization underscores the need to develop integrated approaches for assessing and modeling impacts in an evolving socioeconomic and policy context.     

Incorporating ‘catastrophic’ climate change into policy analysis

Although existing economic research is informative with regard to the importance of including potential ‘catastrophic’ climate change impacts in the analysis of GHG mitigation benefits, the generic and abstract form of the ‘catastrophe’ implemented has led to a lack of specific policy implications. This article provides an important starting point for a discussion of how to improve economic modelling of potential large-scale impacts of climate change. It considers how the term ‘abrupt climate change’ has been used in the scientific literature to describe changes in the climate system and carefully reviews the characteristics of the events that have been discussed in this context. The findings are compared to the way in which the economic literature has modelled potential economic and human welfare impacts of these ‘catastrophic’ events. In general, the economics literature is found to have modelled such impacts in a uniform way that fails to account for differences in relevant end points and timescales. The result is policy recommendations based on events that do not resemble those of concern. Better treatment of these events in integrated assessment modelling would help ensure that future research efforts can serve as meaningful policy input.     

Linkages between climate change and sustainable development

Abstract

Climate change does not yet feature prominently within the environmental or economic policy agendas of developing countries. Yet evidence shows that some of the most adverse effects of climate change will be in developing countries, where populations are most vulnerable and least likely to easily adapt to climate change, and that climate change will affect the potential for development in these countries. Some synergies already exist between climate change policies and the sustainable development agenda in developing countries, such as energy efficiency, renewable energy, transport and sustainable land-use policies. Despite limited attention from policy-makers to date, climate change policies could have significant ancillary benefits for the local environment. The reverse is also true as local and national policies to address congestion, air quality, access to energy services and energy diversity may also limit GHG emissions. Nevertheless there could be significant trade-offs associated with deeper levels of mitigation in some countries, for example where developing countries are dependent on indigenous coal and may be required to switch to cleaner yet more expensive fuels to limit emissions. The distributional impacts of such policies are an important determinant of their feasibility and need to be considered up-front. It follows that future agreements on mitigation and adaptation under the convention will need to recognise the diverse situations of developing countries with respect to their level of economic development, their vulnerability to climate change and their ability to adapt or mitigate. Recognition of how climate change is likely to influence other development priorities may be a first step toward building cost-effective strategies and integrated, institutional capacity in developing countries to respond to climate change. Opportunities may also exist in developing countries to use regional economic organisations to assist in the design of integrated responses and to exploit synergies between climate change and other policies such as those designed to combat desertification and preserve biodiversity.

© 2002 Elsevier Science Ltd. All rights reserved.     

Climate Change Impacts for the Conterminous USA: An Integrated Assessment Summary

This special issue of Climatic Change describes an effort to improve methodology for integrated assessment of impacts and consequences of climatic change. Highlights of the seven foregoing Parts (papers) that constitute this special issue are summarized here. The methodology developed involves construction of scenarios of climate change that are used to drive individual sectoral models for simulating impacts on crop production, irrigation demand, water supply and change in productivity and geography of unmanaged ecosystems. Economic impacts of the changes predicted by integrating the results of the several sectoral simulation models are calculated through an agricultural land-use model. While these analyses were conducted for the conterminous United States alone, their global implications are also considered in this summary as is the need for further improvements in integrated assessment methodology.     

Conclusions,remaining issues,and next steps

The workshop focused on methodologies to assess the impacts of climate change on terrestrial and aquatic ecosystems and their socioeconomic consequences. It did not deal in any detail with the other components (i.e., models designed to estimate changes in atmospheric concentrations of greenhouse gases or in climatic factors) of an integrated assessment shown in Figure 2 of the introduction. This final chapter discusses some of the issues addressed during the San Diego workshop and highlights a few of the major findings of the papers. Issues discussed below include limitations of past modeling efforts and impediments to developing better models of the impacts of climate change on forest, grassland, and water resources; suggestions for future research both to develop better data and models and to employ existing data and modeling capabilities to improve the usefulness of climate impact assessments for policy purposes; and the need for developing a common assessment framework.The views expressed here are those of the authors and do not necessarily reflect those of their institutions or the other participants in the February 28 to March 3, 1993 workshop held in San Diego, California.     

Some thoughts on the value added from a new round of climate change damage estimates

This paper offers some thoughts on the value added of new economic estimates of climate change damages. We begin with a warning to beware of analyses that are so narrow that they miss a good deal of the important economic ramifications of the full suite of manifestations of climate change. Our second set of comments focuses attention on one of the most visible products of integrated assessment modeling—estimates of the social cost of carbon which we take as one example of aggregate economic indicators that have been designed to summarize climate risk in policy deliberations. Our point is that these estimates are so sensitive to a wide range of parameters that improved understanding of economic damages across many (if not all) climate sensitive sectors may offer only limited value added. Having cast some doubt on the ability of improved estimates of economic damages to increase the value of economic damage estimates in integrated assessment modeling designed to inform climate policy deliberations, we offer an alternative approach—describing implicitly a research agenda that could (a) effectively inform mitigation decisions while, at the same time, (b) providing economic estimates for aggregate indicators like the social cost of carbon.     

Why regional studies are needed in the development of full-scale integrated assessment modelling of global change processes

Full-scale integrated assessment models (lAMs) allow many components of the global climate change problem to be examined in one framework. The chief advantage of the IAM approach over less complete modelling frameworks is that the socio-economic and environmental consequences of policy choices aimed at abating or adapting to climate change can be evaluated in their totality. However, the highly aggregate functional forms that lAMs currently embed are lacking in sufficient regional and sectoral detail to be totally credible. In this paper, ten reasons why regional studies are needed in support of the development of full-scale lAMs are given. A strategic cyclical scaling exercise involving regional and global integrated modelling frameworks is proposed.     

Extending the Shared Socioeconomic Pathways for sub-national impacts,adaptation, and vulnerability studies

The exploration of alternative socioeconomic futures is an important aspect of understanding the potential consequences of climate change. While socioeconomic scenarios are common and, at times essential, tools for the impacts, adaptation and vulnerability and integrated assessment modeling research communities, their approaches to scenario development have historically been quite distinct. However, increasing convergence of impacts, adaptation and vulnerability and integrated assessment modeling research in terms of scales of analysis suggests there may be value in the development of a common framework for socioeconomic scenarios. The Shared Socioeconomic Pathways represents an opportunity for the development of such a common framework. However, the scales at which these global storylines have been developed are largely incommensurate with the sub-national scales at which impacts, adaptation and vulnerability and, increasingly, integrated assessment modeling studies are conducted. The objective of this study was to develop sub-national and sectoral extensions of the global SSP storylines in order to identify future socioeconomic challenges for adaptation for the U.S. Southeast. A set of nested qualitative socioeconomic storyline elements, integrated storylines, and accompanying quantitative indicators were developed through an application of the Factor–Actor–Sector framework. In addition to revealing challenges and opportunities associated with the use of the SSPs as a basis for more refined scenario development, this study generated sub-national storyline elements and storylines that can subsequently be used to explore the implications of alternative sub-national socioeconomic futures for the assessment of climate change impacts and adaptation.     

The need for and use of socio-economic scenarios for climate change analysis: A new approach based on shared socio-economic pathways

Socio-economic scenarios constitute an important tool for exploring the long-term consequences of anthropogenic climate change and available response options. A more consistent use of socio-economic scenarios that would allow an integrated perspective on mitigation, adaptation and residual climate impacts remains a major challenge. We assert that the identification of a set of global narratives and socio-economic pathways offering scalability to different regional contexts, a reasonable coverage of key socio-economic dimensions and relevant futures, and a sophisticated approach to separating climate policy from counter-factual “no policy” scenarios would be an important step toward meeting this challenge. To this end, we introduce the concept of “shared socio-economic (reference) pathways”. Sufficient coverage of the relevant socio-economic dimensions may be achieved by locating the pathways along the dimensions of challenges to mitigation and to adaptation. The pathways should be specified in an iterative manner and with close collaboration between integrated assessment modelers and impact, adaptation and vulnerability researchers to assure coverage of key dimensions, sufficient scalability and widespread adoption. They can be used not only as inputs to analyses, but also to collect the results of different climate change analyses in a matrix defined by two dimensions: climate exposure as characterized by a radiative forcing or temperature level and socio-economic development as classified by the pathways. For some applications, socio-economic pathways may have to be augmented by “shared climate policy assumptions” capturing global components of climate policies that some studies may require as inputs. We conclude that the development of shared socio-economic (reference) pathways, and integrated socio-economic scenarios more broadly, is a useful focal point for collaborative efforts between integrated assessment and impact, adaptation and vulnerability researchers.     

Adapting to climate change: Public water supply in England and Wales

This paper describes an assessment of the ways in which water supply companies in England and Wales are adapting to climate change, evaluated in the context of a model of the adaptation process. The four components of the model are (i) awareness of and concern about the potential impacts of climate change, (ii) adaptation strategy, (iii) the concept of an adaptation space from which options are selected, and (iv) the notion that three groups of factors influence awareness, strategy and option selection: susceptibility to change, internal characteristics of the organisation, and regulatory and market context.Public water supply in England and Wales is provided by private sector companies, subject to environmental and economic regulation. Hydrological simulations suggest that climate change has the potential to reduce the reliability of supply sources over the next few decades. The industry in December 2004 completed a review of investment requirements over the next five years.Awareness of climate change is high in the water industry, but by developing assessment procedures and incorporating them into the investment review the regulators forced companies to consider explicitly the potential impacts of climate change in a consistent and rigorous manner. These analyses combined climate change with other pressures on water resources, and in practice companies did not attribute specific investment decisions or proposals to climate change or indeed any other individual drivers. The broad strategy adopted by all water supply companies – to maintain standards of service – is determined by regulatory controls and market considerations, but the degree of concern about the impacts of climate change and precise adaptation options necessary to address supply-demand imbalances varied between water supply companies, reflecting local geographic conditions. The water supply companies and regulators have different perspectives on the relative merits of supply-side and demand-side measures, reflecting different organisational priorities.The 2004 investment review determined that no specific actions were necessary to deal with future climate change, but that measures set in place – in terms of methodologies and investment in investigations into specific resource developments – provided a sound foundation for more specific actions in the next investment review in five years time. The paper concludes by summarising the factors assisting and constraining adaptation over the next few decades.     

The contribution of future agricultural trends in the US Midwest to global climate change mitigation

Land use change is a complex response to changing environmental and socioeconomic systems. Historical drivers of land use change include changes in the natural resource availability of a region, changes in economic conditions for production of certain products and changing policies. Most recently, introduction of policy incentives for biofuel production have influenced land use change in the US Midwest, leading to concerns that bioenergy production systems may compete with food production and land conservation. Here we explore how land use may be impacted by future climate mitigation measures by nesting a high resolution agricultural model (EPIC – Environmental Policy Indicator Climate) for the US Midwest within a global integrated assessment model (GCAM – Global Change Assessment Model). This approach is designed to provide greater spatial resolution and detailed agricultural practice information by focusing on the climate mitigation potential of agriculture and land use in a specific region, while retaining the global economic context necessary to understand the far ranging effects of climate mitigation targets. We find that until the simulated carbon prices are very high, the US Midwest has a comparative advantage in producing traditional food and feed crops over bioenergy crops. Overall, the model responds to multiple pressures by adopting a mix of future responses. We also find that the GCAM model is capable of simulations at multiple spatial scales and agricultural technology resolution, which provides the capability to examine regional response to global policy and economic conditions in the context of climate mitigation.