The new global growth path: implications for climate change analysis and policy

In recent years the world has moved to a new path of rapid global growth, largely driven by the developing countries, which is energy intensive and heavily reliant on the use of coal—global coal use will rise by nearly 60% over the decade to 2010. It is likely that, without changes to the policies in place in 2006, global CO₂ emissions from fuel combustion would nearly double their 2000 level by 2020 and would continue to rise beyond 2030. Neither the SRES marker scenarios nor the reference cases assembled in recent studies using integrated assessment models capture this abrupt shift to rapid growth based on fossil fuels, centred in key Asian countries. While policy changes must and will occur, the realism of the reference case is critical for analysis and policy formulation. Using such a reference path will have significant effects on impact and damage estimates, on the analysis of achievable stabilisation paths and on estimates of the costs of achieving stabilisation at a given GHG concentration level. Use of a realistic reference path is also essential for the international negotiations, arising out of the COP13 meeting in Bali, to achieve widely desired stabilisation goals: both the level of emission reductions to be achieved, and the preferred distribution of those reductions over countries and regions, will be heavily influenced by the reference case assumed.     

Economics of climate change: risk and responsibility by world region

The impacts of predicted climate change will not be distributed evenly around the world. As post-Kyoto negotiations unfold, relating the geographical distribution of projected impacts to responsibility for emissions among world regions is essential for achieving an equitable path forward. This article surveys the current knowledge of regional climate consequences, and delves into the regional predictions of economic assessment models to date, examining how the uncertainties, assumptions and ethical dimensions influence the portrayal of risk at this scale. The few studies that quantitatively compared regional risk and responsibility are reviewed, and the analytical framework from one such study is applied to the 2006 Stern Review's projections to give the first regional comparison to take purchasing power and welfare considerations into account. Synthesizing burden and blame in this way is informative for policy makers; the world's most vulnerable communities—in Africa, the Indian subcontinent, Latin America, and small island states—accounted for less than 33% of global greenhouse gas emissions over the period 1961–2000, but may experience more than 75% of the ensuing climate damages this century. This analysis reinforces the call for industrialized nations to lead mitigation efforts, and to do so decisively and swiftly.     

Achieving Adequate Adaptation in Agriculture

This paper reviews the prospects for adaptation in world agriculture in the face of climate change. The record of experience from previous decades demonstrates a considerable capacity to adapt and there is general optimism that successful adaptation will be maintained. There are some grounds for concern because of the uncertainty surrounding global climate projections and the probability of considerable regional variation in impacts. While world production may not be adversely affected, the prospects are not so encouraging for low latitude agricultural regions, in part because of lower capacity to adapt. Attention has focused on the farming community itself as the place where adaptation takes place, but now the processes of globalization are placing adaptation more in the hands of agri-business, national policy makers, and the international political economy. The continued success of adaptation rests more heavily on actions at the national level in the context of changing technology and world trade liberalization. An adaptation policy framework is suggested as a vehicle to help understand and facilitate adaptation in this changing context.     

Reaching a climate agreement: compensating for energy market effects of climate policy

Because of large economic and environmental asymmetries among world regions and the incentive to free ride, an international climate regime with broad participation is hard to reach. Most of the proposed regimes are based on an allocation of emissions rights that is perceived as fair. Yet, there are also arguments to focus more on the actual welfare implications of different regimes and to focus on a ‘fair’ distribution of resulting costs. In this article, the computable general equilibrium model DART is used to analyse the driving forces of welfare implications in different scenarios in line with the 2?°C target. These include two regimes that are often presumed to be ‘fair’, namely a harmonized international carbon tax and a cap and trade system based on the convergence of per capita emissions rights, and also an ‘equal loss’ scenario where welfare losses relative to a business-as-usual scenario are equal for all major world regions. The main finding is that indirect energy market effects are a major driver of welfare effects and that the ‘equal loss’ scenario would thus require large transfer payments to energy exporters to compensate for welfare losses from lower world energy demand and prices.

Policy relevance

A successful future climate regime requires ‘fair’ burden sharing. Many proposed regimes start from ethical considerations to derive an allocation of emissions reduction requirements or emissions allowances within an international emissions trading scheme. Yet, countries also consider the expected economic costs of a regime that are also driven by other factors besides allowance allocation. Indeed, in simplified lab experiments, successful groups are characterized by sharing costs proportional to wealth. This article shows that the major drivers of welfare effects are reduced demand for fossil energy and reduced fossil fuel prices, which implies that (1) what is often presumed to be a fair allocation of emissions allowances within an international emissions trading scheme leads to a very uneven distribution of economic costs and (2) aiming for equal relative losses for all regions requires large compensation to fossil fuel exporters, as argued, for example, by the Organization of Petroleum Exporting Countries (OPEC).     

Stern’s Review and Adam’s fallacy

The Stern Review has played an enormous role in making the world of business aware of the challenge of long-term climate change. In order to make real progress on the basis of this awareness, it is important to pay attention to the difference between human suffering and losses of gross domestic product (GDP). The Review has compared climate change to experiences of suffering like World War I. That war, however, hardly affected global GDP. The long-term damages to be expected from business-as-usual greenhouse gas emissions include loss of the coastal cities of the world over the next millennia. This would be an act of unprecedented barbarism, regardless of whether it would slow down economic growth or perhaps even accelerate it. Business leaders worried about climate change need to pay attention to the tensions between ethical and economic concerns. Otherwise, a credibility crisis threatens global climate policy. An important step to establish the credibility needed for effective climate policy will be to gradually move towards a regime where emission permits are auctioned, not handed out as hidden subsidies. The revenues generated by permit auctions should be used to establish a global system of regional climate funds.     

Differentiating Future Commitments on the Basis of Countries’ Relative Historical Responsibility for Climate Change: Uncertainties in the ‘Brazilian Proposal’ in the Context of a Policy Implementation

During the negotiations on the Kyoto Protocol, Brazil proposed allocating the greenhouse gas emission reductions of Annex I Parties according to the relative effect of a country’s historical emissions on global temperature increase. This paper analyses the impact of scientific uncertainties and of different options in policy implementation (policy choices) on the contribution of countries’ historical emissions to indicators of historical responsibility for climate change. The influence of policy choices was found to be at least as large as the impact of the scientific uncertainties analysed here. Building on this, the paper then proceeds to explore the implications of applying the Brazilian Proposal as a climate regime for differentiation of future commitments on the global scale combined with an income threshold for participation of the non-Annex I regions. Under stringent climate targets, such a regime leads to high emission reductions for Annex I regions by 2050, in particular for Europe and Japan. The income threshold assumptions strongly affect the Annex I reductions, even more than the impact of another burden-sharing key. A variant of the Brazilian Proposal, allocating emission reductions on the basis of cumulative emissions since 1990, would lead to a more balanced distribution of emission reductions.     

Economically consistent long-term scenarios for air pollutant emissions

Pollutant emissions such as aerosols and tropospheric ozone precursors substantially influence climate. While future century-scale scenarios for these emissions have become more realistic through the inclusion of emission controls, they still potentially lack consistency between surface pollutant concentrations and regional levels of affluence. We find that the default method of scenario construction, whereby emissions factors converge to similar values in different regions, does not yield pollution concentrations consistent with historical experience. We demonstrate a methodology combining use of an integrated assessment model and a three-dimensional atmospheric chemical transport model, whereby a reference scenario is constructed by requiring consistent surface pollutant concentrations as a function of regional income over the 21st century. By adjusting air pollutant emission control parameters, we improve consistency between projected PM_2.5 and economic income among world regions through time; consistency for ozone is also improved but is more difficult to achieve because of the strong influence of upwind world regions. Reference case pollutant emissions described here were used to construct the RCP4.5 Representative Concentration Pathway climate policy scenario.     

Impacts of Climate Change on the Global Forest Sector

The path and magnitude of future anthropogenic emissions of carbon dioxide will likely influence changes in climate that may impact the global forest sector. These responses in the global forest sector may have implications for international efforts to stabilize the atmospheric concentration of carbon dioxide. This study takes a step toward including the role of global forest sector in integrated assessments of the global carbon cycle by linking global models of climate dynamics, ecosystem processes and forest economics to assess the potential responses of the global forest sector to different levels of greenhouse gas emissions. We utilize three climate scenarios and two economic scenarios to represent a range of greenhouse gas emissions and economic behavior. At the end of the analysis period (2040), the potential responses in regional forest growing stock simulated by the global ecosystem model range from decreases and increases for the low emissions climate scenario to increases in all regions for the high emissions climate scenario. The changes in vegetation are used to adjust timber supply in the softwood and hardwood sectors of the economic model. In general, the global changes in welfare are positive, but small across all scenarios. At the regional level, the changes in welfare can be large and either negative or positive. Markets and trade in forest products play important roles in whether a region realizes any gains associated with climate change. In general, regions with the lowest wood fiber production cost are able to expand harvests. Trade in forest products leads to lower prices elsewhere. The low-cost regions expand market shares and force higher-cost regions to decrease their harvests. Trade produces different economic gains and losses across the globe even though, globally, economic welfare increases. The results of this study indicate that assumptions within alternative climate scenarios and about trade in forest products are important factors that strongly influence the effects of climate change on the global forest sector.     

A FARMer's View of the Ricardian Approach to Measuring Agricultural Effects of Climatic Change

During the past few years two new methods, each based on the analogous region concept, have been developed to account for farmer adaptation in response to global climatic change. The first, called 'Ricardian' by Mendelsohn, Nordhaus, and Shaw (1994), econometrically estimates the impact of climatic and other variables on the value of farm real estate. Under some conditions, estimates of climate-induced changes in farm real estate capture first-round adaptations by farmers and represent the economic value of climatic change on agriculture. The second method, promulgated by Darwin et al. (1994) in the Future Agricultural Resources Model (FARM), uses a geographic information system to empirically link climatically derived land classes with other inputs and agricultural outputs in an economic model of the world. FARM provides estimates of economic impacts that fully account for all responses by economic agents under global climate change as well as estimates of Ricardian rents. The primary objective of this analysis is to evaluate how well changes in Ricardian rents measure agricultural or other effects of climatic change after all economic agents around the world have responded. Results indicate that changes in Ricardian rents on agricultural land are poor quantitative, but good qualitative, measures of how global climatic change is likely to affect the welfare of agricultural landowners, if one recognizes that increases in Ricardian rents actually indicate losses in landowner welfare and vice versa. Results also indicate that regional changes in Ricardian rents on all land are good qualitative measures of changes in regional welfare. They are poor quantitative welfare measures because they systematically overestimate both benefits and losses and are on average upwardly biased because inflated benefits are larger than exaggerated losses. Results also indicate that, when based on existing land-use patterns, changes in Ricardian rents on all the world's land are poor quantitative and qualitative measures of changes in world welfare. Despite these shortcomings, changes in Ricardian rents can provide useful information when other measures are not available. In this analysis, for example, estimated changes in Ricardian rents on all land indicate that climatic change would likely have detrimental effects in Latin America and Africa, beneficial effects in the former Soviet Union, and either detrimental or beneficial impacts in eastern and northern Europe and western and southern Asia. This is consistent with previous studies showing that climatic change would likely have detrimental, beneficial, and mixed effects on economic welfare in, respectively, equatorial, high latitude, and temperate areas. Estimated changes in Ricardian rents also indicate that aggregating Africa, Latin America, the former Soviet Union, eastern and northern Europe, and western and southern Asia into one region causes FARM's economic model to generate upwardly biased changes in world welfare. Modified results from scenarios with moderately flexible land-use change and which account for current land-use patterns indicate that world welfare may increase if the average surface land temperature does not increase by more than 1.0 or 2.0°C. If the average surface land temperature increases by 3.0°C or more, however, then world welfare may decline.     

Economic costs of ocean acidification: a look into the impacts on global shellfish production

Ocean acidification is increasingly recognized as a major global problem. Yet economic assessments of its effects are currently almost absent. Unlike most other marine organisms, mollusks, which have significant commercial value worldwide, have relatively solid scientific evidence of biological impact of acidification and allow us to make such an economic evaluation. By performing a partial-equilibrium analysis, we estimate global and regional economic costs of production loss of mollusks due to ocean acidification. Our results show that the costs for the world as a whole could be over 100 billion USD with an assumption of increasing demand of mollusks with expected income growths combined with a business-as-usual emission trend towards the year 2100. The major determinants of cost levels are the impacts on the Chinese production, which is dominant in the world, and the expected demand increase of mollusks in today’s developing countries, which include China, in accordance with their future income rise. Our results have direct implications for climate policy. Because the ocean acidifies faster than the atmosphere warms, the acidification effects on mollusks would raise the social cost of carbon more strongly than the estimated damage adds to the damage costs of climate change.     

How does carbon dioxide emission change with the economic development? Statistical experiences from 132 countries

Issues concerning what measures should be adopted to achieve a sustainable world with less carbon dioxide emission and in what magnitude should we reduce our emission have been on agenda in both international negotiations and countries’ policy making aimed at coping with potential global climate change. These issues cannot be easily addressed unless comprehensive understanding about the countries’ status quo as well as historical relationship between economic development and carbon dioxide emission are gained. In this paper, we examine the historical relationship between economic development and carbon dioxide emission; the ex ante restrictions on function forms and the poorly handled robustness issues rife in economics literature are synthetically addressed. Evidence from recent four decades indicates that per capita carbon dioxide emission first significantly and monotonously increase at low income level and flattens after per capita income reaches at about 22,000 $ (2005 constant price). We perform various robustness checks by employing different data sources, different model specifications and different econometric estimates. The captured development–emission relationship is robust. Our empirical results indicate factors such as urbanization, population density, trade, energy mix and economic environment impact the absolute level of carbon dioxide emission not the overall income elasticity structure of carbon dioxide emission.     

Coal taxes as supply-side climate policy: a rationale for major exporters?

The shift away from coal is at the heart of the global low-carbon transition. Can governments of coal-producing countries help facilitate this transition and benefit from it? This paper analyses the case for coal taxes as supply-side climate policy implemented by large coal exporting countries. Coal taxes can reduce global carbon dioxide emissions and benefit coal-rich countries through improved terms-of-trade and tax revenue. We employ a multi-period equilibrium model of the international steam coal market to study a tax on steam coal levied by Australia alone, by a coalition of major exporting countries, by all exporters, and by all producers. A unilateral export tax has little impact on global emissions and global coal prices as other countries compensate for reduced export volumes from the taxing country. By contrast, a tax jointly levied by a coalition of major coal exporters would significantly reduce global emissions from steam coal and leave them with a net sector level welfare gain, approximated by the sum of producer surplus, consumer surplus, and tax revenue. Production taxes consistently yield higher tax revenues and have greater effects on global coal consumption with smaller rates of carbon leakages. Questions remain whether coal taxes by major suppliers would be politically feasible, even if they could yield economic benefits.     

Implications of alternative metrics for global mitigation costs and greenhouse gas emissions from agriculture

100-year Global Warming Potentials (GWPs) are used almost universally to compare emissions of greenhouse gases in national inventories and reduction targets. GWPs have been criticised on several grounds, but little work has been done to determine global mitigation costs under alternative physics-based metrics . We used the integrated assessment model MESSAGE to compare emission pathways and abatement costs for fixed and time-dependent variants of the Global Temperature Change Potential (GTP) with those based on GWPs, for a policy goal of limiting the radiative forcing to a specified level in the year 2100. We find that fixed 100-year GTPs would increase global abatement costs (discounted and aggregated over the 21^st century) under this policy goal by 5–20 % relative to 100-year GWPs, whereas time-varying GTPs would reduce costs by about 5 %. These cost differences are smaller than differences arising from alternative assumptions regarding agricultural mitigation potential and much smaller than those arising from alternative radiative forcing targets. Using the land-use model GLOBIOM, we show that alternative metrics affect food production differently in different world regions depending on regional characteristics of future land-use change to meet growing food demand. We conclude that under scenarios of complete participation, the choice of metric has a limited impact on global abatement costs but could be important for the political economy of regional and sectoral participation in collective mitigation efforts, in particular changing costs and gains over time for agriculture and energy-intensive sectors.     

Economic consequences of global climate change and mitigation on future hydropower generation

Hydropower generation plays a key role in mitigating GHG emissions from the overall power supply. Although the maximum achievable hydropower generation (MAHG) will be affected by climate change, it is seldom incorporated in integrated assessment models. In this study, we first used the H08 global hydrological model to project MAHG under two physical climate change scenarios. Then, we used the Asia-Pacific Integrated Model/Computable General Equilibrium integrated assessment model to quantify the economic consequences of the presence or absence of mitigation policy on hydropower generation. This approach enabled us to quantify the physical impacts of climate change and the effect of mitigation policy—together and in isolation—on hydropower generation and the economy, both globally and regionally. Although there was little overall global change, we observed substantial differences among regions in the MAHG average change (from ??71% in Middle East to 14% in Former Soviet Union in RCP8.5). We found that the magnitude of changes in regional gross domestic product (GDP) was small negative (positive) in Brazil (Canada) by 2100, for the no mitigation policy scenario. These consequences were intensified with the implementation of mitigation policies that enhanced the price competitiveness of hydropower against fossil fuel-powered technologies. Overall, our results suggested that there would be no notable globally aggregated impacts on GDP by 2100 because the positive effects in some regions were canceled out by negative effects in other regions.     

Materials embodied in international trade – Global material extraction and consumption between 1995 and 2005

Production and consumption activities in industrialized countries are increasingly dependent on material and energy resources from other world regions and imply significant economic and environmental consequences in other regions around the world. The substitution of domestic material extraction and processing through imports is also shifting environmental burden abroad and thus extends the responsibility for environmental impacts as well as social consequences from the national to the global level. Based on the results of the Global Resource Accounting Model, this paper presents the first trade balances and consumption indicators for embodied materials in a time series from 1995 to 2005. The model includes 53 countries and two world regions. It is based on the 2009 edition of the input–output tables and bilateral trade data published by the Organisation for Economic Co-operation and Development (OECD) and is extended by physical data on global material extraction. The results quantify the global shift of embodied material resources from developing and emerging countries to the industrialized world. In addition to the level of industrialization and wealth, population density is identified as an important factor for the formation of physical trade patterns. Exports of embodied materials of less densely populated countries tend to surpass their imports, and vice versa. We also provide a quantitative comparison between conventionally applied indicators on material consumption based on direct material flows and indicators including embodied material flows. We show that the difference between those two indicators can be as much as 200%, calling for an adjustment of conventional national material flow indicators. Multi-regional input–output models prove to be a useful methodological approach to derive globally consistent and comprehensive data on material embodiments of trade and consumption.     

Agricultural Value of ENSO Information under Alternative Phase Definition

The El Niño-Southern Oscillation (ENSO) effect has been found to be associated with regional climate variations in many regions of the world, and, in turn, with variation in crop yields. Previous studies have found that early releases of ENSO phase information could permit agricultural producers to make adjustments in their decisions and in turn generate an increase in agricultural sector welfare. This study examines whether the value of the agricultural responses can be enhanced by releasing more detailed ENSO information. Namely we evaluate the implications for projected agricultural welfare under release and adaptation to the Stone and Auliciems five phase definition of ENSO states as opposed to the more standard three phase definition. This value is estimated using a stochastic, U.S./global agricultural model representing 22 climate years. The results indicate that the release and exploitation of the more detailed ENSO phase definition almost doubles the welfare impact. The results also indicate that there is room for up to another doubling of information value through further refinements.     

Global inequalities in food consumption,cropland demand and land-use efficiency: A decomposition analysis

The world population is expected to rise to 9.7 billion by 2050 and to ~11 billion by 2100, and securing its healthy nutrition is a key concern. As global fertile land is limited, the question arises whether growth in food consumption associated with increased affluence surmounts increases in land-use efficiency (measured as food supply per cropland area) associated with technological progress. Furthermore, substantial inequalities prevail in the global food system: While overly rich diets represent a serious health issue for many of the world’s most affluent inhabitants and constitute a critical climate-change driver, undernourishment and hunger still threaten a considerable fraction of the world population, mostly in low-income countries. We here analyze trajectories in cropland demand and their main basic drivers food consumption (measured by a food index reflecting the share of animal products in diets) and land-use efficiency, for 123 countries (clustered in four income groups, covering 94% of the world population). We cover the period 1990–2013 and assess if these trajectories are associated with changes in inequality between countries. We find that while all groups of countries converged towards the high level of the per-capita food consumption of high-income countries, differences between income groups remained pronounced. Overall, cropland demand per capita declined over the entire period in all regions except low income countries, resulting in a tendency towards global convergence. However, the trend slowed in the last years. In contrast, land-use efficiency increased in all income groups with a similar trend, hence international inequalites in land-use efficiency remained almost unaltered. Because population and food requirements per capita are expected to grow in all income groups except the richest ones, failure to improve land efficiency sufficiently could lead to a less unequal but at the same time less ecologically sustainable world. Avoiding such outcomes may be possible by reducing the consumption of animal products in the richer countries and raising land-use efficiency in the poorer countries.     

Predicting the future climatic suitability for cocoa farming of the world’s leading producer countries, Ghana and Côte d’Ivoire

Ghana and Côte d’Ivoire are the world’s leading cocoa (Thebroma cacao) producing countries; together they produce 53 % of the world’s cocoa. Cocoa contributes 7.5 % of the Gross Domestic Product (GDP) of Côte d’Ivoire and 3.4 % of that of Ghana and is an important cash crop for the rural population in the forest zones of these countries. If progressive climate change affected the climatic suitability for cocoa in West Africa, this would have implications for global cocoa output as well as the national economies and farmer livelihoods, with potential repercussions for forests and natural habitat as cocoa growing regions expand, shrink or shift. The objective of this paper is to present future climate scenarios for the main cocoa growing regions of Ghana and Côte d’Ivoire and to predict their impact on the relative suitability of these regions for growing cocoa. These analyses are intended to support the respective countries and supply chain actors in developing strategies for reducing the vulnerability of the cocoa sector to climate change. Based on the current distribution of cocoa growing areas and climate change predictions from 19 Global Circulation Models, we predict changes in relative climatic suitability for cocoa for 2050 using an adapted MAXENT model. According to the model, some current cocoa producing areas will become unsuitable (Lagunes and Sud-Comoe in Côte d’Ivoire) requiring crop change, while other areas will require adaptations in agronomic management, and in yet others the climatic suitability for growing cocoa will increase (Kwahu Plateu in Ghana and southwestern Côte d’Ivoire). We recommend the development of site-specific strategies to reduce the vulnerability of cocoa farmers and the sector to future climate change.     

Future growth patterns of world regions – A GDP scenario approach

Global GDP projections for the 21st century are needed for the exploration of long-term global environmental problems, in particular climate change. Greenhouse gas emissions as well as climate change mitigation and adaption capacities strongly depend on growth of per capita income. However, long-term economic projections are highly uncertain. This paper provides five new long-term economic scenarios as part of the newly developed shared socio-economic pathways (SSPs) which represent a set of widely diverging narratives. A method of GDP scenario building is presented that is based on assumptions about technological progress, and human and physical capital formation as major drivers of long-term GDP per capita growth. The impact of these drivers differs significantly between different shared socio-economic pathways and is traced back to the underlying narratives and the associated population and education scenarios. In a highly fragmented world, technological and knowledge spillovers are low. Hence, the growth impact of technological progress and human capital is comparatively low, and per capita income diverges between world regions. These factors play a much larger role in globalization scenarios, leading to higher economic growth and stronger convergence between world regions. At the global average, per capita GDP is projected to grow annually in a range between 1.0% (SSP3) and 2.8% (SSP5) from 2010 to 2100. While this covers a large portion of variety in future global economic growth projections, plausible lower and higher growth projections may still be conceivable. The GDP projections are put into the context of historic patterns of economic growth (stylized facts), and their sensitivity to key assumptions is explored.     

Regional hydrological cycle changes in response to an ambitious mitigation scenario

Climate change impacts on the regional hydrological cycle are compared for model projections following an ambitious emissions-reduction scenario (E1) and a medium-high emissions scenario with no mitigation policy (A1B). The E1 scenario is designed to limit global annual mean warming to 2 °C or less above pre-industrial levels. A multi-model ensemble consisting of ten coupled atmosphere–ocean general circulation models is analyzed, which includes five Earth System Models containing interactive carbon cycles. The aim of the study is to assess the changes that could be mitigated under the E1 scenario and to identify regions where even small climate change may lead to strong changes in precipitation, cloud cover and evapotranspiration. In these regions the hydrological cycle is considered particularly vulnerable to climate change, highlighting the need for adaptation measures even if strong mitigation of climate change would be achieved. In the A1B projections, there are significant drying trends in sub-tropical regions, precipitation increases in high latitudes and some monsoon regions, as well as changes in cloudiness and evapotranspiration. These signals are reduced in E1 scenario projections. However, even under the E1 scenario, significant precipitation decrease in the subtropics and increase in high latitudes are projected. Particularly the Amazon region shows strong drying tendencies in some models, most probably related to vegetation interaction. Where climate change is relatively small, the E1 scenario tends to keep the average magnitude of potential changes at a level comparable to current intra-seasonal to inter-annual variability at that location. Such regions are mainly located in the mid-latitudes.