Modeling adaptation as a flow and stock decision with mitigation

An effective policy response to climate change will include, among other things, investments in lowering greenhouse gas emissions (mitigation), as well as short-term temporary (flow) and long-lived capital-intensive (stock) adaptation to climate change. A critical near-term question is how investments in reducing climate damages should be allocated across these elements of a climate policy portfolio, especially in the face of uncertainty in both future climate damages and also the effectiveness of yet-untested adaptation efforts. We build on recent efforts in DICE-based integrated assessment modeling approaches that include two types of adaptation—short-lived flow spending and long-lived depreciable adaptation stock investments—along with mitigation, and we identify and explore the uncertainties that impact the relative proportions of policies within a response portfolio. We demonstrate that the relative ratio of flow adaptation, stock adaptation, and mitigation depend critically on interactions among: 1) the relative effectiveness in the baseline of stock versus flow adaptation, 2) the degree of substitutability between stock and flow adaptation types, and 3) whether there exist physical limits on the amount of damages that can be reduced by flow-type adaptation investments. The results indicate where more empirical research on adaptation could focus to best inform near-term policy decisions, and provide a first step towards considering near-term policies that are flexible in the face of uncertainty.     

Multiple adaptation types with mitigation: A framework for policy analysis

Effective climate policy will consist of mitigation and adaptation implemented simultaneously in a policy portfolio to reduce the risks of climate change. Previous studies of the tradeoffs between mitigation and adaptation have implicitly framed the problem deterministically, choosing the optimal paths for all time. Because climate change is a long-term problem with significant uncertainties and opportunities to learn and revise, critical tradeoffs between mitigation and adaptation in the near-term have not been considered. We propose a new framework for considering the portfolio of mitigation and adaptation that explicitly treats the problem as a multi-stage decision under uncertainty. In this context, there are additional benefits to near-term investments if they reduce uncertainty and lead to improved future decisions. Two particular features are fundamental to understanding the relevant tradeoffs between mitigation and adaptation: (1) strategy dynamics over time in reducing climate damages, and (2) strategy dynamics under uncertainty and potential for learning. Our framework strengthens the argument for disaggregating adaption as has been proposed by others. We present three stylized classes of adaptation investment types as a conceptual framework: short-lived “flow” spending, committed “stock” investment, and lower capacity “option” stock with the capability of future upgrading. In the context of sequential decision under uncertainty, these subtypes of adaptation have important tradeoffs among them and with mitigation. We argue that given the large policy uncertainty that we face currently, explicitly considering adaptation “option” investments is a valuable component of a near-term policy response that can balance between the flexible flow and committed stock approaches, as it allows for the delay of costly stock investments while at the same time allowing for lower-cost risk management of future damages.     

将适应气候变化纳入国土空间规划：进展、困境与思路

空间规划是适应气候变化的重要政策工具之一,将适应气候变化目标纳入空间规划已经成为国际主流政策。中国适应气候变化的空间规划仍面临诸多问题和挑战,包括气候适应目标和理念薄弱、气候变化风险评估与空间规划尺度不匹配、适应和减缓策略的协同机制欠缺、技术标准和法律法规不完善等。文章结合国家适应气候变化战略和国土空间规划体系重构的目标要求,研究提出适应气候变化导向的国土空间规划框架体系和技术思路,以及将适应气候变化纳入空间规划编制审批、技术标准、实施监督以及法规政策等各个环节的思路与建议,以期通过空间规划的编制与监督实施促进适应气候变化目标的实现。     

Combined inequality in wealth and risk leads to disaster in the climate change game

It is generally agreed that the risk of catastrophic climate change can only be reduced if agents cooperate to reduce greenhouse gas emissions over the course of the 21st Century. Previous economic experiments have suggested that sufficient cooperation can often be achieved providing individuals are adequately and convincingly informed of the consequences of their actions and the stakes involved. However, this previous work, has not allowed for the fact that in the real world agents vary in both: (1) their resources to mitigate climate change, and (2) the consequences that they face from climate change. We develop and expand the protocol of previous economic experiments to investigate the introduction of such combined asymmetries. We find that when inequality in resources is combined with a greater relative risk for poorer members, cooperation collapses, with tragic consequences. This is because the rich invest proportionally less into preventing climate change when they are less at risk. We also find, through the use of a post-game questionnaire, that those individuals who were more skeptical about climate change in the real world cooperated less in our games. Insofar as such experiments can be trusted as a guide to either people’s everyday behaviour or the interactions of nation states, these results suggest that voluntary cooperation to avoid climate catastrophe in the real world is likely to be hard to achieve.     

Can adaptation and mitigation be complements?

It is often claimed that mitigation of greenhouse gases and adaptation to climate change are complementary strategies. If this means that it will usually be optimal to use both mitigation and adaptation to deal with climate change; and that a perceived increase in the damages caused by climate change should require an increase in both mitigation and adaptation, then simple economic analysis would support such an interpretation. However, complementarity has a more technical meaning in economics, which implies if the costs of mitigation fell, then the optimal response would be to increase the level of both mitigation and adaptation. We develop a range of economic models to explore the relationship between mitigation and adaptation; and show that in general adaptation and mitigation will be substitutes. We also find that it is possible for complementarity to occur in the special case where adaptation costs depend on the amount of mitigation.     

Deep uncertainty in long-term hurricane risk: Scenario generation and implications for future climate experiments

Current projections of long-term trends in Atlantic hurricane activity due to climate change are deeply uncertain, both in magnitude and sign. This creates challenges for adaptation planning in exposed coastal communities. We present a framework to support the interpretation of current long-term tropical cyclone projections, which accommodates the nature of the uncertainty and aims to facilitate robust decision making using the information that is available today. The framework is populated with projections taken from the recent literature to develop a set of scenarios of long-term hurricane hazard. Hazard scenarios are then used to generate risk scenarios for Florida using a coupled climate–catastrophe modeling approach. The scenarios represent a broad range of plausible futures; from wind-related hurricane losses in Florida halving by the end of the century to more than a four-fold increase due to climate change alone. We suggest that it is not possible, based on current evidence, to meaningfully quantify the relative confidence of each scenario. The analyses also suggest that natural variability is likely to be the dominant driver of the level and volatility of wind-related risk over the coming decade; however, under the highest scenario, the superposition of this natural variability and anthropogenic climate change could mean notably increased levels of risk within the decade. Finally, we present a series of analyses to better understand the relative adequacy of the different models that underpin the scenarios and draw conclusions for the design of future climate science and modeling experiments to be most informative for adaptation.     

Hurricane Sandy and adaptation pathways in New York: Lessons from a first-responder city

Two central issues of climate change have become increasingly evident: Climate change will significantly affect cities; and rapid global urbanization will increase dramatically the number of individuals, amount of critical infrastructure, and means of economic production that are exposed and vulnerable to dynamic climate risks. Simultaneously, cities in many settings have begun to emerge as early adopters of climate change action strategies including greenhouse gas mitigation and adaptation. The objective of this paper is to examine and analyze how officials of one city – the City of New York – have integrated a flexible adaptation pathways approach into the municipality's climate action strategy. This approach has been connected with the City's ongoing response to Hurricane Sandy, which struck in the October 2012 and resulted in damages worth more than US$19 billion. A case study narrative methodology utilizing the Wise et al. conceptual framework (see this volume) is used to evaluate the effectiveness of the flexible adaptation pathways approach in New York City. The paper finds that Hurricane Sandy serves as a “tipping point” leading to transformative adaptation due to the explicit inclusion of increasing climate change risks in the rebuilding effort. The potential for transferability of the approach to cities varying in size and development stage is discussed, with elements useful across cities including the overall concept of flexible adaptation pathways, the inclusion of the full metropolitan region in the planning process, and the co-generation of climate-risk information by stakeholders and scientists.     

Assessment of institutional capacity to adapt to climate change in transboundary river basins

Responses to climate change in transboundary river basins are believed to depend on national and sub-national capacities as well as the ability of co-riparian nations to communicate, coordinate, and cooperate across their international boundaries. We develop the first framework for assessing transboundary adaptive capacity. The framework considers six dimensions of transboundary river basins that influence planning and implementation of adaptation measures and represents those dimensions using twelve measurable indicators. These indicators are used to assess transboundary adaptive capacity of 42 basins in the Middle East, Mediterranean, and Sahel. We then conduct a cluster analysis of those basins to delineate a typology that includes six categories of basins: High Capacity, Mediated Cooperation, Good Neighbour, Dependent Instability, Self-Sufficient, and Low Capacity. We find large variation in adaptive capacity across the study area; basins in Western Europe generally have higher capacities to address the potential hazards of climate change. Our basin typology points to how climate change adaptation policy interventions would be best targeted across the different categories of basins.     

Assessing climate change impacts,sea level rise and storm surge risk in port cities: a case study on Copenhagen

This study illustrates a methodology to assess the economic impacts of climate change at a city scale and benefits of adaptation, taking the case of sea level rise and storm surge risk in the city of Copenhagen, capital of Denmark. The approach is a simplified catastrophe risk assessment, to calculate the direct costs of storm surges under scenarios of sea level rise, coupled to an economic input–output (IO) model. The output is a risk assessment of the direct and indirect economic impacts of storm surge under climate change, including, for example, production and job losses and reconstruction duration, and the benefits of investment in upgraded sea defences. The simplified catastrophe risk assessment entails a statistical analysis of storm surge characteristics, geographical-information analysis of population and asset exposure combined with aggregated vulnerability information. For the city of Copenhagen, it is found that in absence of adaptation, sea level rise would significantly increase flood risks. Results call for the introduction of adaptation in long-term urban planning, as one part of a comprehensive strategy to manage the implications of climate change in the city. Mitigation policies can also aid adaptation by limiting the pace of future sea level rise.     

AD-DICE: an implementation of adaptation in the DICE model

Integrated Assessment Models (IAMS) have helped us over the past decade to understand the interactions between the environment and the economy in the context of climate change. Although it has also long been recognized that adaptation is a powerful and necessary tool to combat the adverse effects of climate change, most IAMS have not explicitly included the option of adaptation in combating climate change. This paper adds to the IAM and climate change literature by explicitly including adaptation in an IAM, thereby making the trade-offs between adaptation and mitigation visible. Specifically, a theoretical framework is created and used to implement adaptation as a decision variable into the DICE model. We use our new AD-DICE model to derive the adaptation cost functions implicit in the DICE model. In our set-up, adaptation and mitigation decisions are separable and AD-DICE can mimic DICE when adaptation is optimal. We find that our specification of the adaptation costs is robust with respect to the mitigation policy scenarios and parameter values. Our numerical results show that adaptation is a powerful option to combat climate change, as it reduces most of the potential costs of climate change in earlier periods, while mitigation does so in later periods.     

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.     

IPCC第五次评估报告对气候变化风险及风险管理的新认知

IPCC第五次评估报告第二工作组报告在气候变化风险及风险管理方面聚焦于气候变化对领域和区域的不利影响。在综合分析与气候变化相关危害、暴露度和脆弱性的基础上,提出了气候变化风险的评估框架。风险不仅来自气候变化本身,同时也来自人类社会发展和治理过程。报告首次提出了新生风险,归纳总结了气候变化带来的关键风险,评估了不同温升下气候变化5个“关注理由”的风险水平。在风险管理过程中,由于适应和减缓的局限性,剩余风险是不可避免的。未来,若全球平均温度升高4℃（较工业革命以前）将加剧人类和社会生态系统广泛的、严重的和不可逆影响的风险。     

Assessment of the climate preparedness of 30 urban areas in the UK

Cities are increasingly aware of the need to mitigate greenhouse gas emissions and adapt to changes in weather patterns leading to the production of urban climate change plans. The few existing systematic studies of these plans have focused on either adaptation or mitigation issues, and are typically based on surveys completed by city officials rather than analysis of documented evidence. To gain insight into the status of adaptation and mitigation action across the UK, climate change documents from 30 urban areas (representing ~28 % of the UK’s population) were analysed. An Urban Climate Change Preparedness Score, which could be applied to other urban areas outside the UK, has been devised for comparative analysis. This analysis characterizes progress against (i) Assessment, (ii) Planning, (iii) Action, and (iv) Monitoring, for both adaptation and mitigation. The Preparedness Score allows a quantitative comparison of climate change strategies across the urban areas analysed. This methodology can be transferred to other countries and makes an international comparison of urban areas and their climate change adaptation and mitigation plans possible. We found that all areas acknowledge climate change being a threat and that adaptation and mitigation planning and action is required. However, two urban areas did not have official adaptation or mitigation plans. Typically, mitigation activities across all cities were more advanced than adaptation plans. Emissions reduction targets ranged from 10 %–80 % with differing baselines, timeframes and scopes, for defining and meeting these targets. Similar variability was observed across adaptation plans. Several reasons for these differences are considered, but particularly notable is that a combination of incentives and regulation seem to stimulate more comprehensive strategies and action in many urban areas.     

An assessment of the potential impact of climate change on flood risk in Mumbai

Managing risks from extreme events will be a crucial component of climate change adaptation. In this study, we demonstrate an approach to assess future risks and quantify the benefits of adaptation options at a city-scale, with application to flood risk in Mumbai. In 2005, Mumbai experienced unprecedented flooding, causing direct economic damages estimated at almost two billion USD and 500 fatalities. Our findings suggest that by the 2080s, in a SRES A2 scenario, an ??upper bound?? climate scenario could see the likelihood of a 2005-like event more than double. We estimate that total losses (direct plus indirect) associated with a 1-in-100 year event could triple compared with current situation (to $690?C$1,890 million USD), due to climate change alone. Continued rapid urbanisation could further increase the risk level. The analysis also demonstrates that adaptation could significantly reduce future losses; for example, estimates suggest that by improving the drainage system in Mumbai, losses associated with a 1-in-100 year flood event today could be reduced by as much as 70%.,We show that assessing the indirect costs of extreme events is an important component of an adaptation assessment, both in ensuring the analysis captures the full economic benefits of adaptation and also identifying options that can help to manage indirect risks of disasters. For example, we show that by extending insurance to 100% penetration, the indirect effects of flooding could be almost halved. We conclude that, while this study explores only the upper-bound climate scenario, the risk-assessment core demonstrated in this study could form an important quantitative tool in developing city-scale adaptation strategies. We provide a discussion of sources of uncertainty and risk-based tools could be linked with decision-making approaches to inform adaptation plans that are robust to climate change.     

Sensitivity Study of Optimal CO2 Emission Paths Using a Simplified Structural Integrated Assessment Model (SIAM)

A structurally highly simplified, globally integrated coupled climate-economic costs model SIAM (Structural Integrated Assessment Model) is used to compute optimal paths of global CO₂ emissions that minimize the net sum of climate damage and mitigation costs. The model is used to study the sensitivity of the computed optimal emission paths with respect to various critical input assumptions. The climate module is represented by a linearized impulse-response model calibrated against a coupled ocean-atmosphere general circulation climate model and a three-dimensional global carbon-cycle model. The cost terms are represented by strongly simplified expressions designed for maximal transparency with respect to sensitive input assumptions. These include the discount rates for mitigation and damage costs, the inertia of the socio-economic system, and the dependence of climate damages on the change in temperature and the rate of change of temperature. Different assumptions regarding these parameters are believed to be the cause of the marked divergences of existing cost-benefit analyses based on more sophisticated economic models. The long memory of the climate system implies that very long time horizons of several hundred years need to be considered to optimize CO₂ emissions on time scales relevant for a policy of sustainable development. Cost-benefit analyses over shorter time scales of a century or two can lead to dangerous underestimates of the long term climatic impact of increasing greenhouse-gas emissions. To avert a major long term global warming, CO₂ emissions need to be reduced ultimately to very low levels. However, the draw-down can be realized as a gradual transition process over many decades and even centuries. This should nevertheless not be interpreted as providing a time cushion for inaction: the transition becomes more costly the longer the necessary mitigation policies are delayed. However, the long time horizon provides adequate flexibility for later adjustments. Short term energy conservation alone is insufficient and can be viewed only as a useful measure in support of the necessary long term transition to carbon-free energy technologies. For standard climate damage cost expressions, optimal emission paths limiting long term global warming to acceptable sustainable development levels are recovered only if climate damage costs are not significantly discounted. Discounting of climate damages at normal economic rates yields emission paths that are only weakly reduced relative to business as usual scenarios, resulting in high global warming levels that are incompatible with the generally accepted requirements of sustainable development. The solutions are nevertheless logically consistent with the underlying discounting assumption, namely that the occurrence of global warming damages in the distant future as a result of present human activities is of negligible concern today. It follows that a commitment to long term sustainable development, if it in fact exists, should be expressed by an intertemporal relation for the value of the earth's future climate which does not degrade significantly over the time horizon relevant for climate change. Since the future climate is a common assett whose value cannot be determined on the market, the appropriate discount rate for future climate damages should be determined by an assessment of the public willingness to pay today for the mitigation of future climate change. To translate our general conclusions into quantitative cost estimates required by decision makers, the present exploratory study needs to be extended using more detailed disaggregated climate damage and mitigation cost estimates and more realistic socio-economic models, including multi-actor interactions, inherent variability, the role of uncertainty and adaptive control strategies.     

Special Issue Introduction: Adding insult to injury: Climate change and the inequities of climate intervention

Climate change will injure vulnerable communities. In response, coordinated global action has emerged to mitigate climate change, to gauge and map climate-related risks, and to plan for adaptation, which in turn has opened new avenues of funding, power, knowledge and opportunity. The identification of climate risks, analysis and diffusion of ‘impact’ scenarios, incorporation of carbon into economic regimes, and interventions to enhance adaptive capacity will necessarily be experienced differently by different groups. As climate-related crises produce winners and losers, so may discourses and plans made to avert such crises. In the process both the bio-physical events and the social responses shape and reshape social stratification and the distribution of risk. They produce new inequalities and needs for new kinds of responses to guard against injustice. From the emergence of desalination water projects and contested water access, to relocation planning in the Arctic and the South Pacific due to sea-level rise, to increasingly centralized forest management; mitigation and adaptation responses and interventions create their own critical outcomes. This essay and the articles in this special issue examine some new opportunities and risks associated with climate-change discourses and interventions. This special issue shows that vulnerable communities may be at risk of material injury following climate change or climate change intervention; and, be further insulted and injured by lack of representation and recognition, and by misrecognition as simplified, stereotyped victims in local, national and international climate conversations. Using a mixture of theoretical insight and case study research, this collection of articles explores the injuries of climate change as it applies to both direct physical stress scenarios and exposure to adaptation and mitigation policies and planning, as well as the discursive insults of being discounted, stereotyped, or ignored.     

Climate change response in Europe: what’s the reality? Analysis of adaptation and mitigation plans from 200 urban areas in 11 countries

Urban areas are pivotal to global adaptation and mitigation efforts. But how do cities actually perform in terms of climate change response? This study sheds light on the state of urban climate change adaptation and mitigation planning across Europe. Europe is an excellent test case given its advanced environmental policies and high urbanization. We performed a detailed analysis of 200 large and medium-sized cities across 11 European countries and analysed the cities’ climate change adaptation and mitigation plans. We investigate the regional distribution of plans, adaptation and mitigation foci and the extent to which planned greenhouse gas (GHG) reductions contribute to national and international climate objectives. To our knowledge, it is the first study of its kind as it does not rely on self-assessment (questionnaires or social surveys). Our results show that 35 % of European cities studied have no dedicated mitigation plan and 72 % have no adaptation plan. No city has an adaptation plan without a mitigation plan. One quarter of the cities have both an adaptation and a mitigation plan and set quantitative GHG reduction targets, but those vary extensively in scope and ambition. Furthermore, we show that if the planned actions within cities are nationally representative the 11 countries investigated would achieve a 37 % reduction in GHG emissions by 2050, translating into a 27 % reduction in GHG emissions for the EU as a whole. However, the actions would often be insufficient to reach national targets and fall short of the 80 % reduction in GHG emissions recommended to avoid global mean temperature rising by 2 °C above pre-industrial levels.     

A proposal for a new scenario framework to support research and assessment in different climate research communities

In this paper, we propose a scenario framework that could provide a scenario “thread” through the different climate research communities (climate change – vulnerability, impact, and adaptation - and mitigation) in order to support assessment of mitigation and adaptation strategies and climate impacts. The scenario framework is organized around a matrix with two main axes: radiative forcing levels and socio-economic conditions. The radiative forcing levels (and the associated climate signal) are described by the new Representative Concentration Pathways. The second axis, socio-economic developments comprises elements that affect the capacity for mitigation and adaptation, as well as the exposure to climate impacts. The proposed scenarios derived from this framework are limited in number, allow for comparison across various mitigation and adaptation levels, address a range of vulnerability characteristics, provide information across climate forcing and vulnerability states and span a full century time scale. Assessments based on the proposed scenario framework would strengthen cooperation between integrated-assessment modelers, climate modelers and vulnerability, impact and adaptation researchers, and most importantly, facilitate the development of more consistent and comparable research within and across these research communities.     

Change and transition: the climate of Ukraine's agri-food sector

The agri-food sector has contributed significantly to climate change, but has an important role to play in climate change mitigation and adaptation. The agri-food sector has many potential win–win–win strategies that benefit mitigation and adaptation, and also deliver gains in rural income and land management. Post-Soviet transition economies provide a good model for understanding some of the barriers to adaptation and mitigation in the agri-food sector, due to their significant unmet agricultural potential combined with inefficient energy use. Ukraine is used as a case study to explore the barriers and bridges to addressing climate change in a post-Soviet state. A variety of stakeholders and farmers were interviewed about mitigation and adaptation and the current response capacity. Grounded theory analysis revealed themes that are perceived to function as barriers including: pandering, oligarchs and market interventions; corruption and transparency; and survival, freedom and law enforcement. Foreign involvement and investment emerged as a bridge to overcoming these barriers. The results indicate that significant progress in climate mitigation and adaptation in the agri-food sector in Ukraine will only be achieved if some of the wider political and social issues facing the country can be addressed.

Policy relevance

Ukraine has considerable potential for both agricultural production and climate change mitigation; however, this potential can only be met by identifying and addressing barriers currently impeding progress. This article found that barriers to effective climate change are perceived to stem from wider post-Soviet transition issues. These wider issues need to be addressed during the implementation of climate policy since they are viewed to be important by a wide variety of stakeholders. International negotiations have provided little incentive for Ukraine to achieve effective mitigation, and corrupt practices further impair mitigation projects. In addition, export quotas currently function as a maladaptive climate policy and reduce both farmers' capacity in Ukraine and international food security. Meanwhile, foreign involvement, not just financial investment, but also the investment of ideas can provide a bridge to effective climate policy. The international community needs to provide a legal framework and assist Ukraine in adopting transparent processes in order to successfully execute climate policy.     

The Impacts of Socioeconomic Development and Climate Change on Severe Weather Catastrophe Losses: Mid-Atlantic Region (MAR) and the U.S.

One strand of research relates the magnitude of severe weather disasters to climatic and human development factors; another highlights dramatic growth in catastrophe losses. However, there have been few attempts to put the two strands together. Here we use an explicit modeling framework to determine the contribution of climate variability relative to human factors in reported catastrophe losses. We then examine how future climate change can be expected to affect losses from natural disasters. Simultaneous regression models are constructed from three equations in which the dependent variables are U.S. flood loss, U.S. hurricane loss and U.S. catastrophe loss. Then two kinds of simulation under two climate change scenarios explore how climate change would affect losses. The climate change scenarios respectively project 13.5% and 21.5% increases in annual precipitation. The first simulation increases only the mean value of annual precipitation; the second simulation assumes that the mean and standard deviation of annual precipitation change in the same proportion. Results show that the growth in reported losses from weather-related natural disasters is due mainly to three socioeconomic factors: inflation, population growth and growth in per capita real wealth. However, weather variables such as precipitation and the number of hurricanes per period also clearly affect losses. The three stage least squares (3SLS) simultaneous equation model shows that a 1% increase in annual precipitation would enlarge catastrophe loss by as much as 2.8%. These findings are suggestive as planning signals to decision makers.