Climate change control: the Lindahl solution

The main purpose of this paper is to evaluate different burden sharing rules with respect to abatement of carbon emissions. We evaluate seven different rules both in terms of their redistributive impact and by the extent to which they realize the aim of optimal abatement. We show that the Lindahl solution, where the burden sharing rule of carbon abatement is determined by each region’s willingness to pay, is to be preferred above the non-cooperative Nash outcome. Poor regions however would prefer the social planner outcome with a global permit market, because then the burden sharing rule has a secondary role of income redistribution by means of transfers from rich to poor, on top of its primary role of assigning abatement burdens. Based on these findings, we argue that in order to control global greenhouse gas emissions, the level of individual country emission abatement effort should be a function of their willingness to pay to curb climate change, rather than their historical emissions or ability to abate.     

A Framework for Benefit-Cost Analysis of Adaptation to Climate Change and Climate Variability

The potential damages of climate change and climate variability are dependent upon the responses or adaptations that people make to their changing environment. By adapting the management of resources, the mix and methods of producing goods and services, choices of leisure activities, and other behavior, people can lessen the damages that would otherwise result. A framework for assessing the benefits and costs of adaptation to both climate change and climate variability is described in the paper. The framework is also suitable for evaluating the economic welfare effects of climate change, allowing for autonomous adaptation by private agents. The paper also briefly addresses complications introduced by uncertainty regarding the benefits of adaptation and irreversibility of investments in adaptation. When investment costs are irreversible and there is uncertainty about benefits, the usual net present value criterion for evaluating the investment gives the wrong decision. If delaying an adaptation project is possible, and if delay will permit learning about future benefits of adaptation, it may be preferable to delay the project even if the expected net present value is positive. Implications of this result for adaptation policy are discussed in the paper.     

Towards science in support of decision making: characterizing the supply of carbon cycle science

As concern about climate change grows, so does interest in deliberately managing the carbon cycle to reduce atmospheric concentrations of carbon dioxide. Given the scientific and technical nature of knowledge of the carbon cycle, one would expect that carbon science would be directly of use to society in considering this objective. However, carbon science is not currently organized or conducted in such a way that it can be usable to the wide diversity of decision makers who might potentially be involved in managing the carbon cycle. This paper reviews the science policies and actors governing the production or “supply” of carbon cycle science, and suggests alternatives for enabling the supply to better meet demand.     

Application of real option analysis for planning under climate change uncertainty: a case study for evaluation of flood mitigation plans in Korea

With concerns regarding global climate change increasing, recent studies on adapting to nonstationary climate change recommended a different planning strategy that could spread risks. Uncertainty in global climate change should be considered in any decision-making processes for flood mitigation strategies, especially in areas within a monsoon climate regime. This study applied a novel planning method called real option analysis (ROA) to an important water resources planning practice in Korea. The proposed method can easily be applied to other watersheds that are threatened by flood risk under climate change. ROA offers flexibility for decision-makers to reflect uncertainty at every stage during the project planning period. We successfully implemented ROA using a binomial tree model, including two real options—delay and abandon—to evaluate flood mitigation alternatives for the Yeongsan River Basin in Korea. The priority ranking of the four alternatives between the traditional discount cash flow (DCF) and ROA remained the same; however, two alternatives that were assessed as economically infeasible using DCF, were economically feasible using ROA. The binomial decision trees generated in this study are expected to be informative for decision-makers to conceptualize their adaptive planning procedure.     

Air pollution policies in Europe: efficiency gains from integrating climate effects with damage costs to health and crops

Emissions of air pollutants cause damage to health and crops, but several air pollutants also have an effect on climate through radiative forcing. We investigate efficiency gains achieved by integrating climate impacts of air pollutants into air quality strategies for the EU region. The pollutants included in this study are SO₂, NH₃, VOC, CO, NO_x, black carbon, organic carbon, PM_2.5, and CH₄. We illustrate the relative importance of climate change effects compared to damage to health and crops, as well as monetary gains of including climate change contributions. The analysis considers marginal abatement costs and compares air quality and climate damage in Euros. We optimize abatement policies with respect to both climate and health impacts, which imply implementing all measures that yield a net benefit. The efficiency gains of the integrated policy are in the order of 2.5 billion Euros, compared to optimal abatement based on health and crop damage only, justifying increased abatement efforts of close to 50%. Climate effect of methane is the single most important factor. If climate change is considered on a 20- instead of a 100-year time-scale, the efficiency gain almost doubles. Our results indicate that air pollution policies should be supplemented with climate damage considerations.     

Cost-effectiveness of greenhouse gases mitigation measures in the European agro-forestry sector: a literature survey

Over the last 20 years, climate change has become an increasing concern for scientists, public opinions and policy makers. Due to the pervasive nature of its impacts for many important aspects of human life, climate change is likely to influence and be influenced by the most diverse policy or management choices. This is particularly true for those interventions affecting agriculture and forestry: they are strongly dependent on climate phenomena, but also contribute to climate evolution being sources of and sinks for greenhouse gases (GHG). This paper offers a survey of the existing literature assessing cost-effectiveness and efficiency of greenhouse gas mitigation strategies or the effects of broader economic reforms in the agricultural and forestry sectors. The focus is mainly on European countries. Different methodological approaches, research questions addressed and results are examined. The main findings are that agriculture can potentially provide emissions reduction at a competitive cost, mainly with methane abatement, while carbon sequestration seems more cost-effective with appropriate forest management measures. Afforestation, cropland management and bioenergy are less economically viable measures due to competition with other land use. Mitigation policies should be carefully designed either to balance costs with expected benefits in terms of social welfare. Regional variability is one of the main drawbacks to fully assess the cost-effectiveness of different measures. Integration of models to take into account both social welfare and spatial heterogeneity seems to be the frontier of the next model generation.     

Emission and odour control in Kraft pulp mills

This paper describes systematic work done in the field of atmospheric emissions from Portuguese Kraft pulp mills, focused mainly on the gaseous emissions responsible for its characteristic odour. These mal-odorous gases, which were identified as hydrogen sulphide, methyl mercaptan, deimethyl mercaptan and dimethyl-disulphide, were experimentally quantified and classified into groups so that alternatives for abatement could be devised. The considered abatement techniques were evaluated economically and it was concluded that the costs to be incurred by pulp mills for an efficient abatement of TRS gases are not dramatic and could be easily covered by this industry, resulting in an evident reduction of an important and noticeable environmental impact.     

Accounting for risk and uncertainty in determining preferred strategies for adapting to future climate change

Individuals, businesses, and policymakers face the problem of selecting a preferred strategy for adapting a managed ecosystem to future climate change when there is risk and/or uncertainty about future climate change and its ecosystem impacts, and the conditional outcomes of adaptive strategies (i.e., performance of an adaptive strategy given a particular future climate change scenario occurs). Evaluation methods for this purpose are described for two cases; one in which the decision-maker can (climate risk case) and cannot (climate uncertainty case) assign probabilities to future climate change scenarios. Fuzzy sets are used to characterize uncertainty regarding both future climate change, and the conditional outcomes of adaptive strategies. The preferred conditional adaptive strategy for a future climate change scenario is determined by ordering the adaptive strategies for that scenario using a fuzzy set operation. Two methods are described for determining the adaptive strategy that is preferred across all climate change scenarios. The preferred overall adaptive strategy for the climate risk case is determined by maximizing a performance index for strategies. The preferred overall adaptive strategy for the climate uncertainty case is determined using the minimax regret criterion, which selects the strategy that minimizes the maximum loss in performance that can occur across all strategies and climate change scenarios. Ways for making the evaluation methods dynamic are considered.     

挥发性有机物污染控制方案的运行费用效能比较

当前,中国挥发性有机物(volatile organic compounds,VOCs)的污染控制工作已进入深水区,VOCs污染控制措施费用效能的高低将决定其减排工作的环保意义,筛选出费用效能高的措施也是VOCs减排工作能够持续稳定进行的必要基础.本文从排放浓度、排放风量及连续还是间歇排放等污染源排放特征角度确定出12种典型的VOCs排放情景,针对这些典型情景估算了目前主流减排方案的运行费用,并以减排单位质量VOCs的运行费用(unit abatement cost,UAC,元·kg~(-1),以VOCs计)为费用效能指标进行了技术经济比较,以期为依据VOCs排放特征选择适宜的减排方案提供参考.分析结果表明,对于低浓度VOCs排气,其减排UAC总体达8元·kg~(-1)以上,浓缩工序可有效减少UAC,通过合理地气体收集方式减少排放风量并提高排气浓度对后续处理的费用效能影响巨大.强化VOCs排放过程的按质分类收集以提高得到VOCs液体的资源化属性,也是今后提高VOCs控制费用效能的有效途径之一.     

Low-carbon transition of iron and steel industry in China: Carbon intensity,economic growth and policy intervention

As the biggest iron and steel producer in the world and one of the highest CO2 emission sectors, China’s iron and steel industry is undergoing a low-carbon transition accompanied by remarkable technological progress and investment adjustment, in response to the macroeconomic climate and policy intervention. Many drivers of the CO2 emissions of the iron and steel industry have been explored, but the relationships between CO2 abatement,investment and technological expenditure, and their connections with the economic growth and governmental policies in China, have not been conjointly and empirically examined. We proposed a concise conceptual model and an econometric model to investigate this crucial question. The results of regression, Granger causality test and impulse response analysis indicated that technological expenditure can significantly reduce CO2 emissions, and that investment expansion showed a negative impact on CO2 emission reduction. It was also argued with empirical evidence that a good economic situation favored CO2 abatement in China’s iron and steel industry, while achieving CO2 emission reduction in this industrial sector did not necessarily threaten economic growth.This shed light on the dispute over balancing emission cutting and economic growth.Regarding the policy aspects, the year 2000 was found to be an important turning point for policy evolution and the development of the iron and steel industry in China. The subsequent command and control policies had a significant, positive effect on CO2 abatement.     

Climate and air quality-driven scenarios of ozone and aerosol precursor abatement

In addition to causing domestic and regional environmental effects, many air pollutants contribute to radiative forcing (RF) of the climate system. However, climate effects are not considered when cost-effective abatement targets for these pollutants are established, nor are they included in current international climate agreements. We construct air pollution abatement scenarios in 2030 which target cost-effective reductions in RF in the EU, USA, and China and compare these to abatement scenarios which instead target regional ozone effects and particulate matter concentrations. Our analysis covers emissions of PM (fine, black carbon and organic carbon), SO₂, NO_x, CH₄, VOCs, and CO. We find that the effect synergies are strong for PM/BC, VOC, CO and CH₄. While an air quality strategy targeted at reducing ozone will also reduce RF, this will not be the case for a strategy targeting particulate matter. Abatement in China dominates RF reduction, but there are cheap abatement options also available in the EU and USA. The justification for international cooperation on air quality issues is underlined when the co-benefits of reduced RF are considered. Some species, most importantly SO₂, contribute a negative forcing on climate. We suggest that given current knowledge, NO_x and SO₂ should be ignored in RF-targeted abatement policies.     

Assessment of risks for adaptation to climate change: the case of land-slides

This paper describes how relatively detailed knowledge about probabilities of natural hazards can be used to make decisions to develop areas and control the risk within hazard zones. The assessment serves two purposes. First, it shows how information can support decisions. Second, decision criteria put leads on what information is required. This is helpful to identify unavailable information. We show by an example from a land-slide prone area in Norway how a relatively reliable estimate of the probability of slides ends up in a rather uncertain estimate of the risk. Uncertainty about the risk represented by natural hazards imply great challenges to the development of adaptation policies to meet climate change, but they are required. We develop a simplified criterion for optimal adaptation, and estimate the added social value required to defend development in hazard prone areas instead of developing a risk-free alternative. The value is estimated between 0 and 0.40 Euros per Euro invested in the case area, depending on type of slide, category of asset and other costs that occur in the wake of slides.     

Adaptation pathways in planning for uncertain climate change: Applications in Portugal,the Czech Republic and the Netherlands

Adaptation pathways are developed to design adaptive policies to handle climate change uncertainty. Use of this tool varies across planning practices and adaptation challenges and adjusting the tool to particular practices can foster its adequate use. To gain insight into the use of adaptation pathways, we compared four initiatives (one each in Portugal and the Czech Republic and two in the Netherlands) with regard to design choices made. We found six design choices which need to be considered when adjusting adaptation pathways. Design choices about the geographic scale, inclusion of sectors, the generation and delineation of adaptation options, specification of possible pathways, the related performance metrics and the type of assessment are interdependent, but they are also influenced by contextual aspects. Analysis of the institutional diversity, planning culture and framing shows that the use of adaptation pathways is flexible enough to be adjusted for diverging planning practices. However, the tool is best suited to deliver local adaptation solutions, and adequate use depends on consensus about the adaptation problem, setting objective thresholds and determining uncertainty about future change. We conclude that understanding the customised use of tools for local planning practices is essential for adaptive policy design.     

Adaptation policies to increase terrestrial ecosystem resilience: potential utility of a multicriteria approach

Climate change is rapidly undermining terrestrial ecosystem resilience and capacity to continue providing their services to the benefit of humanity and nature. Because of the importance of terrestrial ecosystems to human well-being and supporting services, decision makers throughout the world are busy creating policy responses that secure multiple development and conservation objectives— including that of supporting terrestrial ecosystem resilience in the context of climate change. This article aims to advance analyses on climate policy evaluation and planning in the area of terrestrial ecosystem resilience by discussing adaptation policy options within the ecology-economy-social nexus. The paper evaluates these decisions in the realm of terrestrial ecosystem resilience and evaluates the utility of a set of criteria, indicators, and assessment methods, proposed by a new conceptual multi-criteria framework for pro-development climate policy and planning developed by the United Nations Environment Programme. Potential applications of a multicriteria approach to climate policy vis-à-vis terrestrial ecosystems are then explored through two hypothetical case study examples. The paper closes with a brief discussion of the utility of the multi-criteria approach in the context of other climate policy evaluation approaches, considers lessons learned as a result efforts to evaluate climate policy in the realm of terrestrial ecosystems, and reiterates the role of ecosystem resilience in creating sound policies and actions that support the integration of climate change and development goals.     

Scale,context, and decision making in agricultural adaptation to climate variability and change

This work presents a framework for viewing agricultural adaptation, emphasizing the multiple spatial and temporal scales on which individuals and institutions process information on changes in their environment. The framework is offered as a means to gain perspective on the role of climate variability and change in agricultural adaptation, and developed for a case study of Australian agriculture. To study adaptation issues at the scale of individual farms we developed a simple modelling framework. The model highlights the decision making element of adaptation in light of uncertainty, and underscores the importance of decision information related to climate variability. Model results show that the assumption of perfect information for farmers systematically overpredicts adaptive performance. The results also suggest that farmers who make tactical planting decisions on the basis of historical climate information are outperformed by those who use even moderately successful seasonal forecast information. Analysis at continental scales highlights the prominent role of the decline in economic operating conditions on Australian agriculture. Examples from segments of the agricultural industry in Australia are given to illustrate the importance of appropriate scale attribution in adapting to environmental changes. In particular, adaptations oriented toward short time scale changes in the farming environment (droughts, market fluctuations) can be limited in their efficacy by constraints imposed by broad changes in the soil/water base and economic environment occuring over longer time scales. The case study also makes the point that adaptation must be defined in reference to some goal, which is ultimately a social and political exercise. Overall, this study highlights the importance of allowing more complexity (limited information, risk aversion, cross-scale interactions, mis-attribution of cause and effect, background context, identification of goals) in representing adaptation processes in climate change studies.     

Identifying water resources management strategies in adaptation to climate change under uncertainty

In this study, an integrated simulation-based allocation modeling system (ISAMS) is developed for identifying water resources management strategies in response to climate change. The ISAMS incorporates global climate models (GCMs), a semi-distributed land use-based runoff process (SLURP) model, and a multistage interval-stochastic programming (MISP) approach within a general framework. The ISAMS can not only handle uncertainties expressed as probability distributions and interval values but also reveal climate change impacts on water resources allocation under different projections of GCMs. The ISAMS is then applied to the Kaidu-kongque watershed with cold arid characteristics in the Tarim River Basin (the largest inland watershed basin in China) for demonstrating its efficiency. Results reveal that different climate change models corresponding to various projections (e.g., precipitation and temperature) would lead to changed water resources allocation patterns. Variations in water availability and demand due to uncertainties could result in different water allocation targets and shortages. A variety of decision alternatives about water allocations adaptive to climate change are generated under combinations of different global climate models and ecological water release plans. These findings indicate that understanding the uncertainties in water resources system, building adaptive methods for generating sustainable water allocation patterns, and taking actions for mitigating water shortage problems are key adaptation strategies responding to climate change.     

A comparison of multiple criteria analysis and unaided approaches to environmental decision making

This study compares multiple criteria analysis (MCA) assisted decisions and unaided decisions in an environmental management context. It involved 55 decision makers in Queensland, Australia, who used MCA techniques to evaluate environmental projects alongside their own intuitive approaches under the Australian Natural Heritage Trust (NHT) program. The NHT is Australia's largest environmental program funded over A$ 2.5 billion over 10 years. The study assessed decision maker learning and perceptions of MCA's overall usefulness. It was found that MCA produced markedly different results to unaided evaluations. Feedback from decision makers typically showed that unaided decisions did not make explicit use of evaluation criteria. Even though most decision makers were unwilling to change their choices following the use of MCA, they found it a helpful input to their decision procedure. The majority of decision makers supported the adoption of MCA to make future investment decisions under the NHT program.     

Low-carbon transition of iron and steel industry in China: Carbon intensity, economic growth and policy intervention

As the biggest iron and steel producer in the world and one of the highest CO₂ emission sectors, China's iron and steel industry is undergoing a low-carbon transition accompanied by remarkable technological progress and investment adjustment, in response to the macroeconomic climate and policy intervention. Many drivers of the CO₂ emissions of the iron and steel industry have been explored, but the relationships between CO₂ abatement, investment and technological expenditure, and their connections with the economic growth and governmental policies in China, have not been conjointly and empirically examined. We proposed a concise conceptual model and an econometric model to investigate this crucial question. The results of regression, Granger causality test and impulse response analysis indicated that technological expenditure can significantly reduce CO₂ emissions, and that investment expansion showed a negative impact on CO₂ emission reduction. It was also argued with empirical evidence that a good economic situation favored CO₂ abatement in China's iron and steel industry, while achieving CO₂ emission reduction in this industrial sector did not necessarily threaten economic growth. This shed light on the dispute over balancing emission cutting and economic growth. Regarding the policy aspects, the year 2000 was found to be an important turning point for policy evolution and the development of the iron and steel industry in China. The subsequent command and control policies had a significant, positive effect on CO₂ abatement.     

Climate change vulnerability assessments as catalysts for social learning: four case studies in south-eastern Australia

Technical assessments of vulnerability and/or risk are increasingly being undertaken to assess the impacts of climate change. Underlying this is the belief that they will bring clarity to questions regarding the scale of institutional investments required, plausible adaptation policies and measures, and the timing of their implementation. Despite the perceived importance of technical assessments in 'evidence-based' decision environments, assessments cannot be undertaken independent of values and politics, nor are they capable of eliminating the uncertainty that clouds decision-making on climate adaptation As such, assessments can trigger as many questions as they answer, leaving practitioners and stakeholders to question their value. This paper explores the value of vulnerability/risk assessments in climate change adaptation planning processes as a catalyst for learning in four case studies in Southeastern Australia. Data were collected using qualitative interviews with stakeholders involved in the assessments and analysed using a social learning framework. This analysis revealed that detailed and tangible strategies or actions often do not emerge directly from technical assessments. However, it also revealed that the assessments became important platforms for social learning. In providing these platforms, assessments present opportunities to question initial assumptions, explore multiple framings of an issue, generate new information, and galvanise support for collective actions. This study highlights the need for more explicit recognition and understanding of the important role social learning plays in climate change vulnerability assessments and adaptation planning more broadly.     

Comparing Forecasts of the Global Impacts of Climate Change

This paper utilizes the predictions ofseveral Atmosphere-Ocean GeneralCirculation Models and the Global ImpactModel to create forecasts of the globalmarket impacts from climate change. Theforecasts of market impacts in 2100 varyconsiderably depending on climate scenariosand climate impact sensitivity. The modelsdo concur that tropical nations will behurt, temperate nations will be barelyaffected, and high latitude nations willbenefit. Although the size of theseeffects varies a great deal across models,the beneficial and harmful effects areoffsetting, so that the net impact on theglobe is relatively small in almost alloutcomes. Looking only at market impacts,the forecasts suggest that while the globalnet benefits of abatement are small, thedistribution of damages suggests a largeequity problem that could be addressedthrough a compensation program. The largeuncertainty surrounding these forecastsfurther suggests that continued monitoringof both the climate and impacts isworthwhile.