Climate change decision-support and the tolerable windows approach

The Tolerable Windows Approach (TWA) to Integrated Assessments (IA) of global warming is based on external normative specifications of tolerable sets of climate impacts as well as proposed emission quotas and policy instruments for implementation. In a subsequent step, the complete set of admissible climate protection strategies which are compatible with these normative inputs is determined by scientific analysis. In doing so, minimum requirements concerning global and national greenhouse gas emission paths can be determined. In this paper we present the basic methodological elements of TWA, discuss its relation to more conventional approaches to IA like cost–benefit analyses, and present some preliminary results obtained by a reduced-form climate model.     

Climatic Implications of Revised IPCC Emissions Scenarios, the Kyoto Protocol and Quantification of Uncertainties

In December 1997, the United Nations Framework Convention on Climate Change (FCCC) adopted the Kyoto Protocol. This paper describes a framework that models the climatic implications of this international agreement, using Monte Carlo simulations and the preliminary Intergovernmental Panel on Climate Change emissions scenarios (SRES). Emissions scenarios (including intervention scenarios), climate sensitivity, and terrestrial carbon sink are the key sampled model parameters. This framework gives prior probability distributions to these parameters and, using a simple climate model, posterior distributions of global temperature change are determined for the future. Our exercise showed that the Kyoto Protocol's effectiveness will be mostly dependent upon which SRES world evolves. In some worlds the Protocol decreases the warming considerably but in others it is almost irrelevant. We exemplified this approach with a current FCCC issue, namely “hot air”. This modelling framework provides a probabilistic assessment of climate policies, which can be useful for decision-makers involved in global climate change management. This revised version was published online in July 2006 with corrections to the Cover Date.     

Uncertainty and economic analysis of climate change: A survey of approaches and findings

The analysis of climate change is confronted with large uncertainties that need to be taken into account to arrive at meaningful policy recommendations. The main contribution of economics to this interdisciplinary task is to provide formal frameworks and techniques for analyzing climate policy in the context of uncertainty. This paper will give an overview of existing approaches and findings to provide a broad picture of what economics can contribute to the debate.     

Carrots and sticks for new technology: Abating greenhouse gas emissions in a heterogeneous and uncertain world

Many governments use technology incentives as an important component of their greenhouse gas abatement strategies. These carrots are intended to encourage the initial diffusion of new, greenhouse-gas-emissions-reducing technologies, in contrast to carbon taxes and emissions trading which provide a stick designed to reduce emissions by increasing the price of high-emitting technologies for all users. Technology incentives appear attractive, but their record in practice is mixed and economic theory suggests that in the absence of market failures, they are inefficient compared to taxes and trading. This study uses an agent-based model of technology diffusion and exploratory modeling, a new technique for decision-making under conditions of extreme uncertainty, to examine the conditions under which technology incentives should be a key building block of robust climate change policies. We find that a combined strategy of carbon taxes and technology incentives, as opposed to carbon taxes alone, is the best approach to greenhouse gas emissions reductions if the social benefits of early adoption sufficiently exceed the private benefits. Such social benefits can occur when economic actors have a wide variety of cost/performance preferences for new technologies and either new technologies have increasing returns to scale or potential adopters can reduce their uncertainty about the performance of new technologies by querying the experience of other adopters. We find that if decision-makers hold even modest expectations that such social benefits are significant or that the impacts of climate change will turn out to be serious then technology incentive programs may be a promising hedge against the threat of climate change.     

Water Resources of Central Asia and Adaptation Measures for Climate Change

A large part of the Central Asian region is located within the inner flow of the Aral Sea basin. The water resources are formed from renewed superficial and underground waters of natural origin, and also with returnable waters. The intensive increase of water intake, that took place in the second half of the twentieth century caused practically complete assimilation of the river inflow. That was the main reason for the Aral Sea crisis. On the basis of the analysis of long periodical rows of observation by meterological and hydrological stations, the estimation of regional water resources and calculations of changes of some components of the hydrological cycle due to the expected climate changes are presented. Measures for adaptation in the southern part of the Aral Sea region are considered.     

Monitoring the Hydrology of Canadian Prairie Wetlands to Detect the Effects of Climate Change and Land Use Changes

There are millions of small isolatedwetlands in the semi-arid Canadian prairies. These`sloughs' are refuges for wildlife in an area that isotherwise intensively used for agriculture. They areparticularly important as waterfowl habitat, with morethan half of all North American ducks nesting inprairie sloughs. The water levels and ecology of thewetlands are sensitive to atmospheric change and tochanges of agricultural practices in the surroundingfields. Monitoring of the hydrological conditions ofthe wetlands across the region is vital for detectinglong-term trends and for studying the processes thatcontrol the water balance of the wetlands. Suchmonitoring therefore requires extensive regional-scaledata complemented by intensive measurements at a fewlocations. At present, wetlands are being enumeratedacross the region once each year and year-roundmonitoring is being carried out at a few locations. Theregional-scale data can be statistically related toregional climate data, but such analyses cast littlelight on the hydrological processes and have limitedpredictive value when climate and land use arechanging. The intensive monitoring network has providedimportant insights but it now needs to be expanded andrevised to meet new questions concerning the effects ofclimate change and land use.