Coupling climate and economic models in a cost-benefit framework: A convex optimisation approach

In this paper, we present a general method, based on a convex optimisation technique, that facilitates the coupling of climate and economic models in a cost-benefit framework. As a demonstration of the method, we couple an economic growth model à la Ramsey adapted from DICE-99 with an efficient intermediate complexity climate model, C-GOLDSTEIN, which has highly simplified physics, but fully 3-D ocean dynamics. As in DICE-99, we assume that an economic cost is associated with global temperature change: this change is obtained from the climate model, which is driven by the GHG concentrations computed from the economic growth path. The work extends a previous paper in which these models were coupled in cost-effectiveness mode. Here we consider the more intricate cost-benefit coupling in which the climate impact is not fixed a priori. We implement the coupled model using an oracle-based optimisation technique. Each model is contained in an oracle, which supplies model output and information on its sensitivity to a master program. The algorithm Proximal-ACCPM guarantees the convergence of the procedure under sufficient convexity assumptions. Our results demonstrate the possibility of a consistent, cost-benefit, climate-damage optimisation analysis with a 3-D climate model.     

The personal CO2 calculator: A modeling tool for Participatory Integrated Assessment methods

Participatory Integrated Assessment (PIA) is an approach which aims at developing methods which allow to combine evaluations of experts and lay people in the field of Integrated Assessment. Thus, policy recommendations derived from PIA exercises are informed by scientific judgments and by valuations of “non-scientists”. For any PIA methodology the provision of insights, facts and figures about the policy problem at hand is crucial. In this paper we describe a PIA methodology which combines the social science research instrument “focus group” with a specific computer information tool, the “Personal CO₂ Calculator” (PCC). The tool supports citizens in discussing and recommending measures on climate change policy. Based on our experiences, we plead for information instruments that are tuned to and assist concrete target groups with their specific interests. This helps that policy recommendations derived from PIA exercises are based on both scientific knowledge as well as citizens' and stakeholders' policy preferences. This revised version was published online in July 2006 with corrections to the Cover Date.     

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.     

A Flexible Global Warming Index for Use in an Integrated Approach to Climate Change Assessment

Global Warming Potential (GWP) is an index used to measure the cumulative radiative forcing of a tonne of greenhouse house gas (GHG) relative to that of a ‘reference’ gas (CO₂). Under the Kyoto Protocol, GWP can be used as a fixed index to govern the trade-off between different GHGs in a multi-gas approach to GHGs abatement. The use of fixed GWPs has been criticized for not being very cost effective compared to the use of some flexible indices. To gain wider acceptance, however, a flexible index must also prove to be easy to use, and the economic gains from its adoption must be significant. In this paper, we develop a flexible index based on the concept of marginal rather than cumulative or average global warming potentials. These marginal global warming potentials (MGWPs) can be endogenously determined within a climate model given a particular climate objective based on radiative forcing level. The MGPWs are then linked to the marginal abatement costs of the GHGs, which are also endogenously determined within an economic model. When the two concepts are linked in this way, the result is a cost-effective way of achieving a particular climate change objective with multigas abatement. We show that the savings in costs when using this flexible MGPWs can be significant, and more importantly, they are not uniformly distributed across different regions.

THE TIGER IN THE DINING ROOM: DESIGNING AND EVALUATING INTEGRATED ASSESSMENTS OF ATMOSPHERIC CHANGE

Integrated assessments (IAs) and integrated assessment models (IAMs) arerecent responses to the inter-disciplinary challenges provided by complexglobal environmental issues such as atmospheric change. This paper discussesan array of integrated assessments, providing an overview of the role of IAsas bridges or foundations for epistemic communities. Formal as well associal, political, and ethical issues are presented. As well as a definition of anIA and an IAM, different forms and approaches of current or proposed IAsare reviewed. Particular stress is laid on the need to maintain the integrity ofthe diverse components of an IA. Finally, reference is made to the need tounderstand the underlying ethical and normative concerns that have promotedthe current interest in IA.     

Global climate change and regional sustainable development: the case of Mackenzie Basin in Canada

Cohen et al. [16] suggest that in order to explore ways to bring climate change (CC) and sustainable development (SD) research together, it is necessary to develop more heuristic tools that can involve resource users and other stakeholders. In this respect, this paper focuses on methodological development in research to study climate change impacts and regional sustainable development (RSD). It starts with an introduction of an integrated land assessment framework (ILAF) which is part of the integrated phase of the Mackenzie Basin Impact Study (MBIS) in Canada. The paper then provides some articulation on how the integrated approach was applied in the Mackenzie Basin to show implications of climate change for RSD.     

A Metamodeling Approach for Integrated Assessment of Air Quality Policies

A method is proposed to build integrated models (also called Metamodels) aimed at quantifying the economic efficiency of air quality policies. This Metamodeling approach is based on the coupling of two complementary models, that operate at different scales in space and time, and which represent the economic and the physical and chemical processes, respectively. The joint consideration of the physico-chemical and techno-economic structure of the pollution control problems permits a comprehensive evaluation of air pollution abatement strategies. The motivating pollution control problems include urban-regional air quality management through efficient energy and traffic control policies. A pilot study, exploiting data collected in the Geneva canton (Switzerland), is used to demonstrate the potential of the approach.     

Desertification Evaluated Using an Integrated Environmental Assessment Model

Desertification has been defined as land degradation in arid, semi-arid and dry sub-humid areas resulting from various factors, including climatic variations and human activities (United Nations, 1992). A technique for identifying and assessing areas at risk fordesertification in the arid, semi-arid, and subhumid regionsof the United States was developed by the Desert Research Institute and the U.S. Environmental Protection Agency (EPA), using selected environmental indicators integrated into a Geographic Information System (GIS). Five indicators were selected: potential erosion, grazing pressure, climatic stress (expressed as a function of changesin the Palmer Drought Severity Index [PDSI]), change invegetation greenness (derived from the Normalized DifferenceVegetation Index [NDVI]), and weedy invasives as a percentof total plant cover. The data were integrated over aregional geographic setting using a GIS, which facilitateddata display, development and exploration of data relationships, including manipulation and simulation testing. By combining all five data layers, landscapes having a varying risk for land degradation were identified, providing a tool which could be used to improve landmanagement efficiency.     

Models at the interface between science and society: impacts and options

Within the CLEAR project a new approach to integrated assessment modelling has been developed for the participatory integrated assessment of regional climate change involving citizens' focus groups. The climate change decision problem was structured by focusing separately on climate impacts and mitigation options. The attempt was made to link the different scales of the problem from the individual to the global level. The abstract topic of climate change was related to options on the level of a citizen's individual lifestyle. The option of a low energy society was emphasised in order to embed the climate change decision problem in a wider range of societal concerns. Special emphasis was given to the characterisation and communication of uncertainties. The chosen approach allows different kinds of uncertainties in one framework to be addressed. The paper concludes with a summary of the experience made, and recommendations for the use of models in participatory integrated assessments. This revised version was published online in July 2006 with corrections to the Cover Date.     

Participatory integrated assessment of adaptation to climate change in Alpine tourism and mountain agriculture

Winter tourism and mountain agriculture are the most important economic sectors in a major part of the Swiss Alps. Both are highly sensitive to changing climatic conditions. In the framework of the CLEAR project, results from climate impact research in the field of tourism and agricultural production were used to investigate the perception of climatic change by stakeholders and to assess possible adaptations. We used a participatory integrated assessment (PIA) to involve the knowledge, values and experiences of the various social actors in tourism and agriculture (e.g., skiers, tourism managers, farmers) in the research process. Whereas climate change may have various severe direct impacts on the tourism industry, depending on the region, agricultural production may generally benefit from changed climatic conditions. But because of the dependence of farmers on “off-farm” income, the loss due to declining winter tourism in specific areas may cause more important indirect effects. However, the two sectors may adapt actively by choosing from a variety of strategies, and the loss of income from the tourism industry may support the re-evaluation of the various functions agriculture plays in mountain regions, beyond the production of food. The study demonstrates the suitability of the PIA approach to elucidate the interactions between different stakeholders and their perception of the climate change phenomena. A similar participatory approach could be a useful tool to transfer research results and expert knowledge to the political process addressing adaptations to climate change. This revised version was published online in July 2006 with corrections to the Cover Date.     

Uncertainty management in integrated assessment modeling: towards a pluralistic approach

Integrated Assessment (IA) is an evolving research community that aims to address complex societal issues through an interdisciplinary process. The most-widely used method in Integrated Assessment is modeling. The state of the art in Integrated Assessment modeling is described in this paper in terms of history, general features, classes of models, and in terms of the strengths and weaknesses, and the dilemmasand challenges modelers face. One of the key challenges is the issue of uncertainty management. The paper outlines the sources and types of uncertainty modelers are confronted with. It then discusses how uncertainties are currently managed inIntegrated Assessment modeling, on which evaluation it is argued that complementary methods are needed that allow for pluralistic uncertainty management. The paperfinalises with discussing pluralistic concepts and approaches that are currently explored in the IA community and that seem promising in view of the challenge to incorporate explicitly more than one hidden perspective in models.     

Assessment of Climate Change Effects on Canada's National Park System

To estimate the magnitude of climate change anticipated forCanada's 38 National Parks (NPs) and Park Reserves, seasonaltemperature and precipitation scenarios were constructed for 2050and 2090 using the Canadian Centre for Climate Modelling andAnalysis (CCCma) coupled model (CGCM1). For each park, we assessed impacts on physical systems, species, ecosystems andpeople. Important, widespread changes relate to marine andfreshwater hydrology, glacial balance, waning permafrost, increased natural disturbance, shorter ice season, northern andupward altitudinal species and biome shifts, and changed visitation patterns. Other changes are regional (e.g., combinedEast coast subsidence and sea level rise increase coastal erosionand deposition, whereas, on the Pacific coast, tectonic upliftnegates sea level rise). Further predictions concern individualparks (e.g., Unique fens of Bruce Peninsular NP will migratelakewards with lowered water levels, but structural regulation of Lake Huron for navigation and power generation would destroythe fens). Knowledge gaps are the most important findings. Forexample: we could not form conclusions about glacial massbalance, or its effects on rivers and fjords. Likewise, for theEast Coast Labrador Current we could neither estimate temperature and salinity effects of extra iceberg formation, nor the further effects on marine food chains, and breeding park seabirds. We recommend 1) Research on specific large knowledge gaps; 2) Climate change information exchange with protected area agencies in other northern countries; and 3) incorporating climate uncertainty into park plans and management. We discuss options for a new park management philosophy in the face of massive change and uncertainty.     

On the optimal control of carbon dioxide emissions: an application of FUND

This paper presents the Climate Framework for Uncertainty, Negotiation and Distribution (FUND), an integrated assessment model of climate change, and discusses selected results. FUND is a nine‐region model of the world economy and its interactions with climate, running in time steps of one year from 1990 to 2200. The model consists of scenarios for economy and population, which are perturbed by climate change and greenhouse gas emission reduction policy. Each region optimizes its net present welfare. Policy variables are energy and carbon efficiency improvement, and sequestering carbon dioxide in forests. It is found that reducing conventional air pollution is a major reason to abate carbon dioxide emissions. Climate change is an additional reason to abate emissions. Reducing and changing energy use is preferred as an option over sequestering carbon. Under non‐cooperation, free riding as well as assurance behaviour is observed in the model. The scope for joint implementation is limited. Under cooperation, optimal emission abatement is (slightly) higher than under non‐cooperation, but the global coalition is not self‐enforcing while side payments are insufficient. Optimal emission control under non‐cooperation is less than currently discussed under the Framework Convention on Climate Change, but higher than observed in practice. This revised version was published online in July 2006 with corrections to the Cover Date.     

Climate Impact Response Functions for Terrestrial Ecosystems

We introduce climate impact response functions as a means for summarizing and visualizing the responses of climate-sensitive sectors to changes in fundamental drivers of global climate change. In an inverse application, they allow the translation of thresholds for climate change impacts (‘impact guard-rails’) into constraints for climate and atmospheric composition parameters (‘climate windows’). It thus becomes feasible to specify long-term objectives for climate protection with respect to the impacts of climate change instead of crude proxy variables, like the change in global mean temperature. We apply the method to assess impacts on terrestrial ecosystems, using the threat to protected areas as the central impact indicator. Future climate states are characterized by geographically and seasonally explicit climate change patterns for temperature, precipitation and cloud cover, and by their atmospheric CO₂ concentration. The patterns are based on the results of coupled general circulation models. We study the sensitivity of the impact indicators and the corresponding climate windows to the spatial coverage of the analysis and to different climate change projections. This enables us to identify the most sensitive biomes and regions, and to determine those factors which significantly influence the results of the impact assessment. Based on the analysis, we conclude that climate impact response functions are a valuable means for the representation of climate change impacts across a wide range of plausible futures. They are particularly useful in integrated assessment models of climate change based on optimizing or inverse approaches where the on-line simulation of climate impacts by sophisticated impact models is infeasible due to their high computational demand. This revised version was published online in July 2006 with corrections to the Cover Date.     

Assessing alpine plant vulnerability to climate change: a modeling perspective

The potential ecological impact of ongoing climate change has been much discussed. High mountain ecosystems were identified early on as potentially very sensitive areas. Scenarios of upward species movement and vegetation shift are commonly discussed in the literature. Mountains being characteristically conic in shape, impact scenarios usually assume that a smaller surface area will be available as species move up. However, as the frequency distribution of additional physiographic factors (e.g., slope angle) changes with increasing elevation (e.g., with few gentle slopes available at higher elevation), species migrating upslope may encounter increasingly unsuitable conditions. As a result, many species could suffer severe reduction of their habitat surface, which could in turn affect patterns of biodiversity. In this paper, results from static plant distribution modeling are used to derive climate change impact scenarios in a high mountain environment. Models are adjusted with presence/absence of species. Environmental predictors used are: annual mean air temperature, slope, indices of topographic position, geology, rock cover, modeled permafrost and several indices of solar radiation and snow cover duration. Potential Habitat Distribution maps were drawn for 62 higher plant species, from which three separate climate change impact scenarios were derived. These scenarios show a great range of response, depending on the species and the degree of warming. Alpine species would be at greatest risk of local extinction, whereas species with a large elevation range would run the lowest risk. Limitations of the models and scenarios are further discussed. This revised version was published online in July 2006 with corrections to the Cover Date.     

Agent-based integrated assessment modelling: the example of climate change

Current approaches to deal with the socio-economic implications of climate change rely heavily on economic models that compare costs and benefits of different measures. We show that the theoretical foundations underpinning current approaches to economic modelling of climate change are inappropriate for the type of questions that are being asked. We argue therefore that another tradition of modelling, social simulation, is more appropriate in dealing with the complex environmental problems we face today.     

Earth system analysis and management

A research strategy based upon models of intermediate complexity addressing crucial aspects of global environmental change is presented. The key idea behind that strategy is to compress system complexity either by formal techniques such that first-order aspects are preserved, or to employ semi-qualitative schemes to describe and simulate the dominant dynamical patterns identified by panoramic inspection.Specific realizations of the overall heuristic philosophy are introduced as elements of a comprehensive research program on global change. Topics encompass global climate modeling, a decision analysis framework for managing the global warming problem by balancing adaptation and mitigation efforts, a generic approach to integrated regional climate impact assessment and its implementation in specific regions, as well as a new technique to link regional and global patterns of environmental change by using advanced modeling tools.     

Integrated environmental assessment methods: Evolution and applications

The central objectives of the European Forum on Integrated Environmental Assessment (EFIEA) include improving the scientific quality of Integrated Environmental Assessments (IEA) as well as strengthening the interactions between science and policy making in environmental matters. This paper is intended to provide a concise assessment of the evolution of IEA methods and present it as a background to current thinking on and practice in IEA. Historical roots of IEA concepts and applications are explored. Common elements and distinctive features in recent proposals to define IEA are sorted and a liberal definition is proposed for the purposes of the present methodological study. This definition emphasizes the interdisciplinary character and environmental policy orientation of IEAs. Changes in the nature, social perception, and management of environmental problems are identified as the major factors driving methodological development in IEAs. A simple scheme is proposed to arrange the main elements of IEA: disciplinary tools, integration tools, and assessment frameworks. The role of IEAs in environmental management is examined by adopting the concept of risk management functions. Due to the varying needs for interdisciplinary research and diverging degrees of policy involvement across those functions, the potential contribution of IEAs to activities belonging to different functions also varies. The flexibility and diversity of IEAs are demonstrated by a sampler of frameworks that have been developed to address profoundly different problems and audiences. This revised version was published online in July 2006 with corrections to the Cover Date. This revised version was published online in July 2006 with corrections to the Cover Date.     

Intergenerational equity and discounting

A standard framework is presented as an underlying model for the discounting debate. Views and proposals for the techniques and rates of discounting are assessed. Alternative modeling frameworks for studying intergenerational equity issues are evaluated with the result that the basic insights they provide do not differ very much. Results from model experiments involving different discount rate proposals show that fudging the discount rate does not lead to efficient climate policy. Three major clusters of opinions are identified regarding the applicability of cost-benefit analysis to the climate change problem and the appropriate discount rate to use. It is concluded that under some very special circumstances the cost-benefit rule should be abandoned and cost-effective strategies implying standard discount rates should be sought to reach clearly defined and justified environmental targets. This revised version was published online in July 2006 with corrections to the Cover Date.     

A Landscape Ecology Assessment of the Tensas River Basin

A group of landscape ecological indicators were applied to biophysical data masked to the Tensas River Basin. The indicators were used to identify and prioritize sources of nutrients in a Mississippi/Atchafalaya River System sub-basin. Remotely sensed data were used for change detection assessment. With these methods, we were able to look at land use practices over the past twenty years in the Tensas River Basin of Louisiana. A simple land use classification was applied to multispectral scanner (MSS) data from 1972 and 1991. The landscape analysis methods described in this paper will show how to use these methods to assess the impact of human land use practices that are being implemented to improve environmental quality. Landscape assessment methods can be used as a simple, timely, cost effective approach for monitoring, targeting, and modeling ecosystem health in watersheds. Although this study was conducted in the southeast, the methods described in this paper may be applicable to western landscapes.