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Thematic Guide to Integrated Assessment Modeling
Representing Policies
One of the basic jobs of integrated assessments is to assess
potential response options. The classes of potential policy responses for
climate change are abatement (reducing contributing emissions), adaptation
(measures to reduce the losses associated with a changed climate), and
geoengineering (altering the climate system to offset changes caused by
increased emissions). Most attention has so far gone to abatement, less to
adaptation, and still less to geoengineering. Integrated assessment
projects may choose to represent any or all of these.
Abatement
To assess a proposed abatement policy, one seeks measures of its
cost and effectiveness relative to an assumed economic and environmental
baseline. There are two broad ways to represent abatement policies in an
assessment, of which one requires that the assessment has sufficient
technological detail, and the other that it has sufficient economic
detail. With enough technological detail in the assessment, policies can
be specified that require or regulate particular technologies or impose
technical goals (say, a 35 mile-per-gallon automobile fleet or a specified efficiency
of combined-cycle gas turbine generators), and their aggregate emission
impact on the baseline can be summed. With enough economic detail, tax or subsidy
policies can be imposed on the baseline and the effect on emissions
observed after the consequent economy-wide adjustments.
Achieving a useful representation of either form of abatement
policy is very difficult. With technological policy, it is hard to justify
the particular technical goal assumed or to determine what actual policy
levers could be pulled to bring it about or what their other economy-wide
effects might be. With economic policy, an exceedingly detailed model is
required to represent real policies as implemented, including the effect
of all other policies in force that bear on the same decisions, rather
than idealized policies such as a uniform carbon tax with lump-sum
rebates. The challenge of realistically representing policies as
implemented is even greater in the international arena. For example, most
integrated assessment models assume that an international system of
tradable emission permits results in equalization of marginal abatement
costs in all participating nations, making the policy equivalent to a
common carbon tax with lump-sum transfers. If an international system of
tradable emission permits could be negotiated and implemented, it is
surely unlikely that it would be this simple. In addition, further difficulties of representing the effects of abatement policy
arise in the long term, concerned with the effect of particular abatement
policies on investment in capital and research, and the rate and character
of technological development and international transfer of technology.
Adaptation
Adaptation policies are substantially less well understood and
their representation less well developed in assessment projects than abatement policies. In part this
reflects the strong relationship between adaptation measures and the
projection of impacts, which are themselves not well understood. This also
reflects the fact that adaptation measures will be taken by a variety of
actors, at levels from the individual to the international, and that
policies affecting adaptation will include many measures not normally
regarded as environmental policy: local zoning, infrastructure investment,
insurance programs such as crop and flood insurance, regulations affecting
inter-regional labor mobility, and many others.
Current assessment projects have used three approaches to represent
adaptation. First, some level of adaptation can be assumed to be
represented internally in impacts functions. By restricting adaptation
to a particular level, this approach excludes the possibility of
representing adaptation policies. Second, when sectoral impacts are
studied at fine resolution, as in the MINK study (Missouri-Iowa-Nebraska-Kansas region), specific adaptive
measures by individual and local actors can be identified (e.g., earlier
planting) and specific policies identified to facilitate such adaptation
by local actors (e.g., changed flow management in the Missouri). Third, in
impact sectors where adaptation means large infrastructure investments,
the optimal level and time-path of such investment decisions can be
modeled in detail (e.g., Dutch studies on timing and rate of optimal dike-raising). While
these approaches are a promising start, much more work is
required to have an adequate understanding of adaptation processes.
Geoengineering
Geoengineering policy is in some respects simpler to represent in
an assessment than either abatement or adaptation. All geoengineering
measures proposed so far seek to alter certain simple parameters of the
climate system, either the planetary albedo or solar constant (e.g., by
orbiting mirrors in space or injecting sulfate aerosols into the
stratosphere), or the rate of deep-ocean carbon sequestration (e.g., by
fertilizing plankton in the polar oceans). The climatic effects of such
measures can be represented simply, even in assessments that represent
climate only as a globally averaged change in temperature or radiative
forcing. Geoengineering policies are both promising and controversial.
While it has been argued that they merit serious consideration because
they may be cheaper than abatement or adaptation, their greatest value may
be that they could be implemented faster than other responses and so
could provide crisis response to extreme climatic events from the tail of
the probability distribution. Such measures also pose deep problems of two
kinds, though. First, unless implemented incrementally and reversibly,
they may themselves carry large unanticipated environmental risks. Second,
such intentional global interventions would pose deep problems of
authority and legitimacy, of who has the resources and authority to carry
out such massive interventions as seeding the oceans with iron filings or
orbiting mylar mirrors in space, and who would bear the cost.
The next page is Incorporating Political Processes and Negotiation.
Sources
Parson, E.A. and K. Fisher-Vanden, Searching for Integrated Assessment:
A Preliminary Investigation of Methods, Models, and Projects in the
Integrated Assessment of Global Climatic Change. Consortium for
International Earth Science Information Network (CIESIN). University
Center, Mich. 1995.
Suggested Citation
Consortium for International Earth Science Information Network (CIESIN).
1995. Thematic Guide to Integrated Assessment Modeling of Climate
Change [online]. University Center, Mich.
CIESIN URL: http://sedac.ciesin.org/mva/iamcc.tg/TGHP.html
Acknowledgement
This work, including access to the data and technical assistance, is
provided by CIESIN, with funding from the National Aeronautics and
Space Administration under Contract NAS5-32632 for the Development and
Operation of the Socioeconomic Data and Applications Center (SEDAC).
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