Modeling climate change feedbacks and adaptation responses: recent approaches and shortcomings

This paper offers a critical review of modeling practice in the field of integrated assessment of climate change and ways forward. Past efforts in integrated assessment have concentrated on developing baseline trajectories of emissions and mitigation scenario analyses. A key missing component in Integrated Assessment Models (IAMs) is the representation of climate impacts and adaptation responses. In this paper, we identify key biases that are introduced when climate impacts and adaptation responses are omitted from the analysis and review the state of modeling studies that attempt to capture these feedbacks. A common problem in these IAM studies is the lack of connection with empirical studies. We therefore also review the state of the empirical work on climate impacts and identify ways that this connection could be improved.

[1]  Roberto Roson,et al.  Climate-change feedback on economic growth: explorations with a dynamic general equilibrium model , 2009, Environment and Development Economics.

[2]  Sonja Peterson,et al.  DART97: a description of the multi-regional, multi-sectoral trade model for the analysis of climate policies , 2003 .

[3]  Jan Christoph Steckel,et al.  The value of technology and of its evolution towards a low carbon economy , 2012, Climatic Change.

[4]  Pantelis Capros,et al.  The GEM-E3 General Equilibrium Model for the European Union , 1997 .

[5]  Richard S. J. Tol,et al.  AD-DICE: An Implementation of Adaptation in the DICE Mode , 2007 .

[6]  Bruce A. McCarl,et al.  Effects of global climate change on the US forest sector: response functions derived from a dynamic resource and market simulator , 2000 .

[7]  Putting Climate Change Adaptation in an Economic Context , 2008 .

[8]  Bruce A. McCarl,et al.  Assessing regional impacts of change: linking economic and environmental models , 2000 .

[9]  Roberto Roson,et al.  A General Equilibrium Analysis of Climate Change Impacts on Tourism , 2004 .

[10]  Chris Hope,et al.  The marginal impact of CO2 from PAGE2002: An integrated assessment model incorporating the IPCC's five reasons for concern , 2006 .

[11]  Michael J. Roberts,et al.  Nonlinear Effects of Weather on Corn Yields , 2006 .

[12]  William D. Nordhaus,et al.  A Regional Dynamic General-Equilibrium Model of Alternative Climate-Change Strategies , 1996 .

[13]  Roberto Roson,et al.  Seasonal temperature variations and energy demand , 2013, Climatic Change.

[14]  Climate Change, Energy Demand and Market Power in a General Equilibrium Model of the World Economy , 2007 .

[15]  C. Carraro,et al.  An Analysis of Adaptation as a Response to Climate Change , 2009 .

[16]  J. Graff Zivin,et al.  Temperature and the Allocation of Time: Implications for Climate Change , 2010, Journal of Labor Economics.

[17]  Bruce A. McCarl,et al.  Forest and Agricultural Sector Optimization Model (FASOM): Model structure and policy applications. Forest Service research paper , 1996 .

[18]  Benjamin F. Jones,et al.  Temperature and Income: Reconciling New Cross-Sectional and Panel Estimates , 2009 .

[19]  B. Sohngen,et al.  A GLOBAL MODEL OF CLIMATE CHANGE IMPACTS ON TIMBER MARKETS , 2001 .

[20]  E. Strobl,et al.  The Re-Building Effect of Hurricanes: Evidence from Employment in the US Construction Industry , 2008, SSRN Electronic Journal.

[21]  Mark A. Cane,et al.  Civil conflicts are associated with the global climate , 2011, Nature.

[22]  William D. Nordhaus,et al.  Warming the World: Economic Models of Global Warming , 2000 .

[23]  Solomon M. Hsiang,et al.  Temperatures and cyclones strongly associated with economic production in the Caribbean and Central America , 2010, Proceedings of the National Academy of Sciences.

[24]  A. Murphy,et al.  The Impact of Hurricanes on Housing Prices: Evidence from US Coastal Cities , 2009 .

[25]  Ian Sue Wing,et al.  Confronting the challenge of integrated assessment of climate adaptation: a conceptual framework , 2013, Climatic Change.

[26]  Ana Iglesias,et al.  Physical and economic consequences of climate change in Europe , 2011, Proceedings of the National Academy of Sciences.

[27]  Gli effetti del cambiamento climatico in agricoltura , 2006 .

[28]  E. Moretti,et al.  Extreme Weather Events, Mortality, and Migration , 2007, The Review of Economics and Statistics.

[29]  Bjørn Lomborg,et al.  Smart Solutions to Climate Change , 2010 .

[30]  Eric Strobl The Economic Growth Impact of Hurricanes: Evidence from US Coastal Counties , 2008 .

[31]  Alan Barreca Climate change, humidity, and mortality in the United States. , 2012, Journal of environmental economics and management.

[32]  Richard S. J. Tol,et al.  Possible economic impacts of a shutdown of the thermohaline circulation: an application of FUND , 2004 .

[33]  D. Jorgenson,et al.  Reducing US carbon emissions: an econometric general equilibrium assessment , 1993 .

[34]  W. Nordhaus,et al.  The Impact of Global Warming on Agriculture: A Ricardian Analysis: Reply , 1999 .

[35]  W. Schlenker,et al.  The Impact of Global Warming on U.S. Agriculture: An Econometric Analysis of Optimal Growing Conditions , 2004, Review of Economics and Statistics.

[36]  E. Lanzi,et al.  Plan or React? Analysis of Adaptation Costs and Benefits Using Integrated Assessment Models , 2011 .

[37]  E. Mansur,et al.  Climate change adaptation: A study of fuel choice and consumption in the US energy sector , 2008 .

[38]  D. Lobell,et al.  Climate Trends and Global Crop Production Since 1980 , 2011, Science.

[39]  Wietze Lise,et al.  Impact of Climate on Tourist Demand , 2001 .

[40]  M. Greenstone,et al.  Climate Change, Mortality, and Adaptation: Evidence from Annual Fluctuations in Weather in the Us , 2007 .

[41]  Adaptation to Climate Change in Preindustrial Iceland , 2012 .

[42]  G. Klepper,et al.  Economic impact of climate change: simulations with a regionalized climate-economy model , 2001 .

[43]  R. Darwin,et al.  A FARMer's View of the Ricardian Approach to Measuring Agricultural Effects of Climatic Change , 1999 .

[44]  Richard S. J. Tol,et al.  The Impact of Climate Change on Domestic and International Tourism: A Simulation Study , 2006 .

[45]  W. Nordhaus Managing the Global Commons: The Economics of Climate Change , 1994 .

[46]  E. Strobl The economic growth impact of natural disasters in developing countries: Evidence from hurricane strikes in the Central American and Caribbean regions , 2012 .

[47]  Carlo Carraro,et al.  Adaptation can help mitigation: an integrated approach to post-2012 climate policy , 2013, Environment and Development Economics.

[48]  B. McCarl,et al.  Policies for reducing agricultural sector vulnerability to climate change in Mali , 2006 .

[49]  R. Roson,et al.  Economy-wide impacts of climate change: a joint analysis for sea level rise and tourism , 2006 .

[50]  Gary D. Libecap,et al.  The Economics of Climate Change: Adaptations Past and Present , 2011 .

[51]  Maximilian Auffhammer,et al.  IMPACTS OF CLIMATE CHANGE ON RESIDENTIAL ELECTRICITY CONSUMPTION: EVIDENCE FROM BILLING DATA , 2011 .

[52]  R. Tol The damage costs of climate change toward more comprehensive calculations , 1995 .

[53]  R. Mendelsohn,et al.  Estimating Ricardian Models with Panel Data , 2011 .

[54]  C. Carraro,et al.  Climate Policy and the Optimal Balance between Mitigation, Adaptation and Unavoided Damage , 2010 .

[55]  Benjamin F. Jones,et al.  Climate Shocks and Exports , 2010 .

[56]  R. Roson,et al.  Economy-Wide Estimates of the Implications of Climate Change: Human Health , 2005 .

[57]  Roberto Roson,et al.  Economy-wide Estimates of the Implications of Climate Change: Sea Level Rise , 2004 .

[58]  R. Tol,et al.  The double trade-off between adaptation and mitigation for sea level rise: an application of FUND , 2007 .

[59]  Erica L. Plambeck,et al.  The model: Integrating the science and economics of global warming , 1997 .

[60]  R. Dellink,et al.  Economic aspects of adaptation to climate change: integrated assessment modelling of adaptation costs and benefits , 2009 .

[61]  R. Tol,et al.  Estimates of the Economic Effects of Sea Level Rise , 2001 .

[62]  Thomas F. Rutherford,et al.  Approximating infinite-horizon models in a complementarity format: A primer in dynamic general equilibrium analysis , 2002 .

[63]  William D. Nordhaus,et al.  Economic aspects of global warming in a post-Copenhagen environment , 2010, Proceedings of the National Academy of Sciences.

[64]  Richard S. J. Tol,et al.  Climate, development and malaria: an application of FUND , 2008 .

[65]  David Anthoff,et al.  Economic costs of extratropical storms under climate change: an application of FUND , 2009 .

[66]  Ian Gray,et al.  Food security, farming, and climate change to 2050: challenges to 2050 and beyond , 2010 .

[67]  M. Greenstone,et al.  Climate Change and Birth Weight. , 2009, The American economic review.

[68]  K. Strzepek,et al.  Impacts of considering climate variability on investment decisions in Ethiopia , 2005 .

[69]  Richard S. J. Tol,et al.  Regional and Sectoral Estimates of the Social Cost of Carbon: An Application of Fund , 2011 .