Asbjørn Aaheim

An economic evaluation of solar radiation management

Economic evaluations of solar radiation management (SRM) usually assume that the temperature will be stabilized, with no economic impacts of climate change, but with possible side-effects. We know from experiments with climate models, however, that unlike emission control the spatial and temporal distributions of temperature, precipitation and wind conditions will change. Hence, SRM may have economic consequences under a stabilization of global mean temperature even if side-effects other than those related to the climatic responses are disregarded. This paper addresses the economic impacts of implementing two SRM technologies; stratospheric sulfur injection and marine cloud brightening. By the use of a computable general equilibrium model, we estimate the economic impacts of climatic responses based on the results from two earth system models, MPI-ESM and NorESM. We find that under a moderately increasing greenhouse-gas concentration path, RCP4.5, the economic benefits of implementing climate engineering are small, and may become negative. Global GDP increases in three of the four experiments and all experiments include regions where the benefits from climate engineering are negative.

Lost benefits and carbon uptake by protection of Indian plantations

There is a range of problems in assessing how protection of a specific forest to Reduce Emissions from Deforestation and forest Degradation (REDD+) affect global emissions of greenhouse gases. This paper shows how knowledge and information about the biophysical characteristics of forests can be combined with theories of forest management and economic behaviour to derive the impacts on global emissions of REDD+. A modelling experiment from India, where 10% of the forest plantations in eight different regions are protected, shows that the biophysical characteristics of forests are decisive for the global impacts on emissions. In regions with slow-growing forests, agents in the non-protected forests are able to increase their output significantly to fill the demand from the protected forests. This opportunity is strictly limited in regions with fast-growing forests. Therefore, prices increase far more in regions with fast-growing forests than in slow-growing forests. Over time, the markets for Indian forestry products contribute to reduce the resulting price differences across regions. When the carbon uptake from protected forests approaches zero, the leakage of emissions to other Indian forests is between 20 and 40%. Only a small part of this is international leakage. Combining different models also helps to identify knowledge gaps, and to distinguish gaps that potentially may be filled with data and new knowledge, and gaps due to different angling of modelling biophysical processes and modelling of economic behaviour.