Select Committee on Economic Affairs Minutes of Evidence


Annex 4

Deterministic Models of Climate Change, Impact Assessments and Costs, and Uncertainty

DETERMINISTIC MODELS AND IMPACT ASSESSMENTS

  Deterministic models—testable against the historical and geographical patterns of climate change—are used to reproduce the circulation of the atmosphere (hence General Circulation Models, GCMs). They estimate climate change from projections of natural and anthropogenic influences on climate including solar input, atmospheric aerosol concentration and greenhouse gas concentrations. Model and scenario uncertainties produce a range of estimates of future temperature, precipitation and sea level rise. Local impacts of climate on food production, disease incidence and water availability are assessed using regional models embedded within the GCMs. The Hadley Centre, supported by Defra and the UK Meteorological Office is the leading world centre for this work.

  The IPCC Third Assessment Report provides projections of global average temperature rise ranging between 1.4 and 5.8ºC, depending upon emissions scenario, by the end of the 21st century. For global average sea-level rise, the projected range is 9 to 88 centimetres. The results from more recent research imply that the IPCC range of global warming is too narrow—the upper end of the range should perhaps be higher (eg, Stainforth et al, [24]2005). Further experiments using GCMs will be needed to confirm these implications. A recent episode of the BBC's Horizon programme ("Global Dimming", 13 January 2005) suggested that short-term cooling caused by man-made aerosol pollution in the atmosphere could be partially offsetting some of the global warming caused by greenhouse gases. This again is the subject of ongoing research.

  Changes in global temperatures and sea level summarized will have significant impacts on the natural environment, ecosystems and human health and society. Many of these impacts are already starting to be experienced. Estimates of these impacts (whether in monetary terms or in physical metrics) are benchmarked against projected climate changes (eg, global mean temperature, precipitation, sea level raise) and can be cross linked to specific emissions scenarios, for IPCC scenarios or other authors.

  Most impact assessment studies in the literature are based on the trend in climate. Considerable year to year and decade to decade variability will in fact be superimposed on this underlying trend. Anthropogenic changes could also initiate large-scale, abrupt changes in physical and biological systems, such as changes to ocean circulation and de-stabilisation of the polar ice sheets. Such events are very difficult to predict but we cannot ignore the risk.

  Environmental stress induced or aggravated by climate change could lead to impacts such as mass migration, severe societal, economic and political crisis and ultimately conflict, linked for example to access to water resources, or displacement by flooding. Small to medium economies in sensitive regions of the world (eg, parts of Africa, South East Asia, Central America, small island states) are thought particularly vulnerable to these socially contingent effects.

CLIMATE CHANGE IMPACT COSTS

  We already know that weather extremes carry significant costs. In 2002, the severe floods in Europe caused 37 deaths and had an estimated direct cost of $16 billion, while the heat wave in Europe in 2003 caused more than 30,000 early deaths and had an estimated direct cost of $13.5 billion. Recent research[25] from the Hadley Centre indicated that such a heatwave is now four times more likely as a result of human influence on climate, and that by the 2050s one in two summers could be even hotter than 2003. Most climate change projections indicate that extremes such as these are likely to occur more frequently in the future. Swiss Re, the world's second largest insurer, said last year that the economic costs of global warming threaten to double to $150 billion per year in 10 years, hitting insurers with $30-40 billion in claims, annually. A report[26] from the ABI said that claims for storm and flood damages in the UK have doubled to over £6 billion over the period 1998-2003, compared to the previous five years, with the prospect of a further tripling by 2050.

  Climate change impacts assessments should consider both projected climate changes and projected socio-economic changes, and socio-economic scenarios have been developed for this purpose. In the UK, corresponding climate change and socio-economic scenarios have been produced under the UK Climate Impacts Programme for researchers to use. However, quantitative research on climate change impacts is sparse in many sectors, and qualitative studies of climate impacts may often ignore the influence of possible socio-economic changes. A particular difficulty is that to date scenarios of climate change have been developed over relatively long timescales (eg, 2020s, 2050s, 2080s), which are well beyond the timeframe of most robust socio-economic modelling. Future developments in climate change modelling will include provision of more information on climate change over the shorter time-scales (eg, 10 to 20 years) which are more compatible with socio-economics.

UNCERTAINTY

  Estimates of climate change impacts represent the final link in a long series of cause-effect relationships and feedbacks which starts with assumptions about human activity and their impacts on emissions of GHGs. Uncertainties tend to increase at each step of this cause-effect relationship, along what has been described as a "cascade of uncertainty" (Jones, 2000, Corfee and Hone, 2003). So uncertainty on climate change impacts reflects and compounds the following:

    —    uncertainty in socio economic trends, including economic growth, population growth, land use, etc;

    —    uncertainty in future levels of GHG emissions given certain socio-economic trends, reflecting uncertainty on technological progress and trends in energy and carbon intensity of the global economy;

    —    uncertainty in future levels of GHG concentrations in the atmosphere given certain levels of GHG emissions, reflecting climate model uncertainty in the carbon cycle and in atmospheric chemistry;

    —    uncertainty about temperature and climate changes given certain level of GHG concentrations, reflecting uncertainty about climate sensitivity;

    —    uncertainty about climate change impacts for given levels of climate change, reflecting uncertainty about vulnerability of human and natural systems, adaptive capacity, impact of multiple-stresses, etc).

  Monetary estimates of the damage costs of climate change add another layer of uncertainty by introducing uncertainty about monetary valuation (particularly in relation to non-market impacts). In the case of global, aggregate estimates of damage costs further drivers of variation include choices about how to compare welfare impacts accruing in different regions of the world and in different time periods.


24   Stainforth et al, "Uncertainty in predictions of the climate response to rising levels of greenhouse gases" Nature 433, 403-406, January 2005. Back

25   Stott et al, "Human contribution to the European heatwave of 2003" Nature 432, 610-614, December 2004. Back

26   A changing climate for insurance, ABI, June 2004. Back


 
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