Climate Policy

On January 20 a new administration entered the White House determined to cut spending on climate change and environmental protection programs, and reduce restrictions on greenhouse gas emissions that contribute to global warming. To help the MIT community better understand what’s at stake, graduate students with the MIT Joint Program on the Science and Policy of Global Change presented seven courses on climate science and policy during the 2017 MIT Independent Activities Period.

Science and technology are essential tools for innovation, and to reap their full potential, we also need to articulate and solve the many aspects of today’s global issues that are rooted in the political, cultural, and economic realities of the human world. With that mission in mind, MIT's School of Humanities, Arts, and Social Sciences has launched "The Human Factor" — an ongoing series of stories and interviews that highlight research on the human dimensions of global challenges.

The economic prescription for climate change is clear: price carbon dioxide (CO2) and other greenhouse gas emissions to internalize climate damages. In practice, a variety of political economy constraints prevent the introduction of a carbon price equal to the full social cost of emissions. This paper develops insights about the design of climate policy in the face of binding political constraints, formulated here as limits on the CO2 price itself, on increases in energy prices, and on energy consumer and producer surplus loss. We employ a stylized model of the energy sector to develop intuition about the welfare-maximizing combination of CO2 price, subsidy for clean energy production, and lump-sum transfers to energy consumers or producers under each constraint. We find that the strategic use of subsidies or transfers can compensate for or relieve political constraints and significantly improve the efficiency and environmental efficacy of carbon pricing policies.

Establishing a credible and effective transparency system will be both crucial and challenging for the climate regime based on the pledge and review process established in the Paris Agreement. The Agreement provides for review of achievements under national pledges (Nationally Determined Contributions, or NDCs), but much of this information will become available only well after key steps in the launch of this latest attempt to control human influence on the climate. Still, in these early years, information and understanding of individual and collective performance, and of relative national burdens under the NDCs, will play an important role in the success or failure of the Agreement. However, because of the phasing of various steps in the 5-year cycles under the Agreement and the unavoidable delays of two or more years to produce and review government reports, the Climate Convention and other intergovernmental institutions are ill-suited to carry out timely analyses of progress. Consequently, in advance of formal procedures, academic and other non-governmental groups are going to provide analyses based on available data and their own methodologies. We explore this transparency challenge, using the MIT Economic Projection and Policy Analysis (EPPA) model, to construct sample analyses, and consider ways that efforts outside official channels can make an effective contribution to the success of the Agreement.

To estimate the long-term impact of climate change on crop yields, scientists usually use one of two methods. The first, process-based crop models, simulate the combined mechanistic effects of weather, soil conditions, pest damage and other factors on crop growth and yields. The second, statistical techniques, make observation-based estimates to simulate the effect of weather on crop yields. Both approaches have drawbacks.

Scientific challenges exist on how to extract information from the wide range of projected impacts simulated by crop models driven by climate ensembles. A stronger focus is required to understand and identify the mechanisms and drivers of projected changes in crop yield. In this study, we investigate the robustness of future projections of five metrics relevant to agriculture stakeholders (accumulated frost days, dry days, growing season length, plant heat stress and start of field operations). We use a large ensemble of climate simulations by the MIT IGSM-CAM integrated assessment model that accounts for the uncertainty associated with different emissions scenarios, climate sensitivities, and representations of natural variability. By the end of the century, the US is projected to experience fewer frosts, a longer growing season, more heat stress and an earlier start of field operations—although the magnitude and even the sign of these changes vary greatly by regions. Projected changes in dry days are shown not to be robust. We highlight the important role of natural variability, in particular for changes in dry days (a precipitation-related index) and heat stress (a threshold index). The wide range of our projections compares well the CMIP5 multi-model ensemble, especially for temperature-related indices. This suggests that using a single climate model that accounts for key sources of uncertainty can provide an efficient and complementary framework to the more common approach of multi-model ensembles. We also show that greenhouse gas mitigation has the potential to significantly reduce adverse effects (heat stress, risks of pest and disease) of climate change on agriculture, while also curtailing potentially beneficial impacts (earlier planting, possibility for multiple cropping). A major benefit of climate mitigation is potentially preventing changes in several indices to emerge from the noise of natural variability, even by 2100. This has major implications considering that any significant climate change impacts on crop yield would result in nation-wide changes in the agriculture sector. Finally, we argue that the analysis of agro-climate indices should more often complement crop model projections, as they can provide valuable information to better understand the drivers of changes in crop yield and production and thus better inform adaptation decisions.

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