Risk Analysis

First held in 1970, Earth Day is an annual observance on April 22 that promotes the need for environmental protection. Earth Day now comprises multiple events around the world under the coordination of EarthDay.org. The official theme for this year's Earth Day is Invest In Our Planet, To that end, the Earth Day 2022 website states:

Uncertainty quantification of socio-economic outcomes can be combined with scenario discovery techniques to explore a full range of outcomes and provide insight into associated likelihoods while also identifying individual scenarios of interest. This unique approach quantifies multi-sector risks, which can aid decision-making about energy and technology choices and sectoral strategies.

The Science

When the 2015 Paris Agreement set a long-term goal of keeping global warming “well below two degrees Celsius, compared to pre-industrial levels” to avoid the worst impacts of climate change, it did not specify how its nearly 200 signatory nations could collectively achieve that goal. Each nation was left to its own devices to reduce greenhouse gas emissions in alignment with the 2°C target.

Summary: Simulation models are often used to explore future development pathways and their impacts on energy, emissions, economies and the environment. This requires making assumptions about various socio-economic conditions, such as how fast populations and economies will grow, the cost of technology options, or the amount of fossil fuels available. Different assumptions have significant impacts on model results, yet analyses typically only test a few alternatives.

Here, we develop and use probability distributions to capture this uncertainty. We draw samples from these distributions, run an energy-economic model hundreds of times, and quantify the resulting uncertainty in model outcomes, providing insight into their likelihood. We focus on results related to emissions and output from different economic sectors, as well as energy and electricity technologies. We also apply approaches to find scenarios of interest from within the database of scenarios.

We find that many patterns of energy and technology development are possible under a given long-term environmental pathway (such as a 2C scenario) or a given economic outcome (such as high or low GDP). This approach can help identify biases in perceptions of what “needs” to happen to achieve certain outcomes, and shows that there are many pathways to a successful energy transition. 

Held September 27-30 online, the MATLAB Computational Finance Conference 2021 convened industry professionals to illustrate practical applications of MATLAB and provide advice to practitioners on topics ranging from artificial intelligence to climate risk.

The preeminent conference for the advancement of Earth and space sciences, the AGU (American Geophysical Union) Fall Meeting draws more than 25,000 attendees from over 100 countries each year to share research findings and identify innovative solutions to complex problems. Organized around the theme “Science is Society,” this year’s AGU Fall Meeting will take place in New Orleans and online on December 13 - 17.

Pages

Subscribe to Risk Analysis