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This paper discusses the design of efficient environmental policies in general and reviews omissions and shortcomings of the presentation of the economic dimensions of climate change in the Intergovernmental Panel on Climate Change (IPCC) Working Group III's Report: "Climate Change 1995 Economic and Social Dimensions of Climate Change: Contribution of Working Group III to the Second Assessment Report of the Intergovernmental Panel on Climate Change" (Cambridge Univ. Press, Cambridge, UK, 1996).

The authors assess the economic effects in Egypt, under various conditions, of restricting carbon dioxide emissions. They use their model to assess the sensitivity of these effects to alternative specifications: changes in the level or timing of restrictions, changes in the rate of discount of future welfare, and the presence or absence of alternative technologies for generating power. They also analyze a constraint on accumulated emissions of carbon dioxide. Their time model has a time horizon of 100 years, with detailed accounting for every five years, so they can be specific about differences between short- and long-run effects and their implications. However, the results reported here cover only a 60-year period - and are intended only to compare the results of generic,"what if?"questions, not as forecasts. In that 60-year period, the model economy substantially depletes its hydrocarbon reserves, which are the only non produced resource. The authors find that welfare losses due to the imposition of annual restrictions on the rate of carbon dioxide emissions are substantial - ranging from 4.5 percent for a 20 percent reduction in annual carbon dioxide emissions to 22 percent for a 40 percent reduction. The effects of the annual emissions restrictions are relatively nonlinear. The timing of the restrictions is significant. Postponing them provides a longer period for adjustment and makes it possible to continue delivering consumption goods in a relatively unconstrained manner. The form of emissions restrictions is also important. Welfare losses are much higher when constraints are imposed on annual emissions rates rather than on total additions to the accumulation of greenhouse gases. Conventional backstop technologies for maintaining output and consumption - cogeneration, nuclear power, and gas-powered transport - are more significant than unconventional"renewable"technologies,which cannot compete for cost.

The Kathmandu Valley, Nepal, is a broad bowl-shaped basin in the Himalayan foothills, with a population of more than two million people. Its growing air pollution problem is strongly affected by wind systems generated by the heating and cooling of the surrounding topography. We carried out a field measurement campaign of air pollutants and meteorology in the Kathmandu Valley during the dry season 2004-2005, followed by MM5 simulations nested down to 1 km resolution. The model results have allowed us to interpret the observed distinct diurnal cycle and determine the major processes responsible for the observations. We found that, at night, the Kathmandu Valley behaves like a large basin, with down-slope flows on surrounding mountains contributing to an accumulating cold air pool that grows to the altitude of surrounding mountain passes. The arriving cold air pushes underneath the air mass polluted in the evening, lifting up layers of polluted air, while providing relatively clean conditions to the surface during pre-dawn hours. After sunrise the elevated layers re-circulate to the surface, leading to a sharp rise in pollution. During the morning a mixed layer begins to grow over the valley, but it peaks at mid-day. Further growth is stunted by the arrival through mountain passes of cooler air that originated over lower regions outside of the Kathmandu Valley. This creates a renewed stratification as cooler air spreads across valley bottom; such behavior has been observed elsewhere on a number of elevated plateaus. During the afternoon most of the valley's ventilation takes place at low elevations, with strong winds bringing background air through the western passes, while transporting polluted air out the eastern passes. Our study sheds light onto some of the complex patterns of air pollution transport that take places in polluted mountain areas, while helping guide future research, including a proposed study of the ventilation of Ganges Valley air through the Himalaya.

Using a global coupled model of intermediate complexity (2D atmosphere, 3D ocean), the behavior of the thermohaline circulation is explored for various increased CO2 scenarios. A novel feature of the model is our ability to adjust the model's sensitivity to CO2 increases by changing the strength of the cloud feedback. By varying the rate and duration of increases in atmospheric CO2, the model's sensitivity, and the river runoff scheme for perturbations in freshwater forcing, we are able to obtain and analyze a spectrum of behaviors, ranging from little change in the thermohaline circulation to a full shutdown of sinking in the North Atlantic. Although the initial decrease in overturning strength (i.e., over a centennial time scale) is primarily a function of the rate of CO2 increase, whether the North Atlantic sinking ultimately shuts down is governed by the product of the model's prescribed climate sensitivity and the stabilization CO2. However, if the rate of increase (for a given stabilization level) is sufficiently slow (e.g., over several hundred years), a recovery can occur for a model sensitivity/stabilization combination that collapses given a more rapid increase. Over a portion of phase space a weak, meta-stable overturning circulation exists; once the circulation crosses this threshold, a collapse rapidly occurs.

Using a global coupled model of intermediate complexity (2D atmosphere, 3D ocean), the behavior of the thermohaline circulation is explored for various increased CO2 scenarios. A novel feature of the model is our ability to adjust the model’s sensitivity to CO2 increases by changing the strength of the cloud feedback. By varying the rate and duration of increases in atmospheric CO2, the model’s sensitivity, and the river runoff scheme for perturbations in freshwater forcing, we are able to obtain and analyze a spectrum of behaviors, ranging from little change in the thermohaline circulation to a full shutdown of sinking in the North Atlantic. We find that the thermohaline circulation is particularly sensitive to changes in river runoff into the Arctic Ocean. The strength of the meridional overturning circulation in the Atlantic is compared to changes in the steric height difference between the North Atlantic and the South Atlantic.We find a strong correlation between changes in overturning strength and the strength of the steric height gradient; moreover, we find a reversal in the sign of the gradient when the circulation undergoes a collapse.

As nations engage in the long-term process of negotiating a protocol on controlling greenhouse gas emissions, the danger of costly mistakes looms large, both from doing too little or too much. Researchers try to provide insight and guidance on this difficult problem, many relying on the tools of mathematical simulation models, but two important shortcomings remain in much of the current analysis. One is the treatment of the uncertainty inherent in projections of economic activity over the next century or more; and the other is the way economic activity is modeled to impact the poorly understood physical and biological systems of the earth.
    This paper presents several simple illustrations of the performance of current policy proposals in the face of a long-term climate-based goal when uncertainties in economic growth and technology development are made explicit. Several conclusions emerge. Analyses that rely on deterministic emissions paths through time obscure the underlying uncertainties, and explicitly incorporating these uncertainties can produce qualitatively different conclusions. Moreover, apparent differences in the climate impacts of proposals now being debated within the Framework Convention on Climate Change may be negligible when viewed in the light of likely uncertainties. Seeking a less stringent protocol with a higher probability of compliance may thus produce preferable outcomes. Most importantly, the analyses presented are meant to highlight the need for flexibility in any response to climate change, because uncertainty is an unavoidable aspect of the problem.

We examine the effect of biofuels mandates and climate policy on the European vehicle fleet, considering the prospects for diesel and gasoline vehicles. We use the MIT Emissions Prediction and Policy Analysis (EPPA) model, which is a general equilibrium model of the world economy. We expand this model by explicitly introducing current generation biofuels, by accounting for stock turnover of the vehicle fleets and by disaggregating gasoline and diesel cars. We find that biofuels mandates alone do not substantially change the share of diesel cars in the total fleet given the current structure of fuel taxes and tariffs in Europe that favors diesel vehicles. Jointly implemented changes in fiscal policy, however, can reverse the trend toward more diesel vehicles. We find that harmonizing fuel taxes reduces the welfare cost associated with renewable fuel policy and lowers the share of diesel vehicles in the total fleet to 21% by 2030 compared to 25% in 2010. We also find that eliminating tariffs on biofuel imports, which under the existing regime favor biodiesel and impede sugar ethanol imports, is welfare-enhancing and brings about further substantial reductions in CO2 emissions.

We examine the effect of biofuels mandates and climate policy on the European vehicle fleet, in particular the prospects for diesel and gasoline vehicles. Our analysis is based on a dynamic computable general equilibrium model of the world economy which explicitly incorporates current generation biofuels, accounts for stock turnover of the vehicle fleets, disaggregates gasoline and diesel cars, and represents an advanced E85 vehicle. We find that the European vehicle fleet is robust to proposed biofuels mandates owing to an existing fuel tax and tariffs structure that favours diesel vehicles. Harmonising excise duties on diesel and gasoline or lowering tariffs on biofuel imports, however, is shown to reverse the trend toward more diesel vehicles and significantly alters the efficiency costs and environmental effectiveness of renewable fuel policies.

© 2012 Journal of Transport Economics and Policy

In this study, the impact of hydrologic (i.e. precipitation) change on the global physical and ecologic systems is investigated. The MIT Integrated Global System Model (IGSM) is designed for simulating the global environmental changes that may arise as a result of anthropogenic causes, the uncertainties associated with the projected changes, and the effect of proposed policies on such changes. The current IGSM formulation includes an economic model for analysis of greenhouse and aerosol precursor gas emissions and mitigation proposals, models of atmospheric chemistry, climate, ocean as well as of the terrestrial biogeophysical and ecologic systems. All of these models are global and coupled but with intermediate levels of regional detail.
Through the use of the IGSM, the sensitivity of these globally linked systems to imposed changes in the frequency, duration and strength of precipitation is explored. A range of probability distribution functions which determine the arrival rates and duration/ intensity of precipitation events at the surface is considered. This range is constructed in such a way as to statistically reproduce the increased probability of hydrologic extremes (i.e. droughts and floods), and span a range of plausible precipitation regime changes of the global system. Analysis will be presented that characterizes the sensitivity of these imposed stochastic precipitation changes on the major components of the globally integrated model. In particular, emphasis will be placed on the impacts of these hydrologic changes to the global biogeochemical fluxes, and their subsequent feedbacks to the modeled climate system. The analysis presented will indicate that a substantial sensitivity exists of global N2O fluxes to not only a change in mean precipitation but changes in the event-based statistics of precipitation (i.e. probably density functions of storm duration/intensity and inter-storm arrival rates). A similar sensitivity is seen for global carbon and methane fluxes, but to a lesser degree for storm statistics. Overall, the results underscore that potential impacts (and feedbacks) between the global biogeochemical and hydrologic systems are limited not only to mean state changes, but the frequency and intensity of hydrologic events and extremes.

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