A B S T R A C TThis paper presents the overview of the Shared Socioeconomic Pathways (SSPs) and their energy, land use, and emissions implications. The SSPs are part of a new scenario framework, established by the climate change research community in order to facilitate the integrated analysis of future climate impacts, vulnerabilities, adaptation, and mitigation. The pathways were developed over the last years as a joint community effort and describe plausible major global developments that together would lead in the future to different challenges for mitigation and adaptation to climate change. The SSPs are based on five narratives describing alternative socio-economic developments, including sustainable development, regional rivalry, inequality, fossil-fueled development, and middle-of-the-road development. The longterm demographic and economic projections of the SSPs depict a wide uncertainty range consistent with the scenario literature. A multi-model approach was used for the elaboration of the energy, land-use and the emissions trajectories of SSP-based scenarios. The baseline scenarios lead to global energy consumption of 400-1200 EJ in 2100, and feature vastly different land-use dynamics, ranging from a possible reduction in cropland area up to a massive expansion by more than 700 million hectares by 2100.
The need for a better understanding of future energy scenarios, of their compatibility with the objective of stabilizing greenhouse gas concentrations, and of their links with climate policy, calls for the development of hybrid models. Hybrid because both the technological detail typical of Bottom Up (BU) models and the long run dynamics typical of Top Down (TD) models are crucially necessary. We present WITCH-World Induced Technical Change Hybrid model-a neoclassical optimal growth model (TD) with energy input detail (BU). The model endogenously accounts for technological progress, both through learning curves affecting prices of new vintages of capital and through R&D investments. In addition, the model captures the main economic interrelationships between world regions and is designed to analyze the optimal economic and environment policies in each world region as the outcome of a dynamic game. This paper provides a detailed description of the WITCH model, of its baseline, and of the model calibration procedure.
Low-carbon investments are necessary for driving the energy system transformation called for by both the Paris Agreement and Sustainable Development Goals. Improving understanding of the scale and nature of these investments under diverging technology and policy futures is therefore of great importance to decision makers. Here, using six global modelling frameworks, we show that the pronounced reallocation of the investment portfolio required to transform the energy system will not be initiated by the current suite of countries' Nationally Determined Contributions. Charting a course toward 'well below 2 °C' instead sees low-carbon investments overtaking fossil investments globally by around 2025 or before and growing significantly thereafter. Pursuing the 1.5 °C target demands a marked up-scaling in low-carbon capital beyond that of a 2 °C-consistent future. Actions consistent with an energy transformation would increase the costs of achieving energy access and food security goals but reduce those for achieving air quality goals.
International audienceThis study explores a situation of staged accession to a global climate policy regime from the current situation of regionally fragmented and moderate climate action. The analysis is based on scenarios in which a front runner coalition - the EU or the EU and China - embarks on immediate ambitious climate action while the rest of the world makes a transition to a global climate regime between 2030 and 2050. We assume that the ensuing regime involves strong mitigation efforts but does not require late joiners to compensate for their initially higher emissions. Thus, climate targets are relaxed, and although staged accession can achieve significant reductions of global warming, the resulting climate outcome is unlikely to be consistent with the goal of limiting global warming to 2 degrees. The addition of China to the front runner coalition can reduce pre-2050 excess emissions by 20-30%, increasing the likelihood of staying below 2 degrees. Not accounting for potential co-benefits, the cost of front runner action is found to be lower for the EU than for China. Regions that delay their accession to the climate regime face a trade-off between reduced short term costs and higher transitional requirements due to larger carbon lock-ins and more rapidly increasing carbon prices during the accession period
This paper synthesizes the results from the model intercomparison exercise among regionalized global energy-economy models conducted in the context of the RECIPE project. The economic adjustment effects of long-term climate policy are investigated based on the crosscomparison of the intertemporal optimization models ReMIND-R and WITCH as well as the recursive dynamic computable general equilibrium model IMACLIM-R. A number of robust findings emerge. If the international community takes immediate action to mitigate climate change, the costs of stabilizing atmospheric CO 2 concentrations at 450 ppm (roughly 530-550 ppm-e) discounted at 3% are estimated to be 1.4% or lower of global consumption over the 21st century. Second best settings with either a delay in climate policy or restrictions to the deployment of low-carbon technologies can result in substantial increases of mitigation costs. A delay of global climate policy until 2030 would render the 450 ppm target unachievable. Renewables and CCS are found to be the most critical mitigation technologies, and all models project a rapid switch of investments away from freely emitting energy conversion technologies towards renewables, CCS and nuclear. Concerning end use sectors, the models consistently show an almost full scale decarbonization of the electricity sector by the middle of the 21st century, while the decarbonization of non-electric energy demand, in particular in the transport sector remains incomplete in all mitigation scenarios. The results suggest that assumptions about low-carbon alternatives for non-electric energy demand are of key importance for the costs and achievability of very low stabilization scenarios.
It is now widely recognized that technological change will play a substantial role in reducing GHG emissions without compromising economic growth; hence, any better understanding of the process of technological innovation is likely to increase our knowledge of mitigation possibilities and costs. This paper explores how international knowledge flows affect the dynamics of the domestic R&D sector and the main economic and environmental variables. The analysis is performed using WITCH, a dynamic regional model of the world economy, in which energy-related technological change is endogenous. The focus is on disembodied energy R&D international spillovers. The knowledge pool from which regions draw foreign ideas differs between High Income and Low Income countries. Absorption capacity is also endogenous in the model. The basic questions are as follows. Do knowledge spillovers enhance energy-related technological innovation in different regions of the world? Does the speed of innovation increase? Or do free-riding incentives prevail and international spillovers crowd out domestic R&D efforts? What is the role of domestic absorption capacity and of policies Contents lists available at ScienceDirectEnergy Economics j o u r n a l h o m e p a g e : w w w. e l s ev i e r. c o m / l o c a t e / e n e c o designed to enhance it? Do greenhouse gas stabilization costs drop in the presence of international technological spillovers? The new specification of the WITCH model presented in this paper enables us to answer these questions. Our analysis shows that international knowledge spillovers tend to increase free-riding incentives and decrease the investments in energy R&D. The strongest cuts in energy R&D investments are recorded among High Income countries, where international knowledge flows crowd out domestic R&D efforts. The overall domestic pool of knowledge, and thus total net GHG stabilization costs, remain largely unaffected. International spillovers, however, are also an important policy channel. We therefore analyze the implication of a policy-mix in which climate policy is combined with a technology policy designed to enhance absorption capacity in Low Income countries. Significant positive impacts on the costs of stabilizing GHG concentrations are singled out.Finally, a sensitivity analysis shows that High Income countries are more responsive than Low Income countries to changes in the parameters. Additional empirical research efforts should thus be focused on the former.
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