Large potential reduction in economic damages under UN mitigation targets
International climate change agreements typically specify global warming thresholds as policy targets, but the relative economic benefits of achieving these temperature targets remain poorly understood. Uncertainties include the spatial pattern of temperature change, how global and regional economic output will respond to these changes in temperature, and the willingness of societies to trade present for future consumption. Here we combine historical evidence with national-level climate and socioeconomic projections to quantify the economic damages associated with the United Nations (UN) targets of 1.5 °C and 2 °C global warming, and those associated with current UN national-level mitigation commitments (which together approach 3 °C warming). We find that by the end of this century, there is a more than 75% chance that limiting warming to 1.5 °C would reduce economic damages relative to 2 °C, and a more than 60% chance that the accumulated global benefits will exceed US$20 trillion under a 3% discount rate (2010 US dollars). We also estimate that 71% of countries—representing 90% of the global population—have a more than 75% chance of experiencing reduced economic damages at 1.5 °C, with poorer countries benefiting most. Our results could understate the benefits of limiting warming to 1.5 °C if unprecedented extreme outcomes, such as large-scale sea level rise, occur for warming of 2 °C but not for warming of 1.5 °C. Inclusion of other unquantified sources of uncertainty, such as uncertainty in secular growth rates beyond that contained in existing socioeconomic scenarios, could also result in less precise impact estimates. We find considerably greater reductions in global economic output beyond 2 °C. Relative to a world that did not warm beyond 2000–2010 levels, we project 15%–25% reductions in per capita output by 2100 for the 2.5–3 °C of global warming implied by current national commitments, and reductions of more than 30% for 4 °C warming. Our results therefore suggest that achieving the 1.5 °C target is likely to reduce aggregate damages and lessen global inequality, and that failing to meet the 2 °C target is likely to increase economic damages substantially.
New Stanford study suggests climate mitigation could yield trillions in economic benefits
Stanford scientists found that the global economy is likely to benefit from ambitious global warming limits agreed to in the United Nations Paris Agreement.
Failing to meet climate mitigation goals laid out in the U.N. Paris Agreement could cost the global economy tens of trillions of dollars over the next century, according to new Stanford research. The study, published in Nature, is one of the first to quantify the economic benefits of limiting global warming to levels set in the accord.
The agreement commits 195 countries to the goal of holding this century’s average temperature to 2 degrees Celsius above levels in the pre-industrial era. It also includes an aspirational goal of pursuing an even more stringent target of limiting temperature rise to 1.5 degrees. To date, the economic benefits of achieving these temperature targets have not been well understood.
“Over the past century we have already experienced a 1-degree increase in global temperature, so achieving the ambitious targets laid out in the Paris Agreement will not be easy or cheap. We need a clear understanding of how much economic benefit we’re going to get from meeting these different targets,” said Marshall Burke, assistant professor of Earth system science in the School of Earth, Energy & Environmental Sciencesand lead author of the study.
To develop this understanding, a team of Stanford researchers studied how economic performance over the past half-century correlated with changes in temperature around the world. Then, using climate model projections of how temperatures could change in the future, they calculated how overall economic output is likely to change as temperatures warm to different levels.
The researchers found a large majority of countries – containing close to 90 percent of the world’s population – benefit economically from limiting global warming to 1.5 degrees instead of 2 degrees. This includes the United States, China and Japan – the three largest economies in the world. It is also true in some of the world’s poorest regions, where even small reductions in future warming generate a notable increase in per capita gross domestic product.
“The countries likely to benefit the most are already relatively hot today,” said Burke. “The historical record tells us that additional warming will be very harmful to these countries’ economies, and so even small reductions in future warming could have large benefits for most countries.”
The projected costs from higher temperatures come from factors such as increases in spending to deal with extreme events, lower agricultural productivity and worse health, the scientists said.
Previous research has shown that the actual climate commitments each country has made as part of the Paris Agreement add up to close to 3 degrees of global warming, instead of the 1.5–2 degrees warming goals.
Given this discrepancy, the researchers also calculated the economic consequences of countries meeting their individual Paris commitments, but failing to meet the overall global warming goals of 1.5–2 degrees. They found that failing to achieve the 1.5–2 degrees goals is likely to substantially reduce global economic growth.
Percentage gain in GDP per capita in 2100 from achieving 1.5 degrees Celsius global warming instead of 2 degrees. (Image credit: Marshall Burke)
“It is clear from our analysis that achieving the more ambitious Paris goals is highly likely to benefit most countries – and the global economy overall – by avoiding more severe economic damages,” said Noah Diffenbaugh, professor of Earth system science and paper co-author.
The authors note the study may underestimate the total costs of higher levels of global warming. That’s especially true if catastrophic changes such as rapid melting of the ice on Greenland or Antarctica come to pass, or if extreme weather events such as heatwaves and floods intensify well beyond the range seen in historical observations. A recent studyby Diffenbaugh and his colleagues showed that even with reduced levels of global warming, unprecedented extreme events are likely to become more prevalent.
The new research helps shed light on the overall economic value of the Paris Agreement, as well as on the Trump administration’s decision to withdraw the U.S. from the accord because of concerns that it is too costly to the U.S. economy. The researchers calculated that the overall global benefits of keeping future temperature increases to 1.5 degrees are likely in the tens of trillions of dollars, with substantial likely benefits in the U.S. as well. They note that these benefits are more than 30 times greater than the most recent estimates of what it will cost to achieve the more ambitious 1.5 degrees goal.
“For most countries in the world, including the U.S., we find strong evidence that the benefits of achieving the ambitious Paris targets are likely to vastly outweigh the costs,” said Burke.
Burke is also a fellow at the Center on Food Security and the Environment, the Stanford Woods Institute for the Environmentand the Freeman Spogli Institute for International Studies. Diffenbaugh is also the Kara J Foundation Professor, the Kimmelman Family Senior Fellow in the Stanford Woods Institute for the Environment and an affiliate of the Precourt Institute for Energy. Additional co-authors include W. Matt Davis, a former researcher at the Center on Food Security and the Environment. The research was supported by the Erol Foundation.
Media Contacts
Marshall Burke, School of Earth, Energy & Environmental Sciences: mburke@stanford.edu, (650) 721-2203
Noah Diffenbaugh, School of Earth, Energy & Environmental Sciences: diffenbaugh@stanford.edu, (650) 223-9425
Michelle Horton, Center on Food Security and the Environment: mjhorton@stanford.edu, (650) 498-4129
Unprecedented rates of land-use transformation in modelled climate change mitigation pathways
Integrated assessment models generate climate change mitigation scenarios consistent with global temperature targets. To limit warming to 2 °C, cost-effective mitigation pathways rely on extensive deployments of CO2 removal (CDR) technologies, including multi-gigatonne yearly CDR from the atmosphere through bioenergy with carbon capture and storage (BECCS) and afforestation/reforestation. While these assumed CDR deployments keep ambitious temperature targets in reach, the associated rates of land-use transformation have not been evaluated. Here, we view implied integrated-assessment-model land-use conversion rates within a historical context. In scenarios with a likely chance of limiting warming to 2 °C in 2100, the rate of energy cropland expansion supporting BECCS proceeds at a median rate of 8.8 Mha yr−1 and 8.4% yr−1. This rate exceeds—by more than threefold—the observed expansion of soybean, the most rapidly expanding commodity crop. In some cases, mitigation scenarios include abrupt reversal of deforestation, paired with massive afforestation/reforestation. Historical land-use transformation rates do not represent an upper bound for future transformation rates. However, their stark contrast with modelled BECCS deployment rates implies challenges to explore in harnessing—or presuming the ready availability of—large-scale biomass-based CDR in the decades ahead. Reducing BECCS deployment to remain within these historical expansion rates would mean either the 2 °C target is missed or additional mitigation would need to occur elsewhere.
Roz Naylor Interview: "The Future of Everything with Russ Altman"
Roz Naylor, Director of the Center on Food Security and the Environment talks how technology will help meet the growing demand for food and water in the developing world and why tech companies should invest in Africa.
Differences, or lack thereof, in wheat and maize yields under three low-warming scenarios
The availability of climate model experiments under three alternative scenarios stabilizing at warming targets inspired by the COP21 agreements (a 1.5 ºC not exceed, a 1.5 ºC with overshoot and a 2.0ºC) makes it possible to assess future expected changes in global yields for two staple crops, wheat and maize. In this study an empirical model of the relation between crop yield anomalies and temperature and precipitation changes, with or without the inclusion of CO2 fertilization effects, is used to produce ensembles of time series of yield outcomes on a yearly basis over the course of the 21st century, for each scenario. The 21st century is divided into 10 year windows starting from 2020, within which the statistical significance and the magnitude of the differences in yield changes between pairs of scenarios are assessed, thus evaluating if, and when, benefits of mitigations appear, and how substantial they are. Additionally, a metric of extreme heat tailored to the individual crops (number of days during the growing season above a crop-specific threshold) is used to measure exposure to harmful temperatures under the different scenarios. If CO2 effects are not included, statistically significant differences in yields of both crops appear as early as the 2030s but the magnitude of the differences remains below 3% of the historical baseline in all cases until the second part of the century. In the later decades of the 21st century, differences remain small and eventually stop being statistically significant between the two scenarios stabilizing at 1.5 ºC, while differences between these two lower scenarios and the 2.0ºC scenario grow to about 4%. The inclusion of CO2 effects erases all significant benefits of mitigation for wheat, while the significance of differences is maintained for maize yields between the higher and the two lower scenarios, albeit with smaller benefits in magnitude. Changes in extremes are significant within each of the scenarios but the differences between any pair of them, even by the end of the century are only on the order of a few days per growing season, and these small changes appear limited to a few localized areas of the growing regions. These results seem to suggest that for globally averaged yields of these two grains the lower targets put forward by the Paris agreement does not change substantially the expected impacts on yields that are caused by warming temperatures under the pre-existing 2.0ºC target.
The Elusive Goal of Global Food Security
Ending world hunger is a universal goal, yet progress and social awareness of the issue waxes and wanes in the course of broader political and economic developments. The massive famine in China under Chairman Mao’s 1958–62 Great Leap Forward, a succession of severe droughts and associated famines in India in 1965–66, and the political violence that accompanied regime change in Indonesia in 1964–67 left tens of millions of people starving and drew global attention to the threat of food insecurity. What emerged from these events was an international commitment to agricultural technology transfers, water resource development, and foreign assistance – partly in the spirit of humanitarian goodwill and partly in pursuit of long-term geopolitical and economic interests revolving around the Cold War. Whatever the motivation, the outcome over the ensuing decades was more than a doubling of staple cereal yields in Asia, and a steady decline in real (inflation-adjusted) cereal prices.
Despite these gains, a second, quite different, rallying cry for food security resounded in 2007–8 as international grain prices spiked, food riots erupted in numerous cities throughout the developing world, and the global economy headed into a deep recession. Several factors sparked this crisis, but unlike the earlier periods of dire food shortages, the root causes included unwieldy financial markets and escalating demands for food, animal feeds, and fuel (including biofuels) in a globalized economy. This episode prompted new analyses of the connection between global commodity markets and food security, the political-economy foundations of agricultural development, and the differential impacts of food prices on net producers and net consumers. In the five-year period from 2007 to 2012, international cereal prices were highly unstable, varying by as much as 300 percent.
Today, international agricultural markets have settled at relatively low prices, but civil conflicts, extreme climate events, and other natural disasters are blocking the path toward ending hunger. In February 2017, the United Nations declared a famine in South Sudan, as war and economic collapse ravaged the newly independent nation. Although the famine officially ended in mid-2017, food emergencies and severe undernourishment still threaten tens of millions of people in South Sudan, Yemen, Nigeria, Somalia, and Syria, due to a combination of civil conflict, prolonged droughts, and occasional floods. On the surface, it seems incomprehensible that there could be such difficulty in addressing these looming famines at a time when global cereal production and stocks are at historical highs. But the problem is not a matter of food supply; the problem is war.
Feed conversion efficiency in aquaculture: do we measure it correctly?
Globally, demand for food animal products is rising. At the same time, we face mounting, related pressures including limited natural resources, negative environmental externalities, climate disruption, and population growth. Governments and other stakeholders are seeking strategies to boost food production efficiency and food system resiliency, and aquaculture (farmed seafood) is commonly viewed as having a major role in improving global food security based on longstanding measures of animal production efficiency. The most widely used measurement is called the 'feed conversion ratio' (FCR), which is the weight of feed administered over the lifetime of an animal divided by weight gained. By this measure, fed aquaculture and chickens are similarly efficient at converting feed into animal biomass, and both are more efficient compared to pigs and cattle. FCR does not account for differences in feed content, edible portion of an animal, or nutritional quality of the final product. Given these limitations, we searched the literature for alternative efficiency measures and identified 'nutrient retention', which can be used to compare protein and calories in feed (inputs) and edible portions of animals (outputs). Protein and calorie retention have not been calculated for most aquaculture species. Focusing on commercial production, we collected data on feed composition, feed conversion ratios, edible portions (i.e. yield), and nutritional content of edible flesh for nine aquatic and three terrestrial farmed animal species. We estimate that 19% of protein and 10% of calories in feed for aquatic species are ultimately made available in the human food supply, with significant variation between species. Comparing all terrestrial and aquatic animals in the study, chickens are most efficient using these measures, followed by Atlantic salmon. Despite lower FCRs in aquaculture, protein and calorie retention for aquaculture production is comparable to livestock production. This is, in part, due to farmed fish and shrimp requiring higher levels of protein and calories in feed compared to chickens, pigs, and cattle. Strategies to address global food security should consider these alternative efficiency measures.