IPCC SRES 4 qualitative storylines 6 IA model frameworks 40 Scenarios 6 Illustrative Scenarios • representative of uncertainty range • no single, best guess scenario • probabilities/likelihoods not assigned Impact of technological change of similar importance as population and economic growth combined IIASA A. Grübler, 2002 MAJOR CLIMATE CHANGE UNCERTAINTIES Socioeconomic (Future Cumulative Emissions SRES Scenarios) Carbon Cycle (Resulting CO2 Concentration) and Climate Sensitivity (ºC for 2CO2) 0 °C global mean temperature change 2 3 4 2.5 1 5 6 7 ppm CO2 300 600 1000 6 4 2 0 <100 1000 2000 3000 SRES scenarios cumulative emissions 1900 - 2100, GtC Vulnerability: low high Emissions from 130,000 Scenarios of Technological Uncertainty 5.5 Relative frequency (percent) 5.0 Set of 520 technology dynamics 4.5 4.0 3.5 3.0 2.5 2.0 Optimal set of 53 technology dynamics 1.5 1.0 0.5 0.0 5 10 15 20 25 30 Emissions by 2100, GtC Gritsevskyi&Nakicenovic, 2000 Energy Policy 38:907-921 Endogenous Technological Change • Future characteristics (e.g. costs) depend on intervening actions (R&D & investments) • Improvements through accumulation of experience (learning) • Interactive rather than linear model (learning by doing and using; supply push and demand pull) • Uncertainty 1: outcomes of R&D and investment strategies (learning) • Uncertainty 2: market environment (demand, environmental constraints, etc.) IIASA A. Grübler, 2002 Technological Uncertainties: Learning rates (push) and market growth (pull) 1.5 1.5 0.1% Cost index ($/kW) Nuclear Reactors France 1977-2000 1.0 1.0 50% interval 90% interval mean learning rate (115 case studies): -20% per doubling 0.5 0.5 PVs Japan 1976-1995 0.1% 0.0 0 1 2 3 4 0.0 5 6 7 8 9 10 11 12 13 14 15 Number of doublings (installed capacity) IIASA A. Grübler, 2002 Implementation • Integration of stochastic draws • Objective function incl. “risk term” (Y. Ermoliev) • Non-convex, stochastic optimization (A. Gritsevskii) • parallel computing (IIASA network to CRAY-T3E) • Result: optimal diversification portfolio IIASA A. Grübler, 2002 Global Carbon Emissions: Four Models of Increasing Treatment of Uncertainty global carbon emissions, GtC 25 20 15 10 (1) no uncertainty 5 (2) uncertain demand, resources, costs (3) = (2) plus uncertain C-tax (4) uncertain demand, resources, techn. learning, C-tax 0 1990 IIASA 2010 2030 2050 2070 2090 A. Grübler, 2002 Summary Endogenous technological change through anticipation of (uncertain) increasing returns Non-convex, stochastic optimization problem solvable (within limits) Interpretation: Innovation and niche market development (exploration of learning potentials) economically rational in view of pervasive uncertainties Info: http://www.iiasa.ac.at/Research/TNT/WEB/index.htm IIASA A. Grübler, 2002
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