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Waldhoff, Stephanie T.

Publications and source records attributed to Waldhoff, Stephanie T..

Core Model Proposal #399: Updating the SSP Database (v3.0) (Population, GDP, and Labor Force) and Labor Productivity (KLEM)

This Core Model Proposal (CMP) updates the Shared Socioeconomic Pathway (SSP) database to a recent version (v3.0.1; released in 2024) within GCAM. Currently, GCAM relies on socioeconomic drivers, including population, GDP, and labor force projections, from the original SSP database version released in 2013. These projections, provided by independent socioeconomic dynamic models (e.g., multi-dimensional demographic models and macroeconomic models of convergence growth), may need regular updates when (1) near-term observations become available and (2) there are updates and advancements in the socioeconomic modeling. Timely updates of socioeconomic drivers in global economic equilibrium and multisector dynamic modeling will ensure (1) alignment of historical years and near-term projections with observations, enhancing base year calibrations, including calibration parameters and labor productivity, and (2) improvement of long-term projections with updated socioeconomic drivers, which set the scale of the economy. This CMP updates the SSP data (from v2013 to v2024) and also fixes/reconciles historical GDP data sources in GCAM. We investigate the impact of these updates on GCAM projections.

97 MATHEMATICS AND COMPUTING↗

Residential energy demand, emissions, and expenditures at regional and income-decile level for alternative futures

Income and its distribution profile are important determinants of residential energy demand and carry direct implications for human well-being and climate. We explore the sensitivity of residential energy systems to income growth and distribution across shared socioeconomic pathway-representative concentration pathways scenarios using a global, integrated, multisector dynamics model, Global Change Analysis Model, which tracks national/regional household energy services and fuel choice by income decile. Nation/region energy use patterns across deciles tend to converge over time with aggregate income growth, as higher-income consumers approach satiation levels in floorspace and energy services. However, in some regions, existing within-region inequalities in energy consumption persist over time due to slow income growth in lower income groups. Due to continued differences in fuel types, lower income groups will have higher exposure to household air pollution, despite lower contributions to greenhouse gas emissions. We also find that the share of income dedicated to energy is higher for lower deciles, with strong regional differences.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

Core Model Proposal #377: Breaking out food processing sector in GCAM

Purpose: This Core Model Proposal (CMP) expands the representation of detailed industry (CMP-326) in GCAM by separating the food processing sector from the aggregate “other industry sector”. Historical energy use is calibrated to IEA data for food processing, with some infilling for regions with limited IEA data. Food processing is linked to the GCAM food demand module, setting the energy demand for food processing in future periods based on food demand. While the direct price feedback is currently muted and the linkage is represented at the aggregated regional level, this CMP establishes the groundwork for a more detailed connection between the agrifood sectors and energy sectors in future work.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

Limited increases in Arctic offshore oil and gas production with climate change and the implications for energy markets

Climate change impacts on sea ice thickness is opening access to offshore Arctic resources. The degree to which these resources are exploited will depend on sea-ice conditions, technology costs, international energy markets, and the regulatory environment. We use an integrated human-Earth system model, GCAM, to explore the effects of spatial–temporal patterns of sea-ice loss under climate change on future Arctic offshore oil and gas extraction, considering interactions with global energy markets and emission reduction scenarios. We find that under SSP5, a “fossil-fueled development” scenario, the effects of sea-ice loss are larger for Arctic offshore oil production than gas. Under SSP5, future extraction of Arctic offshore oil and gas through 2100 adds roughly 0.8–2.6 EJ/year to oil and gas markets but does not have large impacts on global oil and gas markets. Surprisingly, a low-carbon scenario results in greater Arctic offshore oil production to offset the more emissions-intensive unconventional oil production.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Non-parametric projections of national income distribution consistent with the Shared Socioeconomic Pathways

Understanding and projecting income distributions within countries and regions is important to understanding consumption trends and the distributional consequences of climate impacts and responses. Several global, country-level projections of income distribution are available but most project only the Gini coefficient (a summary statistic of the distribution) or utilize the Gini along with the assumption of a lognormal distribution. We test the lognormal assumption and find that it typically underestimates income in the highest deciles and over-estimates it in others. We find that a new model based on two principal components of national time series data for income distribution provides a better fit to the data for all deciles, especially for the highest and lowest. We also construct a projection model in which the first principal component is driven by the Gini coefficient and the second captures deviations from this relationship. We use the model to project income distribution by decile for all countries for the five shared socioeconomic pathways. We find that inequality is consistently higher than projections based on the Gini and the lognormal functional form, with some countries reaching ratios of the highest to lowest income deciles that are almost three times their value using the lognormal assumption.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Marginal Damage of Methane Emissions: Ozone Impacts on Agriculture

Methane directly contributes to air pollution, as an ozone precursor, and to climate change, generating physical and economic damages to different systems, namely agriculture, vegetation, energy, human health, or biodiversity. The methane-related damages to climate, measured as the Social Cost of Methane, and to human health have been analyzed by different studies and considered by government rulemaking in the last decades, but the ozone-related damages to crop revenues associated to methane emissions have not been incorporated to policy agenda. Using a combination of the Global Change Analysis Model and the TM5-FASST Scenario Screening Tool, we estimate that global marginal agricultural damages range from ~ 423 to 556 $2010/t-CH 4 , of which 98 $2010/t-CH 4 occur in the USA, which is the most affected region due to its role as a major crop producer, followed by China, EU-15, and India. These damages would represent 39–59% of the climate damages and 28–64% of the human health damages associated with methane emissions by previous studies. The marginal damages to crop revenues calculated in this study complement the damages from methane to climate and human health, and provides valuable information to be considered in future cost-benefits analyses.

54 ENVIRONMENTAL SCIENCES↗

Building a better framework for evaluating human well-being impacts in global change analysis: The example of energy security

Human well-being can be greatly impacted by the global environmental and socio-economic change captured in Integrated Models of Global Change (IMGCs). Though most IMGCs address some aspects of well-being, their underlying modeling approach and ‘philosophy’ differ widely, and some key elements – like energy security – are omitted. In this report, we describe a project in which we set out to a create a framework through which the well-being dimensions of the household are connected to key drivers of socio-economic and environmental change – and how the needed metrics, data and modeling methods can be brought to bear. We focus on the well-being dimensions of energy, and lay out the necessary elements to capturing household energy security – using household energy burden as the relevant metric. We begin by showing the conceptual linkage of energy burden to environmental drivers like temperature change, using a simple and straightforward conceptual framework. We then go further to use the example of GCAM-USA to show how some key analytical features of the model can provide insight into how energy security across different groups can change along alternative pathways to sustainability. We compare our preliminary assessment of household energy burden to existing data and suggest further steps to improve and refine this analysis in future research.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Evaluating the regional risks to food availability and access from land-based climate policies in an Integrated Assessment Model

Mitigating greenhouse gas (GHG) emissions is necessary to reduce the overall negative climate change impacts on crop yields and agricultural production. However, certain mitigation measures may generate unintended consequences to food availability and food access due to both land use competition and economic burden of mitigation. Integrated assessment models (IAM) are generally used to evaluate these policies; however, currently these models may not capture the importance of income and food prices for hunger and overall economic wellbeing. Here, we implement a measure of food security that captures the nutritional and economic aspects as the total expenditures on staple foods divided by income and weighted by total caloric consumption in an IAM, the Global Change Analysis Model (GCAM4.0). We then project consumer prices and our measure of food security along the Shared Socioeconomic Pathways (SSPs). Sustained economic growth underpins increases in caloric consumption and lowering expenditures on staple foods. Strict conservation policies affect food accessibility in a larger number of developing countries, whereas the negative effects of pricing terrestrial emissions is more concentrated on the poor in Sub-Saharan Africa, by substantially replacing their cropland with forests and affecting the production of key staples.

Cui, Ryna↗

Transparency crucial to Paris climate scenarios—Response

King et al. raise important issues, several of which pertain to the broader policy discourse surrounding international climate negotiations and countries’ cli-mate pledges rather than the modeling conducted in our Policy Forum. We agree with King et al. that the updated Paris Agreement pledges could paint an overly optimistic picture of the future, especially if their success depends on postponing deeper reductions until after 2030. To illustrate a less-optimistic future, our Policy Forum includes scenarios showing what would happen if countries continued to implement current policies alone. Importantly, the “Current policy” scenarios in the Policy Forum result in less than a 10% chance of limiting global warming to below 2°C this century, whereas the “Updated pledges” scenarios result in at least a 33% chance of achieving the same temperature goal. Additional policy measures could help bridge emission gaps between current policies, updated pledges, and the global emission levels needed to cost-effectively achieve the Paris Agreement’s climate goals (1).

54 ENVIRONMENTAL SCIENCES↗

rfasst: An R tool to estimate air pollution impacts on health and agriculture

Existing scientific literature shows that health and agricultural impacts attributable to air pollution are significant and should be considered in the integrated analysis of human and Earth-system interactions. The implementation of policies that affect the power sector, the composition of the vehicle fleet or the investments and deployment of different energy sources will in turn result in different levels of air pollution. Even though the various methodologies for estimating the impacts of air pollution, such as exposure-response functions, are extensively applied by the scientific community, they are normally not included in integrated assessment modeling outputs.

97 MATHEMATICS AND COMPUTING↗

The impact of agricultural trade approaches on global economic modeling

Future socioeconomic and climate scenarios have been explored using integrated assessment models (IAMs) to understand interactions between human development and global environmental change in the long run. However, differences in trade modeling approaches are an important source of uncertainty in the assessments, particularly for regional projections. Here, we explore the critical role of trade modeling in assessing the potential future of global agroeconomics and terrestrial carbon emissions with a well-established IAM, the Global Change Assessment Model (GCAM). We update the crop trade modeling framework in GCAM from a Heckscher-Ohlin-Vanek (HOV) structure with integrated world markets (IWM) to a newly developed logit-based Armington approach with segmented regional markets (SRM). The updates make it possible to study the sensitivity of model projections of future agroeconomics and terrestrial carbon emissions to assumptions of the state and magnitude of global market integration. Our results demonstrate that assuming full global market integration, represented by homogeneous product modeling, neglecting economic geography, and excluding margins and tariffs, could lead to lower cropland use (i.e., by 115 million hectares globally) and terrestrial carbon fluxes (i.e., by 25%) by the end of the century. However, the results are highly heterogeneous across regions with more pronounced regional trade responses driven by global market integration. Our study highlights the critical role of trade modeling around product differentiation, economic geography, and regional trade parameterization in global economic or integrated assessment modeling. The results also imply that further reconciliations in trade model approaches could improve the convergence of regional results among models in model intercomparison studies.

54 ENVIRONMENTAL SCIENCES↗

Empirical estimation of weather-driven yield shocks using biophysical characteristics for U.S. rainfed and irrigated maize, soybeans, and winter wheat

Agricultural yields are highly susceptible to changes in weather system patterns, including both annual and sub-annual changes in temperature and precipitation. Understanding the impacts of future changes in meteorological variables on crop yields have been widely studied in both empirical and process-based models. This work presents a structural econometric approach that combines historical weather data with information about the biophysical growth cycles of maize, winter wheat, and soy to predict the year-to-year yield responses for rainfed crops. Modeled soil moisture and temperature are taken as key predictors, which allows testing the fitted rainfed model’s ability to predict irrigated yields by assuming irrigation produces the numerically optimal level of soil moisture. This approach is grounded in known biophysical processes, which improves confidence in the model predictions. It produces estimates of interannual variability in yields, which enable study of the effects of extreme events on agricultural productivity. Finally, it enables prediction of the potential impacts of changing weather patterns on irrigated crops in areas that are currently primarily rainfed. We present the results of the empirical model, fitted with rainfed data; out-of-sample validation on irrigated crops; and projections of yield shocks under multiple future climate scenarios. Under a bias-corrected GFDL RCP8.5 scenario, this approach predicts average yield change, relative to 2006-2020 average yields, across U.S. counties in the 2040-2060 period of -16.9% and -13.4% for rainfed and irrigated maize, of -19.1% and -18.4% for rainfed and irrigated soy, and of -4.0% and -2.0% for rainfed and irrigated winter wheat. And in the 2070-2090 period of -30.3% and -28.8 % for rainfed and irrigated maize, of -33.1% and -32.8% for rainfed and irrigated soy, and of -6.5% and -5.2%for rainfed and irrigated winter wheat.

54 ENVIRONMENTAL SCIENCES↗

How Much Could Article 6 Enhance Nationally Determined Contribution Ambition Toward Paris Agreement Goals Through Economic Efficiency?

The Paris Agreement of 2015 uses Nationally Determined Contributions (NDCs) to achieve its goal to limit climate change to well below 2°C. Article 6 allows countries to cooperatively implement NDCs provided they do not double-count mitigation. We estimate that economic efficiency gains from cooperative implementation of existing NDC goals using Article 6 could reduce the cost of achieving NDC goals in 2030 to all parties by ~$\$300$ × 10 9 , which if reinvested in additional emissions mitigation could add 9 billion tons CO 2 /year mitigation, beyond the 8 billion tons CO 2 /year currently pledged in 2030. We estimate that more than half of the 2030 gains could come from nature-based measures, but long-term potential for nature-based measures is more limited. How much or even if this economic potential can be realized is uncertain and will depend on both the rules and their implementation.

54 ENVIRONMENTAL SCIENCES↗

ambrosia: An R package for calculating and analyzing food demand that is responsive to changing incomes and prices

The ambrosia R package was developed to calculate food demand for staples and non-staple commodities that is responsive to changing levels of incomes and prices. ambrosia implements the framework to quantify food demand as established by Edmonds et al. (Edmonds et al. 2017) and allows the user to explore and estimate different variables related to the food demand system. Currently ambrosia provides 3 main functions: (1) calculation of food demand for any given set of parameters including income levels and prices (2) estimation of parameters within a given a dataset. Note: ambrosia is used to calculate parameters for the food demand model implemented in the Global Change Analysis Model(GCAM) (3) exploration and preparation of raw data before starting a parameter estimation

97 MATHEMATICS AND COMPUTING↗

Nitrate loading projection is sensitive to freeze-thaw cycle representation

Climate change can have substantial impacts on nitrogen runoff, which is a major cause of eutrophication, harmful algal blooms, and hypoxia in freshwaters and coastal regions. We examined responses of nitrate loading to climate change in the Upper Mississippi River Basin (UMRB) with an enhanced Soil and Water Assessment Tool with physically based Freeze-Thaw cycle representation (SWAT-FT), as compared with the original SWAT model that employs an empirical equation. Driven by future climate projections from five General Circulation Models (GCMs) from 1960 to 2099 under the Representative Concentrations Pathways (RCP) 8.5 scenario, we analyzed changes in riverine nitrate loadings, as well as terrestrial surface and subsurface contributions of the UMRB in the 21st century relative to the baseline period of 1960–1999. By the end of the 21st century, the original SWAT model predicted about a 50% increase in riverine nitrate loadings which is nearly twice as much as that estimated by SWAT-FT (ca. 25%). Such a large difference in projected nitrate changes can potentially mislead mitigation strategies that aim to reduce nitrogen runoff from the UMRB. Further analysis shows that the difference between the original SWAT model and SWAT-FT led to substantial discrepancies in the spatial distribution of surface and subsurface nitrate loadings in the UMRB. In general, SWAT-FT predicted more nitrate leaching for northwestern parts of the UMRB which are more sensitive to freeze-thaw cycle, mainly because SWAT-FT simulated less frequent frozen soils. This study highlights the importance of using physically based freeze-thaw cycle representation in water quality modeling. Design of future nitrogen runoff reduction strategies should include careful assessment of effects that land management has on the freeze-thaw cycles to provide reliable projection of water quality under climate change.

Wang, Qianfeng↗

Impacts of climate and biophysical variability on global agriculture markets

Agricultural production is highly sensitive to changes in climate and weather patterns. The focus of the great majority of studies assessing climate impacts on agriculture has been on mean changes in agricultural responses. However, the manner in which global agricultural markets respond to the interannual variability of the climate and biophysical shocks is poorly understood. Here we show a strong transmission of interannual variations in climate-induced biophysical yield shocks to agriculture markets, which is magnified further by endogenous market fluctuations. We demonstrate the importance of imperfect versus perfect expectations of market and weather in generating the market fluctuations that play a key role in transferring the interannual variations to markets. We find that the volatility of market prices and consumption could be potentially reduced on average by 55% and 41%, respectively, with improved expectations, where agricultural producers make better decisions to adapt to climate and biophysical variability. We also find much heterogeneity in interannual variability across crops and regions, which is considerably mediated by trade as part of the economic response. Our study provides new insights on climate impacts on agricultural market variability and lays a foundation for further investigating the full range of climate impacts on biophysical and human systems.

Zhao, Xin↗

Future impacts of ozone driven damages on agricultural systems

Current ozone (O 3 ) concentration levels entail significant damages in crop yields around the world. The reaction of the emitted precursors (mostly methane and nitrogen oxides) with solar radiation contribute to O 3 levels that exceed established thresholds for crop damage. This paper shows current and projected (up to 2080) relative yield losses (RYLs) driven by O 3 exposure for different crops and the associated economic damages applying dynamic crop production and prices that are calculated per region and period. We adjust future crop yields in the Global Change Assessment Model (GCAM) to reflect the RYLs and analyze the effects on agricultural markets. We find that the changes (generally reductions) in O 3 precursor emissions in a reference scenario would reduce the agricultural damages, compared to present, for most of the regions, with a few exceptions including India, where higher future O3 concentrations have large negative impacts on crop yields. The annual economic impact of O3 driven losses from 2010-2080 are, in billion US dollars at 2015 prices ($B), 5.0-6.0, 9.8-18.8, 6.7-10.6 and 10.4-12.5 for corn, soybeans, rice and wheat, respectively, with the large losses for wheat and soybeans driven by their comparatively high responses to O 3 . When O 3 effects are explicitly modelled as exogenous yield shocks in future periods, there is a direct impact in future agricultural markets. Therefore, the aggregated net present value (NPV) of crop production would be reduced around by $90.8B at a global level. However, these changes are not distributed evenly across regions, and the net present market value of the crops would increase by up to $118.2B (India) or decrease by up to $59.2B (China).

54 ENVIRONMENTAL SCIENCES↗