Abstract
Homeowners around the world elevate houses to manage flood risks. Deciding how high to elevate a house poses a nontrivial decision problem. The U.S. Federal Emergency Management Agency ...(FEMA) recommends elevating existing houses to the Base Flood Elevation (the elevation of the 100-year flood) plus a freeboard. This recommendation neglects many uncertainties. Here we analyze a case-study of riverine flood risk management using a multi-objective robust decision-making framework in the face of deep uncertainties. While the quantitative results are location-specific, the approach and overall insights are generalizable. We find strong interactions between the economic, engineering, and Earth science uncertainties, illustrating the need for expanding on previous integrated analyses to further understand the nature and strength of these connections. Considering deep uncertainties surrounding flood hazards, the discount rate, the house lifetime, and the fragility can increase the economically optimal house elevation to values well above FEMA’s recommendation.
Anthropogenic greenhouse gas emissions are changing the Earth’s climate and impose substantial risks for current and future generations. What are scientifically sound, economically viable, and ...ethically defendable strategies to manage these climate risks? Ratified international agreements call for a reduction of greenhouse gas emissions to avoid dangerous anthropogenic interference with the climate system. Recent proposals, however, call for a different approach: to geoengineer climate by injecting aerosol precursors into the stratosphere. Published economic studies typically neglect the risks of aerosol geoengineering due to (i) the potential for a failure to sustain the aerosol forcing and (ii) the negative impacts associated with the aerosol forcing. Here we use a simple integrated assessment model of climate change to analyze potential economic impacts of aerosol geoengineering strategies over a wide range of uncertain parameters such as climate sensitivity, the economic damages due to climate change, and the economic damages due to aerosol geoengineering forcing. The simplicity of the model provides the advantages of parsimony and transparency, but it also imposes severe caveats on the interpretation of the results. For example, the analysis is based on a globally aggregated model and is hence silent on intragenerational distribution of costs and benefits. In addition, the analysis neglects the effects of learning and has a very simplistic representation of climate change impacts. Our analysis suggests three main conclusions. First, substituting aerosol geoengineering for CO
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abatement can be an economically ineffective strategy. One key to this finding is that a failure to sustain the aerosol forcing can lead to sizeable and abrupt climatic changes. The monetary damages due to such a discontinuous aerosol geoengineering can dominate the cost-benefit analysis because the monetary damages of climate change are expected to increase with the rate of change. Second, the relative contribution of aerosol geoengineering to an economically optimal portfolio hinges critically on, thus far, deeply uncertain estimates of the damages due to aerosol forcing. Even if we assume that aerosol forcing could be deployed continuously, the aerosol geoengineering does not considerably displace CO
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abatement in the simple economic optimal growth model until the damages due to the aerosol forcing are rather low. Third, substituting aerosol geoengineering for greenhouse gas emission abatement can fail an ethical test regarding intergenerational justice. Substituting aerosol geoengineering for greenhouse gas emissions abatements constitutes a conscious risk transfer to future generations, in violation of principles of intergenerational justice which demands that present generations should not create benefits for themselves in exchange for burdens on future generations.
Managing ecosystems with deeply uncertain threshold responses and multiple decision makers poses nontrivial decision analytical challenges. The problem is imbued with deep uncertainties because ...decision makers do not know or cannot converge on a single probability density function for each key parameter, a perfect model structure, or a single adequate objective. The existing literature on managing multistate ecosystems has generally followed a normative decision-making approach based on expected utility maximization (MEU). This approach has simple and intuitive axiomatic foundations, but faces at least two limitations. First, a prespecified utility function is often unable to capture the preferences of diverse decision makers. Second, decision makers’ preferences depart from MEU in the presence of deep uncertainty. Here, we introduce a framework that allows decision makers to pose multiple objectives, explore the trade-offs between potentially conflicting preferences of diverse decision makers, and to identify strategies that are robust to deep uncertainties. The framework, referred to as many-objective robust decision making (MORDM), employs multiobjective evolutionary search to identify trade-offs between strategies, re-evaluates their performance under deep uncertainty, and uses interactive visual analytics to support the selection of robust management strategies. We demonstrate MORDM on a stylized decision problem posed by the management of a lake in which surpassing a pollution threshold causes eutrophication. Our results illustrate how framing the lake problem in terms of MEU can fail to represent key trade-offs between phosphorus levels in the lake and expected economic benefits. Moreover, the MEU strategy deteriorates severely in performance for all objectives under deep uncertainties. Alternatively, the MORDM framework enables the discovery of strategies that balance multiple preferences and perform well under deep uncertainty. This decision analytic framework allows the decision makers to select strategies with a better understanding of their expected trade-offs (traditional uncertainty) as well as their robustness (deep uncertainty).
This study compares two widely used approaches for robustness analysis of decision problems: the info‐gap method originally developed by Ben‐Haim and the robust decision making (RDM) approach ...originally developed by Lempert, Popper, and Bankes. The study uses each approach to evaluate alternative paths for climate‐altering greenhouse gas emissions given the potential for nonlinear threshold responses in the climate system, significant uncertainty about such a threshold response and a variety of other key parameters, as well as the ability to learn about any threshold responses over time. Info‐gap and RDM share many similarities. Both represent uncertainty as sets of multiple plausible futures, and both seek to identify robust strategies whose performance is insensitive to uncertainties. Yet they also exhibit important differences, as they arrange their analyses in different orders, treat losses and gains in different ways, and take different approaches to imprecise probabilistic information. The study finds that the two approaches reach similar but not identical policy recommendations and that their differing attributes raise important questions about their appropriate roles in decision support applications. The comparison not only improves understanding of these specific methods, it also suggests some broader insights into robustness approaches and a framework for comparing them.
Abstract
The long-term temperature response to a given change in CO
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forcing, or Earth-system sensitivity (ESS), is a key parameter quantifying our understanding about the relationship between ...changes in Earth’s radiative forcing and the resulting long-term Earth-system response. Current ESS estimates are subject to sizable uncertainties. Long-term carbon cycle models can provide a useful avenue to constrain ESS, but previous efforts either use rather informal statistical approaches or focus on discrete paleoevents. Here, we improve on previous ESS estimates by using a Bayesian approach to fuse deep-time CO
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and temperature data over the last 420 Myrs with a long-term carbon cycle model. Our median ESS estimate of 3.4 °C (2.6-4.7 °C; 5-95% range) shows a narrower range than previous assessments. We show that weaker chemical weathering relative to the a priori model configuration via reduced weatherable land area yields better agreement with temperature records during the Cretaceous. Research into improving the understanding about these weathering mechanisms hence provides potentially powerful avenues to further constrain this fundamental Earth-system property.
Many institutions worldwide are considering how to include uncertainty about future changes in sea-levels and storm surges into their investment decisions regarding large capital infrastructures. ...Here we examine how to characterize deeply uncertain climate change projections to support such decisions using Robust Decision Making analysis. We address questions regarding how to confront the potential for future changes in low probability but large impact flooding events due to changes in sea-levels and storm surges. Such extreme events can affect investments in infrastructure but have proved difficult to consider in such decisions because of the deep uncertainty surrounding them. This study utilizes Robust Decision Making methods to address two questions applied to investment decisions at the Port of Los Angeles: (1) Under what future conditions would a Port of Los Angeles decision to harden its facilities against extreme flood scenarios at the next upgrade pass a cost-benefit test, and (2) Do sea-level rise projections and other information suggest such conditions are sufficiently likely to justify such an investment? We also compare and contrast the Robust Decision Making methods with a full probabilistic analysis. These two analysis frameworks result in similar investment recommendations for different idealized future sea-level projections, but provide different information to decision makers and envision different types of engagement with stakeholders. In particular, the full probabilistic analysis begins by aggregating the best scientific information into a single set of joint probability distributions, while the Robust Decision Making analysis identifies scenarios where a decision to invest in near-term response to extreme sea-level rise passes a cost-benefit test, and then assembles scientific information of differing levels of confidence to help decision makers judge whether or not these scenarios are sufficiently likely to justify making such investments. Results highlight the highly-localized and context dependent nature of applying Robust Decision Making methods to inform investment decisions.
In many coastal communities, the risks driven by storm surges are motivating substantial investments in flood risk management. The design of adaptive risk management strategies, however, hinges on ...the ability to detect future changes in storm surge statistics. Previous studies have used observations to identify changes in past storm surge statistics. Here, we focus on the simple and decision-relevant question: How fast can we learn from past and potential future storm surge observations about changes in future statistics? Using Observing System Simulation Experiments, we quantify the time required to detect changes in the probability of extreme storm surge events. We estimate low probabilities of detection when substantial but gradual changes to the 100-year storm surge occur. As a result, policy makers may underestimate considerable increases in storm surge risk over the typically long lifespans of major infrastructure projects.
Flood-related risks to people and property are expected to increase in the future due to environmental and demographic changes. It is important to quantify and effectively communicate flood hazards ...and exposure to inform the design and implementation of flood risk management strategies. Here we develop an integrated modeling framework to assess projected changes in regional riverine flood inundation risks. The framework samples climate model outputs to force a hydrologic model and generate streamflow projections. Together with a statistical and hydraulic model, we use the projected streamflow to map the uncertainty of flood inundation projections for extreme flood events. We implement the framework for rivers across the state of Pennsylvania, United States. Our projections suggest that flood hazards and exposure across Pennsylvania are overall increasing with future climate change. Specific regions, including the main stem Susquehanna River, lower portion of the Allegheny basin, and central portion of Delaware River basin, demonstrate higher flood inundation risks. In our analysis, the climate uncertainty dominates the overall uncertainty surrounding the flood inundation projection chain. The combined hydrologic and hydraulic uncertainties can account for as much as 37% of the total uncertainty. We discuss how this framework can provide regional and dynamic flood-risk assessments and help to inform the design of risk-management strategies.
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