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Evaluating Societal Impacts Related to Air Quality and Climate Drew Shindell Nicholas School of the Environment Duke University Thanks to many colleagues, especially Greg Faluvegi & Yunha Lee How to decide what is best to do where? Comparing impacts & robustness Pollutant Climate Damages Health Damages Ag Damages CO2 Very large (certain) None Medium SO2 Opposite (global) Very large Opposite* HFCs Large (very likely) None Very Large Methane Large (certain) Medium Large BC+ Moderate and/or large uncertainty Very large Very Large Avoiding Pitfalls Lock in new CO2intenstive capital stock Reduce SO2 and NOx (both with net cooling effects) Currently... To get the most out of labour, capital, and other resources, countires need to allocate them efficiently across different sectors of the economy, and to achieve this, product prices need to reflect not only the cost of supplying those products, but also any environmental costs of using them. We think prices paid by users of energy, or energy-related products, need to reflect the full range of environmental costs (air pollution, road traffic congestion…), not just global warming. International Monetary Fund Director Christine Lagarde, 2015 Currently... Obama Administration executive order for all federal agencies to include Social Cost of Carbon (SCC) analysis: “intended to include (but not limited to) changes in net agricultural productivity, human health, property damages from increased flood risk, and the value of ecosystem services due to climate change.” EU has the Emissions Trading System All impacts assumed proportional to global mean annual average radiative forcing or temperature change Air Quality falls under a variety of rules, costs typically analyzed for major legislation Valuing Emissions: Social Cost of Atmospheric Release (SCAR) Develop a broader Social Cost that includes impacts on human health, agriculture, etc. via climate & air quality; includes all the key pollutants causing both problems Model response to emissions of one pollutant at a time Climate impacts of pollutants other than carbon dioxide Same valuation methodology for air quality and climate (similar work for methane/ozone/health in Sarofim, Waldhoff & Anenberg, Environ. Res. Econ., 2015) Shindell, Climatic Change, 2015 Valuing Clean Air Generation costs from US Energy Information Administration, 2012 Policy Benefits: US Clean Energy & Transportation Consistent with 2°C Shindell et al., Nature Climate Change, 2016 Policy Benefits: US Clean Energy: Avoids ~175,000 premature deaths by 2030 (-50%/+450%; ~80% PM2.5, 20% O3) Clean Transportation: ~120,000 lives by 2030 (-36%/+360%; ~66% PM2.5, 33% O3) Policy Benefits: US 2500 Va lua ti on ofBenef it ( B$p er y r) 2250 2000 1750 Energy Transport 1500 1250 1000 750 500 250 0 Compositionhealth only (5%) (3%) (1.4%) SCARcalculations (discount rate) Implementation costs ~$100-210B (2030 economy-wide) Shindell et al., Nature Climate Change, 2016 Shindell, Climatic Change, 2015 How Well do we Know the Values CO2 non-CO2 C-cycle Damage Func Damage Func Climate-Health Climate-Health Comp-Health Comp-Health Regional Aer Regional Aer Reference T Reference T GDP GDP Mortality Mortality Fertilization Fertilization TCR TCR RF RF -100 -50 0 50 100 150 CH4 non-CO2 C-cycle -100 Damage Func Climate-Health Climate-Health Comp-Health Comp-Health Regional Aer Regional Aer Reference T Reference T GDP GDP Mortality Mortality Fertilization Fertilization TCR TCR RF RF non-CO2 C-cycle -50 0 50 100 150 BC -50 0 50 -100 non-CO2 C-cycle 100 150 N 2O non-CO2 C-cycle Damage Func -100 OC non-CO2 C-cycle -50 0 50 100 HFC 150 How Well do we Know the Values dSW/dAOD GISS-E2 CESM1 HadGEM3 ΔTOA SW / ΔAOD 0 -10 -20 -30 -40 -50 -60 Axis Title Series 1 0.6 ΔSO4 / ΔAOD 0.5 0.4 0.3 0.2 0.1 0 GISS-E2 CESM1 HadGEM3 Kasoar et al., ACPD, 2016 How can policy & research maximize societal benefits? Need to define broad targets (e.g. UN Sustainable Development Goals) Need to relate specific actions to broad targets (wider metrics) Need to target efforts to improve quantification of key sources of uncertainty influencing valuation