http://www.sciencedirect.com/science/article/pii/S1462901114002421

ScienceDirect
Environmental Science & Policy
April 2015, Vol.48:67–76, doi:10.1016/j.envsci.2014.12.014

Is there room for geoengineering in the optimal climate policy mix?

Olivier Bahn
Marc Chesney
Anca Claudia Pana

Highlights

•We investigate the optimal policy mix for dealing with climate change.

•We consider jointly mitigation, adaptation, and solar radiation management
(SRM).

•SRM can control temperature, but brings environmental side-effects.

•SRM is not robust due to uncertainty in magnitude and persistency of
side-effects.

•Implementing SRM with wrong assumptions about side-effects largely
decreases welfare.

Abstract

We investigate geoengineering as a possible substitute for mitigation and
adaptation measures to address climate change. Relying on an integrated
assessment model, we distinguish between the effects of solar radiation
management (SRM) on atmospheric temperature levels and its side-effects on
the environment. The optimal climate portfolio is a mix of mitigation,
adaptation, and SRM. When accounting for uncertainty in the magnitude of
SRM side-effects and their persistency over time, we show that the SRM
option lacks robustness. We then analyse the welfare consequences of basing
the SRM decision on wrong assumptions about its side-effects, and show that
total output losses are considerable and increase with the error horizon.
This reinforces the need to balance the policy portfolio in favour of
mitigation.

JEL classification - Q43Q48Q54Q58

Keywords

Climate change
Integrated assessment
Adaptation
Mitigation
Geoengineering

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