Temporal uncertainties of integrated ecological/economic assessments at the global and regional scales

Abstract

Over the past several years, research using the Center for International Trade in Forest Products (CINTRAFOR) Global Trade Model (CGTM) and the Terrestrial Ecosystem Model (TEM) has estimated the potential effects of climate change on the global forest sector. The process of linking these two models—many model runs with alternative economic, ecological and climate scenarios—provides useful information on (i) the behavior of the economic model under alternative assumptions, (ii) integrated economic/ecological results and (iii) their implication for decision makers. Previous works indicate that assumptions on economic behavior and ecology interactions are important when estimating the economic effects of climate change on the forest sector. This paper estimates the economic effects associated with alternative transient paths of change in climate and CO 2 on the forest sector. The results indicate economic welfare measures change significantly under two alternative assumptions of the path that changes in climate and CO 2 may take. An assumption of a pseudo-transient constant rate of change to reach an equilibrium endpoint produces larger global welfare changes over the time period than a “true” transient change in climate by an average US$ 2 billion over the period 1994–2040. In addition, regional and market segment impacts are not uniformly distributed and should also be considered when programmatic needs are identified.