Common Reference Scenarios: A Synthesis of National-level Economic and Biophysical Model Results...

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Common Reference Scenarios: A Synthesis of National-level Economic and Biophysical Model Results Presented at Forestry and Agriculture Greenhouse Gas Modeling Forum Workshop Shepherdstown, WV October 1, 2001 Presented by Brian C. Murray P.O. Box 12194 · 3040 Cornwallis Road · Research Triangle Park, NC 27709 Phone: 919-541-6468 · Fax: 919-541-6683 · [email protected] · www.rti.org

Transcript of Common Reference Scenarios: A Synthesis of National-level Economic and Biophysical Model Results...

Page 1: Common Reference Scenarios: A Synthesis of National-level Economic and Biophysical Model Results Presented at Forestry and Agriculture Greenhouse Gas Modeling.

Common Reference Scenarios:A Synthesis of National-level Economic and Biophysical Model Results

Presented at Forestry and Agriculture Greenhouse Gas Modeling Forum Workshop

Shepherdstown, WVOctober 1, 2001

Presented by Brian C. Murray

P.O. Box 12194 · 3040 Cornwallis Road · Research Triangle Park, NC 27709Phone: 919-541-6468 · Fax: 919-541-6683 · [email protected] · www.rti.org

Page 2: Common Reference Scenarios: A Synthesis of National-level Economic and Biophysical Model Results Presented at Forestry and Agriculture Greenhouse Gas Modeling.

Objectives

Obtain national-level estimates of GHG mitigation in Forest and Agriculture sectors Baseline/Business-as-Usual (BAU) With Incentives

Demonstrate commonalities and differences across model types Biophysical v Economic Economic

Sectoral vs Multi-sector Static v Dynamic National vs Global

Page 3: Common Reference Scenarios: A Synthesis of National-level Economic and Biophysical Model Results Presented at Forestry and Agriculture Greenhouse Gas Modeling.

ModelsModel Type Sectors Geographic

CoverageFORCARB Birdsey, Heath et al

Biophsyical Forest US

IPCC Paustian et al

Biophsyical Agriculture US

Century Paustian et al

Biophsyical Agriculture US

USMP ERS House, Lewandrowski, Peters

Economic Agriculture US

USMP WRI Faeth and Greenhalgh

Economic Agriculture US

ASMGHG Schneider and McCarl

Economic Agriculture US

FASOM-GHG Adams, McCarl et al

Economic Forest andAgriculture

US private lands

Alavalapati and Wong Economic Multi-sector CGE w/emphasis on forestsector

World

Page 4: Common Reference Scenarios: A Synthesis of National-level Economic and Biophysical Model Results Presented at Forestry and Agriculture Greenhouse Gas Modeling.

Scenario Features

Prices: $ 0, $3-27 per ton, CO2

Activities: Forestry, Agriculture, Land Use Change (level of detail at discretion of modelers)

Time Horizon: 2000-2100

Output

GHGs: CO2, N2O, CH4 (all in CO2 equiv)

Land Use Change Commodity Market Effects Welfare Costs

Page 5: Common Reference Scenarios: A Synthesis of National-level Economic and Biophysical Model Results Presented at Forestry and Agriculture Greenhouse Gas Modeling.

Biophysical Models: Business-As-Usual Sequestration

Page 6: Common Reference Scenarios: A Synthesis of National-level Economic and Biophysical Model Results Presented at Forestry and Agriculture Greenhouse Gas Modeling.

FORCARB

BAU Forest C Sequestration: US (2010)

-400 -200 0 200 400 600 800 1000 1200

Forest management

Afforestation

Deforestation

Net forest CSequestration

MM tons/year CO2

Page 7: Common Reference Scenarios: A Synthesis of National-level Economic and Biophysical Model Results Presented at Forestry and Agriculture Greenhouse Gas Modeling.

FORCARB (2)

Forest C Sequestration by Component: MM Tons/Year CO2

-1500 -1000 -500 0 500 1000 1500 2000

Total tree growth

Total tree cut

Soil

Forest floor

Understory

Products in Use

Products in landfill

Logging Residue

Total C sequestered

Page 8: Common Reference Scenarios: A Synthesis of National-level Economic and Biophysical Model Results Presented at Forestry and Agriculture Greenhouse Gas Modeling.

IPCC and Century: BAU Sequestration Rates for Agriculture

IPCC

0

10

20

30

40

50

60

70

80

90

MM to

ns CO

2/yea

r

Soil C fromCRP

Soil C fromLand-Use Change

Soil C fromReduced TillageIntensity

Century

0

10

20

30

40

50

60

70

80

90

MM to

ns/yr

CO2

Emissions/sinks:hay/pasture

Emissions/sinks:CRP

Emissions/sinks:annual crops - no-tilltillage

Emissions/sinks:annual crops -reduced tillage

Emissions/sinks:annual crops -conventional tillage

Page 9: Common Reference Scenarios: A Synthesis of National-level Economic and Biophysical Model Results Presented at Forestry and Agriculture Greenhouse Gas Modeling.

Economic Models

Page 10: Common Reference Scenarios: A Synthesis of National-level Economic and Biophysical Model Results Presented at Forestry and Agriculture Greenhouse Gas Modeling.

BAU Comparison for Cropland Carbon: Biophysical v Economic Models

BAU C Sequestration on Cropland

-10

0

10

20

30

40

50

60

70

ASMGHG USMP/WRI Century IPCC

MM

to

ns

/ye

ar

CO

2

Page 11: Common Reference Scenarios: A Synthesis of National-level Economic and Biophysical Model Results Presented at Forestry and Agriculture Greenhouse Gas Modeling.

BAU Comparison for Forestland:Biophysical v Economic

BAU C Sequestration on Forestland FASOM-GHG is private land only

0

200

400

600

800

1000

1200

FORCARB FASOM-GHG

MM

to

ns

/ye

ar

CO

2

Page 12: Common Reference Scenarios: A Synthesis of National-level Economic and Biophysical Model Results Presented at Forestry and Agriculture Greenhouse Gas Modeling.

GHG Mitigation Supply Functions

Page 13: Common Reference Scenarios: A Synthesis of National-level Economic and Biophysical Model Results Presented at Forestry and Agriculture Greenhouse Gas Modeling.

Net Emissions from Agriculture with Incentives

-150

-100

-50

0

50

100

150

200

250

300

350

$0 $3 $7 $14 $27

Price ($/ton CO2)

MM

to

ns/y

ear

CO

2

Total Ag soilmanagementsequestration

Ag soilmanagement -emissions

Embodiedenergy fromcropproduction -emissions

Totalemissionsacross allactivities

USMP/WRI

Page 14: Common Reference Scenarios: A Synthesis of National-level Economic and Biophysical Model Results Presented at Forestry and Agriculture Greenhouse Gas Modeling.

GHG Mitigation Supply Function for U.S. Agriculture: Net Emission Reductions Relative to BAU

$0

$5

$10

$15

$20

$25

$30

0 20 40 60 80 100 120 140 160

MM tons/year CO2

Pri

ce

($

/to

n C

O2

)

Total Ag soilmanagementsequestration

Ag soilmanagement -emissions

Embodiedenergy fromcrop production- emissions

Total emissionsacross allactivities

USMP WRI (2)

Page 15: Common Reference Scenarios: A Synthesis of National-level Economic and Biophysical Model Results Presented at Forestry and Agriculture Greenhouse Gas Modeling.

GHG Mitigation Supply Function - Afforestation and Agriculture

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

$40.00

0 50 100 150 200 250 300 350 400

MM tons/year, CO2

$/t

on

CO

2

Afforestation

Ag soil management

Otheractivities…(emissionsreductions)

Total across all activities

USMP/ERS

Page 16: Common Reference Scenarios: A Synthesis of National-level Economic and Biophysical Model Results Presented at Forestry and Agriculture Greenhouse Gas Modeling.

Net CO2 Emissions from U.S. Agriculture with Incentives

-800

-700

-600

-500

-400

-300

-200

-100

0

100

200

$0 $5 $10 $15 $20 $25 $30

Price ($/ton CO2)

MM

to

ns

/ye

ar

CO

2

Soil Organic Matterof Cropland

Energy Crops

Afforestation

Fossil Fuel Use

All other CO2

Total CO2

ASMGHG

Page 17: Common Reference Scenarios: A Synthesis of National-level Economic and Biophysical Model Results Presented at Forestry and Agriculture Greenhouse Gas Modeling.

-800,000

-600,000

-400,000

-200,000

0

200,000

400,000

MM tons/year CO2 equivalent

$0 $3 $7 $14 $27

Price ($/ton CO2 equiv)

Net Emissions with Incentives: All GHG's

CO2

CH4

N2O

ALL GHG

ASMGHG (2)

Page 18: Common Reference Scenarios: A Synthesis of National-level Economic and Biophysical Model Results Presented at Forestry and Agriculture Greenhouse Gas Modeling.

GHG Mitigation Supply Function for Agriculture and Afforestation

$0

$5

$10

$15

$20

$25

$30

-200 0 200 400 600 800 1,000

MM tons/year CO2

Pri

ce

($

/to

n C

O2

)

Ag Soil CManagement

Energy Crops

Afforestation

All other GHGmitigation

Total GHGMitigation

ASMGHG (3)

Page 19: Common Reference Scenarios: A Synthesis of National-level Economic and Biophysical Model Results Presented at Forestry and Agriculture Greenhouse Gas Modeling.

FASOM-GHGNet GHG Emissions from Forestry and Agriculture over Time with

Incentives

-3000

-2500

-2000

-1500

-1000

-500

0

500

1000

2010 2020 2030 2040 2050 2060

Year

MM

to

ns

/ye

ar

CO

2 e

qu

iv

$0

$3

$7

$14

$27

Page 20: Common Reference Scenarios: A Synthesis of National-level Economic and Biophysical Model Results Presented at Forestry and Agriculture Greenhouse Gas Modeling.

FASOM-GHG (2)

Forest C Sequestration over Time BAU and with Incentives

-1,000

-500

0

500

1,000

1,500

2,000

2,500

3,000

2010 2020 2030 2040 2050 2060

Decade

MM

to

ns

CO

2 $0

$7

$27

Page 21: Common Reference Scenarios: A Synthesis of National-level Economic and Biophysical Model Results Presented at Forestry and Agriculture Greenhouse Gas Modeling.

FASOM-GHG (3)GHG Mitigation Supply from Forestry and Agriculture

All GHGs, All Activities2020

$0

$5

$10

$15

$20

$25

$30

-500 0 500 1000 1500 2000 2500 3000MM tons/year CO2 equiv

Pri

ce

($

/to

n C

O2

)

CarbonSequestered inCropped Soil

Carbon in Forests

Carbon saved byBiomass forElectricity

CH4 from EntericFermentation

All other sources

Total GHGMitigation

Page 22: Common Reference Scenarios: A Synthesis of National-level Economic and Biophysical Model Results Presented at Forestry and Agriculture Greenhouse Gas Modeling.

Aggregate Supply Function Comparison

0

5

10

15

20

25

30

0 500 1000 1500 2000 2500 3000

MM tons/year CO2

Pri

ce

($

/to

n C

O2

) USMP / ERS

USMP / WRI

ASMGHG

FASOM-GHG(2020)

Page 23: Common Reference Scenarios: A Synthesis of National-level Economic and Biophysical Model Results Presented at Forestry and Agriculture Greenhouse Gas Modeling.

CGE/Forest Sector: Alavalapati and Wong

Change in Steady State Forest Product Carbon with Incentives

$0

$5

$10

$15

$20

$25

$30

0 10 20 30 40 50 60 70

MM tons CO2

Pri

ce (

$/t

on

CO

2)

Page 24: Common Reference Scenarios: A Synthesis of National-level Economic and Biophysical Model Results Presented at Forestry and Agriculture Greenhouse Gas Modeling.

Land Use Change Estimates

Page 25: Common Reference Scenarios: A Synthesis of National-level Economic and Biophysical Model Results Presented at Forestry and Agriculture Greenhouse Gas Modeling.

Land Use : USMP/WRI

Crop Land Area with Incentives

0

50

100

150

200

250

300

350

$0 $3 $7 $14 $27

Price ($/ton CO2)

MM

Acre

s

Page 26: Common Reference Scenarios: A Synthesis of National-level Economic and Biophysical Model Results Presented at Forestry and Agriculture Greenhouse Gas Modeling.

Land Use: USMP/ERS

Agriculture to Forestry Land Movement with Incentives

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

$40.00

0 20 40 60 80

MM Acres

Pri

ce (

$/t

on

CO

2)

Cropland to Forest

Pasture/range toForest

Total Ag Land toForest

Page 27: Common Reference Scenarios: A Synthesis of National-level Economic and Biophysical Model Results Presented at Forestry and Agriculture Greenhouse Gas Modeling.

Land Use: ASM-GHGAgricultural Land Area with Incentives

0

50

100

150

200

250

300

350

400

450

$0 $3 $7 $14 $27

MM

A

cre

s

Cropland

Pastureland

Energycrop land

Afforestation with Incentives

0

2

4

6

8

10

12

14

16

$0 $5 $10 $15 $20 $25 $30

Price ($/ton CO2)

MM

Ac

re

s

Page 28: Common Reference Scenarios: A Synthesis of National-level Economic and Biophysical Model Results Presented at Forestry and Agriculture Greenhouse Gas Modeling.

Land Use: FASOM-GHGCropland Tillage with Incentives: Deviations from BAU

-60.0%

-40.0%

-20.0%

0.0%

20.0%

40.0%

60.0%

80.0%

$0 $3 $7 $14 $27

Price ($/ton CO2)

Perc

en

tag

e c

han

ge f

rom

BA

U

Zero Tillage Cropland

Conservation Tillage

Conventional Tillage

Page 29: Common Reference Scenarios: A Synthesis of National-level Economic and Biophysical Model Results Presented at Forestry and Agriculture Greenhouse Gas Modeling.

Land Use: FASOM-GHG (2)

Net Forestation (Afforestation - Deforestation) with Incentives: 2000-2010

$0

$5

$10

$15

$20

$25

$30

-20 0 20 40 60 80 100 120 140

MM Acres

Pri

ce (

$/t

on

CO

2)

Page 30: Common Reference Scenarios: A Synthesis of National-level Economic and Biophysical Model Results Presented at Forestry and Agriculture Greenhouse Gas Modeling.

Land Use: Model Comparison

Afforestation with Incentives

0

5

10

15

20

25

30

0 20 40 60 80 100 120 140

MM Acres

CO

2 P

rice (

$/t

on

)

USMP/ERS

ASMGHG

FASOM-GHG

Page 31: Common Reference Scenarios: A Synthesis of National-level Economic and Biophysical Model Results Presented at Forestry and Agriculture Greenhouse Gas Modeling.

Commodity Prices

Page 32: Common Reference Scenarios: A Synthesis of National-level Economic and Biophysical Model Results Presented at Forestry and Agriculture Greenhouse Gas Modeling.

Commodity Prices: USMP/WRI

80

90

100

110

120

130

140

$0 $5 $10 $15 $20 $25 $30

CO2 price

Inde

x (B

AU

= 1

00)

Corn

wheat

soybean

beef for slaughter

hogs for slaughter

Page 33: Common Reference Scenarios: A Synthesis of National-level Economic and Biophysical Model Results Presented at Forestry and Agriculture Greenhouse Gas Modeling.

Commodity Prices: ASMGHG

Agriculture Price Indices

80

90

100

110

120

130

140

$0 $5 $10 $15 $20 $25 $30

CO2 price ($/ton)

Pri

ce

In

de

x (

BA

U =

10

0)

Crop

Livestock

Page 34: Common Reference Scenarios: A Synthesis of National-level Economic and Biophysical Model Results Presented at Forestry and Agriculture Greenhouse Gas Modeling.

Commodity Prices: FASOM-GHG

Commodity Price Indices: 2010

80

90

100

110

120

130

140

$0 $5 $10 $15 $20 $25 $30

CO2 Price ($/ton)

Pri

ce

In

de

x (

BA

U =

10

0)

" CropProductPrices"

" AnimalProductPrices"

" ProducerPrice Indexfor Timber"

Page 35: Common Reference Scenarios: A Synthesis of National-level Economic and Biophysical Model Results Presented at Forestry and Agriculture Greenhouse Gas Modeling.

Timber Prices over Time: FASOM-GHG

Timber Price Indices

0

20

40

60

80

100

120

140

160

2000 2010 2020 2030 2040 2050 2060 2070

Pri

ce I

nd

ex (

BA

U =

100)

$0

$3

$7

$14

$27

Page 36: Common Reference Scenarios: A Synthesis of National-level Economic and Biophysical Model Results Presented at Forestry and Agriculture Greenhouse Gas Modeling.

Observation

Expanding the Scope of CO2 related activities covered has a greater impact on Ag sector mitigation than expanding non-C02 GHGs covered

Page 37: Common Reference Scenarios: A Synthesis of National-level Economic and Biophysical Model Results Presented at Forestry and Agriculture Greenhouse Gas Modeling.

Observation (2)

Modeling Forestry-Ag feedback is critical, especially in estimates of Land Use Change

Overestimate afforestation if we ignore rent-enhancing Ag management responses to CO2 prices

Underestimate afforestation if we ignore rent-enhancing forest management responses to CO2 prices (especially at low prices)

Page 38: Common Reference Scenarios: A Synthesis of National-level Economic and Biophysical Model Results Presented at Forestry and Agriculture Greenhouse Gas Modeling.

Observation (3)

More temporal dynamics are needed

Forestry - absolutely essential

Saturation and Permanence issues in both sectors

Ability to assess policies aimed at specific future time periods (re: 2008-2012)

Page 39: Common Reference Scenarios: A Synthesis of National-level Economic and Biophysical Model Results Presented at Forestry and Agriculture Greenhouse Gas Modeling.

Where are the Opportunities ?

Opportunity Feature

Tillage Management Economic at low prices, but tops out at about 200 MMtons

Afforestation Adoption steadily rises with price, benefits deferredIntensified Forestmanagement

Large opportunity in first few decades

Biofuels Potential effects are enormous, but only at highest prices

Page 40: Common Reference Scenarios: A Synthesis of National-level Economic and Biophysical Model Results Presented at Forestry and Agriculture Greenhouse Gas Modeling.

Breakout Groups

Page 41: Common Reference Scenarios: A Synthesis of National-level Economic and Biophysical Model Results Presented at Forestry and Agriculture Greenhouse Gas Modeling.

Breakout Group Activities

Meet when opportunities arise

Use Questions/Issues raised in handout as a guide to discussions Right theme ? Assess current models/results Future modeling directions Study group topics

Report back to the Plenary on Day 3

Page 42: Common Reference Scenarios: A Synthesis of National-level Economic and Biophysical Model Results Presented at Forestry and Agriculture Greenhouse Gas Modeling.

Breakout Groups

Group 1 Group 2

Reilly John Horowitz John

Andrasko Ken Alavalapati JanakiBanfield Ed de la Chesnaye FranciscoBirdsey Richard Desjardins RayBoehm Marie Henderson JimFeng Hongli Izaurralde CesarFranco Guido Joyce LindaHickman Cliff Kurkalova LubaHouse Bob Lempriere TonyHunt Ray Lewandrowski JanKling Cathy MacGregor BobKruger Dina Parks PeterMcConkey Brian Pizer BillyPlantinga Andrew Sands RonShapouri Hosein Wirth TomSkog KenSohngen Brent

Page 43: Common Reference Scenarios: A Synthesis of National-level Economic and Biophysical Model Results Presented at Forestry and Agriculture Greenhouse Gas Modeling.

Breakout Groups

Group 3 Group 4

Paustian Keith Alig Ralph

Abt Bob Amacher GregBurnieaux Jean-Marc Darwin RoyCapalbo Susan Greenhalgh SuzieChivukula Krishna Hardie IanChomitz Ken Heath LindaJawson Mike Hohenstein BillJones Carol Hrubovcak JimJunkins Bruce Johnson DonLubowski Ruben Kulshrestha S.N.McNulty Steve McCarl BrucePeters Mark Mooney SianSathaye Jayant Mosier ArvinSchneider Uwe Murray Brian

Sedjo Roger