1. Climate Change

2. 2 Global carbon cycle (billion metric tons)

3. 3 Global carbon dioxide emissions and concentration

4. Historical and Projected Climate Change 90% chance of temperature rise in the shaded blue area. 10% chance in the dark blue area. Source: CBO, Potential Impacts…, May 2009.

5. 5 CO 2 content by fuel (1 million Btu) 99 lbs coal (anthracite)> 227 lbs CO2 8 gallons gasoline> 156 lbs CO2 7.2 gallons diesel> 161 lbs CO2 971 cubic feet natural gas: > 117 lbs CO2

6. Greenhouse gas Very different from conventional air pollution problems

7. Conventional air pollution SO 2 – Pollution impacts increased linearly when pollution increased – Pollution concentrations fell fairly quickly when emissions were reduced – Time frame a decade or less – Negative impacts could be reversed by cutting pollution – Good estimate of benefits and costs (if too low initially) – Costs and benefits affected the same generation

8. Climate Change Greenhouse gas (GHG) – Pollution impacts may rise nonlinearly with increasing GHG concentrations; thresholds may exist – Pollution concentrations will fall only very slowly when emissions are reduced – Time frame several decades if not 100 years – Negative impacts may produce irreversible damages – Estimates of benefits and costs are uncertain – Costs and benefits will affect different generations

9. Potential Impacts of Climate Change Link between emissions and climate Impacts on: – Physical environment – Biological systems – Human health – Economy

10. Potential Impacts of Climate Change Impacts on: – Physical environment Temperature – Warm areas get warmer – Patterns in the U.S. shift north Precipitation – Dry areas get drier – North gets wetter Sea Level – Inundation of some coastal areas, more frequent 100 yr floods – Biological systems Slower to adapt Extinction for some species

11. Average Temperatures

12. Illustration of Changes in Averages and Extremes in Temperature and Precipitation

13. Potential Impacts of Climate Change Impacts on: – Human health More insect-borne diseases More warm-weather deaths More ozone events Fewer cold-weather deaths

14. Potential Impacts of Climate Change Impacts on: – Economy Longer growing season, farmers could benefit (if water available) West and Southwest will experience even more severe water scarcity (less snow pack, precipitation) Less spending for heating, more for cooling More spending for flood control along coastlines Aggregate impacts modest, GDP will be 3% lower by 2100.

15. Uncertainty Reigns Linkages: – Emissions>Concentration>Warming>PhysicaI impacts>Economic impacts Linkages subject to very large uncertainty Possible: – Nonlinearities – Irreversibilities

16. Emissions and Climate Ongoing emissions will continue to raise atmospheric concentrations and temperatures indefinitely. Even if emissions were cut dramatically today, average global temperature would continue to rise.

17. What temperature to expect? Uncertainties make establishing a range difficult. 20 th Century, planet warmed 0.7 0 C relative to the Industrial Revolution Warming is accelerating: up 0.2 0 C in each of the past three decades. Stern Review: GHG concentrations could triple that of pre-industrial levels by end of century. If this occurs, 50:50 chance of 5.0 0 C rise above pre- industrial level by end of 21 st century.

18. CO 2 Emissions Are Lower

19. Electricity: coal lower; wind, hydro, and natural gas higher

20. Market-based Policy Options A tax on GHG emissions A cap-and-trade system (HR 2454)