An Innovative Approach to Multi-Method Integrated Assessment Modelling of Global Climate Change

Abstract

Modelling and simulation play an increasingly significant role in exploratory studies for informing policy makers on climate change mitigation strategies. There is considerable research being done in creating Integrated Assessment Models (IAMs), which focus on examining the human impacts on climate change. Many popular IAMs are created as steady state optimisationmodels. They typically employ a nested structure of neoclassical production functions to represent the energy-economy system, holding aggregate views on variables, and hence are unable to capture a finer level of details of the underlying system components. An alternative approach that allows modelling populations as a collection of individual and unevenly distributed entities is Agent-Based Modelling, o en used in the field of Social Simulation. But simulating huge numbers of individual entities can quickly become an issue, as it requires large amounts of computational resources. The goal of this paper is to introduce a conceptual framework for developing hybrid IAMs. This novel modelling approach allows us to reuse existing rigid, but well-established IAMs, and adds more flexibility by replacing aggregate stockswith a community of vibrant interacting entities. We provide a proof-of-concept of the application of this conceptual framework in form of an illustrative example. Our test case takes the settings of the US. It is solely created for the purpose of demonstrating our hybridmodelling approach; we do not claim that it has predictive powers.