Agent-based Model for the Coupled Human-Climate System

Integrated assessment models have been used to predict the outcome of coupled economic growth, resource use, greenhouse gas emissions and climate change, both for scientific and policy purposes. These models generally have employed significant simplifications that suppress nonlinearities and the possibility of multiple equilibria in both their economic (DeCanio, 2005) and climate (Schneider and Kuntz-Duriseti, 2002) components. As one step toward exploring general features of the nonlinear dynamics of the coupled system, we have developed a series of variations on the well studied RICE and DICE models, which employ different forms of agent-based market dynamics and "climate surprises." Markets are introduced through the replacement of the production function of the DICE/RICE models with an agent-based market modeling the interactions of producers, policymakers, and consumer agents. Technological change and population growth are treated endogenously. Climate surprises are representations of positive (for example, ice sheet collapse) or negative (for example, increased aerosols from desertification) feedbacks that are turned on with probability depending on warming. Initial results point toward the possibility of large amplitude instabilities in the coupled human-climate system owing to the mismatch between short outlook market dynamics and long term climate responses. Implications for predictability of future climate will be discussed. Supported by the Andrew W Mellon Foundation and the UC Academic Senate.