Methods for Economic Decision Making under Uncertainty: 2014

1. Tools_REDD+ project

One project will entail modeling financial instruments supporting REDD in real-options and microeconomic setups. The potential of REDD (reducing of emissions from deforestation and forest degradation)-based offset options as a risk management instrument will be explored for an electricity producer.

Another, NORAD-funded, project “Options Market and Risk-Reduction Tools for REDD+” will be conducted with collaborators Mercator Research Institute on Global Commons and Climate Change (MCC, Germany) and EDF (USA).

2. ECONADAPT

Econadapt will involve:

• An overview and assessment of the relevant uncertainties for the main policy domains.
• Economic decision methods under uncertainty for various categories of problems.
• Identifying risks and uncertainty related to economic development and climate change.

3. ISI-MIP/AgMIP/AgGRID, and IMPACT2C

This will be a major effort at climate data processing. Harmonized socioeconomic assumptions/scenarios will be used, to ensure that both individual and cross-sector assessments are aligned to the 2°C (1.5°C) scenario for both impacts and adaptation. A methodological framework will be developed integrating the uncertainties within and across the different sectors in a consistent way to enhance analysis of adaptation responses under uncertainty.  

Last edited: 22 May 2014