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The scientific community is now developing a new set of scenarios, referred to as Shared Socio-economic Pathways (SSPs) that will be contrasted along two axes: challenges to mitigation, and challenges to adaptation. This paper proposes a methodology to develop SSPs with a 'backwards' approach based on (i) an a priori identification of potential drivers of mitigation and adaptation challenges; (ii) a modelling exercise to transform these drivers into a large set of scenarios; (iii) an a posteriori selection of a few SSPs among these scenarios using statistical cluster-finding algorithms. This backwards approach could help inform the development of SSPs to ensure the storylines focus on the driving forces most relevant to distinguishing between the SSPs. In this illustrative analysis, we find that energy sobriety, equity and convergence prove most important towards explaining future difference in challenges to adaptation and mitigation. The results also demonstrate the difficulty in finding explanatory drivers for a middle scenario (SSP2). We argue that methodologies such as that used here are useful for broad questions such as the definition of SSPs, and could also be applied to any specific decisions faced by decision-makers in the field of climate change. [ABSTRACT FROM AUTHOR]

This paper analyzes the transition costs of moving towards a low carbon society when the second-best nature of the economy is accounted for. We emphasize the consequences on mitigation costs of considering the interplay between a) technical systems inertia, including slow infrastructure turnover in transportation and construction; and b) imperfect foresight influencing investment decisions. To this end, the hybrid general equilibrium modeling framework I maclim-R is employed as it allows for transitory partial adjustments of the economy and captures their impact on the dynamics of economic growth. The modeling exercise quantitatively emphasizes the a) specific risks that the interplay between inertia and imperfect foresight leads to high macroeconomic costs of carbon abatement measures; b) opportunities of co-benefits from climate policies permitted by the correction of sub-optimalities in the reference scenarios. The article draws insights for the framing of future climate architectures by studying the role of measures that act complementarily to carbon pricing in the transport sector. In particular, reallocating public investment towards low-carbon transport infrastructure significantly reduces the overall macroeconomic costs of a given GHG stabilization target and even creates the room for long-term net economic benefits from climate policies. [ABSTRACT FROM AUTHOR]

Reference emission scenarios in the literature have been the target of criticisms that suggest they convey too optimistic views on spontaneous energy-GDP decoupling of emerging countries economies. This article focuses on the case of India. It explores the role of current suboptimalities of the Indian power sector (structural under-investment in the sector leading to capacity shortage, power cuts and low efficiency) on future energy-GDP decoupling. To do so, it uses a hybrid general equilibrium framework, in which these suboptimalities are explicitly introduced. The results highlight that whether the constraints on investments in the power sector persist or not leads to contrasted trends in energy-GDP decoupling and GHG emissions. Over the short-term, capital scarcity in the power sector constrains the development of energy-intensive activities and therefore leads to higher energy-GDP decoupling. But on the longer-term, constrains on the power sector capacity limits substitution from fossil fuels to electricity, which entails both a low energy-GDP decoupling and a constraint on GDP growth when oil prices are high. The alleviation of suboptimalities appears thus as an insurance policy towards future oil price increase. [ABSTRACT FROM AUTHOR]