Title                            Climate Change Impacts and Policies in Heterogeneous Societies

Lead PI                       Franziska Piontek, Potsdam Institute for Climate Impact Research (PIK), Germany

Partner PI                   Ulrike Kornek, Mercator Research Institute on Global Commons and Climate Change, Berlin, Germany
                                    Thomas Sterner, University of Gothenburg, Sweden
                                    Stéphane Zuber, Centre d’Economie de la Sorbonne (UMR 8174), France
                                    José María Labeaga Azcona, Universidad Nacional de Educación a Distancia, Facultad de                    
                                    Ciencas Económicas y Empresariales, Madrid, Spain

Funding Agencies     ANR, France
                                    BMBF, Germany
                                    FORMAS, Sweden
                                    AEI, Spain


Distributional effects of climate change impacts and climate policies are under-researched despite being at the core of sustainability challenges.  Assessing climate change impacts and policies in the context of the Sustainable Development Goals (SDGs) requires Integrated Assessment Models (IAMs) to take into account socioeconomic inequalities. This is not only important at the country level, but also within countries, because poor people are more vulnerable to climate damages and climate policies might widen the income gap. However, very few global models currently have such capabilities. Furthermore, climate change impacts are still poorly represented in most IAMs, through highly aggregated damage functions. IAMs are therefore not equipped to provide the most relevant policy advice, especially for national policy makers. 

CHIPS brings together a multidisciplinary, international consortium to advance the state-of-the-art in four ways: (i) novel damage functions specific for impact channels relevant for distribution and growth, bridging the scales between spatially explicit impact data and aggregate macro regions; (ii) an explicit representation of household heterogeneity in the REMIND-MAgPIE and NICE IAMs; (iii) conceptual advances to address multi-level equity considerations and new welfare metrics with a focus on poverty; (iv) assessment of the distributional effects of carbon pricing and climate impacts in Europe through empirics and micro-simulation. In a comprehensive analysis the enhanced modeling framework will be applied to study distributional impacts of climate change and climate policies in a rich scenario framework based on the Shared Socioeconomic Pathways. A specific regional focus will be put on Europe and synergies with the SDGs will be explored.

The project is of high relevance for policy makers on EU and national level in the area of climate change mitigation, adaptation and development as well as adaptation planners and NGOs. Building on existing stakeholder connections CHIPS will involve an active stakeholder dialogue with a focus on co-design and co-production. The planned methodological advances are relying on a distinguished consortium of impact modelers (Intersectoral Impact Model Intercomparison Project), economists (U Gothenburg, CNRS-CES Paris, Mercator Research Center on Global Commons and Climate Change), micro-simulation experts (UNED Madrid) and integrated assessment modelers (REMIND-MAgPIE team at PIK). Outcomes of the project will be made available in scientific publications and policy briefs, but also through open databases and climate service-oriented outlets like the ISIpedia portal, making use of close connections to existing projects and networks. Thus CHIPS will contribute decisively to the next generation of integrated assessment important for the global stocktake in 2023 and for future climate policy advice on the national and international level.