By Tobias Sieg, IIASA Young Scientists Summer Program alumnus
IIASA Young Scientists Summer Program alumnus Tobias Sieg explains how risk assessments considering uncertainties can substantially contribute to better risk management and consequently to the prevention of economic impacts.
According to the World Economic Forum’s Global Risk Landscape 2018, extreme weather events and natural disasters are ranked among the top three global risks. For many regions, hydro-meteorological risks – in other words, weather or water related events like cyclones or floods that pose a threat to populations or the environment – constitute the biggest threat. This calls for a comprehensive scientific risk assessment with a particular focus on large associated uncertainties.
Assessing the risk of hydro-meteorological hazards without considering these uncertainties, is like entering a pitch-dark labyrinth. You have no idea where you are and where you will end up. If you enter with a flashlight, you might still not immediately know exactly where you will end up, but at least you can assess your possibilities for finding a way out.
We should all care to see those possibilities and to identify uncertainties, since the consequences of hydro-meteorological hazards can have severe impacts on socioeconomic systems, and global- and climate change could favor the occurrence of floods. An increase in extreme weather events, such as heavy precipitation can be expected along with an increasingly warmer climate. In combination with uncontrolled socioeconomic development, these extreme weather events could potentially trigger more intense hazardous flood events in the future. Appropriate management of their consequences is therefore required, starting from today, while pro-actively thinking about the future. To that end, risk management policy and practice need reliable estimates of direct and indirect economic impacts.
The reliability of existing estimates is usually quite low and, what is maybe even worse, they are not communicated properly. This may signal a false sense of certainty regarding the prediction of future climate-related risks.
In two recent studies, my co-authors and I developed and applied a novel method, which specifically focuses on the communication of the reliability of economic impact estimates and the associated uncertainties. The proposed representation of uncertainties enables us to shed some light on the possibilities of how a specific event can affect economic systems. As a Young Scientists Summer Program (YSSP) participant with the IIASA Risk and Resilience Program, I applied the method together with my supervisors Thomas Schinko and Reinhard Mechler, to estimate the overall economic impacts of a major flood event in Germany in 2013.
The estimated overall economic impacts comprise both direct and indirect impacts. Direct impacts are usually caused by physical contact of the floodwater with buildings, while indirect impacts can also occur in regions that are not directly affected by a flood. For example, obstructions of the infrastructure can lead to delayed deliveries, in turn leading to negative impacts for the production of goods outside the flooded areas. The crucial novelty of this method is the integrated assessment of direct and indirect economic impacts. In particular, by considering how the uncertainties associated with the estimation of direct economic impacts propagate further into the estimates of indirect economic impacts.
Being able to reproduce what has happened in the past is essential to making credible predictions about what could potentially happen in the future. A comparison of reported direct economic impacts and model-based estimates reveals that the estimation technique already works quite reliably. The good news is that anyone can help to increase the predictive reliability even further. The method uses the crowdsourced OpenStreetMap dataset to identify affected buildings. The more detailed the given information about a building is, the more reliable the impact estimations can get.
Our study reveals that the potential of short-term indirect economic impacts (without considering recovery) are quite high. In fact, our results show that the indirect impacts can be as high as the direct economic impacts. Yet, this varies a lot for different economic sectors. The manufacturing sector, for instance, is much more affected by indirect economic impacts, since it is heavily dependent on well-functioning supply chains. This information can be used in emergency risk management where decisions have to be made about giving immediate help to companies of a specific sector to reduce high long-term indirect economic impacts.
We are now looking at different possibilities of how flood events could affect the economic system. Having a range of possibilities of the relation between these impacts makes them transferable between different regions with similar economic systems. Our results are therefore also relevant more broadly beyond the German case. This representation of uncertainties can help to get to a more credible and consistent risk assessment across all spatial scales. Thus, the method is able to potentially facilitate the fulfillment of some of the calls of the UN Sendai Framework for Disaster Risk Reduction.
Detailed risk assessments considering uncertainties can substantially contribute to better risk management and consequently to the prevention of economic impacts – direct and indirect, both now and in the future.
 Sieg T, Schinko T, Vogel K, Mechler R, Merz B & Kreibich H (2019). Integrated assessment of short-term direct and indirect economic flood impacts including uncertainty quantification. PLoS ONE 14(4): e0212932. [pure.iiasa.ac.at/15833]
By Sandra Ortellado, 2018 Science Communication Fellow
Science fiction depicts the future with a combination of fascination and fear. While artificial intelligence (AI) could take us beyond the limits of human error, dystopic scenes of world domination reveal our greatest fear: that humans are no match for machines, especially in the job market. But in the so-called fourth industrial revolution, often known as Industry 4.0, the line between future and fiction is a thread of reality.
Over the next 13 years, impending automation could force as many as 70 million workers in the US to find another way to make money. The role of technology is not only growing but also demanding a completely new way of thinking about the work we do and our impact on society because of it.
Rather than focusing on which jobs will disappear because of technological disruption, we could be identifying the most resilient tasks within jobs, says J. Luke Irwin, 2018 YSSP participant. His research in the IIASA World Population program uses a role- and task-based analysis to investigate professions that will be most resilient to technological disruption, with the hope of guiding workforce development policy and training programs.
“We are getting better and better at programming algorithms for machines to do things that we thought were really only in the realm of humans,” says Irwin. “The amount of disruption that’s going to happen to the work industry in the next ten years is really going to impact everyone.”
However, the fear and instability created by the potential disruption elicit chaos, and the response is hard to organize into constructive action. While the resources remain untapped, creativity and imagination are wasted on speculation instead of preparation.
“I couldn’t stand that there’s all this great evidence-based work out there about how we can improve people’s lives and no one is using it,” said Irwin, “I’m trying to align a lot of research and put it in a place where you can compare it and make it more useful and more transferable between the people who would be talking about this: educators, policymakers, employers, and anybody in the workforce.”
Using a German dataset with vocational training as well as time and task information, Irwin will break down jobs into the specific cognitive and physical skills involved and rank the durability of each skill.
Based on the identified jobs and skills, Irwin will go on to draw connections between labor-force capabilities and education policies. His goal is to scale the findings of the most resilient skills to the German labor system so that policymakers and academic institutions can retrain currently displaced workforces and reimagine the future of human work.
After all, while about half the duties workers currently handle could be automated, Mckinsey Global Institute suggests that less than 5% of occupations could be entirely taken over by computers. The future of predictable, repetitive, and purely quantitative work may be threatened, but automation could also open the door for occupations we can’t even imagine yet.
“I think people are amazing and that they have a lot more potential than we are currently capable of fulfilling,” says Irwin.
The World Economic Forum estimates that 65% of children today will end up in careers that don’t even exist yet. For now, an increasingly self-employed millennial generation works insecure, unprotected jobs. The new gig economy, characterized by temporary contracted positions, offers independence but also instability in the labor market.
Without stable work, people lose a sense of security, and that can be dangerous for a policy system that isn’t built to handle uncertainty.
The last industrial revolution caused two or three generations of people to be thrown into poverty and lose everything they had because it was all tied into their job, recalls Irwin.
“Everything gets bad when things are uncertain,” says Irwin, “And this is a very uncertain time. We need to have a better idea of what’s coming so we can actually make some change.”
Irwin, who earned his Master’s in Public Health in 2014, wants his work to have a preventative focus, trying to find those things that not enough people are talking about, but have the potential to make a huge impact on public well-being.
“Especially in the United States, where I live, we’re so tied up with our jobs—it seems like it’s over half our identity,” says Irwin, “We live to work in America.”
In a place like the US, where a job is not only a source of income, but also an identity and a health factor, Irwin’s research offers hope that technological disruption can foster opportunity instead of chaos.
Note: This article gives the views of the authors, and not the position of the Nexus blog, nor of the International Institute for Applied Systems Analysis.
By Thomas Schinko, research scholar in the IIASA Risk and Resilience Program.
The hurricanes that swept across the Atlantic in the last few months had terrifying, and in Irma’s case record-breaking, power. They flattened homes and destroyed electricity grids, flooded schools and even threatened the integrity of whole nations. Could some of that immense power provide the impetus we need to switch from talking about climate-related risks and damages to doing something about them proactively?
On top of the hurricanes, in just the last two months the world has seen major flooding in Asia, and scorching heatwaves in southern Europe. While climate-related risks are shaped by many factors, the science shows that climate change is loading the dice, making certain extreme events more likely, and providing more favorable conditions for their formation.
Many are pessimistic about our abilities or inclination to heed the wake-up call. They worry that current political divisions and governance structures will leave us dead in the water.
I have hope. I have been working with colleagues on a way forward on managing climate-related risks that defuses the political nature of the debate and helps forging a stakeholder compromise. At all governance levels and all across the globe, disaster risk management has a long and proven track record for dealing with climate-related and other geophysical extremes, such as earthquakes and volcanic eruptions. This established and politically uncontroversial setting is the point of departure for the concept of ‘climate risk management’. This new concept aims to deal with disaster risk reduction and climate change adaptation at the same time, providing a way to circumvent the political hurdles and strengthen global ambitions to tackle climate-related risks.
Aligning climate change adaptation and disaster risk management
In the medium to long term, climate change and adaptation must be incorporated into all kinds and levels of decision and policy making. We can achieve this by increasing understanding of the risks of climate change, and adjusting policy and practice over time according to the latest knowledge and expertise. The importance of climate change is already being recognized in diverse decisions and policies. Just recently, for example, Hong Kong Airport announced that the project to build a third runway incorporated sea level rise projections by the Intergovernmental Panel on Climate Change, and based on that will include the construction of a sea wall, standing at least 21 feet above the waterline.
Broad stakeholder participation
Putting climate risk management into practice requires balancing the perceptions of climate-related risks of all involved. This calls for a process that involves the participation of those in politics, public administration, civil society, private sector and research.
This may sound excessively time consuming, or even impossible, but it’s not. I know that because I am involved in helping to apply climate risk management in the context of flood risk in Austria. We are only just embarking on the process, and it is lengthy, involving extensive collaboration with relevant ministries, departments, and the private sector—such as insurance companies—but ultimately it can help to co-create a strong policy for the future.
Despite considerable uncertainties in establishing a strong causal link to anthropogenic climate change as risk driver, by employing climate-relevant science to decision making on existing short-term risks we were able to kick-start a process to act on flood risk in the country. This includes critically reflecting on existing policy tools, such as the Austrian disaster fund, and injecting aspects of climate-related risk into long-term budget planning processes.
New solutions to tackle increasing levels of climate risk
For the case of increasingly intolerable flood risk this could mean that in the future raising dikes might not suffice and governments may need to start supporting alternative livelihoods (for example, switching from farming to services sectors); providing climate-resilient social protection schemes; or assisting with voluntary migration. This requires climate risk management to be a learning process itself; flexible towards adjusting to any ecological, societal or political transformations.
Towards transformational climate risk management
To tackle the substantial challenges imposed by increasing climate-related risks, truly transformational thinking is needed. By accounting for underlying socioeconomic and climate-related drivers of risk, as well as for different stakeholder perceptions, climate risk management allows compromises to be achieved that translate into concrete but adaptable action.
Transformational thinking requires reframing of the overall problem over time. Reframing, in this context, refers to a change in the collective view on climate-related risks and how to tackle those. Taking again flood risk as a case in point, comprehensive flood risk management plans that are based on broad stakeholder participation processes and that allow for adaptive updates over time could be created. In the short term, re-evaluating existing measures may lead to an incremental adjustment of existing flood risk management efforts. The transformative notion comes in over time via proactively discussing trends in climate-related risks, which might eventually lead to the design of new policies and implementation measures, potentially also requiring alternative governance structures.
What is needed next is to provide space and resources for putting climate risk management processes, such as outlined here, into action. It would be a wise decision to seize the historic chance provided by the current alertness to the issue and start taking proactive action on today’s and future losses and damages due to climate-related risks.
Note: This article gives the views of the author, and not the position of the Nexus blog, nor of the International Institute for Applied Systems Analysis.
In 2016, Bolivia saw its worst drought in nearly 30 years. While the city of La Paz faced an acute water shortage with no piped water in some parts, the agricultural sector was hit the hardest. According to The Agricultural Chamber of the East, the region suffered a loss of almost 50% of total produce. Animal carcasses lay scattered in plain sight in the valleys, where they had died looking for watering holes.
One of the most dramatic results of this catastrophic drought was that Lake Poopo, (pronounced po-po) Bolivia’s second largest lake was drained of every drop of water. Located at a height of approximately 1127 meters, and covering an area of 1,000 square kilometers, what remains of it now resembles a desert more than a lake. This event forced the fishing community of Uru Uru, which depended on the lake, to either migrate to other lakes or look for alternate livelihood options.
Lake Poopo is located in the central South American Altiplano, one of the largest high plateaus in the world (Bolivia’s largest lake, Titicaca, is located in the north of the region). Due to its unique topography, the highland faces extreme climatic conditions, which are responsible for difficult lives as well as widespread poverty among the people who live there.
While Titicaca is over 100 meters deep, Poopo had a depth of less than three meters. Combined with a high rate of evapotranspiration, erratic rainfall, and limited flow of water from the Desaguadero River, Poopo was in a precarious position even during the best of times. Whatever little water flowed in from the river is further depleted by intensive irrigation activities at the south of Lake Titicaca before the water makes it way down to Poopo.
The lake’s existence had been threatened several times in the past. However, the 2016 drought was one of the most devastating ones. According to the Defense Ministry of Bolivia, early this year the lake started recovering after several days of heavy rain, restoring as much as 70% of the water. However, since the lake is a part of a very fragile ecosystem, there have been some irreversible changes to the flora and fauna in addition to the losses to the fishing communities living around the lake.
Charting a better future
Claudia Canedo, a participant of the 2017 Young Scientists Summer Program (YSSP) at IIASA, is exploring the impact of droughts and the risk on agricultural production in the light of this event, after which Bolivia declared a state of water emergency. Canedo was born and raised in the city of La Paz and experienced water shortages while growing up close to the Altiplano. This motivated her to investigate a sustainable solution for water availability in the region. With the results of her study she is hoping to ensure that such a situation doesn’t arise again in the Altiplano – that other communities directly dependent on ecosystem services, like that of Lake Poopo, do not have to lose everything because of an extreme weather event.
For a region where more than half the population is dependent on agriculture for their livelihoods, droughts serve as a major setback to the national economy. “It is not just one factor that led to the drought, though. There were different factors that contributed to the drying up of the lake and also contribute to the agricultural distress,” she says.
“The southern Altiplano lies in an arid zone and receives low precipitation due to its proximity to the Atacama Desert. Poor soil quality (high saline content and lack of nutrients) makes it unsuitable for most crops, except quinoa and potato in some areas,” adds Canedo. Residents also lack the knowledge and the monetary resources to invest in newer technology, which could possibly lead to better water management.
One of the most critical factors in the recent drought was the El Nino- Southern Oscillation, the warming of the sea temperatures in the Pacific Ocean, which in turn carries the warmer oceanic winds and lowers the rate of precipitation in the highland leading to increased evapotranspiration. In 2015 and 2016, the losses due to this phenomenon were devastating for agriculture in the Altiplano, says Canedo.
In her quest to find solutions, the biggest challenge is the lack of recorded data from local weather stations for the past years. Although satellite data is available, it is too generic in nature to do a local analysis. Therefore combining ground and satellite data could enhance the present knowledge and provide consistent results of the climate and vegetation variability. If done successfully, Canedo hopes to identify a correlation between precipitation and vegetation. With this information, she can improve climate forecasting that could help the local people adapt to droughts powerful enough to turn their lives upside down.
With weather forecasts and early warning systems for extreme weather events like droughts, farmers would know what to expect and would be able to plant resilient varieties of crops. This might not earn them the same profits as in a normal year, but would not result in a failed crop. Claudia aims to come up with a drought index useful for drought monitoring and early warning, which will integrate short-term and long-term meteorological predictions.
Perhaps, in the future, with this newfound knowledge, the price for extreme weather events won’t be paid in terms of lost ecosystems like that of Lake Poopo, robbing people of their lives and livelihoods.
About the Researcher
Claudia Canedo is a participant in the 2017 IIASA YSSP. She is pursuing a doctoral program in water resources engineering at Lund University, Sweden. She is interested in studying the hydrological and climatological conditions over small basins in the South American highlands. The aim of her research is to define water resources availability and find strategies for sustainable water management in the semi-arid region.
This article gives the views of the author, and not the position of the Nexus blog, nor of the International Institute for Applied Systems Analysis.
Adil Najam is the inaugural dean of the Pardee School of Global Studies at Boston University and former vice chancellor of Lahore University of Management Sciences, Pakistan. He talks to Science Communication Fellow Parul Tewari about his time as a participant of the IIASA Young Scientists Summer Program (YSSP) and the global challenge of adaptation to climate change.
How has your experience as a YSSP fellow at IIASA impacted your career? The most important thing my YSSP experience gave me was a real and deep appreciation for interdisciplinarity. The realization that the great challenges of our time lie at the intersection of multiple disciplines. And without a real respect for multiple disciplines we will simply not be able to act effectively on them.
Recently at the 40th anniversary of the YSSP program you spoke about ‘The age of adaptation’. Globally there is still a lot more focus on mitigation. Why is this? Living in the “Age of Adaption” does not mean that mitigation is no longer important. It is as, and more, important than ever. But now, we also have to contend with adaptation. Adaptation, after all, is the failure of mitigation. We got to the age of adaptation because we failed to mitigate enough or in time. The less we mitigate now and in the future, the more we will have to adapt, possibly at levels where adaptation may no longer even be possible. Adaption is nearly always more difficult than mitigation; and will ultimately be far more expensive. And at some level it could become impossible.
How do you think can adaptation be brought into the mainstream in environmental/climate change discourse?
Climate discussions are primarily held in the language of carbon. However, adaptation requires us to think outside “carbon management.” The “currency” of adaptation is multivaried: its disease, its poverty, its food, its ecosystems, and maybe most importantly, its water. In fact, I have argued that water is to adaptation, what carbon is to mitigation.
To honestly think about adaptation we will have to confront the fact that adaptation is fundamentally about development. This is unfamiliar—and sometimes uncomfortable—territory for many climate analysts. I do not believe that there is any way that we can honestly deal with the issue of climate adaptation without putting development, especially including issues of climate justice, squarely at the center of the climate debate.
COP 22 (Conference of Parties) was termed as the “COP of Action” where “financing” was one of the critical aspects of both mitigation and adaptation. However, there has not been much progress. Why is this?
Unfortunately, the climate negotiation exercise has become routine. While there are occasional moments of excitement, such as at Paris, the general negotiation process has become entirely predictable, even boring. We come together every year to repeat the same arguments to the same people and then arrive at the same conclusions. We make the same promises each year, knowing that we have little or no intention of keeping them. Maybe I am being too cynical. But I am convinced that if there is to be any ‘action,’ it will come from outside the COPs. From citizen action. From business innovation. From municipalities. And most importantly from future generations who are now condemned to live with the consequences of our decision not to act in time.
What is your greatest fear for our planet, in the near future, if we remain as indecisive in the climate negotiations as we are today? My biggest fear is that we will—or maybe already have—become parochial in our approach to this global challenge. That by choosing not to act in time or at the scale needed, we have condemned some of the poorest communities in the world—the already marginalized and vulnerable—to pay for the sins of our climatic excess. The fear used to be that those who have contributed the least to the problem will end up facing the worst climatic impacts. That, unfortunately, is now the reality.
What message would you like to give to the current generation of YSSPers? Be bold in the questions you ask and the answers you seek. Never allow yourself—or anyone else—to rein in your intellectual ambition. Now is the time to think big. Because the challenges we face are gigantic.
Note: This article gives the views of the interviewee, and not the position of the Nexus blog, nor of the International Institute for Applied Systems Analysis.