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A Statistical Evaluation of Atmosphere-Ocean General Circulation Models: Complexity vs. Simplicity

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Author Info
Robert K. Kaufmann () (Department of Geography and Center for Energy and Environmental Studies, Boston University, Boston, MA 02215, USA)
David I. Stern () (Department of Economics, Rensselaer Polytechnic Institute, Troy, NY 12180-3590, USA)

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Abstract

The principal tools used to model future climate change are General Circulation Models which are deterministic high resolution bottom-up models of the global atmosphere-ocean system that require large amounts of supercomputer time to generate results. But are these models a cost-effective way of predicting future climate change at the global level? In this paper we use modern econometric techniques to evaluate the statistical adequacy of three general circulation models (GCMs) by testing three aspects of a GCM's ability to reconstruct the historical record for global surface temperature: (1) how well the GCMs track observed temperature; (2) are the residuals from GCM simulations random (white noise) or are they systematic (red noise or a stochastic trend); (3) what is the explanatory power of the GCMs compared to a simple alternative time series model, which assumes that temperature is a linear function of radiative forcing. The results indicate that three of the eight experiments considered fail to reconstruct temperature accurately; the GCM errors are either red noise processes or contain a systematic error, and the radiative forcing variable used to simulate the GCM's have considerable explanatory power relative to GCM simulations of global temperature. The GFDL model is superior to the other models considered. Three out of four Hadley Centre experiments also pass all the tests but show a poorer goodness of fit. The Max Planck model appears to perform poorly relative to the other two models. It does appear that there is a trade-off between the greater spatial detail and number of variables provided by the GCMs and more accurate predictions generated by simple time series models. This is similar to the debate in economics regarding the forecasting accuracy of large macro-economic models versus simple time series models.

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Paper provided by Rensselaer Polytechnic Institute, Department of Economics in its series Rensselaer Working Papers in Economics with number 0411.

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Date of creation: May 2004
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Handle: RePEc:rpi:rpiwpe:0411

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Find related papers by JEL classification:
Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters
C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation and Testing

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  5. Phillips, P.C.B., 1986. "Understanding spurious regressions in econometrics," Journal of Econometrics, Elsevier, vol. 33(3), pages 311-340, December. [Downloadable!] (restricted)
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  6. Jerry Hausman, 2001. "Mismeasured Variables in Econometric Analysis: Problems from the Right and Problems from the Left," Journal of Economic Perspectives, American Economic Association, vol. 15(4), pages 57-67, Fall. [Downloadable!] (restricted)
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