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Nature scenario plausibility: A dynamic Bayesian network approach

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  • Colesanti Senni, Chiara
  • Goel, Skand

Abstract

To cope with the lack of quantifiable knowledge about the occurrence of nature-related risks, scenario analysis has emerged as a way to investigate possible futures. We argue that expressing scenario narratives as causal models – leveraging causal Bayesian graphs – opens up new avenues for designing and using scenarios. As one use case of this approach, we show how dynamic Bayesian networks to assess the plausibility of high-dimensional quantitative scenarios. We provide an algorithm that probabilistically evaluates whether a quantitative scenario is consistent with a certain narrative about nature-economy linkages. This can allow the user to choose among several available scenarios using a data-driven approach. As a demonstration, we apply this approach to data from an integrated assessment model.

Suggested Citation

  • Colesanti Senni, Chiara & Goel, Skand, 2025. "Nature scenario plausibility: A dynamic Bayesian network approach," Ecological Economics, Elsevier, vol. 236(C).
  • Handle: RePEc:eee:ecolec:v:236:y:2025:i:c:s0921800925001302
    DOI: 10.1016/j.ecolecon.2025.108647
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • E17 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Forecasting and Simulation: Models and Applications
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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