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Benchmark forecasts for climate change

Author

Listed:
  • Green, Kesten C
  • Armstrong, J Scott
  • Soon, Willie

Abstract

We assessed three important criteria of forecastability—simplicity, certainty, and variability. Climate is complex due to many causal variables and their variable interactions. There is uncertainty about causes, effects, and data. Using evidence-based (scientific) forecasting principles, we determined that a naïve “no change” extrapolation method was the appropriate benchmark. To be useful to policy makers, a proposed forecasting method would have to provide forecasts that were substantially more accurate than the benchmark. We calculated benchmark forecasts against the UK Met Office Hadley Centre’s annual average thermometer data from 1850 through 2007. For 20- and 50-year horizons the mean absolute errors were 0.18°C and 0.24°C. The accuracy of forecasts from our naïve model is such that even perfect forecasts would be unlikely to help policy makers. We nevertheless evaluated the Intergovernmental Panel on Climate Change’s 1992 forecast of 0.03°C-per-year temperature increases. The small sample of errors from ex ante forecasts for 1992 through 2008 was practically indistinguishable from the naïve benchmark errors. To get a larger sample and evidence on longer horizons we backcast successively from 1974 to 1850. Averaged over all horizons, IPCC errors were more than seven-times greater than errors from the benchmark. Relative errors were larger for longer backcast horizons.

Suggested Citation

  • Green, Kesten C & Armstrong, J Scott & Soon, Willie, 2008. "Benchmark forecasts for climate change," MPRA Paper 12163, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:12163
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    File URL: https://mpra.ub.uni-muenchen.de/13592/2/MPRA_paper_13592.pdf
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    References listed on IDEAS

    as
    1. J. Scott Armstrong & Kesten C. Green & Willie Soon, 2008. "Polar Bear Population Forecasts: A Public-Policy Forecasting Audit," Interfaces, INFORMS, vol. 38(5), pages 382-405, October.
    2. Kesten C. Green & J. Scott Armstrong, 2007. "Global Warming: Forecasts by Scientists Versus Scientific Forecasts," Energy & Environment, , vol. 18(7), pages 997-1021, December.
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    Cited by:

    1. Fildes, Robert & Kourentzes, Nikolaos, 2011. "Validation and forecasting accuracy in models of climate change," International Journal of Forecasting, Elsevier, vol. 27(4), pages 968-995, October.

    More about this item

    Keywords

    backcasting; climate model; decision making; ex ante forecasts; out-of-sample errors; predictability; public policy; relative absolute errors; unconditional forecasts;

    JEL classification:

    • C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Prediction Models; Simulation Methods
    • O2 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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