Estimating option values of solar radiation management assuming that climate sensitivity is uncertain
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AbstractStratospheric sulfur injection is an unprecedented manipulation of climate systems to rapidly decrease the global mean temperature and could entail environmental risk as well as confront ethical and governance challenges. Nonetheless, most studies have only evaluated impacts of solar radiation management (SRM) on the premise of its deployment. This paper presents one possible methodology for estimating option values of SRM assuming a fairly moderate scenario on SRM’s use compared with preceding literature, which would be helpful to examine realistic values of SRM for the society where social acceptability of SRM’s actual deployment is not high. Our results emphasize the near- to mid-term role of retaining SRM as a later risk-hedging option in the face of the uncertainty about climate sensitivity.