An Empirical Examination Of Pension Rate Estimates: A Benchmark Approach

In this paper, we analyze pension rate choices for a sample of 495 firms over the thirteen-year period from 1994-2006. In recent years, articles have appeared in business publications alleging abuse of the discretion afforded to management in setting pension rates, particularly the pension discount rate and expected rate of return on plan assets. We find that pension discount rate estimates and expected rate of return estimates generally comply with the authoritative requirements, although there appears to be a smoothing effect in setting pension discount rates as well as a lag in fully reflecting economic conditions. We find evidence consistent with discount rate choice being influenced by deteriorating economic conditions, and possibly passage of the Sarbanes-Oxley Act. We also find that, in general, firms’ expected rate of return assumptions tend to reflect their long-run internal rates of return on pension assets, although the recessionary influences in the early 2000s were not fully reflected in the expected rates of return toward the end of our test period. There is also a sizeable minority of firms (approximately 27%) for which their expected rates of return on plan assets consistently overstate their actual, long-run returns

HESFIRE: a global fire model to explore the role of anthropogenic and weather drivers

Vegetation fires are a major driver of ecosystem dynamics and greenhouse gas emissions. Anticipating potential changes in fire activity and their impacts relies first on a realistic model of fire activity (e.g., fire incidence and interannual variability) and second on a model accounting for fire impacts (e.g., mortality and emissions). In this paper, we focus on our understanding of fire activity and describe a new fire model, HESFIRE (Human–Earth System FIRE), which integrates the influence of weather, vegetation characteristics, and human activities on fires in a stand-alone framework. It was developed with a particular emphasis on allowing fires to spread over consecutive days given their major contribution to burned areas in many ecosystems. A subset of the model parameters was calibrated through an optimization procedure using observation data to enhance our knowledge of regional drivers of fire activity and improve the performance of the model on a global scale. Modeled fire activity showed reasonable agreement with observations of burned area, fire seasonality, and interannual variability in many regions, including for spatial and temporal domains not included in the optimization procedure. Significant discrepancies are investigated, most notably regarding fires in boreal regions and in xeric ecosystems and also fire size distribution. The sensitivity of fire activity to model parameters is analyzed to explore the dominance of specific drivers across regions and ecosystems. The characteristics of HESFIRE and the outcome of its evaluation provide insights into the influence of anthropogenic activities and weather, and their interactions, on fire activityinfo:eu-repo/semantics/publishedVersio

An atmospheric perspective on North American carbon dioxide exchange: CarbonTracker

We present an estimate of net CO2 exchange between the terrestrial biosphere and the atmosphere across North America for every week in the period 2000 through 2005. This estimate is derived from a set of 28,000 CO2 mole fraction observations in the global atmosphere that are fed into a state-of-the-art data assimilation system for CO2 called CarbonTracker. By design, the surface fluxes produced in CarbonTracker are consistent with the recent history of CO2 in the atmosphere and provide constraints on the net carbon flux independent from national inventories derived from accounting efforts. We find the North American terrestrial biosphere to have absorbed –0.65 PgC/yr (1 petagram = 10^15 g; negative signs are used for carbon sinks) averaged over the period studied, partly offsetting the estimated 1.85 PgC/yr release by fossil fuel burning and cement manufacturing. Uncertainty on this estimate is derived from a set of sensitivity experiments and places the sink within a range of –0.4 to –1.0 PgC/yr. The estimated sink is located mainly in the deciduous forests along the East Coast (32%) and the boreal coniferous forests (22%). Terrestrial uptake fell to –0.32 PgC/yr during the large-scale drought of 2002, suggesting sensitivity of the contemporary carbon sinks to climate extremes. CarbonTracker results are in excellent agreement with a wide collection of carbon inventories that form the basis of the first North American State of the Carbon Cycle Report (SOCCR), to be released in 2007. All CarbonTracker results are freely available at http://carbontracker.noaa.gov

The Scenario Model Intercomparison Project (ScenarioMIP) for CMIP6

Model experiment description paperProjections of future climate change play a fundamental role in improving understanding of the climate system as well as characterizing societal risks and response options. The Scenario Model Intercomparison Project (ScenarioMIP) is the primary activity within Phase 6 of the Coupled Model Intercomparison Project (CMIP6) that will provide multi-model climate projections based on alternative scenarios of future emissions and land use changes produced with integrated assessment models. In this paper, we describe ScenarioMIP's objectives, experimental design, and its relation to other activities within CMIP6. The ScenarioMIP design is one component of a larger scenario process that aims to facilitate a wide range of integrated studies across the climate science, integrated assessment modeling, and impacts, adaptation, and vulnerability communities, and will form an important part of the evidence base in the forthcoming Intergovernmental Panel on Climate Change (IPCC) assessments. At the same time, it will provide the basis for investigating a number of targeted science and policy questions that are especially relevant to scenario-based analysis, including the role of specific forcings such as land use and aerosols, the effect of a peak and decline in forcing, the consequences of scenarios that limit warming to below 2 °C, the relative contributions to uncertainty from scenarios, climate models, and internal variability, and long-term climate system outcomes beyond the 21st century. To serve this wide range of scientific communities and address these questions, a design has been identified consisting of eight alternative 21st century scenarios plus one large initial condition ensemble and a set of long-term extensions, divided into two tiers defined by relative priority. Some of these scenarios will also provide a basis for variants planned to be run in other CMIP6-Endorsed MIPs to investigate questions related to specific forcings. Harmonized, spatially explicit emissions and land use scenarios generated with integrated assessment models will be provided to participating climate modeling groups by late 2016, with the climate model simulations run within the 2017-2018 time frame, and output from the climate model projections made available and analyses performed over the 2018-2020 period.CRESCENDO project members (V. Eyring, P. Friedlingstein, E. Kriegler, R. Knutti, J. Lowe, K. Riahi, D. van Vuuren) acknowledge funding received from the Horizon 2020 European Union’s Framework Programme for Research and Innovation under grant agreement no. 641816. C. Tebaldi, G. A. Meehl and B. M. Sanderson acknowledge the support of the Regional and Global Climate Modeling Program (RGCM) of the U.S. Department of Energy’s, Office of Science (BER), Cooperative Agreement DE-FC02-97ER6240

Vegetation demographics in Earth System Models: A review of progress and priorities

Numerous current efforts seek to improve the representation of ecosystem ecology and vegetation demographic processes within Earth System Models (ESMs). These developments are widely viewed as an important step in developing greater realism in predictions of future ecosystem states and fluxes. Increased realism, however, leads to increased model complexity, with new features raising a suite of ecological questions that require empirical constraints. Here, we review the developments that permit the representation of plant demographics in ESMs, and identify issues raised by these developments that highlight important gaps in ecological understanding. These issues inevitably translate into uncertainty in model projections but also allow models to be applied to new processes and questions concerning the dynamics of real-world ecosystems. We argue that stronger and more innovative connections to data, across the range of scales considered, are required to address these gaps in understanding. The development of first-generation land surface models as a unifying framework for ecophysiological understanding stimulated much research into plant physiological traits and gas exchange. Constraining predictions at ecologically relevant spatial and temporal scales will require a similar investment of effort and intensified inter-disciplinary communication

The effects of tropical secondary forest regeneration on avian phylogenetic diversity

The conversion of tropical forests to farmland is a key driver of the current extinction crisis. With the present rate of deforestation unlikely to subside, secondary forests that regenerate on abandoned agricultural land may provide an option for safeguarding biodiversity. While species richness (SR) may recover as secondary forests get older, the extent to which phylogenetic diversity (PD)—the total amount of evolutionary history present in a community—is conserved is less clear. Maximizing PD has been argued to be important to conserve both evolutionary heritage and ecosystem function. Here, we investigate the effects of secondary forest regeneration on PD in birds. The regeneration of secondary forests could lead to a community of closely related species, despite maintaining comparable SR to primary forests, and thus have diminished biodiversity value with reduced evolutionary heritage. We use a meta-dataset of paired primary and secondary forest sites to show that, over time, forest specialist species returned across all sites as secondary forest age increased. Forest specialists colonize secondary tropical forests in both the Old World and the New World, but recovery of PD and community composition with time is only evident in the Old World. Synthesis and applications. While preserving primary tropical forests remains a core conservation goal, our results emphasize the important role of secondary forest in maintaining tropical forest biodiversity. Biodiversity recovery differs between Old and New World secondary forests and with proximity to primary forest, highlighting the need to consider local or regional differences in landscape composition and species characteristics, especially resilience to forest degradation and dispersal capability. While farmland abandonment is increasing across marginal areas in the tropics, there remains a critical need to provide long-term management and protection from reconversion to maximize conservation benefits of secondary forests. Our study suggests such investments should be focused on land in close proximity to primary forests

Effect of anthropogenic land-use and land cover changes on climate and land carbon storage in CMIP5 projections for the 21st century

This is the final version of the article. Available from the American Meteorological Society via the DOI in this record.The effects of land-use changes on climate are assessed using specified-concentration simulations complementary to the representative concentration pathway 2.6 (RCP2.6) and RCP8.5 scenarios performed for phase 5 of the Coupled Model Intercomparison Project (CMIP5). This analysis focuses on differences in climate and land–atmosphere fluxes between the ensemble averages of simulations with and without land-use changes by the end of the twenty-first century. Even though common land-use scenarios are used, the areas of crops and pastures are specific for each Earth system model (ESM). This is due to different interpretations of land-use classes. The analysis reveals that fossil fuel forcing dominates land-use forcing. In addition, the effects of land-use changes are globally not significant, whereas they are significant for regions with land-use changes exceeding 10%. For these regions, three out of six participating models—the Second Generation Canadian Earth System Model (CanESM2); Hadley Centre Global Environmental Model, version 2 (Earth System) (HadGEM2-ES); and Model for Interdisciplinary Research on Climate, Earth System Model (MIROC-ESM)—reveal statistically significant changes in mean annual surface air temperature. In addition, changes in land surface albedo, available energy, and latent heat fluxes are small but significant for most ESMs in regions affected by land-use changes. These climatic effects are relatively small, as land-use changes in the RCP2.6 and RCP8.5 scenarios are small in magnitude and mainly limited to tropical and subtropical regions. The relative importance of the climatic effects of land-use changes is higher for the RCP2.6 scenario, which considers an expansion of biofuel croplands as a climate mitigation option. The underlying similarity among all models is the loss in global land carbon storage due to land-use changes.We acknowledge the World Climate Research Programme Working Group on Coupled Modelling, which is responsible for CMIP, and we thank the climate modeling groups for producing and making available their model output. We thank Karl Taylor and Charles Doutriaux for help with setting up the CMOR tables for the LUCID–CMIP5 experiments. We appreciate a support by the staff of the German Climate Computing Center (DKRZ), in particular by Stephanie Legutke and Estanislao Gonzalez, in performing the LUCID–CMIP5 simulations and in making the model results available via DKRZ ESG gateway. We thank Andy Pitman and an anonymous reviewer for providing constructive and helpful comments on the manuscript. CDJ was supported by the Joint DECC/Defra Met Office Hadley Centre Climate Programme (GA01101). EK was supported by the Environmental Research and Technology Development Fund (S-5, S-10) of the Ministry of the Environment, Japan. PF and FP were supported by the EU-FP7 COMBINE project (Grant 226520)