Modeling Linked Behavioral and Natural FEW Systems: Key Gaps and Challenges Madhu Khanna University of Illinois Research Problem: Meeting the demands for FEW while reducing multiple environmental externalities - incorporating the potential for emerging productivity enhancing technologies (cellulosic biofuels, big data enabled precision farming) and designing policy incentives. • Scale of analysis: Microunit of analysis in behavioral models vs ecosystem models • Trade-off between heterogeneity and overall geographical scale of analysis • Technological change: Dynamic and spatially heterogeneous • Involves lumpy, indivisible investments • Affected by non-economic behavioral factors; • Risk, uncertainty, adaptive expectations and absence of perfect foresight • Modeling multiple externalities requires linking more than one type of biophysical/hydrological model (SWAT, DayCent, GREET) with economic model • Consistency across models • Designing mix of policy instruments that achieve multiple environmental objectives that are complements/conflicting • Uncertainty due to natural variability: Implications for policy Recent publications • Housh, M., M. Khanna, and X. Cai, “Mix of First and Second Generation Biofuels to meet Multiple Environmental Objectives: Implications for Policy at a Watershed Scale,” Water Economics and Policy (in press 2015). • Housh, M. et al, “Managing Multiple Mandates: A System of Systems Model to Analyze Strategies for Producing Cellulosic Ethanol and Reducing Riverine Nitrate Loads in the Upper Mississippi River Basin,” Environmental Science and Technology, (in press 2015). • Hudiburg et al. “Reducing Fossil Energy Use and GHG Emissions with Biofuels: An Integrated Assessment” Nature Energy, forthcoming (January 2016).