Efforts to diagnose the risks of a changing climate often rely on downscaled and bias-corrected climate information, making it important to understand the uncertainties and potential biases of this approach. Here, we perform a variance decomposition to partition uncertainty in global climate projections and quantify the relative importance of downscaling and bias-correction. We analyze simple climate metrics such as annual temperature and precipitation averages, as well as several indices of climate extremes. We find that downscaling and bias-correction often contribute substantial uncertainty to local decision-relevant climate outcomes, though our results are strongly heterogeneous across space, time, and climate metrics. Our results can provide guidance to impact modelers and decision-makers regarding the uncertainties associated with downscaling and bias-correction when performing local-scale analyses, as neglecting to account for these uncertainties may risk overconfidence relative to the full range of possible climate futures.

Simulation models of multi-sector systems are increasingly used to understand societal resilience to climate and economic shocks and change. However, multi-sector systems are also subject to numerous uncertainties that prevent the direct application of simulation models for prediction and planning, particularly when extrapolating past behavior to a nonstationary future. Recent studies have developed a combination of methods to characterize, attribute, and quantify these uncertainties for both single- and multi-sector systems. Here we review challenges and complications to the idealized goal of fully quantifying all uncertainties in a multi-sector model and their interactions with policy design as they emerge at different stages of analysis: (1) inference and model calibration; (2) projecting future outcomes; and (3) scenario discovery and identification of risk regimes. We also identify potential methods and research opportunities to help navigate the tradeoffs inherent in uncertainty analyses for complex systems. During this discussion, we provide a classification of uncertainty types and discuss model coupling frameworks to support interdisciplinary collaboration on multi-sector dynamics (MSD) research. Finally, we conclude with recommendations for best practices to ensure that MSD research can be properly contextualized with respect to the underlying uncertainties.