Scenarios on the spatial and economic development of Europe

Countless autonomous, self-reinforcing and countervailing forces impact the future competitiveness of Europe and its spatial structure. Poignant examples include globalization, ageing and climate change, but also policy decisions taken by nation-states or the European Union. Scenarios are an appropriate method by which to explore possible future developmental pathways in a dynamic context. This contribution describes and discusses four economic policy scenarios produced by the ESPON 3.2 project and link these to the Lisbon Strategy and the European Social Model. In each scenario, a policy package is assembled from existing EU policy areas according to a particular ideological context. Afterwards, its territorial consequences are discussed in terms of socioeconomic disparities, migration and the environment. In so doing, some observations will be made regarding possible spin-offs, trade-offs and side effects of European policy when placed in a spatial context. These scenarios should hold interest for policy discussions on territorial cohesion, a concept which seeks to integrate economic development and spatial planning, as well as on European competitiveness and cohesion.     

Two scenarios for Europe: “Europe confronted with high energy prices” or “Europe after oil peaking”

A significant change in trends regarding energy prices (in particular oil) has taken place in 2003 at the beginning of the Iraq War. It has revealed a very strong tension between oil prices on the one hand and the relationship between global oil supply and demand on the other. The strong growth rates of emerging economies up to 2008 have generated a very sharp increase in oil prices. The temporary economic recession of 2008-2009 has resulted in turn into a significant decrease of oil prices, down to a level which remained, however, twice as high as that of early 2003. With the economy recovering from the recession, it is highly probable that energy prices will continue to increase and that Europe will be confronted with high energy prices in the coming decades. Against this general background, two scenarios have been elaborated which differ mainly by the time of occurrence of oil peaking.¹ The differences between the scenario hypotheses are therefore differences of context in relation to exogenous factors. Policies are also considered in the scenarios, but they are not at the forefront and their impact is considered as limited in relation to that of exogenous factors.The first scenario “Europe in a context of high energy price” assumes that the process of oil peaking will not take place before 2030, but that oil price increase will nevertheless be sustained and substantial until then. Numerous adjustments will have to be made in the economy and their territorial impacts will be significant (less polycentricity, more compact cities, decline of the importance of road and air transport). The second scenario “Europe after oil production peaking” assumes that oil production will peak around the mid-2010s (followed by gas production peaking around 2025), despite significant investments to increase production. In a context of steadily growing oil and gas demand, Europe will be confronted with serious economic difficulties. The territorial impacts will be different from those suggested by the first scenario, with stronger pressure put on rural areas and a loss of attractiveness of large cities related to increasing unemployment and social tensions. In both scenarios, the countries of central and eastern Europe will be more severely hit by the new energy context.The scenarios were elaborated in 2005 and slightly reviewed in 2009 in order to take account of the impacts of the economic recession in Europe and of the growing concerns about climate change.     

Scenarios on European energy security: Outcomes of natural gas strategy in 2020

This paper adopts a futuristic methodology and analyzes the role of natural gas in European energy security in order to transform economic and policy uncertainties into meaningful scenarios. It implements “trend analysis” to forecast the volume of gas needed until 2020 by elaborating the estimates of the EU Commission and “scenario building” to come up with alternative futures forging different regional implications. The economic analysis stems from four scenarios as introduced by the EU Commission: (1) baseline scenario with average oil price of 61$/bbl; (2) baseline scenario with average oil price of 100$/bbl; (3) New Energy Policy scenario with average oil price of 61$/bbl; (4) New Energy Policy scenario with average oil price of 100$/bbl. The policy analysis is derived from the options, restraints, priorities and strategies of the concerned actors which include the EU Commission, selected EU members, suppliers and transit countries. The analysis on actors results in four policy scenarios: (1) Russia first; (2) Russia everywhere; (3) security first; (4) each for itself. The matrix, which excludes the possibility of unprecedented developments such as a drastic increase in European shale gas production or continuing global recession, clusters 16 contingencies. The paper, within this context, gives an idea on how alternative policy options of European energy security may lead to different futures based on oil prices, environmental commitments and strategic initiatives of the concerned actors.     

Goal-based socio-technical scenarios: Greening the mobility practices in the Stockholm City District of Bromma,Sweden

This paper presents a new five-part method for developing goal-based socio-technical scenarios. In the first part, Scenario ‘Seeds’ are identified or created. The Scenario Content part focuses on the question of what could be changed and by whom, a fundamental element being iterative identification of objects and actors of change. Scenario Outcome focuses on the question of how to assess the potential contribution of these changes, estimated through modelling the scenario in terms of energy usage systems. Scenario Process explores the question of how to develop and represent a scenario in terms of a process of governance. Scenario Content, Outcome and Process are then combined into a Final Scenario which is further assessed and evaluated using qualitative methods. The development of Scenario Content is tested and exemplified in this paper through a scenario study of green mobility in the district of Bromma in Stockholm, Sweden. Preliminary findings indicate that by supporting explicit inclusion of actors and ‘the social’ aspect, the what-who iteration in Scenario Content also helps identify opportunities and obstacles of a social character, thus contributing to creation of socio-technically more consistent and comprehensive scenarios.     

‘Exploratory landscape scenarios’ in the formulation of ‘landscape quality objectives’

The European Landscape Convention (ELC) calls for the definition of ‘landscape quality objectives’ (LQO) as “the formulation by the competent public authorities of the aspirations of the public with regard to the landscape features of their surroundings”. However, it is not yet defined how the integration of the visions of the public should be carried out. Notably in regions with poor participatory culture and in rural landscapes abandoned by people and consequently by their activities, dealing with the future does not seem a straightforward task. In these marginal rural landscapes the role of agriculture is being altered under the influence of the new rationale of the Common Agriculture Policy, so it may have to assume different functions in the future. Thus, this paper aims at showing how the development of ‘exploratory landscape scenarios’ can be a useful tool, firstly to find plausible landscape futures, and secondly to trigger discussions with the public regarding their aspirations for their landscape. The development procedure for ‘exploratory landscape scenarios’ builds on the ‘intuitive logics’ approach that focuses on the production of a variety of scenarios as starting point for discussion about the future rather than on finding an optimal one, which can limit the options unnecessarily from the beginning. The methodological approach is illustrated at a local scale by using the case study of Mértola in southeast Portugal. The results of the scenario exercise point out the adequateness of the methodology in the development of futures that are perceived as plausible by local stakeholders and, thereby, able to bring out their desires and threats towards the future of their landscape.     

A critical review of the application of environmental scenario exercises

Scenario exercises have become instrumental across multiple fields, from their original usage in business and military planning, to being ubiquitous in environmental planning and policy formation. This article critically reviews whether there are explicit and imminent divisions between how scenario exercises are used and discussed, with particular focus on the literature of qualitative scenarios concerning environmental challenges. The authors interrogate what scenario exercises are in actual practice, in the context of what they are used for and how they are designed, before then considering the criteria for determining ‘success’ for a scenario exercise. The particular focus of the literature analysed is in the emergence of the discipline of ‘environmental scenarios’, being scenarios concerned with 21st Century environmental challenges such as the influence of climate change on the notion of natural hazards.     

A new method for constructing scenarios

Scenario construction has been the method used in France in a number of studies that relate to regional development planning problems. This article describes how this peculiarly French interpretation of the method is built upon an assessment of a system of elements and their relationship—which forms the dynamic base—and hypotheses concerning external restraints. The progression in such a scenario is developed largely from the consideration of qualitative elements, and images of the future can then be worked out at cross-sections in time. In this way, trend scenarios reveal what is unacceptable and encourage the study of alternative developments.     

Creating narrative scenarios: Science fiction prototyping at Emerge

Scenarios are stories. In the diverse field of scenario planning, this is perhaps the single point of universal agreement. Yet if scenarios are stories, their literary qualities are often underdeveloped. Scenarios used in business and government frequently do not contain a relatable protagonist, move a plot toward resolution, or compellingly use metaphor, imagery, or other emotionally persuasive techniques of literature. In these cases, narrative is relegated to an adjunct role of summarizing the final results of the workshop. While this neglect of narrative may be reasonable in some contexts, the power of narrative should not be underestimated. Scenario planning methodologies can benefit from using diverse narrative techniques to craft compelling and infectious visions of the future. This article explores the relationship between science fiction and scenarios as story genres and investigates a creative story-telling technique, “Science Fiction Prototyping” (Johnson, 2011). While the method is promising, it is an ultimately problematic means to incorporating narrative into scenario planning.     

Multi-scale narratives from an IA perspective: Part I. European and Mediterranean scenario development

Desertification in the Northern Mediterranean region can be effectively managed only through an understanding of the principal ecological, socio-cultural and economic drivers. Scenarios can play an important role in the understanding of such a complex system. Following the fundamentals of Integrated Assessment, narrative storylines were developed that are qualitative, participatory, and highly integrated. Multi-scale long-term (2030) storylines were developed for Europe, the Northern Mediterranean, and for four local cases. This paper discusses the methodology and results of the process of developing European and Mediterranean scenarios. In Part II, the local scenario development by means of scenario workshops is elaborated upon. European and Mediterranean scenarios were based on a set of three existing European scenarios, that were adapted to fit the specific issues in the Mediterranean region, using the so-called Factor-Actor-Sector (FAS) framework. Resulting scenarios were Convulsive Change (disruptive climate change); Big is Beautiful (oversized EU and powerful multinationals); and Knowledge is King (technological development and mass migration). It proved possible to use and enrich a set of existing European scenarios and to translate them to fit the Mediterranean region. A possible use of this type of narrative storylines is further illustrated in Part II.     

Making territorial scenarios for Europe

Three paradigmatic traditions of scenario-building can be seen to exist. The model approach with its roots in American military scenarios of the 1950s, the design approach in French urban and regional development of the 1960s, and the strategic conversation approach in scenarios made in the private sector since the 1970s. In theory, these traditions can be integrated by organising the scenario project in a cyclical way. The territorial scenarios for Europe were made by combining workshops, a literature review and modelling. Thematic scenarios were produced for various themes, like demography, the economy, energy, and climate change. These thematic scenarios were combined into four integrated scenarios. The robustness of the scenarios was tested by introducing several “wild cards” and by exploring their territorial impacts throughout Europe. This applied approach succeeded in combining important strengths from the different scenario traditions. Improvements, however, could still be made.     

Broadband development in the European Union to 2012—A virtuous circle scenario

Along with many national governments, the European Commission has pushed broadband to the fore of social and economic policies in recent years. It has aligned broadband developments with furthering information society and knowledge economy developments.This paper presents a positive scenario for broadband-related developments in the European Union area from 2009 to 2012. The scenario, the iNetWorked Society, is one of four developed in an extensive multi-country project funded by the European Commission under the 6th Framework Programme.Before examining the scenario, however, the paper places into a critical perspective the EU's legacy of broadband policy to date. It highlights the limitations of technology-centred policy frames and broadband strategies, which privilege supply-side infrastructure and neglect demand-side issues of applications, uses and users. Such policy frames have been associated with great variations in the level of broadband rollout, take-up and use across Member States.The paper then outlines the socio- and macro-economic conditions that need to be in place in Europe for the positive scenario of the iNetworked Society to be realised. The iNetWorked Society comprises a plausible, internally consistent scenario for developments in a number of broadband-related areas: broadband adoption, e-business, e-work, e-government and digital content. It is based on a virtuous circle of technological, economic and socio-political developments, including strong economic growth, high broadband penetration, and high social engagement with ICTs.     

Carrot or stick: Impacts of alternative climate and energy policy scenarios on agriculture

The climate and energy strategy of the European Union presents the aims for all economic sectors to cut carbon dioxide emissions. In this paper, we studied what kind of conflicts, synergies, opportunities and control measures the climate and energy policy brings to farms in Finland. We used the Delphi method to assess possible outcomes of three scenarios based on the strength of mitigation policy. The scenarios scrutinised were (1) Baseline, (2) Tight Control and (3) Energy Plus Food. These scenarios create different adaptive needs and measures on farms. Baseline scenario follows the present and forthcoming development in agriculture and Tight Control scenario, in turn, constitutes all possible mitigation measures recently introduced in the scientific discussion. In Energy Plus Food scenario, farms increasingly produce renewable energy in addition to food and, therefore, have new opportunities to develop their businesses. The Delphi panel estimated how the farms would cope with different future developments represented by the scenarios. Based on our results, it is evident that interdisciplinary analysis in research and inter-sectoral cooperation between agricultural and energy policies are required.     

Structure in creativity: An exploratory study to analyse the effects of structuring tools on scenario workshop results

Scenario projects increasingly combine quantitative models with qualitative, participatory products in order to make scenarios more coherent, relevant, credible and creative. A major advantage of adding participatory, qualitative scenarios is their ability to produce creative, innovative, non-linear products. Integrating participatory results with quantitative models, however, can lower their credibility of both products when they are not consistent. The low level of structure in most participatory output limits possibilities for linking them to quantitative models. More structure could be introduced, but this might hamper the creativity of the workshop results: outcomes (process) and outputs (storylines). This paper tests a new method to analyse the creativity of scenario storylines in order to analyse the effects of structuring tools on the creativity of workshop results. Both the perceptions of participants and the resulting storylines of nine case studies across Europe are used in the analysis. Results show that the use of structuring tools can have a negative effect on the creativity of the workshop, but the influence seems to vary between the different tools. The study shows the benefit of using indicators for the scenario quality criteria. More research is needed to develop indicators for other scenario quality criteria, to improve those developed here and to study the impact of structuring tools with a larger data set.     

The ageing of Europe: Demographic scenarios of Europe's futures

This paper explores the demographic futures of Europe by presenting two scenarios. The ‘silver century’ scenario is based on the continuation of current demographic trends and policies. In this scenario, Europe's population will continue to age and immigration will be limited. As a result younger people will increasingly tend to concentrate in urban areas while the retirees, who are able, will settle in suburban and rural spaces. In the ‘open borders’ scenario, the EU and most of the member states will introduce an open and actively promoted immigration policy. Most immigrants will concentrate in large metropolitan areas. At the same time there will also be some countries and regions with very limited immigration from abroad. At the local scale immigration will contribute to social and spatial segregation. Hence, without the regulation or at least management of types and destinations of immigration, demographic imbalances will not be addressed at the regional level. Furthermore while the freedom of movement may have some macro-economic benefits and address population imbalances in some (mainly metropolitan) areas, pre-existent trends undermining both socio-economic cohesion and sustainable patterns of development are unlikely to be resolved.     

European territories confronted with climate change: Awaiting the events or timely preparation?

Today, climate change is viewed as one of the main global challenges. The EU has become a major player in the political arena and seeks to reach worldwide agreements on ‘mitigation’ policies to reduce greenhouse gas emissions. Despite speaking with one voice at the global scale, the effects of climate change on European territories vary widely according to local circumstances. The ESPON scenarios explore what those impacts could be, and what effect EU climate change adaptation policies would have. The first scenario envisions an EU policy limited to emergency funds following extreme events like floods and droughts. In the second scenario, the EU takes a much more proactive stance by funding radical and costly adaptation strategies. The exercise demonstrates the difficulty in identifying the cost-effectiveness of each approach. Territorial effects are often indirect and affect a variety of economic, social and ecological systems. Moreover, a great deal of uncertainty exists surrounding their magnitude and timing.     

Scenario projects in Japanese government: Strategic approaches for overcoming psychological and institutional barriers

Scenario planning in the public sector has significant differences from scenario planning in the corporate world. Scenario planning in the government not only tends to be focused on issues of higher complexity and significance to public policy, but also in comparison to people in the private business, public officials have fundamental psychological and institutional constraints in their scenario thinking. These constraints make it difficult for them to contemplate multiple ‘untidy’ futures and imagine the possibility of policy failure: skills which are essential for successful scenario projects. Based on specific characteristics of scenario planning in the Japanese government, this paper contributes on better understanding the challenges and strategic solutions in providing more successful scenario planning in the public sector. Specifically, this paper argues that possible solutions in overcoming these constraints may be to shake public bureaucrats out of their thinking by providing free and open venues of conversation and more importantly through ‘derailment’ exercises.     

An updated scenario typology

Scenario analysis has evolved notably in its 50-year history and today there is a large diversity in the scenarios that are developed. Establishing an overview of this diversity would be useful for the further development of scenario method. However, such an overview cannot be generated without the use of a shared understanding of the typical features of scenario development and of the relevant terminology. A broadly shared scenario typology can provide this common understanding but existing typologies do not capture the diversity of scenario types. To this end we propose an updated typology, the presentation of which is the focus of this paper. We also explain how the typology was tested for its robustness in a comparative analysis of recent scenario projects.     

Narratives of the future: Suspending disbelief in forest-sector scenarios

Scenario analysis considers highly uncertain future conditions. The method involves developing and analyzing plausible narratives of the future and evaluating them for a range of implications. The power of scenarios lies in creating and considering compelling stories about the future. Thus, narrative, defined as an account of a series of events, is central to the process and plays a pivotal role in engaging participants in a scenario analysis exercise. While a good scenario story can engage individuals and influence their suspension of disbelief, we know little about how participants actually respond to the scenarios so they can, and will, suspend disbelief in scenario outcomes.We explored the role of narrative in suspension of disbelief in a scenario-based study of the long-term future of Canada's forests and forest sector. We discovered that specific aspects of the scenario narratives themselves influenced participants’ suspension of disbelief. While interacting with the scenario narratives, participants actively worked to suspend disbelief by creating new narratives or accessing other existing ones, and by projecting themselves into the scenarios as characters in the stories. Our results may help scenario writers, practitioners, and researchers understand what, in one project, cued people's abilities to suspend disbelief and engage productively in discussions about possible futures.     

The origins and evolution of scenario techniques in long range business planning

Scenario Planning has been around for more than 30 years and during this period a multitude of techniques and methodologies have developed, resulting in what has been described as a ‘methodological chaos’ which is unlikely to disappear in the near future (A. Martelli, Scenario building and scenario planning: state of the art and prospects of evolution, Futures Research Quarterly Summer (2001)). This is reflected in the fact that literature reveals an abundance of different and at times contradictory definitions, characteristics, principles and methodological ideas about scenarios. It has been suggested that a pressing need for the future of scenarios is amongst other things, to resolve the confusion over ‘the definitions and methods of scenarios’. This paper makes a beginning at this need by tracing the origins and growth of scenarios and the subsequent evolution of the various methodologies; a classification of the methodologies into three main schools of techniques is given and the salient features of these schools are compared and contrasted.     

Freedom gas to Europe: Scenarios analyzed using the Global Gas Model

State-of-the-art, open access numerical modeling of imperfectly competitive energy markets offers a sound and transparent way to address topical research questions in energy and commodity markets. We use an open access equilibrium model, the Global Gas Model (GGM), and sector-specific, politically motivated scenarios to investigate the prospects for sales of liquefied natural gas (LNG) from the U.S. into the European energy market. We discuss the risks and opportunities for U.S. LNG and derive implications for policy, business, and finance in the energy sector. We find that Europe is not an attractive market for US LNG in the base case and in scenarios of moderate support of U.S. LNG flows into Europe. In these scenarios, Asia offers higher prices for US LNG and draws substantially higher import volumes. Our modeling results show that the interconnectedness of global gas markets due to an abundance of LNG import capacity in Europe and other regions—particularly Asia—allows for adjustments to global trade patterns that mitigate the consequences of regional disturbances.