Johson and Wolfram argue that imposing a price cap on Iranian oil exports will diminish the benefits petrostates have in times of conflict. 

Having served as the Deputy Assistant Secretary for Climate & Energy Economics in the U.S. Department of the Treasury in 2021, Catherine Wolfram has some particularly relevant and insightful insights to offer on the development and implementation of climate change policy. Wolfram, the Cora Jane Flood Professor of Business Administration at the Haas School of Business at the University of California discussed her time in government service and on her hopes for a carbon pricing scheme during the latest episode of “Environmental Insights: Discussions on Policy and Practice from the Harvard Environmental Economics Program,” a podcast produced by the Harvard Environmental Economics Program.

On "Resource Radio," a podcast by Resources for the Future, Catherine Wolfram, Visiting Professor at Harvard Kennedy School and Rhodium Group's John Larsen offer insights on 2022’s biggest stories in energy and environmental policy at the state, national, and international levels, including U.S. climate legislation and how Russia’s invasion of Ukraine has affected energy markets. They also look ahead to the developments in energy and environmental policy that are likely to become important in 2023.

A cap on the price of Russian crude oil sold on global markets went into effect on Monday. This is an important step toward reducing Russia’s capacity to continue the war in Ukraine.

Catherine Wolfram, former Deputy Assistant Secretary for Climate and Energy Economics at the Treasury Department, co-authored a Belfer Center policy brief explaining the recent G7 price cap on Russian oil. In an interview with Belfer Center Communications Fellow Ada Eziokoli, she explains that the novel plan keeps Russian oil on the market, but helps limit the revenues Russia gets from the oil trade to use in the war on Ukraine.

The price cap on Russian oil implemented today by the G7 countries plus Australia represents a novel approach to sanctions. The policy is designed to reduce Russian fossil fuel revenues while keeping Russian oil on the market. In this brief, Catherine Wolfram, Simon Johnson, and Łukasz Rachel explain the basic economic principles at work and discuss some of the critiques of the price cap. 

The price cap on Russian oil implemented today by the G7 countries plus Australia represents a novel approach to sanctions, according to a policy brief authored by Catherine Wolfram, Simon Johnson, and Łukasz Rachel and released today by Harvard Kennedy School’s Belfer Center for Science and International Affairs and the Mossavar-Rahmani Center for Business and Government.