Environment and Natural Resources

This paper examines the understudied role of international engagement, and of specific international actors, in greening China’s Belt-and-Road Initiative.

This paper provides an overview on the main impacts of biofuels production on water resources within the United States, with an emphasis on the corn-based ethanol market and the agricultural stage. The following issues are examined:

• the relationship between biofuel production and water availability;
• trends and policy options for future biofuel production and the tradeoffs for water scarcity;
• technological changes in transportation fleet, with consequential effects on biofuels demand and water resources;
• considerations for policy makers who seek to reduce the future impact of biofuels on water sustainability.

In this report, we propose a market reform pathway for Yunnan that is both feasible and applicable to address some of these challenges immediately, while aiming for a standard design based on well-documented international experience. Our proposal includes at its heart a pay-for-performance monthly capacity auction that can help cover revenue deficiencies in the energy market. Building on international experience with capacity markets, this approach provides incentives for availability when generation is needed most and is compatible with the adoption of a single energy market for all electricity resources. Out-of-market payments to cover stranded costs of certain firms can thus be minimized. Finally, engaging consumers in both these energy and capacity markets can create high-powered incentives to shift consumption to low-cost months and hours, benefitting the entire province.

China announced it would launch a national carbon market in 2017, yet this policy is taking years to come into effect. What will it take for a carbon market to work in command-and-control China? This policy brief explores an understudied challenge—emissions accounting—and identifies potential opportunities that have arisen in the first phase of China’s national carbon market.

This paper focuses on China and the potential role of renewable hydrogen in accelerating its transition to a low-carbon economy. Our research goal is to provide policymakers and other stakeholders the means to make informed decisions on technology innovation, policy instruments, and long-term investments in enabling infrastructure.