Environment and Natural Resources

Scientists from three universities demonstrate that buying a product made in China causes significantly higher carbon dioxide emissions than purchasing the same product made elsewhere.

The dramatic fall of oil prices is set to jeopardize both the U.S. ambition to become a big gas exporter by the end of this decade and the long-awaited development of a global gas market.

This discussion paper examines the development of water markets as a solution to water scarcity in China, with particular focus on Water Rights Trading (WRT). Water scarcity is an issue of growing concern for China, particularly in the north, where a combination of limited water supplies, economic growth, and population increases are increasingly straining water resources. The Chinese government has moved enthusiastically toward an embrace of market mechanisms to address water scarcity, with WRT being the preferred policy instrument in the agricultural sector, which accounts for the majority of water use in China. This discussion paper proposes several policy recommendations to improve the development of water markets in China, in particular by lowering the transaction costs to establishing markets and improving policy coordination.

China has ambitious goals for developing and deploying electric vehicles (EV). The stated intention is to “leapfrog” the auto industries of other countries and seize the emerging EV market. Since 2009, policies have included generous subsidies for consumers in certain locations, as well as strong pressure on local governments to purchase EVs. Yet four years into the program, progress has fallen far short of the intended targets. China has only about 40,000 EVs on the road, of which roughly 80% are public fleet vehicles such as buses and sanitation vehicles.

A study just released by Belfer Center researcher Leonardo Maugeri finds that the shale oil revolution taking place in the United States could result in the tripling of shale oil output to five million barrels a day by 2017, likely making the U.S. the top oil producer in the world in just a few years. The study by Maugeri, a Roy Family Fellow working with the Belfer Center's Geopolitics of Energy project, looked at whether the surge in shale oil production is just a temporary bubble or an event capable of significantly altering the U.S.—and possibly global—energy outlook.

Expanding estimates of North America’s supply of accessible shale gas, and more recently, shale oil, have been trumpeted in many circles as the most significant energy resource development since the oil boom in Texas in the late 1920s. How large are these resources? What challenges will need to be overcome if their potential is to be realized? How will they impact U.S. energy policy?

To address these questions, the Belfer Center for Science and International Affairs and two of its programs ― the Environment and Natural Resources Program and the Geopolitics of Energy Project ― convened a group of experts from business, government, and academia on May 1, 2012, in Cambridge, Massachusetts. The following report summarizes the major issues discussed at this workshop. Since the discussions were off-the-record, no comments are attributed to any individual. Rather, this report attempts to summarize the arguments on all sides of the issues.