Environment and Natural Resources

New forms of international cooperation and technology competition with China are the main drivers of public investment in energy innovation, though it remains insufficient to help meet climate goals.

New forms of international cooperation and technology competition with China are the main drivers of public investment in energy innovation, though it remains insufficient to help meet climate goals.

In an essay for Harvard Kennedy School Magazine, Henry Lee argues the policies China is pursuing to wean itself off reliance on fossil fuels may also benefit its quest for greater energy security.

As latecomers to the industrialization process, developing countries may face barriers to upgrading from the production of mass-produced goods to higher-value technologies. Using a comparative qualitative case study focusing on three renewable energy technologies, this paper develops a typology of catching-up opportunities in green energy industries and finds that policymakers should target certain technologies in their industrial strategies based on certain technology characteristics, and should seek opportunities to capitalize on a local niche that creates a need for innovation.

We used the US-TIMES energy-system model in conjunction with integrated assessment models for air pollution (AP3, EASIUR, InMAP) to estimate the consequences of local air pollutant (LAP) and carbon dioxide (CO₂) policy on technology-choice, energy-system costs, emissions, and pollution damages in the United States. We report substantial policy spillover: Both LAP and CO₂ taxes cause similar levels of decarbonization. Under LAP taxes, decarbonization was a result of an increase in natural gas generation and a near-complete phaseout of coal generation in the electric sector. Under a CO₂ tax, the majority of simulated decarbonization was a result of increased electric generation from wind and solar. We also found that the timing of the CO₂ and LAP taxes was important. When we simulated a LAP tax beginning in 2015 and waited until 2025 to introduce a CO₂ tax, the electric sector was locked into higher levels of natural gas generation and cumulative 2010–2035 energy system CO₂ emissions were 8.8 billion tons higher than when the taxes were implemented simultaneously. A scenario taxing CO₂ and LAPs simultaneously beginning in 2015 produced the highest net benefits, as opposed to scenarios that target either CO₂ or LAPs, or scenarios that delayed either LAP or CO₂ taxes until 2025. Lastly, we found that net benefits compared to business as usual are higher under a regional versus a national LAP-tax regime, but that efficiency gains under the regional tax are not substantially higher than those under the national LAP-tax policy.

The transition from energy systems dominated by fossil fuels to ones based on renewable electricity and carbon-free molecules will significantly impact existing value chains and forge new pathways and transformation steps from production to consumption. This transition will bring not only substantial cost challenges but also promises to dramatically alter stakeholders’ interactions along value chains.

This paper focuses on the market and geopolitical implications of renewable hydrogen adoption at scale in the European Union (EU). The authors analyze long-term strategies based on three reference scenarios in which the EU prioritizes a different strategic variable: energy independence, cost (optimization), or energy security. Developing competitive and secure hydrogen markets will require close coordination between policy, technology, capital, and society—and for EU countries to unite behind a shared long-term vision.

How can China make good on its pledge to reach carbon neutrality by 2060? In Foundations for a Low-Carbon Energy System in China, a team of experts from China and the United States explains how China's near-term climate and energy policies can affect long-term decarbonization pathways beyond 2030, building the foundations for a smoother and less costly national energy transformation.

The European Union (EU) is highly competitive in clean technologies manufacturing and thus well-positioned to benefit from the emergence of global hydrogen markets. But a narrow focus on short-term cost considerations could drive member states to implement national roadmaps with little or no coordination among themselves and hence little or no chance of competing globally.

As energy systems increasingly evolve from centralized to decentralized, from “grey” to “green,” stakeholders will need to efficiently account for and track emissions and green molecules in a transparent, secure, and standardized way, and must be able to do so along value chains from production to consumption.