Science, Technology, and Public Policy

Many economists have long held that carbon pricing—either through a carbon tax or cap-and-trade—is the most cost-effective way to decarbonize energy systems, along with subsidies for basic research and development. Meanwhile, green innovation and industrial policies aimed at fostering low-carbon energy technologies have proliferated widely. Most of these predate direct carbon pricing. Low-carbon leaders such as California and the European Union (EU) have followed a distinct policy sequence that helps overcome some of the political challenges facing low-carbon policy by building economic interest groups in support of decarbonization and reducing the cost of technologies required for emissions reductions. However, while politically effective, this policy pathway faces significant challenges to environmental and cost effectiveness.

In order to make R&D funding decisions to meet particular goals, such as mitigating climate change or improving energy security, or to estimate the social returns to R&D, policy makers need to combine the information provided in this study on cost reduction potentials with an analysis of the macroeconomic implications of these technological changes. The authors conclude with recommendations for future directions on energy expert elicitations.

On April 28, the Project on Managing the Atom joined the James Martin Center for Nonproliferation Studies at the Middlebury Institute of International Studies at Monterey, The Netherlands government, and the United Nations Office for Disarmament Affairs (UNODA) in convening nuclear nonproliferation experts from around the world at the United Nations to participate in a Symposium on the 2015 Nonproliferation Treaty (NPT) Review Conference.

Harvard Kennedy School (HKS) doctoral student Daniel Velez Lopez is researching air pollution in Mexico and whether the country is willing to pay the costs to reduce it. HKS student Jennifer Kao is interviewing academics, investors, and government officials working to generate and commercialize clean energy innovations in the United Kingdom.

On February 16, 2015, Professor of Practice Matthew Bunn presented "The Iranian Nuclear Crisis: Next Steps" for the Harvard Project for Asian and International Relations.

The Science, Technology, and Public Policy (STPP) Programis seeking a new colleague to manage, coordinate, and conduct research for a major research project. The project examines a wide range of issues focusing on innovations, climate mitigation, and sustainable energy alternatives in China, the United States, and the European Union.

Characterizing the future performance of energy technologies can improve the development of energy policies that have net benefits under a broad set of future conditions. In particular, decisions about public investments in research, development, and demonstration (RD&D) that promote technological change can benefit from (1) an explicit consideration of the uncertainty inherent in the innovation process and (2) a systematic evaluation of the tradeoffs in investment allocations across different technologies. To shed light on these questions, over the past five years several groups in the United States and Europe have conducted expert elicitations and modeled the resulting societal benefits. In this paper, the authors discuss the lessons learned from the design and implementation of these initiatives.

Characterization of the anticipated performance of energy technologies to inform policy decisions increasingly relies on expert elicitation. Knowledge about how elicitation design factors impact the probabilistic estimates emerging from these studies is, however, scarce. We focus on nuclear power, a large-scale low-carbon power option, for which future cost estimates are important for the design of energy policies and climate change mitigation efforts. We use data from three elicitations in the USA and in Europe and assess the role of government research, development, and demonstration (RD&D) investments on expected nuclear costs in 2030.

Probabilistic estimates of the cost and performance of future nuclear energy systems under different scenarios of government research, development, and demonstration (RD&D) spending were obtained from 30 U.S. and 30 European nuclear technology experts. The majority expected that such RD&D would have only a modest effect on cost, but would improve performance in other areas, such as safety, waste management, and uranium resource utilization. The U.S. and E.U. experts were in relative agreement regarding how government RD&D funds should be allocated, placing particular focus on very high temperature reactors, sodium-cooled fast reactors, fuels and materials, and fuel cycle technologies.