Reports & Papers

Al-Juaied and Whitmore examine the costs and prospects for direct air carbon capture and storage (DACCS), and identify types of funding needed for early deployment for DACCS and building momentum for later widespread deployment. The challenges of implementing DACCS at very large scale further emphasize the need for urgent and widespread action to reduce emissions, which should continue to be the main priority for meeting climate goals.

In late 2017, Mexico made headlines as Italian company Enel bid what was then a world-record low price for renewable energy in the country’s third such energy auction. This development was possible due to the historical and sweeping energy reforms passed with broad support in Mexico in 2013. Then-President Enrique Peña Nieto had succeeded where previous Mexican presidents had failed, reversing decades of resource nationalism and overhauling the energy sector through constitutional reforms that gave the private sector a larger role and advantaged renewable energy in Mexico’s economy. The 2017 auction seemed to indicate Mexico’s bright future not only as a conventional oil producer, but also as a clean energy power.

Although Russia and Iran have converged around the overarching objective of strengthening the Assad regime, Moscow and Tehran's engagement in Syria illustrates a complex mosaic of overlapping interests, broader regional entanglements, and contending approaches to post-war reconstruction. Russia and Iran's visions on the future of Syria include diverging views on military reform and economic investment. However, these disagreements are unlikely to lead to a breakdown of the relationship. 

This paper analyzes clean hydrogen’s potential for driving emissions reductions in the mobility sector, focusing on road transportation, shipping, rail, and aviation. Overall, transportation is the second-largest producer of global CO2 emissions, after electricity and heat generation, and one of the hardest sectors to decarbonize due to its distributed nature and the advantages provided by fossil fuels in terms of high energy densities, ease of transportation and storage. 

Guangdong Province ranks first in economic output among China’s provinces and will play a major role in achieving China’s national climate-change goals. This paper examines the progress of Guangdong Province’s carbon dioxide emissions trading system (ETS) in reducing emissions; design features of the system; challenges it faces with regard to further development; and its relationship to China’s new national ETS.

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.

The United States and United Kingdom have longstanding traditions in use of environmental benefit-cost analysis (E-BCA). While there are similarities between how E-BCA is utilized, there are significant differences too, many of which mirror ongoing debates and recent developments in the literature on environmental and natural resource economics. We review the use of E-BCA in both countries across three themes: (a) the role of long-term discounting; (b) the estimation and use of carbon valuation; and, (c) the estimation and use of the value of a statistical life. 

This paper considers the treatment of co-benefits in benefit-cost analysis of federal air quality regulations. Using a comprehensive data set on all major Clean Air Act rules issued by the Environmental Protection Agency over the period 1997–2019, the authors show that (1) co-benefits make up a significant share of the monetized benefits; (2) among the categories of co-benefits, those associated with reductions in fine particulate matter are the most significant; and (3) co-benefits have been pivotal to the quantified net benefit calculation in nearly half of cases.

Innovation will be critical in the transition to a low-carbon economy. Meeting the goals of the Paris Climate Agreement requires reworking our existing energy infrastructure, but it is easier said than done. Rethinking energy systems hinges on reconciling the interests of many existing stakeholders: investors, banks, governments, energy companies, and consumers. Developing and fostering new ideas is the first step toward illuminating the frontiers of what is possible.

Gulf countries have hailed their investments in renewable energy, but some basic questions remain about the extent to which it makes sense for GCC states to invest aggressively in renewables. The sheer magnitude of such investments will require these countries to mobilize significant public resources.  Therefore, such an assessment requires these countries to focus on national interests, not just a desire to be perceived as constructive participants in the global transition away from carbon energy. 

This report starts by identifying four common strategic justifications for investing in renewable energy in GCC countries. Each of these rationales highlights a different aspect of renewable energy investments. In addition, each rationale is based on different assumptions about the underlying drivers of such investments, and each rationale is based on different assumptions about the future of energy.