Reports & Papers

Decarbonizing existing buildings is a key component of greenhouse gas emission reduction strategies, but private investors have been slow to finance residential decarbonization projects because of a range of barriers. Authors Chang, Fornara, and Sanghvi argue that green banks could play a major role in unlocking public and private financing for projects that are currently financially unviable. 

From July 11-12, 2023, NATO leaders gathered in Vilnius, Lithuania for one of the most significant NATO summits in history. This timely brief by Eric Rosenbach, Grace Jones, and Olivia Leiwant serves as a background piece on Ukraine’s history with NATO, potential future pathways for accession, and the operational impact Ukraine’s NATO membership could have on the alliance. 

The American public is increasingly losing trust and confidence in the military and has a lower propensity to serve. This has significant implications for the safety and security of the nation. To overcome these issues, the Army must develop a long-term strategy to create a positive organizational culture. This requires senior leaders to focus on educating and training junior Army leaders on how to improve the organizational climate while also modernizing bureaucratic processes that frustrate soldiers and undermine morale.

The U.S. should accept with humility its inability to fully eliminate terrorism. Specifically, U.S. policy must balance “ends, ways, and means;” establish clear and achievable objectives; adopt efficient, effective, and resource-sustainable strategies; ensure synchronization of diplomatic and military efforts; build alliances to share the burden of countering terrorism; and leverage cooperative mechanisms and regional partnerships to increase the capacity and willingness of regional states to defend their sovereignty and contribute to multinational coalitions against terrorism.  A balanced, integrated, and synchronized strategy encompassing defense, diplomacy, economic, and humanitarian assistance lines of effort should be cornerstone of a revamped foreign policy in the coming decades.

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.

The strategic competition in the Indo-Pacific involving the United States, Australia and the Chinese Communist Party (CCP) is arguably the most significant contemporary international relations issue. It spans all aspects of state power: hard, sharp and soft; diplomatic, information, military and economic; and all domains: air, sea, land, space, cyber, technology and innovation. But in their rush to recover ground perceived to be already lost to the CCP, neither the U.S. nor Australia have paused to devote sufficient attention to understanding the nature of strategic competition, to comprehend what winning it actually means, and therefore to grasp how best to approach it. As a result, they both continue to cede the initiative to the CCP, while it continues to compete on the terms most favorable to it.

The fields of automation and artificial intelligence are broad, having applications in diplomatic, informational, military, and economic activities. Within this realm, lethal autonomous weapon systems (LAWS) are a new enabler for achieving political ends through the application of the military instrument of power. As the world is past the point of considering whether robots should be used in war, the goal of the discussion herein is to examine how autonomous systems can be used ethically. This article seeks explicitly to demonstrate that fielding and employment of lethal autonomous weapons systems can be done effectively and ethically by maximizing the advantages and minimizing the shortfalls of both technology and the human mind.