Asia & the Pacific

During foreign policy disputes involving China and some of its most important commercial partners, why do local leaders punish or protect foreign commercial actors? The decision comes down to the political incentives facing each local leader. Understanding this variation is important because how local leaders treat foreign businesses can influence the overall effectiveness of the Chinese government’s economic coercion against foreign states. 

Power transitions affect a state’s ability to exercise economic statecraft. As a dominating and a rising power approach parity, they face structural incentives to decouple their economies. This decoupling affects business-state relations: high-value businesses within the dominant power tend to oppose their state’s economic statecraft because of its costs to them, whereas low-value businesses within the rising power tend to cooperate because they gain from it. 

Economic interdependence has long been considered important to international peace. Questions about harmful effects of the free flow of capital, however, are arising. China and Organization for Economic Co-operation and Development countries are increasingly involving their business firms in security and intelligence work, causing a security dilemma dynamic that increases economic competition.

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.

This article examines both the premise and prescription of the argument to integrate renewable electricity in developing countries through elements of the standard model (such as a wholesale spot market, or an independent system operator for dispatch). This is done by highlighting the differences between power sector reform experiences in the developing and developed worlds, and the causal mechanisms underlying these differences.

It is a critical first step that the financial policymakers of the United States have acknowledged the need for a CBDC, but that realization is not enough. 

In order to fully appreciate the global climate-change challenge that the Biden administration will face, Robert Stavins reflects on the history of international negotiations that brought us to this point.

The authors argue that more determined efforts to globalize renewable energy transmission can confer significantly higher economic and environmental benefits from renewables on billions of people. This can be done by exploiting spatial differences between electricity loads and net renewable generation across time zones (temporal arbitrage) and latitude (seasonal arbitrage). Using very long distance, ultra-high voltage (UHV) transmission infrastructure, temporal and spatial arbitrage can move low-cost clean electricity from areas with excess capacity to high demand zones in other countries and even continents.

This policy brief describes the persistent challenge of poor electricity reliability in India and how it interacts with key regulatory policies, analyzes Delhi’s experience with outage compensation since 2017, and highlights areas for additional economic and policy research on this topic.

Juergen Braunstein and Sachin Silva argue that sovereign wealth funds may be central to governments' efforts to balance public responsibility with private interests in post-pandemic economies.