Energy

The Belfer Center’s Environment and Natural Resources Program and the Center for Science, Technology, and Education Policy at Tsinghua University held the fifth annual Tsinghua-Harvard Workshop on Low-Carbon Development and Public Policy. This event brought together leading experts on climate and energy from academic, business, and government communities in both the United States and China. This year’s workshop focused on electricity systems and renewable energy penetration.

The Harvard-Tsinghua Workshop on Low-Carbon Development and Public Policy is the fourth annual joint workshop between the Harvard Kennedy School’s Environment and Natural Resources Program and the Center for Science, Technology, and Education Policy at Tsinghua University. The workshop convened leading experts on climate and energy from the United States and China at Tsinghua University in Beijing, China, on June 1-2, 2017.

The workshop was divided into five sessions. The first two sessions focused on the scope of the climate problem and the options for addressing it. The following three sessions explored specific options: renewable energy, nuclear power, and air pollution regulation.

The magnitude and growing annual rate of growth of China's carbon emissions make this country the major driver of global carbon emissions and thus a key focus for efforts in emissions mitigations. This report presents independent data on China's carbon emissions from 1950–2012, and provides a basis to support mitigation efforts and China's low-carbon development plan.

This discussion paper examines the development of water markets as a solution to water scarcity in China, with particular focus on Water Rights Trading (WRT). Water scarcity is an issue of growing concern for China, particularly in the north, where a combination of limited water supplies, economic growth, and population increases are increasingly straining water resources. The Chinese government has moved enthusiastically toward an embrace of market mechanisms to address water scarcity, with WRT being the preferred policy instrument in the agricultural sector, which accounts for the majority of water use in China. This discussion paper proposes several policy recommendations to improve the development of water markets in China, in particular by lowering the transaction costs to establishing markets and improving policy coordination.

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.

China has ambitious goals for developing and deploying electric vehicles (EV). The stated intention is to “leapfrog” the auto industries of other countries and seize the emerging EV market. Since 2009, policies have included generous subsidies for consumers in certain locations, as well as strong pressure on local governments to purchase EVs. Yet four years into the program, progress has fallen far short of the intended targets. China has only about 40,000 EVs on the road, of which roughly 80% are public fleet vehicles such as buses and sanitation vehicles.

This study examines the legal, regulatory and financial issues encountered in nine planned commercial-scale carbon capture and sequestration (CCS) research, development and demonstration (RD&D) projects under Phase III of the U.S. Department of Energy’s Regional Carbon Sequestration Partnerships (RCSP) Program. In Phase III of the RCSP, financial issues dominated the outcomes in these projects, directly causing termination of three of the projects and contributing to termination in two others. Long-term liability and lack of coordination among regulatory authorities also posed significant barriers.