Energy

"Because emission control costs vary drastically among the millions of diverse emissions sources, conventional regulations are unfeasible. Only a pricing regime provides incentives for the overall target to be achieved in the least expensive manner. In the long term it is economical because of incentives to adopt lower-cost, cleaner technologies."

The authors evaluate the consistency of economic incentives and climate objectives in Europe, with regard to energy markets. In this context, they examine policy interactions between the EU-ETS and Europe's renewable target—and the role of natural gas in a transition to a low-carbon economy.

A group of American and European academics working on understanding the future prospects of energy technologies and the role of governments shaping these prospects gathered at Harvard Kennedy School in April. Hosted by Laura Diaz Anadon, director of the Energy Technology Innovation Policy.... the group discussed the need to incorporate uncertainty around technical change, the challenges of utilizing expert elicitations to inform policy decisions using models, and future collaborative work combining different expert elicitations and different energy-economic models.

"A successful international climate policy framework will have to meet two conditions, build a coalition of countries that is potentially effective and give each member country sufficient incentives to join and remain in this coalition. Such coalition should be capable of delivering ambitious emission reduction even if some countries do not take mitigation action. In addition, it should meet the target without exceedingly high mitigation costs and deliver a net benefit to member countries as a whole. The novel contribution of this paper is mostly methodological, but it also adds a better qualification of well-known results that are policy relevant."

The Spring 2011 issue of the Belfer Center newsletter features recent and upcoming activities, research, and analysis by members of the Center community on critical global issues. This issue highlights the Belfer Center’s continuing efforts to build bridges between the United States and Russia to prevent nuclear catastrophe – an effort that began in the 1950s. This issue also features three new books by Center faculty that sharpen global debate on critical issues: God’s Century, by Monica Duffy Toft, The New Harvest by Calestous Juma, and The Future of Power, by Joseph S. Nye.