Energy

Energy economist Severin Borenstein, Professor of the Graduate School at the Haas School of Business at the University of California, Berkeley, discussed the many significant challenges facing the nation’s electricity power sector in the latest episode of “Environmental Insights: Discussions on Policy and Practice from the Harvard Environmental Economics Program.

Harvard University Professor James Stock, who serves as Harvard's inaugural Vice Provost for Climate and Sustainability and director of the new Salata Institute for Climate and Sustainability, expressed his hopes for a smooth domestic energy transition during the newest episode of “Environmental Insights.”

The economist and HKS professor is passionate about solving what may be humanity's most important and perplexing problem: How to untangle fossil fuels from the global economy.

Surging demand and dizzying price hikes have raised concerns that inadequate metal and mineral supplies may impede the clean energy transition. Given the urgency of reducing fossil fuel use, the science and policy worlds must solve two main challenges: how to ensure the availability and affordability of critical metals in the quantities needed, and how to manage the environmental impacts related to mining and processing them. The latter issue is likely to be much trickier than the former, argue Henry Lee and Xin Sun.

Joshua Schwartz and Sabrina Arias write that although Congress seems unable to act, enough states, cities and counties are mobilizing to make a dent in U.S. carbon emissions. The states, cities, counties, and towns that have committed themselves to upholding the Paris agreement currently release a majority of U.S. carbon emissions. If they do manage to meet their targets, they can make a meaningful difference.

Last week, U.S. Sen. Joe Manchin seemingly dashed Democrats’ hopes for congressional action to slow climate change. Sen. Bernie Sanders accused Manchin of “sabotag[ing] the president’s agenda”; Rep. John Yarmuth, when asked about the consequences of Congress not acting on climate change, said, “We’re all going to die”; and climate activists, as well as some Democrats in Congress, wondered if Manchin should be removed as chair of the Senate Energy and Natural Resources Committee.

For many, integrating “decarbonization” into public policy, corporate and financial strategies has become a requirement, not an option — yet, what happens when the critical link between climate stability and decarbonization breaks?

There will be bumps on the road as America transitions to a clean power system. That’s the assessment offered by Lori Bennear, the Juli Plant Grainger Associate Professor of Energy Economics and Policy at the Nicholas School of the Environment at Duke University, in the latest episode of “Environmental Insights: Discussions on Policy and Practice from the Harvard Environmental Economics Program,” a podcast produced by the Harvard Environmental Economics Program.

Capital Choices analyzes the creation of different SWFs from a comparative political economy perspective, arguing that different state-society structures at the sectoral level are the drivers for SWF variation. Juergen Braunstein focuses on the early formation period of SWFs, a critical but little understood area given the high levels of political sensitivity and lack of transparency that surround SWF creation. Braunstein’s novel analytical framework provides practical lessons for the business and finance organizations and policymakers of countries that have created, or are planning to create, SWFs.

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.