Energy

Paul Joskow, the Elizabeth and James Killian Professor of Economics emeritus at MIT and former President and CEO of the Alfred P. Sloan Foundation in New York City, shared his thoughts on U.S. regulatory economics and climate change policy in the latest episode of “Environmental Insights: Discussions on Policy and Practice from the Harvard Environmental Economics Program.”

.

China recently launched the world’s largest emissions trading market, but it is just one component of the nation’s ambitious efforts to curb the rise in greenhouse-gas emissions. That was the message delivered on Thursday (July 22) by Carnegie Mellon University Associate Professor Valerie Karplus during a Virtual Forum hosted by the Harvard Project on Climate Agreements (HPCA) and moderated by Robert Stavins, HPCA Director and A.J. Meyer Professor of Energy and Economic Development.

The Harvard Project conducted a research workshop in June 2021, “Prospects for Guangdong Province’s Emissions Trading System.” Guangdong Province ranks first in economic output among China’s provinces and will play a major role in achieving increasingly ambitious national emissions-reduction targets. Guangdong’s emissions-trading system is, in turn, a key policy instrument in the Province’s climate-action plan.

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.

A discussion on energy and climate policy with John Graham, dean emeritus and still a professor at the Paul O'Neill School of Public and Environmental Affairs at Indiana University, and former Administrator of the Office of Information and Regulatory Affairs (OIRA).

The success of U.S. President Joe Biden's China policy will depend on whether the two powers can cooperate in producing global public goods, while competing in other areas. The U.S.-China relationship is a "cooperative rivalry," in which the terms of competition will require equal attention to both sides of the oxymoron.  Joseph Nye argues that it will not be easy.

Both sides of the Atlantic are converging in their assessment of the challenges China poses to transatlantic prosperity and democracy. The U.S. and Europe must now build on this convergence to advance a common strategy toward China. Only together can the U.S. and Europe, alongside other democratic nations, maintain the necessary leverage in trade, technology and multilateral engagement to hold China accountable to a set of standards that protects democratic societies and contributes to global stability.

To develop a stronger transatlantic approach toward China, the Biden administration must work to rebuild trust in the transatlantic relationship and recommit to multilateral alliances and institutions abandoned by President Trump. Europe for its part must unite and take action where it sees China exploiting its critical industries and infringing on its values. A common position on China at the EU–level and across several influential EU member states is critical to making transatlantic cooperation on China feasible.

Professor Joseph Aldy says the incoming U.S. administration can breathe new life into global efforts against climate change, but faces daunting political and economic obstacles.

President-elect Joe Biden’s decision to create a new cabinet-level position for climate-related issues — and to choose so prominent a figure as former Secretary of State John Kerry to fill it — demonstrates Biden’s sincerity over putting climate at the very center of U.S. foreign policy. It is easy to understate the importance of this appointment, given the flurry of czars created by most new administrations.

Joseph Aldy advocates for a carbon-price benchmark — which could be set initially at $50 per ton and rise over time — that would reflect the benefits of reducing the pollution causing climate change.