Energy

Decarbonizing existing buildings is a key component of greenhouse gas emission reduction strategies, but private investors have been slow to finance residential decarbonization projects because of a range of barriers. Authors Chang, Fornara, and Sanghvi argue that green banks could play a major role in unlocking public and private financing for projects that are currently financially unviable. 

For over a decade, American officials have been touting the wisdom of a strategic “pivot” away from the Middle East in order to face the threat of a rising China. During that same period, Beijing has identified the Middle East as a primary arena for great power competition with the United States. 

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.

The Danish Minister of Climate, Energy, and Utilities expressed his hope that the tragic war in Ukraine will help accelerate the clean energy transformation by weaning Europe off Russian gas during a Virtual Forum (view recording here) last Friday (April 8). The event was 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. 

Recap of James Snyder in Conversation event "Israel and the Middle East through a Literary Lens"

Recap of MEI event "UNRWA, Its Mandate, Successes, and Challenges"

Guangdong Province ranks first in economic output among China’s provinces and will play a major role in achieving China’s national climate-change goals. This paper examines the progress of Guangdong Province’s carbon dioxide emissions trading system (ETS) in reducing emissions; design features of the system; challenges it faces with regard to further development; and its relationship to China’s new national ETS.

In this report, we propose a market reform pathway for Yunnan that is both feasible and applicable to address some of these challenges immediately, while aiming for a standard design based on well-documented international experience. Our proposal includes at its heart a pay-for-performance monthly capacity auction that can help cover revenue deficiencies in the energy market. Building on international experience with capacity markets, this approach provides incentives for availability when generation is needed most and is compatible with the adoption of a single energy market for all electricity resources. Out-of-market payments to cover stranded costs of certain firms can thus be minimized. Finally, engaging consumers in both these energy and capacity markets can create high-powered incentives to shift consumption to low-cost months and hours, benefitting the entire province.

This paper explores the effect of oil shocks on electoral outcomes. Using a new polling and election data set for 207 elections across 50 democracies, the paper shows that oil price increases systematically lower the odds of reelection for incumbents. The analysis verifies that these shocks—which reduce consumption growth—are associated with worsening performance for incumbents in the runup to reelection and a reversal in the leaning of the political party in power post-election.  

A Middle East-wide forum could facilitate dialogue and transparency on a range of short-term measures, engendering momentum to then take on other more complex items, such as regional arms control.