Energy

The price cap on Russian oil implemented today by the G7 countries plus Australia represents a novel approach to sanctions. The policy is designed to reduce Russian fossil fuel revenues while keeping Russian oil on the market. In this brief, Catherine Wolfram, Simon Johnson, and Łukasz Rachel explain the basic economic principles at work and discuss some of the critiques of the price cap. 

The price cap on Russian oil implemented today by the G7 countries plus Australia represents a novel approach to sanctions, according to a policy brief authored by Catherine Wolfram, Simon Johnson, and Łukasz Rachel and released today by Harvard Kennedy School’s Belfer Center for Science and International Affairs and the Mossavar-Rahmani Center for Business and Government. 

In an interview with The Harvard Gazette, Henry Lee welcomes California's aggressive move toward electric vehicles, but sees one ‘huge mistake’ policymakers need to avoid and a surefire way to anger drivers.
 

John Holdren spoke to The Harvard Gazette about the proposed Inflation Reduction Act legislation and its potential impact, should it survive House scrutiny and be signed by President Biden.

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.

The newly elevated "Major Questions Doctrine" of the Supreme Court's conservative majority puts a vast array of environmental and business regulations at risk, writes John Holdren.

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.

In February and March, Belfer Center Student Fellow Winnona DeSombre and Environment and Natural Resources Program Director Henry Lee testified before the U.S.-China Economic and Security Review Commission in Washington, D.C. During separate hearings on China’s capabilities and plans related to cyber and to energy, DeSombre and Lee recommended actions Congress should take for the U.S. to remain competitive with China.

The attached document contains April 2022 updates to our database on U.S. government investments in energy research, development, demonstration, and deployment (ERD3) through the Department of 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.”

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