Energy

Wei Peng discusses how long-distance electricity transmission could play a key role in reducing China’s air pollution.

"Given the existing low-cost competition in a no-growth market, renewable developers face tough investment challenges absent new policies. A carbon tax could substantially increase market demand for renewable power and encourage the retirement of pollution-intensive coal-fired power plants."

"Let's first consider Harvard's current fossil fuel investment policy. After student, faculty, and alumni constituencies asked the Harvard Corporation to cease investing in the coal, oil, and gas sectors, the Harvard Corporation decided to hold fast to a policy of maximizing investment return with these sectors without regard to the harms they cause through climate change and conventional air pollution. In some cases, the Harvard Corporation has argued that it not only should maximize return with these sectors, but that it is obligated to do so."

The case for carbon taxes has long been compelling, writes Lawrence Summers. "With the recent steep fall in oil prices and associated declines in other energy prices it is overwhelming. There is room for debate about the size of the tax and about how the proceeds should be deployed. But there should be no doubt that starting from the current zero tax rate on carbon, increased taxation would be desirable."

"Getting individuals to take responsibility for their energy consumption is not just an issue of building short-term awareness of a cause. Rather, these campaigns require changes to long-standing habits, perhaps through constant reminders that emphasize individual action. Climate action therefore raises questions of both the desired intensity and frequency of messages in promoting behavioral change."

In the cynical world of politics it is important, just occasionally, to give credit where it is due. The commitments on carbon emissions announced on Wednesday by President Barack Obama of the US and President Xi Jinping of China, supported by the significant diplomacy of Secretary of State John Kerry, are both environmentally substantive and politically influential. Between them, these countries account for 44 per cent of global carbon emissions – a share that is still rising.

China's political, economic and foreign policy over the next decade is not only fundamental to the country itself, but also to the wider Asia-Pacific region and – increasingly -- the world beyond.

China already represents 16 percent of global gross domestic product (GDP), rising to 28 percent by 2030. China is also by far the world's largest emitter of greenhouse gases. Furthermore, continued maritime boundary disputes in both the East and South China seas are a significant continuing factor in the region's underlining strategic instability. How China deals with each of these challenges is therefore of significance to us all.

"President Obama has put energy and the environment at the top of his second-term agenda. The focus has been on climate change, and on exploiting the unexpected plenty of North American oil, gas and energy technology. The administration's progress has been notable...," writes John Deutch.

"The president's highest priority is to reduce the carbon-dioxide emissions of existing electricity generating power plants....The projected CO2 reductions—about 30% below 2005 levels by 2030—are reasonable and shouldn't significantly increase industry or consumer costs."