Environment & Climate Change

The Belfer Center began researching energy technology issues in the late 1990s. Its mission was “to determine and promote the adoption of effective strategies for developing and deploying cleaner and more efficient energy technologies that can reduce greenhouse gas emissions, reduce dependence on fossil fuels and stress on water resources, and improve economic development.”

In this issue, we look at the history and influence of the Center’s energy innovation efforts in the past two decades by focusing primarily on ETIP’s work in the U.S. and China.

Scientists from three universities demonstrate that buying a product made in China causes significantly higher carbon dioxide emissions than purchasing the same product made elsewhere.

China is the world's largest emitter of carbon dioxide, accounting for one-quarter of the global total in 2013. Although the country has successfully lowered the rate of emissions from industry in some cities through improved technology and energy-efficiency measures, rapid economic growth means that more emissions are being added than removed. Without mitigation, China's CO2 emissions will rise by more than 50% in the next 15 years.

The magnitude and growing annual rate of growth of China's carbon emissions make this country the major driver of global carbon emissions and thus a key focus for efforts in emissions mitigations. This report presents independent data on China's carbon emissions from 1950–2012, and provides a basis to support mitigation efforts and China's low-carbon development plan.

China has ambitious goals for developing and deploying electric vehicles (EV). The stated intention is to “leapfrog” the auto industries of other countries and seize the emerging EV market. Since 2009, policies have included generous subsidies for consumers in certain locations, as well as strong pressure on local governments to purchase EVs. Yet four years into the program, progress has fallen far short of the intended targets. China has only about 40,000 EVs on the road, of which roughly 80% are public fleet vehicles such as buses and sanitation vehicles.

"Although the country has successfully imported model environmental policies, it has yet to develop the complex institutional infrastructure needed to make them work, especially an independent judiciary, a capable bureaucracy, and effective co-operation between central and local governments."

The outcome of the December 2011 United Nations climate negotiations in Durban, South Africa, provides an important new opportunity to move toward an international climate policy architecture that is capable of delivering broad international participation and significant global CO2 emissions reductions at reasonable cost. This paper addresses an important component of potential climate policy architecture for the post-Durban era: links among independent tradable permit systems for greenhouse gases.

Gasoline taxes can be employed to correct externalities associated with automobile use in order to reduce dependency on foreign oil and raise government revenue. This paper examines how gasoline taxes affect consumer behavior as distinct from tax-exclusive gasoline prices. It suggests that traditional analysis could significantly underestimate policy impacts of tax changes and discusses the implications of these findings.