Environment & Climate Change

In an essay for Harvard Kennedy School Magazine, Henry Lee argues the policies China is pursuing to wean itself off reliance on fossil fuels may also benefit its quest for greater energy security.

We used the US-TIMES energy-system model in conjunction with integrated assessment models for air pollution (AP3, EASIUR, InMAP) to estimate the consequences of local air pollutant (LAP) and carbon dioxide (CO₂) policy on technology-choice, energy-system costs, emissions, and pollution damages in the United States. We report substantial policy spillover: Both LAP and CO₂ taxes cause similar levels of decarbonization. Under LAP taxes, decarbonization was a result of an increase in natural gas generation and a near-complete phaseout of coal generation in the electric sector. Under a CO₂ tax, the majority of simulated decarbonization was a result of increased electric generation from wind and solar. We also found that the timing of the CO₂ and LAP taxes was important. When we simulated a LAP tax beginning in 2015 and waited until 2025 to introduce a CO₂ tax, the electric sector was locked into higher levels of natural gas generation and cumulative 2010–2035 energy system CO₂ emissions were 8.8 billion tons higher than when the taxes were implemented simultaneously. A scenario taxing CO₂ and LAPs simultaneously beginning in 2015 produced the highest net benefits, as opposed to scenarios that target either CO₂ or LAPs, or scenarios that delayed either LAP or CO₂ taxes until 2025. Lastly, we found that net benefits compared to business as usual are higher under a regional versus a national LAP-tax regime, but that efficiency gains under the regional tax are not substantially higher than those under the national LAP-tax policy.

How can China make good on its pledge to reach carbon neutrality by 2060? In Foundations for a Low-Carbon Energy System in China, a team of experts from China and the United States explains how China's near-term climate and energy policies can affect long-term decarbonization pathways beyond 2030, building the foundations for a smoother and less costly national energy transformation.

This paper focuses on China and the potential role of renewable hydrogen in accelerating its transition to a low-carbon economy. Our research goal is to provide policymakers and other stakeholders the means to make informed decisions on technology innovation, policy instruments, and long-term investments in enabling infrastructure.

This policy brief describes the persistent challenge of poor electricity reliability in India and how it interacts with key regulatory policies, analyzes Delhi’s experience with outage compensation since 2017, and highlights areas for additional economic and policy research on this topic.

To accelerate the global transition to a low-carbon economy, all energy systems and sectors must be actively decarbonized. While hydrogen has been a staple in the energy and chemical industries for decades, renewable hydrogen is drawing increased attention today as a versatile and sustainable energy carrier with the potential to play an important piece in the carbon-free energy puzzle. Countries around the world are piloting new projects and policies, yet adopting hydrogen at scale will require innovating along the value chains; scaling technologies while significantly reducing costs; deploying enabling infrastructure; and defining appropriate national and international policies and market structures.

What are the general principles of how renewable hydrogen may reshape the structure of global energy markets? What are the likely geopolitical consequences such changes would cause? A deeper understanding of these nascent dynamics will allow policy makers and corporate investors to better navigate the challenges and maximize the opportunities that decarbonization will bring, without falling into the inefficient behaviors of the past.

Growing concern around climate change has ignited recent interest in carbon capture, utilization, and storage (CCUS) technologies and generated a series of studies on its global market potential.

This discussion paper (available in English and Chinese) describes the evolution of decentralization over the reform period that began in China in 1978, different theories of institutional change in China, and how the empirical and theoretical literatures help scholars and policymakers understand the development of institutions for governing GHG-emitting activities.

In this report, the authors conduct a benchmarking analysis for energy and CO2 emissions intensity of the steel industry among the largest steel-producing countries.

Environmental economists from Harvard, Yale, and other leading research institutions say an Environmental Protection Agency (EPA) proposal that would eventually allow more mercury pollution from power plants relies on a cost-benefit analysis that is fatally flawed. In a new report, the economists detail how the EPA’s calculations inappropriately fail to consider how reducing mercury pollution provides tens of billions of dollars in health benefits to the American people.

Professor Joseph E. Aldy served as a a co-chair and author of this December 2019 report, which was commissioned by the External Environmental Economics Advisory Committee (E-EEAC).