Environment & Climate Change

The economist and HKS professor is passionate about solving what may be humanity's most important and perplexing problem: How to untangle fossil fuels from the global economy.

Orley Ashenfelter, the Joseph Douglas Green 1895 Professor of Economics at Princeton University, outlined both the positive and negative impacts of climate change on grape growing and the wine industry in the latest episode of “Environmental Insights: Discussions on Policy and Practice from the Harvard Environmental Economics Program."

In late 2017, Mexico made headlines as Italian company Enel bid what was then a world-record low price for renewable energy in the country’s third such energy auction. This development was possible due to the historical and sweeping energy reforms passed with broad support in Mexico in 2013. Then-President Enrique Peña Nieto had succeeded where previous Mexican presidents had failed, reversing decades of resource nationalism and overhauling the energy sector through constitutional reforms that gave the private sector a larger role and advantaged renewable energy in Mexico’s economy. The 2017 auction seemed to indicate Mexico’s bright future not only as a conventional oil producer, but also as a clean energy power.

The United States and United Kingdom have longstanding traditions in use of environmental benefit-cost analysis (E-BCA). While there are similarities between how E-BCA is utilized, there are significant differences too, many of which mirror ongoing debates and recent developments in the literature on environmental and natural resource economics. We review the use of E-BCA in both countries across three themes: (a) the role of long-term discounting; (b) the estimation and use of carbon valuation; and, (c) the estimation and use of the value of a statistical life. 

The geopolitical and geo-economic forces wrought by the coronavirus pandemic, as examined previously in this series, are likely to slow the transition to a more sustainable global energy mix. Fortunately, the pandemic has also resulted in governments gaining vastly greater influence over whether this shift stalls or accelerates.

For most people, there was nothing to celebrate when the International Monetary Fund downgraded its outlook for global economic growth in June, anticipating a contraction of 4.9% for 2020. Yet for others, such as the small but persistent group of economists and others known as the “degrowth movement,” the Covid-induced economic slowdown has a silver lining.

The search for silver linings to the coronavirus pandemic has come up woefully short. But one hopeful — and much talked of — prospect is that the disruption will accelerate the global shift to a more sustainable energy future.

This study group will explore the role of the private sector in evolving energy systems, and how corporations might change in a climate constrained world. 

Jos Delbeke, Professor at the European University Institute in Florence and at the KU Leuven in Belgium, recounted the history of carbon pricing and voiced his optimism for further international efforts to combat climate change in the newest episode of "Environmental Insights: Discussions on Policy and Practice from the Harvard Environmental Economics Program."

Jos Delbeke, Professor at the European University Institute in Florence and at the KU Leuven in Belgium, recounted the evolution of carbon pricing and voiced his optimism for further international efforts to combat climate change in the newest episode of “Environmental Insights: Discussions on Policy and Practice from the Harvard Environmental Economics Program.”