Environment & Climate Change

While China is building nuclear reactors faster than any other country in the world, major constraints may limit nuclear energy’s ability to grow to the scale of hundreds of gigawatts that would be required for it to play a major part in decarbonizing China’s energy system. This chapter explores the major constraints on, and risks of, large-scale nuclear energy growth in China, and how both new policies and new technologies might address them. It focuses particularly on the two biggest constraints – economics and siting. Substantial government policies to support nuclear power and advanced reactor systems designed to address some of the key constraints are both likely to be needed for nuclear to have a chance of playing a major role in decarbonizing China’s energy system; nuclear energy’s role may be bigger in the second half of this century than in the first half.

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.

David Keith argues that either or both carbon removal or solar geoengineering  is needed to cool the planet this century. There are no other options.

Joseph Aldy describes the challenge of reforming fossil fuel subsidies, given uncertainty about how much subsidies actually cost governments and given provisions in the US tax code that privilege fossil fuels over renewable energy sources. Aldy also elaborates on some policies that the Biden administration—which has committed to removing fossil fuel subsidies—could target as policymakers develop infrastructure legislation.

China recently launched the world’s largest emissions trading market, but it is just one component of the nation’s ambitious efforts to curb the rise in greenhouse-gas emissions. That was the message delivered on Thursday (July 22) by Carnegie Mellon University Associate Professor Valerie Karplus during a Virtual Forum hosted by the Harvard Project on Climate Agreements (HPCA) and moderated by Robert Stavins, HPCA Director and A.J. Meyer Professor of Energy and Economic Development.

Guangdong Province ranks first in economic output among China’s provinces and will play a major role in achieving China’s national climate-change goals. This paper examines the progress of Guangdong Province’s carbon dioxide emissions trading system (ETS) in reducing emissions; design features of the system; challenges it faces with regard to further development; and its relationship to China’s new national ETS.

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. 

In order to fully appreciate the global climate-change challenge that the Biden administration will face, Robert Stavins reflects on the history of international negotiations that brought us to this point.

This paper considers the treatment of co-benefits in benefit-cost analysis of federal air quality regulations. Using a comprehensive data set on all major Clean Air Act rules issued by the Environmental Protection Agency over the period 1997–2019, the authors show that (1) co-benefits make up a significant share of the monetized benefits; (2) among the categories of co-benefits, those associated with reductions in fine particulate matter are the most significant; and (3) co-benefits have been pivotal to the quantified net benefit calculation in nearly half of cases.

Professor Joseph Aldy says the incoming U.S. administration can breathe new life into global efforts against climate change, but faces daunting political and economic obstacles.