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Begin New Search Topic Economics Publishing Institution Belfer Center for Science and International Affairs, Harvard University Publication Year within 25 Years

1. Comparative State Economic Interventions in the Carbon Capture and Storage Market

Author:
Dillon W. Smith, Umang Bhattarai, and Wake Smith
Publication Date:
09-2022
Content Type:
Policy Brief
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
An essential element in the portfolio of climate solutions required to rapidly achieve net zero emissions is flue gas carbon capture and storage, whereby carbon can be sifted from emission streams before it enters the atmosphere and safely sequestered in geologic storage systems. Despite its importance in the climate tool portfolio, flue gas capture capacity is currently much less than reasonable estimates of its potential. States around the world are searching for policies by which to incentivize emitters to invest in carbon capture and storage (CCS) and hasten the technology’s rollout. We survey five leading polities (United Kingdom, Netherlands, Norway, United States, and California) in their efforts to kick-start the deployment of CCS and assess the strengths and weaknesses of each territory’s scheme.
Topic:
Climate Change, Economics, and Carbon Emissions
Political Geography:
Global Focus

2. The Price Cap on Russian Oil Exports, Explained

Author:
Catherine Wolfram, Simon Johnson, and Łukasz Rachel
Publication Date:
12-2022
Content Type:
Policy Brief
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
If you’ve taken an introductory economics class, you were probably left with the strong impression that price caps are bad – they distort demand and discourage producers from supplying the market. So, why has Treasury Secretary Janet Yellen, the consummate economist, advocated so strongly for a price cap on Russian oil? The answer is that this price cap is different from the standard cap discussed in introductory economics classes. A standard price cap applies to all goods traded in a market. For example, in some countries there are price caps on bread for everyone or diesel for farmers or rent controls on housing. Such caps lead to excess demand for the good and insufficient supply, leading to shortages at the capped price. If prices are constrained, other non-price mechanisms, like first-come-first-served, are required to allocate the good. All too frequently, the result is empty bakery shelves or fuel shortages or difficulties finding housing. To understand why the cap on Russian oil is different, we first need to provide background on Russian oil trade and the proposed price cap.
Topic:
Economics, Markets, Oil, Exports, and Russia-Ukraine War
Political Geography:
Russia and Europe

3. Supporting a Public Purpose in Research & Development: The Role of Tax Credits

Author:
Jake Taylor
Publication Date:
06-2021
Content Type:
Policy Brief
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
Tax credits for research and development are a means of incentivizing the private sector to invest their own resources on challenging problems. However, in practice, the fungibility of tax credits and other monetary elements can lead to misalignment between the public good represented by R&D and the actions of the company. In this policy brief, we consider the existing mechanism of tax credits. We see how they can encourage private sector risk-taking to enable research and development (R&D) outcomes. However, our goal is to go beyond economic growth benefits, and to include the less tangible considerations of public good and public purpose in the research and development domain. We then suggest an expansion of tax credits focused on supporting the researchers involved in the R&D and encouraging innovation in both large organizations and in startups and small businesses. This approach builds upon the existing framework of agency-led, mission-defined support of the private sector used by the U.S. government, as occurs in other programs such as America’s Seed Fund (sometimes known by its acronyms, SBIR and STTR). The integration of specific agency- and mission-focused elements to the credit system ensures that these additive credits support research and researchers whose R&D outcomes will improve the health, prosperity, and opportunity for the U.S. as a whole. Specific means of implementing this public-purpose R&D credit system under existing authorities within the executive branch are suggested, along with the public-facing mechanisms for creating and maintaining the evaluation approach of what constitutes “public purpose” as science and society progress.
Topic:
Economics, Science and Technology, International Affairs, Tax Systems, and Tax Credits
Political Geography:
Global Focus and United States of America

4. The European Union at a Crossroads: Unlocking Renewable Hydrogen’s Potential

Author:
Nicola De Blasio and Alejandro Nuñez-Jimenez
Publication Date:
11-2021
Content Type:
Policy Brief
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
European countries are at a crossroads on their path to carbon neutrality. Today, they are at the forefront of the global clean hydrogen race but going forward they would be better served by collaborating instead of working alone. Overall, the European Union (EU) is highly competitive in clean technologies manufacturing and thus well-positioned to benefit from the emergence of global hydrogen markets. But a narrow focus on short-term cost considerations could drive member states to implement national roadmaps with little or no coordination among themselves and hence little or no chance of competing globally. As a bloc, the EU has pledged to reach carbon neutrality by 2050. Clean hydrogen is a cornerstone of this transformational effort; accordingly, in July 2020, the EU adopted its hydrogen strategy with the ambition of deploying open and competitive clean hydrogen markets for all energy sectors and segments by 2050.1 Success hinges around implementing a cohesive long-term strategy to address a fundamental ques- tion and its associated challenges: where could the EU source competitive and secure renewable hydrogen supplies? As our previous research shows, all countries have access to renewable resources (such as solar or wind), to different degrees, and could produce some renewable hydrogen locally. However, while resource-rich countries, such as Spain, could evolve into regional exporters, no EU member state has the potential to become a global export champion. At the same time, North African countries, such as Morocco, are well-situated to act as key suppliers to the EU. Furthermore, imports from resource-rich regions like North America could help to address security of supply concerns.2 Today, EU hydrogen demand stands at 7.8 million tons per year (Mt/yr), equivalent to about 10% of global demand. Germany and the Netherlands are the largest consumers, accounting for over a third of EU demand, followed by Poland, Spain, Italy, Belgium, and France, which consume about 0.5 Mt/yr each.3 According to available projections, as hydrogen use grows across all economic sectors, EU hydrogen demand could reach 76 Mt/yr by 2050. But while the EU strategy sets clear targets on electrolyzer deployment by 2030, it provides very few details on how the bloc could meet demand—and at what cost—by 2050.
Topic:
Economics, Environment, Science and Technology, Natural Resources, European Union, Innovation, Hydrogen, and Energy
Political Geography:
Europe

5. Central Bank Digital Currencies: Tools for an Inclusive Future?

Author:
Eve Lee
Publication Date:
09-2020
Content Type:
Policy Brief
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
Central Bank Digital Currencies (CBDCs) have rapidly evolved from a sci-fi concept to a plausible alternative to cash that is being studied by central banks all over the world. According to a Belfer Center tracker, over 50 central banks have pursued or are engaging in CBDC work as of August 2020. However, while 10 central banks have already piloted or announced plans to pilot a CBDC in the near term, most are in the early stages of research and experimentation. In this brief, we outline the common motivations driving central bank work on CBDCs. We then explore CBDCs’ potential impacts on financial inclusion, a primary motivation in developing and emerging markets that has also gained significant traction in developed economies during the COVID-19 related global recession. We conclude that for CBDCs to achieve its financial inclusion goals, more technical advancement in offline adaptability and policy deliberations around issues of identity and traceability are needed.
Topic:
Diplomacy, Economics, International Trade and Finance, International Affairs, and Monetary Policy
Political Geography:
Global Focus

6. China’s National Carbon Market: Paradox and Potential

Author:
Cecilia Springer
Publication Date:
12-2020
Content Type:
Policy Brief
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
China announced it would launch a national carbon market in 2017, yet this policy is taking years to come into effect. What will it take for a carbon market to work in command-and-control China? This policy brief explores an understudied challenge—emissions accounting—and identifies potential opportunities that have arisen in the first phase of China’s national carbon market.
Topic:
Climate Change, Economics, Energy Policy, Environment, Natural Resources, and Carbon Emissions
Political Geography:
China and Asia-Pacific

7. The Russian Reality Check on Turkey's Gas Hub Hopes

Author:
Morena Skalamera
Publication Date:
01-2016
Content Type:
Policy Brief
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
On Nov 24, 2015, Turkey shot down a Russian fighter jet after it veered into its airspace for 17 seconds. On December 13, a Russian ship fired warning shots at a Turkish vessel in the Aegean Sea. Bilateral tensions, with overt military dimensions, have seemed to quickly replace the goodwill that characterized relations only a year ago. Over the past few weeks, experts and observers have debated whether this incident will jeopardize deep Turkish-Russian energy cooperation—and whether newfound tensions between Moscow and Ankara will thwart Turkey’s ambition to transform itself into an energy hub. A closer look suggests grounds for both optimism and pessimism. Given the deep interests of both parties in continuing energy cooperation, and the mutual nature of the dependency, tensions over Syria are unlikely to adversely impact energy cooperation in a fundamental way. Turkey, however, is unlikely to realize its vision of an energy hub—not because of Russia, but because of a combination of domestic and other geopolitical factors.
Topic:
International Relations, Security, Economics, Energy Policy, Oil, Geopolitics, Gas, and Trade
Political Geography:
Russia, Europe, and Turkey

8. Assessing Future Water Availability in Arid Regions Using Composition and Salience of Decision Criteria

Author:
Laura Diaz Anadon, Afreen Siddiqi, and Farah Ereiqat
Publication Date:
03-2014
Content Type:
Working Paper
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
Water resources development options are usually selected on a least-cost basis. While economic considerations are dominant in choosing projects, there are also a mix of other factors including social demands, political expediency, social equity, and environmental considerations that impact final decisions and development of water supply systems. Understanding local priorities in water resource management decisions can allow for forming expectations of future regional water availability. In this research, we propose that future water availability in arid regions may be assessed by considering key projects that have been identified or planned by regional experts. Using Multi-Criteria Decision Analysis methods as a framework to organize set of decision criteria and their relative salience, the likelihood of selection (and development) of a project can be determined and used to form expectations of future regional water availability. We use this approach in a case study for Jordan, and find that large-scale desalination projects–that have been in the planning books for decades-are now most likely to be pursued and implemented in the country. Finally, we discuss strengths, limitations, and the general applicability of this method for assessing future water availability in other arid regions.
Topic:
Development, Economics, Environment, Natural Resources, and Water
Political Geography:
Middle East

9. Time to Worry about China's Military Rise

Author:
Evan Braden Montgomery
Publication Date:
06-2014
Content Type:
Policy Brief
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
What are the potential consequences of China's military modernization? This question is at the heart of recent debates over the durability of U.S. primacy, whether or not the United States can sustain its grand strategy of global engagement, and how it should adapt its armed forces. During the past two decades, China has been increasing its defense spending, developing new war fighting strategies, and fielding advanced weapons systems. Yet many scholars and policymakers still believe that U.S. dominance will remain uncontested.
Topic:
International Relations, Foreign Policy, Economics, International Security, and Military Strategy
Political Geography:
North America

10. Can Negotiating a Uniform Carbon Price Help to Internalize the Global Warming Externality?

Author:
Martin L. Weitzman
Publication Date:
01-2014
Content Type:
Working Paper
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
It is difficult to resolve the global warming free-rider externality problem by negotiating quantity targets. By contrast, negotiating a single binding minimum carbon price (the proceeds from which are domestically retained) counters self interest by incentivizing agents to internalize the externality. The model of this paper indicates an exact sense in which each agent's extra cost from a higher emissions price is counterbalanced by that agent's extra benefit from inducing all other agents to simultaneously lower their emissions. Some implications are discussed.
Topic:
Climate Change, Economics, Energy Policy, Industrial Policy, and International Cooperation
Political Geography:
Europe

11. The Crucial Role of Policy Surveillance in International Climate Policy

Author:
Joseph E. Aldy
Publication Date:
10-2013
Content Type:
Policy Brief
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
An extensive literature shows that information-creating mechanisms enhance the transparency of and can support participation and compliance in international agreements. This paper draws from game theory, international relations, and legal scholarship to make the case for how transparency through policy surveillance can facilitate more effective international climate change policy architecture. This paper critically evaluates the historic practice of monitoring and reporting under the global climate regime, with a focus on how surveillance affects the legitimacy, reciprocity, and adequacy of climate agreements. Given the inadequate nature of climate policy surveillance, I draw lessons from policy surveillance in multilateral economic, environmental, national security, and other contexts. I also describe how the institution of policy surveillance can facilitate a variety of climate policy architectures. This evaluation of policy surveillance suggests that transparency is necessary for global climate policy architecture.
Topic:
Climate Change, Economics, International Cooperation, and Treaties and Agreements

12. Identifying Options for a New International Climate Regime Arising from the Durban Platform for Enhanced Action

Author:
Robert N. Stavins, Ottmar Edenhofer, and Christian Flachsland
Publication Date:
10-2013
Content Type:
Policy Brief
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
The goal of the Harvard Project on Climate Agreements is to help identify and advance scientifically sound, economically rational, and politically pragmatic public policy options for addressing global climate change. Drawing upon leading thinkers in Argentina, Australia, China, Europe, India, Japan, and the United States, the Project conducts research on policy architecture, key design elements, and institutional dimensions of domestic climate policy and a post-2015 international climate policy regime. The Project is directed by Robert N. Stavins, Albert Pratt Professor of Business and Government, Harvard Kennedy School.
Topic:
Climate Change, Economics, Energy Policy, Industrial Policy, International Cooperation, and Treaties and Agreements
Political Geography:
United States, Japan, China, Europe, and India

13. The Geopolitics of Natural Gas

Author:
Amy Myers Jaffe and Meghan L. O'Sullivan
Publication Date:
07-2012
Content Type:
Working Paper
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
Some of the most dramatic energy developments of recent years have been in the realm of natural gas. Huge quantities of unconventional US shale gas are now commercially viable, changing the strategic picture for the United States by making it self-sufficient in natural gas for the foreseeable future. This development alone has reverberated around the globe, causing shifts in patterns of trade and leading other countries in Europe and Asia to explore their own shale gas potential. Such developments are putting pressure on longstanding arrangements, such as oil-linked gas contracts and the separate nature of North American, European, and Asian gas markets, and may lead to strategic shifts, such as the weakening of Russia's dominance in the European gas market.
Topic:
Climate Change, Economics, Energy Policy, and Natural Resources
Political Geography:
Europe and Asia

14. Post-Durban Climate Policy Architecture Based on Linkage of Cap-and-Trade Systems

Author:
Robert N. Stavins
Publication Date:
07-2012
Content Type:
Working Paper
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
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. We evaluate one important component of potential climate policy architecture for the post-Durban era: links among independent tradable permit systems for greenhouse gases. Because linkage reduces the cost of achieving given targets, there is tremendous pressure to link existing and planned cap-and-trade systems, and in fact, a number of links already or will soon exist. We draw on recent political and economic experience with linkage to evaluate potential roles that linkage may play in post-Durban international climate policy, both in a near-term, de facto architecture of indirect links between regional, national, and sub-national cap-and-trade systems, and in longer-term, more comprehensive bottom-up architecture of direct links. Although linkage will certainly help to reduce long-term abatement costs, it may also serve as an effective mechanism for building institutional and political structure to support a future climate agreement.
Topic:
Climate Change, Economics, Environment, International Cooperation, and Treaties and Agreements
Political Geography:
South Africa and Durban

15. To Stay Ahead of China, Stay Engaged in Asia

Author:
Michael Beckley
Publication Date:
01-2012
Content Type:
Policy Brief
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
Despite the hype about the rise of China, current power trends favor continued U.S. dominance. National power has three main material components: wealth, innovation, and military power. Over the last twenty years, China has fallen further behind the United States in all of these areas.
Topic:
Security, Defense Policy, Economics, International Trade and Finance, and Bilateral Relations
Political Geography:
United States, China, and Asia

16. "Does Decapitation Work? Assessing the Effectiveness of Leadership Targeting in Counterinsurgency Campaigns"

Author:
Patrick Johnston
Publication Date:
04-2012
Content Type:
Journal Article
Journal:
International Security
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
Targeting of militant leaders is central to many states' national security strategies, but does it work? What should policymakers expect when armed forces capture or kill militant leaders? Is leadership decapitation more likely to succeed or fail under certain conditions? These questions have never been more pressing than after the May 2011 killing of al-Qaida leader Osama bin Laden. As relevant as these questions are to current U.S. policy and strategy, they are also fundamental questions of asymmetric warfare. They matter because almost all policies of "high-value" targeting require difficult judgments concerning both the potential consequences and the opportunity costs of targeting militant leaders. The decision to target enemy leaders requires that policymakers adjudicate among numerous difficult, and potentially contradictory, choices. Leadership targeting strategies affect how states allocate scarce military, intelligence, and economic resources; how they construct their counterinsurgency or counterterrorism postures; and how interested foreign and domestic audiences react to their behavior.
Topic:
Economics and Intelligence
Political Geography:
United States

17. When Duty Calls: A Pragmatic Standard of Humanitarian Intervention

Author:
Robert A. Pape
Publication Date:
07-2012
Content Type:
Journal Article
Journal:
International Security
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
On March 18, 2011, President Barack Obama announced the U.S. government's commitment to an international military intervention in Libya, declaring, "We're protecting innocent civilians within Libya" from Muammar Qaddafi's forces to prevent "a humanitarian crisis." Within days, an international coalition of Western and Arab states launched air strikes that halted the Libyan government forces' offensive against the rebel stronghold of Benghazi and the roughly 2 million people living in the eastern region of the country. Within weeks, major international economic resources began ºowing to rebel-controlled areas to help strengthen their ability to remain independent from Qaddafi's control. Within months, Qaddafi's grip on the western portions of the country crumbled. Now, many policymakers and scholars recognize the Libyan mission as a significant success for international humanitarian intervention according to the main yardstick of saving many lives with no loss of life among the interveners.
Topic:
Economics
Political Geography:
United States and Libya

18. Global Oil Production is Surging: Implications for Prices, Geopolitics, and the Environment

Author:
Leonardo Maugeri
Publication Date:
06-2012
Content Type:
Policy Brief
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
Oil Production Growth is Global. Global oil output capacity is likely to grow from 93 million barrels per day today to 110 million barrels per day by 2020—the largest increase in a single decade since the 1980s. The surge in oil production capacity will occur almost everywhere, with the largest increases in Iraq, the United States, Canada, Brazil, and Venezuela. United States Will Experience Unprecedented Output. Technological advances will increase the production of “unconventional” oil in the United States, which is in the midst of a shale boom. The Bakken/Three Forks formation in North Dakota alone has as much untapped shale/tight oil as a Persian Gulf country. Oil Prices May Collapse. If oil prices remain at or above $70 per barrel, investments will sustain the 20 percent increase in oil production capacity by 2020. However, world demand is sluggish due to the lagging economy and focus on energy efficiency. If these trends continue, we could see a significant dip—or even a temporary collapse—of oil prices. Shifting Market Has Geopolitical Consequences. While the Western Hemisphere could become oil self-sufficient by 2020, Iraq's oil output will also substantially increase as it stabilizes. China may escalate its competitive and political influence in the Persian Gulf and other oil-producing hotspots, including Canada, Venezuela, and possibly the United States. Oil Boom Must Trigger Environmental Action. Enforcement of environmental regulation and major investment in emission-reducing technologies must accompany the development of unconventional oil. Without this balance between industry and environmental interests, new oil production projects will be stymied or delayed.
Topic:
Economics, Industrial Policy, Oil, Political Economy, and Natural Resources
Political Geography:
United States

19. Africa Can Feed Itself in a Generation

Author:
Calestous Juma
Publication Date:
01-2011
Content Type:
Policy Brief
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
African agriculture is at a crossroads. Persistent food shortages are now being compounded by new threats arising from climate change. But Africa also has three major opportunities that can help transform its agriculture to be a force for economic growth. First, advances in science, technology, and engineering worldwide offer Africa new tools needed to promote sustainable agriculture. Second, efforts to create regional markets will provide new incentives for agricultural production and trade. Third, a new generation of African leaders is helping the continent focus on long-term economic transformation.
Topic:
Security, Agriculture, Economics, Science and Technology, and Food
Political Geography:
Africa

20. A Bleak Future for the European Project

Author:
Sebastian Rosato
Publication Date:
05-2011
Content Type:
Policy Brief
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
The European project seems to have run aground of late. Observers want to know how likely it is that the Europeans will recommit themselves to establishing a political and military union, and what the future holds for the single market and single currency.
Topic:
Security, Economics, Political Economy, and Regional Cooperation
Political Geography:
Europe