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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. 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

9. 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

10. 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

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. 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

14. "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

15. 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

16. 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

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. Political Economics: The Challenges of Economic Development in Palestine

Author:
Karam Dana
Publication Date:
12-2011
Content Type:
Working Paper
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
Since the Six-Day War and Occupation of 1967, economics, an area of study that affects social and political formulations and transformations, has entered the study of the Palestinian-Israeli conflict to a much larger extent: Palestinian workers in Israel, to an underdeveloped infrastructure in the Palestinian territories. More than four decades later, economic challenges continue to play a role in the affairs of the Palestinians: from affecting people's lives and their leadership on the one hand, and the relationship between the Palestinian and Israel on the other. Within Palestinian society itself, the dynamics of state-society relations have demonstrably been affected by economic transformations, but have yet to be fully studied in places of continuous occupation and conflict like the West bank and the Gaza Strip. This paper explores the challenges that have faced developmental attempts in Palestine since the occupation of 1967.
Topic:
Development, Economics, and Infrastructure
Political Geography:
Middle East and Arabia

20. 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

21. 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

22. Research, Development, and Demonstration for the Future of Nuclear Energy

Author:
Valentina Bosetti, Matthew Bunn, Michela Catenacci, Audrey Lee, and Laura Diaz Anadon
Publication Date:
06-2011
Content Type:
Policy Brief
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
Dramatic growth in nuclear energy would be required for nuclear power to provide a significant part of the carbon-free energy the world is likely to need in the 21st century or a major part in meeting other energy challenges. This would require increased support from governments, utilities, and publics around the world. Achieving that support is likely to require improved economics and major progress toward resolving issues of nuclear safety, proliferation-resistance, and nuclear waste management. This is likely to require both research, development, and demonstration (RD) of improved technologies and new policy approaches.
Topic:
Climate Change, Economics, Energy Policy, and Nuclear Power

23. Posturing for Peace? Pakistan's Nuclear Postures and South Asian Stability

Author:
Vipin Narang
Publication Date:
01-2010
Content Type:
Journal Article
Journal:
International Security
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
On November 26, 2008, terrorists from Lashkar-e-Taiba—a group historically supported by the Pakistani state—launched a daring sea assault from Karachi, Pakistan, and laid siege to India's economic hub, Mumbai, crippling the city for three days and taking at least 163 lives. The world sat on edge as yet another crisis between South Asia's two nuclear-armed states erupted with the looming risk of armed conºict. But India's response was restrained; it did not mobilize its military forces to retaliate against either Pakistan or Lashkar camps operating there. A former Indian chief of Army Staff, Gen. Shankar Roychowdhury, bluntly stated that Pakistan's threat of nuclear use deterred India from seriously considering conventional military strikes. 1 Yet, India's nuclear weapons capability failed to deter subconventional attacks in Mumbai and Delhi, as well as Pakistan's conventional aggression in the 1999 Kargil War. Why are these two neighbors able to achieve such different levels of deterrence with their nuclear weapons capabilities? Do differences in how these states operationalize their nuclear capabilities—their nuclear postures—have differential effects on dispute dynamics?
Topic:
Economics
Political Geography:
Pakistan, United States, South Asia, India, and Mumbai

24. Pyongyang's Survival Strategy: Tools of Authoritarian Control in North Korea

Author:
Daniel Byman and Jennifer Lind
Publication Date:
08-2010
Content Type:
Journal Article
Journal:
International Security
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
In the early 1990s, many observers predicted that Kim Il-sung's regime would not survive the cessation of Russian aid and the resulting downward spiral of North Korea's economy. Speculation about regime collapse intensified when the less charismatic Kim Jong-il succeeded his father in 1994, and again after the 1996–97 famine that killed upwards of a million North Koreans. Gen. Gary Luck, commander of U.S. forces in Korea, declared in 1997 that North Korea would “dis - integrate.” That same year, a U.S. government and outside team of experts predicted regime collapse within five years. Another decade brought more prognostications: in 2000 Director of Central Intelligence George Tenet warned that “sudden, radical, and possibly dangerous change remains a real possibility in North Korea, and that change could come at any time.” Three years later, U.S. Deputy Secretary of Defense Paul Wolfowitz said that North Korea was “teetering on the edge of economic collapse.” Contemporary accounts warn that the regime is threatened by the growing flow of information into the country or by popular outcry touched off by the government's 2009 bungling of currency reform.
Topic:
Economics
Political Geography:
United States and North Korea

25. Iran's Youth, The Unintended Victims of Sanctions

Author:
Djavad Salehi-Isfahani
Publication Date:
08-2010
Content Type:
Policy Brief
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
The effect of the international sanctions on Iran is to deepen its current economic recession and make recovery very difficult if not impossible. In doing so, it will inflict pain on the general population. By prolonging the recession, the sanctions will hurt Iran's youth (15-29 year olds) particularly harshly, as they will bear the brunt of the resulting unemployment. They account for 70 percent of unemployment, and any improvement in their condition depends on economic recovery.
Topic:
Economics and Sanctions
Political Geography:
United States and Iran

26. How Do We Know This is Not Another Great Depression? Lessons for Policymakers from the 1930s

Author:
Jeffrey Frankel
Publication Date:
07-2009
Content Type:
Policy Brief
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
The current economic crisis is fundamentally different from those we have experienced in recent past. The proximate causes of previous recessions (1980-2 and 1990-91) were increases in interest rates in response to inflation. This time around, however, low interest rates and loose monetary policy during the period 2003-2005 had contributed to a bubble in asset prices, rather than to inflation. This-coupled with an underestimation of risk in our financial system, failures of corporate governance, and excessive debt by both households and government-caused the crisis of 2007-09.
Topic:
Economics, International Trade and Finance, Monetary Policy, and Financial Crisis
Political Geography:
United States, Japan, and Germany

27. The Blueprint: A History of Dubai's Spatial Development Through Oil Discovery

Author:
Stephen J. Ramos
Publication Date:
11-2009
Content Type:
Working Paper
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
To understand Dubai's modern history since its founding in 1833, one must go further back in time to explore the regional history that frames its foundation. European powers, beginning with the Venetians, and, then subsequently, the Portuguese, the Dutch, and finally the British, were interested in the Gulf region as a means to secure trade routes to and from the Indian Subcontinent and points eastward. This meant that from the fifteenth century through the late nineteenth century, if trade routes could move uninterrupted through the Gulf region, European powers were not involved in the societal affairs of settlements as a traditionally colonial ruling class, nor did European merchants bother to extensively explore trade within the region, believing that it required more effort than either the climate or the local economies were worth. The region's local tribes were divided among the maritime coastal groups and those that were nomadic and land-bound, and conflict among these groups occurred in parallel with the larger European conflicts also playing out in the region. The intersection of the two came with the increase in piracy, which, in very basic terms, represented a kind of cultural disagreement on trade customs. The Europeans felt that they were unjustly looted and local groups simply sought to protect themselves from foreign incursion while taking what they believed was their share. Historians still debate this issue today, but in relation to Dubai, the piracy of the times serves as an example of how looser understandings of the licit and illicit, particularly in terms of trade, could be capitalized upon as business venture. The smuggling of gold, weapons, and other goods throughout Dubai's history may have been seen as illicit from perspectives outside Dubai's ports, but the merchant-friendly environments of these ports and the adherence to local autonomy allowed them to trade freely.
Topic:
Economics, International Trade and Finance, and Oil
Political Geography:
Europe, India, Arabia, and Dubai

28. Linkage Diplomacy: Economic and Security Bargaining in the Anglo-Japanese Alliance, 1902-23

Author:
Christina L. Davis
Publication Date:
03-2009
Content Type:
Journal Article
Journal:
International Security
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
How do states use economic-security linkages in international bargaining? Governments can provide economic benefits as a side payment to reinforce security cooperation and use close security ties as a source of bargaining leverage in economic negotiations. Domestic political pressures, however, may constrain the form of linkage. First, economic side payments are more likely to be chosen in areas that will not harm the key interests of the ruling party. Second, involvement by the legislature pushes governments toward using security ties as bargaining leverage for economic gains. Evidence from negotiations between Britain and Japan during the Anglo-Japanese alliance of 1902 to 1923 supports the constraining role of domestic politics. Economic-security linkages occurred as Britain gave favorable economic treatment to Japan in order to strengthen the alliance. Economic competition between the allies, however, made it difficult for Britain to grant asymmetrical economic benefits. In tariff negotiations where business interests had more influence in the domestic policy process, the alliance was used as leverage to force reciprocity.
Topic:
Security, Diplomacy, Economics, and Government
Political Geography:
Britain and Japan

29. Giving Green to Get Green: Incentives and Consumer Adoption of Hybrid Vehicle Technology

Author:
Kelly Sims Gallagher and Erich Muehlegger
Publication Date:
02-2008
Content Type:
Working Paper
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
Federal, state and local governments use a variety of incentives to induce consumer adoption of hybrid-electric vehicles. We study the relative efficacy of state sales tax waivers, income tax credits and non-tax incentives and find that the type of tax incentive offered is as important as the value of the tax incentive. Conditional on value, we find that sales tax waivers are associated a seven-fold greater increase in hybrid sales than income tax credits. In addition, we estimate the extent to which consumer adoption of hybrid-electric vehicles (HEV) in the United States from 2000-2006 can be attributed to government incentives, changing gasoline prices, or consumer preferences for environmental quality or energy security. After controlling for model specific state and time trends, we find that rising gasoline prices are associated with higher hybrid sales, although the effect operates entirely through sales of the hybrid models with the highest fuel economy. In total, we find that tax incentives, rising gasoline prices and social preferences are associated with 6, 27 and 36 percent of high economy hybrid sales from 2000-2006.
Topic:
Economics, Energy Policy, and Government
Political Geography:
United States

30. Economic Analysis of the Nurse Shortage in Egypt

Author:
Marwa Farag
Publication Date:
04-2008
Content Type:
Working Paper
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
The health sector in Egypt suffers from a severe shortage of qualified nurses (nurses with at least 2 years of post high school nursing education) and a much less apparent perceived/real shortage of all-type nurses. This paper examines the nurse labor market in Egypt for evidence of such shortages and explores potential reasons behind them. The paper adopts a case-study approach to provide an overall understanding of the demand for and supply of nurses in Egypt; it employs both qualitative and quantitative techniques. Focus groups and in-depth interviews were conducted with 19 nurses in addition to secondary analysis of data from World Health Organization- East Mediterranean Region, High Council for University Students in Egypt and Ministry of Health and Population. I find that the main reason for the shortage of the stock of qualified nurses is–to a large extent- the restricted supply of nursing education, which is provided entirely by the public sector today. The overall perceived/real shortage of all-type nurses on the other hand does not seem to be related to a shortage of the stock of all nurses but rather nurse supply decisions at the current nurse wage levels and nurse working conditions in Egypt. The Ministry of Health and Population current approach is to upgrade the quality of nursing education in Egypt to eliminate high school level nursing education in the future; this seems to be the right approach. However, as a result of lack of quantitative labor market data, it is not possible to predict the likely effect of such policy on the shortage. Since a more educated nurse is more employable in the private sector and abroad, this might very well mean that more nurses will exit the public sector leading to more severe shortages in the public sector and therefore such policy should be accompanied by nurse retention strategies tailored to the nature of the supply nurses. Lack of data makes it difficult to generate the evidence necessary to guide such policies. Investing in data infrastructures is essential to support evidence based health policy in Egypt. Finally, with Egypt high unemployment rate (particularly for female unemployment), it is possible to view the availability of foreign markets for Egyptian nurses as an opportunity instead of a threat if the right policies aimed at protecting the local market for nurses and public investments in nurse education are adopted.
Topic:
Economics, Education, and Health
Political Geography:
Egypt

31. Labor Regulations and European Industrial Specialization: Evidence from Private Equity Investments

Author:
Ant Bozkaya and William R. Kerr
Publication Date:
05-2008
Content Type:
Working Paper
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
European nations empirically substitute between employment protection regulations and labor market expenditures like unemployment insurance benefits in the provision of labor market insurance to workers. While perhaps substitutes from a worker's perspective, employment regulations more directly tax .firms making frequent labor force adjustments. These labor adjustments are especially important for the portfolio companies of both venture capital and buy-out investors. European nations providing worker insurance through labor market expenditures developed stronger domestic private equity markets over the 1990-2004 period than those nations favoring employment protection. These patterns are further evident in US-sourced private equity investments into Europe. Moreover, tests for industry specialization suggest that countries with more flexible labor markets tend to specialize in sectors characterized by high labor volatility. These results are relevant to the literatures examining the impact of labor market regulations on entrepreneurship and productivity growth due to reallocations across .firms and sectors.
Topic:
Economics, Industrial Policy, and Markets
Political Geography:
United States and Europe

32. The National Gasification Strategy: Gasification of Coal and Biomass as a Domestic Supply Option

Author:
William G. Rosenberg, Dwight C. Alpern, and Michael R. Walker
Publication Date:
01-2005
Content Type:
Working Paper
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
Natural gas provides 24 percent of the energy used by U.S. homes and businesses and is a vital feedstock for chemical, fertilizer, and other industries. Since 1999, natural gas prices in the U.S. have more than doubled, adding about $70 billion annually to U.S. natural gas customers and causing widespread adverse economic impacts, including high home heating bills, escalating commercial energy costs (affecting hospitals, schools, office buildings, and shopping centers ), substantial job losses in chemicals, fertilizer, and manufacturing industries, and financial distress in the electric power sector.
Topic:
Economics, Energy Policy, and Industrial Policy
Political Geography:
North America

33. Good Governance Rankings: The Art of Measurement

Author:
Marie Besancon
Publication Date:
09-2003
Content Type:
Working Paper
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
Governance is the delivery of political goods—beginning with security—to citizens of nation-states. Good governance results when nation-states provide a high order of certain political goods—when the nation-states perform effectively and well on behalf of their inhabitants. Rotberg says that nation-states “exist to provide a decentralized method of delivering political (public) goods to persons living within designated parameters....” and “it is according to their performances—according to the levels of their effective delivery of the most crucial political goods—that strong states may be distinguished from weak ones...” The social contract between ruler and ruled embodies effective delivery of these political goods—and what this hierarchy of crucial political goods entails is based on societal norms and beliefs.
Topic:
Demographics, Development, Economics, and Government