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Begin New Search Topic Energy Policy Political Geography North America Content Type Working Paper Publishing Institution Center on Global Energy Policy (CGEP), Columbia University Publication Year within 10 Years

1. To Bring Emissions-Slashing Technologies to Market, the United States Needs Targeted Demand-Pull Innovation Policies

Author:
Varun Sivaram, Matt Bowen, Noah Kaufman, and Doug Rand
Publication Date:
01-2021
Content Type:
Working Paper
Institution:
Center on Global Energy Policy (CGEP), Columbia University
Abstract:
President-elect Joe Biden has called climate change one of the four most important crises facing the country and pledged ambitious climate action.[1] At the heart of his strategy to slash US and global emissions is a focus on developing new and improved technologies to make clean energy transitions more affordable. During the campaign, Biden pledged a “historic investment in clean energy innovation.”[2] Indeed, boosting funding for energy research, development, and demonstration (RD&D) is widely popular among both Republicans and Democrats and represents a rare legislative opportunity for advancing climate policy under a razor-thin Democratic majority in Congress.[3] In December 2020, Congress passed the most sweeping energy legislation in a decade, attached to the $900 billion COVID-19 stimulus package, and authorized boosting clean energy RD&D funding.[4] Yet such investments alone may not be sufficient to successfully commercialize critical clean energy technologies. Today’s energy industry presents daunting barriers that impede the swift adoption of newer, cleaner technologies. As a result, the private sector underinvests in scaling up promising technologies and building out clean energy infrastructure.[5] Therefore, in addition to funding energy RD&D (“technology-push” policies), government policies should bolster market demand for clean energy to encourage private investors and firms to scale up and commercialize new technologies (“demand-pull” policies). Still, there are steep political obstacles in the way of many ambitious demand-pull policies. For example, President-elect Biden has called for economywide measures such as a clean electricity standard and $400 billion of public procurement of clean products such as electric vehicles.[6] These policies would create large markets for mass deployment of clean energy and speed a clean energy transition. But enacting them requires substantial new regulations and appropriations from Congress, a challenging feat even given the new Democratic control of both chambers of Congress. Fortunately, there is a set of targeted demand-pull measures that the Biden administration can immediately use—with existing statutory authority and without requiring massive new appropriations—to create early markets for promising clean energy technologies. These measures, which we call “demand-pull innovation policies,” fill a niche between RD&D investments that create new technology options and policies that support the large-scale deployment of clean energy. Demand-pull innovation policies focus narrowly on creating and shaping early markets for emerging technologies. For example, targeted government procurement, prize competitions, or milestone payments can provide early markets for clean energy technologies that have been developed with the aid of public RD&D funding. The government can also coordinate private procurement or otherwise catalyze private market adoption through certification and standard-setting processes. Such demand-pull innovation policies have extremely high leverage and have transformed limited public investment into flourishing private commercial markets across the space, medical, and energy fields.[7] Coherently pursuing demand-pull innovation policies will require coordination across the federal government. To this end, the incoming Biden administration should consider creating a new government office, the Energy Technology Markets Office (ETMO), to spearhead the scale-up and commercialization of promising clean energy technologies. The ETMO could be housed within the Department of Energy (DOE) to take advantage of the DOE’s deep expertise in energy technologies and markets. Indeed, in the recently passed Energy Act of 2020 (Division Z of the Consolidated Appropriations Act of 2021), Congress directed the DOE to build its capabilities to pursue demand-pull innovation policies.[8] In the same legislation, Congress also authorized the DOE’s Office of Technology Transitions, which could alternatively lead the demand-pull innovation agenda. Regardless of whether the administration creates a new office or augments an existing one, in order to maximize their potential impact, demand-pull innovation policies should not be the domain of only the DOE. Rather, the DOE should collaborate with a range of federal agencies—many of which, such as the Department of Defense, have sizable resources to invest in emerging technology procurement—to enact policies and pursue public-private partnerships to build market demand for the innovations critical to decarbonization. In concert with new RD&D investments in clean energy innovation, demand-pull innovation policies could be a powerful tool to speed the adoption of new technologies and cultivate advanced energy industries that can manufacture and export US innovations.
Topic:
Climate Change, Energy Policy, Environment, Science and Technology, Green Technology, and Carbon Emissions
Political Geography:
North America and United States of America

2. Forging a Path Forward on US Nuclear Waste Management: Options for Policy Makers

Author:
Matt Bowen
Publication Date:
01-2021
Content Type:
Working Paper
Institution:
Center on Global Energy Policy (CGEP), Columbia University
Abstract:
Nuclear power is considered in many countries a critical facet to maintaining reliable access to electricity during a global transition to low-carbon energy sources. One challenge to its potential in the United States, however, is the current standstill regarding a disposal pathway for spent nuclear fuel (SNF) from commercial reactors. This impasse has a negative bearing on nuclear energy’s ability to supply more zero-carbon electricity and may cost US taxpayers tens of billions of dollars in government liability for failing to meet contractual obligations to take possession of the waste from utilities. Despite the scientific community assessing that commercial SNF and other high-level radioactive waste (HLW), such as from defense activities, can be safely isolated in deep underground repositories, US efforts to license and operate one have flatlined. The original plan for siting at least two repositories for such waste was abandoned first by DOE and then by Congress. Yucca Mountain in Nevada was designated in law as the nation’s sole potential disposal site by Congress in 1987, fomenting the state’s opposition to the project. As a result of that opposition, Congress has not funded the project since 2010. Still, progress has been made over the last few decades in nuclear waste disposal programs in countries such as Finland, Sweden, and Canada. And the United States has seen the successful opening and operation of the Waste Isolation Pilot Plant in New Mexico to dispose of generally less radioactive but long-lived transuranic nuclear waste from defense activities. Such programs offer insights for how the United States can try to resolve the challenges with commercial nuclear waste disposal and potentially alleviate one obstacle to wider adoption of nuclear energy to decarbonize the US economy. This report, part of wider work on nuclear energy at Columbia University’s Center on Global Energy Policy, explains how the United States reached its current stalemate over nuclear waste disposal. It then examines productive approaches in other countries and a few domestic ones that could guide US policy makers through options for improving the prospects of SNF and HLW disposal going forward
Topic:
Energy Policy, Nuclear Power, and Nuclear Waste
Political Geography:
North America and United States of America

3. Reconsidering US Sanctions Policy Amid the Coronavirus Crisis and the Oil Market Crash

Author:
Richard Nephew
Publication Date:
03-2020
Content Type:
Working Paper
Institution:
Center on Global Energy Policy (CGEP), Columbia University
Abstract:
For energy markets, the profound economic disruptions caused by the coronavirus have broken the arrangements of the OPEC+ oil exporters to limit production, as Russia and Saudi Arabia failed to agree on production caps. Oil prices plunged as producers ramped up output, made worse by the demand shock created by the spread of Covid-19 and resulting plunging global economic activity as countries have sought to cope with the widespread infection and mortality. The global economic shocks and humanitarian crises have left US sanctions policy in a deeply uncomfortable spot. The United States has prioritized using sanctions as a means of creating leverage for resolving myriad foreign policy crises, arguing in part that using sanctions is a more humane option than the alternatives. The United States has long argued that without sanctions, some problems would either get far worse, with their own unpleasant consequences (such as human rights violations, regional aggression, and acts of terrorism), or would be met by US military force instead. Though some would disagree with the notion that sanctions are ever moral or just, it is on this basis—taken in combination with the presence of humanitarian exceptions to sanctions—that US policymakers across the political spectrum have asserted that their approach is appropriate and consistent with humanitarian values.
Topic:
Energy Policy, Oil, Natural Resources, Sanctions, and COVID-19
Political Geography:
North America and United States of America

4. A Saudi-U.S.-Russia Oil Deal Is Not a Good Idea

Author:
Christof Ruhl
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
Center on Global Energy Policy (CGEP), Columbia University
Abstract:
Oil markets are sending confusing signals at a time when more confusion is the last thing anyone needs. When Russia walked out on OPEC+ rather than contribute to more output cuts, Saudi Arabia turned on the crude taps. Whatever Riyadh’s intention, this “price war” was quickly made meaningless by the impact of the new coronavirus on global oil demand. The price collapse has been beyond anything anyone could have imagined. Now, storage room for crude is becoming scarce. Analysts warn darkly that plunging prices may threaten global economic stability. Equities follow the oil price news. Everyone seems to agree that prices should stop falling; and yet no one seems to argue that a very low oil price is exactly what the world’s economy needs to recover. The combination of price war and pandemic is also creating strange bedfellows. Some American shale producers are advocating that their country blocks Saudi oil imports, others want to talk to OPEC. President Donald Trump’s government has expressed an interest in cooperating on global oil supplies with Saudi Arabia and Russia; it’s nudging OPEC+ to reconvene, or an even wider group of producers to meet. Could we be witnessing the emergence of an unholy alliance of Saudi Arabia, Russia and the U.S., to “manage volatility,” and incidentally shore up the price of oil?
Topic:
Energy Policy, International Trade and Finance, Oil, and Natural Resources
Political Geography:
Russia, Europe, Middle East, Saudi Arabia, North America, and United States of America

5. Columbia Global Energy Dialogue: Natural Gas Flaring Workshop Summary

Author:
Marianne Kah
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
Center on Global Energy Policy (CGEP), Columbia University
Abstract:
The rapid expansion in tight oil production with its associated natural gas has made the United States the fourth largest source of flared gas in the world. The waste, emissions, and pollution caused by this flaring threatens not only the environment and human health but, ultimately, the license to operate for oil and natural gas companies. Responding effectively to the challenge of flaring requires technically and economically sound solutions that also enjoy political credibility and support. To be most credible, solutions for flaring need to be developed through open and transparent processes that provide for candid and constructive engagement by a diverse group of stakeholders. In January 2020, Columbia University’s Center on Global Energy Policy and the Energy Institute of the University of Texas at Austin gathered senior executives from the US oil and natural gas industry; current and former state government regulators; technical, market, and academic experts; and non-governmental organization (NGO) representatives with expertise in this topic for a workshop under the Chatham House Rule to discuss challenges and potential solutions to gas flaring, primarily in the Permian Basin. The gas flaring workshop focused on trends in gas flaring and greenhouse gas emissions in the United States, flaring and public policy, the disconnect between production growth and midstream infrastructure capacity, best practices and technological solutions for minimizing flaring, and regulatory and other solutions. Participants identified challenges to tackling flaring in the Permian, including poor data quality, the disconnect between the start of associated gas production and the availability of pipelines and other takeaway capacity, and the competition gas faces in the important Texas and California markets from lower-emission energy sources, and from coal in Texas. Participants also discussed potential solutions to these and other Permian flaring challenges.
Topic:
Energy Policy, International Trade and Finance, Oil, Natural Resources, and Gas
Political Geography:
North America and United States of America

6. The Greenest Stimulus Is One that Delivers Rapid Economic Recovery

Author:
Noah Kaufman
Publication Date:
06-2020
Content Type:
Working Paper
Institution:
Center on Global Energy Policy (CGEP), Columbia University
Abstract:
As governments plot their responses to the COVID crisis, it’s difficult to find an influential voice who is not calling for economic stimulus legislation that simultaneously aims to achieve climate change goals.[1] As International Monetary Fund chief Kristalina Georgieva put it: “We are about to deploy enormous, gigantic fiscal stimulus and we can do it in a way that we tackle both crises at the same time.”[2] After all, governments will spend trillions of dollars to put people back to work. This could be a once-in-a-generation opportunity to shape massive government expenditures in a lower-carbon direction. Europe appears poised to take this advice, with the European Commission crafting a “Green Deal” at the center of a recovery package.[3] Many European countries have strong climate policy frameworks in place, including emissions regulations and net zero targets. In these countries, clean energy investments within economic stimulus packages can combine with these existing policy frameworks to enable even faster and cheaper decarbonization.[4] Here in the United States, the situation is starkly different. Expectations for climate progress from economic stimulus should be low, for two (related) reasons. First, the United States has no national climate plan in place, and the ability of clean energy spending to deliver emissions reductions without accompanying emissions regulations is very limited. Second, political opposition can prevent or severely weaken climate measures in economic stimulus for the foreseeable future. The climate measures with a plausible chance of inclusion in economic stimulus will, at best, enable the United States to continue muddling along on an incremental decarbonization pathway while temperatures rise to increasingly dangerous levels.
Topic:
Energy Policy, Green Technology, Recovery, Pandemic, and COVID-19
Political Geography:
North America and United States of America

7. Strengthening Nuclear Energy Cooperation between the United States and Its Allies

Author:
Matt Bowen
Publication Date:
07-2020
Content Type:
Working Paper
Institution:
Center on Global Energy Policy (CGEP), Columbia University
Abstract:
Nuclear energy cooperation between the United States and its allies has been important for over a half century. Bilateral cooperation agreements with key countries date back to the 1950s, and the United States played a principal role in the development of several allied nuclear energy programs. Today, the international nuclear energy marketplace has changed, and the supply chain is globalized—the US program, for example, depends on working with allies for major safety-related components. However, limitations imposed by legacy US statutes and other obstacles are hampering greater collaboration in areas that would enhance the country’s nuclear program today. Developing advanced reactors to produce dispatchable zero-carbon electricity and heat as part of global efforts to address climate change would be aided by greater cooperation and utilization of resources and financing across countries. Deeper cooperation with like-minded allies would also allow the United States to better compete against other supplier countries that have different commercial and geopolitical objectives. If the challenges facing the US nuclear program are not overcome, the country risks further ceding its role as a leading nuclear technology exporter to China and Russia. Already China and Russia are growing their domestic nuclear energy programs and offering attractive financing to prospective customers of this technology around the world. These nuclear competitors may place differing priorities on areas such as nonproliferation, and therefore maintaining a US role in the nuclear supplier regime is connected with national security considerations. This paper, part of the Center on Global Energy Policy at Columbia University’s nuclear power program, examines part of what may be required for the United States to regain momentum in the nuclear power industry after an erosion of domestic capabilities stemming from a long hiatus in new reactor orders. The paper discusses the historical importance of nuclear cooperation between the United States and allies, some of the challenges that the US and some allied nuclear energy programs are facing, and how cooperation could be reinvigorated to the benefit of the United States and its allies.
Topic:
Diplomacy, Energy Policy, International Cooperation, and Nuclear Energy
Political Geography:
Europe, North America, and United States of America

8. It’s Time to Put Climate Action at the Center of U.S. Foreign Policy

Author:
Jason Bordoff
Publication Date:
07-2020
Content Type:
Working Paper
Institution:
Center on Global Energy Policy (CGEP), Columbia University
Abstract:
In the U.S. Democratic Party, perhaps no issue has risen more in prominence during this election year compared with prior ones than climate change. The number of self-identified Democrats who consider it a “major threat” is up from 6 in 10 in 2013 to almost 9 in 10 today. A slew of proposals—from the Green New Deal embraced by many progressive environmental groups to a new 538-page climate plan released by Democratic members of a special committee on the climate crisis in the U.S. House of Representatives—lay out various policies. Yet while these plans offer much to celebrate, all of them fall short by focusing on domestic actions while paying scant attention to the global nature of the crisis. Every ton of carbon dioxide contributes to climate change no matter where it is emitted, so an ambitious climate strategy cannot only be domestic—it must put the issue squarely at the center of U.S. foreign policy. Past U.S. efforts to advance global action, such as Washington’s leadership to help secure the 2015 Paris climate agreement, have been key to progress. Yet given both the urgency and global nature of climate change, the issue cannot be siloed into U.S. State Department or Energy Department offices and spheres of diplomacy. Many aspects of U.S. foreign policy will impact, and be impacted by, climate change. An effective foreign policy requires taking climate change directly into consideration—not just as a problem to resolve, but as an issue that can affect the success and failure of strategies in areas as varied as counterterrorism, migration, international economics, and maritime security. Human rights offers some important lessons. In the wake of the Vietnam War and the United States’ secret bombings of Cambodia, public concern for human rights was on the rise. Upon taking office in 1977, President Jimmy Carter declared human rights to be a “central concern” of U.S. foreign policy. In contrast to the realpolitik promoted by outgoing Secretary of State Henry Kissinger, Carter argued that protecting human rights would advance U.S. interests and was too important to be divorced from other aspects of U.S. foreign policy. Rather, human rights must be “woven into the fabric of our foreign policy,” as then Deputy Secretary of State Warren Christopher testified before a Senate subcommittee. Despite Carter’s mixed foreign-policy success, climate change demands a similar centrality. As the defining challenge of our time, climate change must be elevated to a foreign-policy priority and cannot be addressed with a compartmentalized approach. It is necessary, of course, to rejoin the Paris agreement, contribute to international finance efforts such as the Green Climate Fund, curb multilateral coal financing, and collaborate with other countries on clean-energy innovation. Yet all these efforts add up to an international climate strategy, not a climate-centered foreign policy. Truly making climate change a pillar of a foreign-policy strategy would have five key elements.
Topic:
Climate Change, Energy Policy, Environment, International Cooperation, and Paris Agreement
Political Geography:
North America and United States of America

9. Green Stimulus Proposals in the United States and China

Author:
David B. Sandalow and Xu Qinhua
Publication Date:
08-2020
Content Type:
Working Paper
Institution:
Center on Global Energy Policy (CGEP), Columbia University
Abstract:
On June 14, 2020 New York time and June 15, 2020 Beijing time, the Center on Global Energy Policy at Columbia University and Center for International Energy and Environment Strategy Studies at Renmin University convened a joint Zoom workshop on green stimulus programs in the US and China. The workshop offered a chance for scholars from the two universities to explore the recent economic downturn due to the COVID-19 pandemic, stimulus measures adopted to date and green stimulus proposals in both countries. Participants also discussed other measures to promote clean energy and low-carbon development in the US and China.
Topic:
Climate Change, Energy Policy, Environment, Green Technology, and Paris Agreement
Political Geography:
China, Asia, North America, and United States of America

10. Leveraging State Funds for Clean Energy: Lessons from New York State

Author:
Richard L. Kaufman and David B. Sandalow
Publication Date:
09-2020
Content Type:
Working Paper
Institution:
Center on Global Energy Policy (CGEP), Columbia University
Abstract:
The COVID-19 pandemic is creating extraordinary financial challenges for state governments. Tax revenues are plummeting and social service expenses increasing, leaving budget shortfalls projected to exceed $750 billion over the next three years.[1] For state governments to continue playing important roles in promoting clean energy, they will need to adopt strategies that leverage their limited funds. This commentary proposes four principles to guide state governments in spending limited funds to promote clean energy and discusses recent programs that applied those principles in New York State. One of the authors, Richard Kauffman, played a central role in the development of those programs as New York State “Energy Czar” from 2013 to 2019 and continues to serve as Chair of the New York State Energy Research and Development Authority (NYSERDA).
Topic:
Energy Policy, Renewable Energy, COVID-19, and Safe Energy
Political Geography:
New York, North America, and United States of America

11. Why the United States Should Remain Engaged on Nuclear Power: Geopolitical and National Security Considerations

Author:
Matt Bowen
Publication Date:
09-2020
Content Type:
Working Paper
Institution:
Center on Global Energy Policy (CGEP), Columbia University
Abstract:
Nuclear energy has shown much promise and faced considerable challenges since its origins in the mid-20th century. While the United States drove the early charge for safe nuclear power around the globe, its leadership has waned in recent decades. US reactors now under construction—following no orders for such plants in the United States for several decades—have gone well over planned budgets and schedules. And while the United States was once the leading international supplier of reactors, other countries have since stepped forward to fill that role. Columbia University’s Center on Global Energy Policy, as part of its wider work on nuclear energy, is examining the impact of potential American disengagement from nuclear power’s development and where opportunities exist to step back in and shape its future. The program also will assess the US nuclear waste management program and efforts to collaborate with other countries on advanced reactor development as well as options for improvement on both fronts. This effort includes a two-part commentary on some of the benefits the United States might derive from increasing its engagement on nuclear power. The first in the series explored the important role nuclear energy can play in lowering air pollution and greenhouse gas emissions to avoid the worst potential outcomes of climate change. The second part of the series, this piece, examines the geopolitical and national security implications of the United States and its traditional allies effectively ceding the international nuclear energy marketplace to the Chinese and Russians. The nuclear program’s ultimate goal is to inform readers—policy makers, industry leaders, academics, and others—with objective, research-based analysis. It will strive in the months and years ahead to contribute constructively to a necessary dialogue on the future of nuclear power.
Topic:
Security, Energy Policy, National Security, and Nuclear Power
Political Geography:
North America and United States of America

12. New York City’s Building Emissions Law Shows the Importance of Economywide Climate Policy

Author:
Noah Kaufman and Yu Ann Tan
Publication Date:
10-2020
Content Type:
Working Paper
Institution:
Center on Global Energy Policy (CGEP), Columbia University
Abstract:
Regulations of greenhouse gas emissions, which are global pollutants, should ideally be coordinated across broad geographic and economic scopes. That way, climate policies can capture important interactions across sectors and borders. However, the United States has repeatedly failed to implement national and economywide climate legislation. That failure has led to an increasing focus on climate actions that are much narrower in scope: sector-specific regulations from subnational governments. A prominent recent example is New York City’s Local Law 97, which limits carbon dioxide (CO2) emissions from a large segment of the city’s residential and commercial buildings. This law is among the most ambitious building emissions regulations in the world, but this commentary focuses on a concern with the design of Local Law 97. The law does not account for the planned decarbonization of the local electricity grid over the next decade, and thus fails to sufficiently encourage a shift from fossil fuels to electricity (or “electrification”), a critically important strategy for achieving a low-carbon building sector. Such a narrow focus is common for sector-specific climate regulations. The following sections explain the importance of electrification to deep decarbonization and the failure of building regulations to encourage it, focusing on New York City’s Local Law 97. Fortunately, solutions to the overly narrow focus of the New York City buildings law are readily available, including via New York State’s comprehensive climate strategy, which can align climate action across economic sectors within the state.
Topic:
Climate Change, Energy Policy, Environment, Law, Green Technology, and Carbon Emissions
Political Geography:
New York, North America, and United States of America

13. Roundtable on Climate-Oriented Economic Recovery

Author:
Center on Global Energy Policy
Publication Date:
10-2020
Content Type:
Working Paper
Institution:
Center on Global Energy Policy (CGEP), Columbia University
Abstract:
On July 2, 2020, Columbia University’s Center on Global Energy Policy (CGEP) and Harvard University jointly hosted a virtual roundtable on climate-oriented economic recovery and stimulus packages. Stakeholders included senior experts from universities and policy institutes as well as former high-level government officials. Key questions discussed at the roundtable, held under the Chatham House Rule, included the following: What are the appropriate objectives of economic stimulus and recovery packages? What clean energy lessons from the 2009 American Reinvestment and Recovery Act are most relevant to the design of economic stimulus legislation today? What climate and energy policies are best suited to deliver on both economic stimulus and climate objectives? How does near-term climate-oriented stimulus complement medium-term climate policy and yield progress on long-term climate goals? The following is an overview of the discussion.
Topic:
Climate Change, Energy Policy, Environment, and Economic Recovery
Political Geography:
North America and United States of America

14. Potential Implications of the COVID-19 Crisis on Long-Term Electricity Demand in the United States

Author:
A.J. Goulding, Mugwe Kiragu, and David Nour Berro
Publication Date:
10-2020
Content Type:
Working Paper
Institution:
Center on Global Energy Policy (CGEP), Columbia University
Abstract:
The ongoing COVID-19 pandemic has caused unprecedented changes in the ways people interact and approach economic activities. Electricity demand has declined and usage patterns have been altered, changes that could remain even after the pandemic ends. Failure to properly account for these declines in demand could lead to excess capacity in the electric power sector, added costs for consumers, and losses for investors. This paper, from the power sector program at Columbia University’s Center on Global Energy Policy, presents a methodology to quantify potential permanent reductions in demand triggered by the pandemic. The authors first identify how electricity demand changed in the United States following the 2008–2009 global financial crisis, or “Great Recession,” the last event to cause a major reduction in consumption. They then analyze the unique ways in which demand patterns may change over the next three to five years as a result of the coronavirus, followed by some illustrative calculations of the potential impact. Finally, the authors discuss the implications for policy makers with regard to electricity sector evolution. The paper finds that the COVID-19 crisis is likely to result in a long-term decline in annual electricity consumption, though less than that observed after the global financial crisis. It is also likely to accelerate changes in the structure of electricity demand that were already underway.
Topic:
Energy Policy, Electricity, Public Health, Pandemic, and COVID-19
Political Geography:
North America and United States of America

15. Output-Based Rebates: An Alternative to Border Carbon Adjustments for Preserving US Competitiveness

Author:
Noah Kaufman, John Larsen, Ben King, and Peter Marsters
Publication Date:
12-2020
Content Type:
Working Paper
Institution:
Center on Global Energy Policy (CGEP), Columbia University
Abstract:
Two linked and frequently raised concerns about putting a price on carbon dioxide emissions in the United States are whether such a tax would unintentionally advantage foreign competitors and, as a result, lead to increased emissions outside American borders. The tax could make American products more expensive than those made by companies in countries not imposing comparable climate regulations, which could lead to shifts in production overseas. Because a central aim of climate policy is to reduce global emissions, the “leakage” of production overseas would run counter to this goal. To avoid this outcome, carbon tax proposals commonly include a border carbon adjustment (BCA), which would impose the carbon tax on imported energy-intensive and trade-exposed products and provide a tax refund for exports of the same products. This commentary, part of a series of joint research on carbon tax policies by Columbia University’s Center on Global Energy Policy and Rhodium Group, highlights an alternative way to ensure that US firms remain on a level playing field with foreign competitors: output-based rebates (OBRs). While a BCA would focus on imports and exports, an OBR would instead compensate vulnerable US firms based on their production—a simpler process. Both BCAs and OBRs have their benefits and drawbacks, but nearly all carbon tax bills recently proposed in Congress included a BCA, and none included OBRs. This commentary reintroduces output-based rebates as an alternative to BCAs, analyzes US industries that could be compensated with OBRs, and estimates the costs of doing so. A border carbon adjustment is an appealing concept: simply apply the same carbon tax to foreign firms that is applied to domestic firms. The key advantage of OBRs is avoiding the most significant administrative hurdles of BCAs, including the complexities of determining the carbon content of foreign goods and providing foreign firms credit for climate regulations in their home countries. The proposed (but not passed) American Clean Energy and Security Act of 2009, commonly called the Waxman-Markey climate bill, included compensation for energy-intensive and trade-exposed (EITE) US firms with OBRs. This commentary uses the Waxman-Markey proposal as a guidepost to analyze the potential scope and costs of OBRs today.
Topic:
Energy Policy, Natural Resources, Carbon Tax, and Carbon Emissions
Political Geography:
North America and United States of America

16. Building a New Grid without New Legislation: A Path to Revitalizing Federal Transmission Authorities

Author:
Avi Zevin, Sam Walsh, Justin Gundlach, and Isabel Carey
Publication Date:
12-2020
Content Type:
Working Paper
Institution:
Center on Global Energy Policy (CGEP), Columbia University
Abstract:
Zero-carbon electricity will be the backbone of a net-zero economy, not only keeping the lights on in our homes and offices but also powering our transportation systems and industrial processes. Indeed, research indicates that in order to decarbonize the economy at a reasonable cost and within a reasonable time frame, we must rapidly decarbonize and grow the power sector. Electricity—how it is generated, moved along the transmission and distribution grids, and used—is already undergoing a rapid transformation in the United States. This transition has been supported over the last decade by steep cost declines for wind, solar, and battery technologies as well as cheap natural gas produced via hydraulic fracturing. But the transition to a net-zero power sector needs to accelerate to mitigate climate change, which is already impacting the health of people around the country and world. New long-distance, high-voltage transmission lines will be vital if the United States is to deploy enough renewable generation capacity to decarbonize the power sector and to integrate it cost-effectively, as well as electrify our economy in time to meet the targets established in the Paris Agreement. Because Congress may not take timely action to remove barriers to these power lines, policy makers and the incoming Biden administration should explore how the federal government could use existing authorities to foster new long-distance transmission line development. This paper seeks to explain steps that the federal government—particularly from within the US Department of Energy and Federal Energy Regulatory Commission—could take to facilitate development of a future grid that is capable of supporting a reliable, affordable, and increasingly zero-carbon power sector. Consistent with the mission of the Center on Global Energy Policy at Columbia University SIPA to advance smart, actionable, and evidence-based energy and climate solutions through research, education, and dialogue, the goal in publishing this paper in partnership with NYU School of Law’s Institute for Policy Integrity is to provide insights that are useful to policy makers in the format and time frame needed. We hope that this report contributes to supporting informed dialogue on potential tools for building a sustainable power sector in the United States.
Topic:
Energy Policy, Natural Resources, Electricity, and Carbon Emissions
Political Geography:
North America and United States of America

17. How the US and China Could Renew Cooperation on Climate Change

Author:
Aimee Barnes, Fan Dai, and Angela Luh
Publication Date:
12-2020
Content Type:
Working Paper
Institution:
Center on Global Energy Policy (CGEP), Columbia University
Abstract:
Averting global climate catastrophe depends in large part on progress by the world’s two greatest powers and emitters: the United States and China. However, relations between these two countries—particularly on climate action—have deteriorated over the past four years. With a new presidential administration set to enter the White House in January 2021, there is an opportunity for the US and China to build trust and cooperation on climate change in a way that supports a cooperative and dynamic bilateral relationship more broadly. This commentary takes a close look at the Biden-Harris presidential platform with respect to climate action and China, and assesses China’s domestic and international climate efforts, particularly with respect to the status of its 14th Five-Year Plan. Importantly, what emerges from this examination is a starting point for China and the US to improve their relationship through climate action and collaboration. China’s announcement that it would seek to achieve carbon neutrality by 2060 is an important step towards such cooperation.[1] The most promising potential areas for US-China cooperation fall into three broad categories: renewing a shared commitment to global climate governance under the Paris Agreement; building trust to enable renewed bilateral cooperation, such as on technology innovation and investments; and supporting subnational leaders' progress in both countries through platforms where they can productively convene. Recognizing that a climate-safe future is bound up in our mutuality, these two world powers can promote a new era of climate action and resiliency.
Topic:
Climate Change, Diplomacy, Energy Policy, Environment, and International Cooperation
Political Geography:
China, Asia, North America, and United States of America