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301. PART I: How Auctions Helped Solar Become the Cheapest Electricity in the World

Author:
Benjamin Attia, Shayle Kann, and Morgan D. Bazilian
Publication Date:
02-2020
Content Type:
Special Report
Institution:
Georgetown Journal of International Affairs
Abstract:
The global energy transition has reached an inflection point. In numerous markets, the declining cost of solar photovoltaics (PV) has already beaten the cost of new-build coal and natural gas and is now chasing down operating costs of existing thermal power plants, forcing a growing crowd of thermal generation assets into early retirement. Perfect comparability between dispatchable and non-dispatchable resources invites debate, but the cost declines in solar PV are irrefutable: the global average unit cost of competitively-procured solar electricity declined by 83 percent from 2010 to 2018. This is due in part to module cost reductions of approximately 90 percent, capacity-weighted average construction cost declines of 74 percent, and a global paradigm shift in renewable energy procurement policies in the last six years.
Topic:
Climate Change, Environment, Science and Technology, Natural Resources, Infrastructure, and Electricity
Political Geography:
Global Focus

302. Carbon Pricing and the Elasticity of CO2 Emissions

Author:
Ryan Rafaty, Geoffroy Dolphin, and Felix Pretis
Publication Date:
10-2020
Content Type:
Working Paper
Institution:
Institute for New Economic Thinking (INET)
Abstract:
We study the impact of carbon pricing on CO2 emissions across five sectors for a panel of 39 countries over 1990-2016. Using newly constructed sector-level carbon price data, we implement a novel approach to estimate the changes in CO2 emissions associated with (i) the introduction of carbon pricing regardless of the price level; (ii) the implementation effect as a function of the price level; and (iii) post-implementation marginal changes in the CO2 price. We find that the introduction of carbon pricing has reduced growth in CO2 emissions by 1% to 2.5% on average relative to counterfactual emissions, with most abatement occurring in the electricity and heat sector. Exploiting variation in carbon pricing to explain heterogeneity in treatment effects, we find an imprecisely estimated semi-elasticity of a 0.05% reduction in emissions growth per average $1/metric ton (hereafter abbreviated as: ton) of CO2. After the carbon price has been implemented, each marginal price increase of $1/tCO2 has temporarily lowered the growth rate of CO2 emissions by around 0.01%. These are disappointingly small effects. Simulating potential future emissions reductions in response to carbon price paths, we conclude that – in the absence of complementary non-pricing policy interventions – carbon pricing alone, even if implemented globally, is unlikely to be sufficient to achieve emission reductions consistent with the Paris climate agreement.
Topic:
Climate Change, Carbon Tax, Carbon Emissions, and Decarbonization
Political Geography:
Global Focus

303. Behavioural Science for the Environment

Author:
Milan Urbaník
Publication Date:
12-2020
Content Type:
Policy Brief
Institution:
Europeum Institute for European Policy
Abstract:
To effectively address climate change, both structural and behavioural policies are needed. To formulate effective and efficient behavioural policies, the government should establish Behavioural Policy Team. The agency of the team should be to design policies that are conducive to facilitating behavioural changes against unsustainable behaviours, such as high energy and water consumption or polluting transportation. Furthermore, the team should test different approaches through randomization to determine the best valuefor-money policies.
Topic:
Climate Change, Environment, and Behavioral Science
Political Geography:
Europe and Global Focus

304. Energy Futures: Oil and the Oil Industry

Author:
Richard A. Sears
Publication Date:
03-2020
Content Type:
Journal Article
Journal:
Brown Journal of World Affairs
Institution:
Brown Journal of World Affairs
Abstract:
Abundant affordable energy has built the world in which we live today. Machines and the chemical energy that drives them have made it possible for a small percentage of the population to produce enough food for many of us to be scientists, engineers, artists, and authors. We are only able to pursue our diverse interests because available energy multiplies human effort many times over. With all the good that has come with access to energy resources extracted from the Earth, there is also an environmental price, which impacts our land, water, and air. My intent here is not to debate the merits of our current energy system; it is the reality in which we exist. Humans and human society have become de- pendent on energy in so many ways that we cannot simply undo what we have and flip overnight to alternatives that we believe preserve the benefits without the costs. The scale of our global energy use is enormous, and the infrastruc- ture we have built to deliver that energy and convert it to useful work has been developed over more than a century. It will realistically take several decades for energy alternatives to grow to replace the major sources of primary energy that we utilize today; similarly, it will take many decades to rebuild our energy infrastructure to efficiently utilize new sources of primary energy.1
Topic:
Climate Change, Oil, Renewable Energy, Industry, and Energy
Political Geography:
Global Focus

305. Reduce, Remove, Recycle: Clarifying the Overlap between Carbon Removal and CCUS

Author:
David R. Morrow and Michael S. Thompson
Publication Date:
12-2020
Content Type:
Working Paper
Institution:
Institute for Carbon Removal Law and Policy, American University
Abstract:
The complicated relationship between carbon removal and carbon capture with utilization or storage (CCUS) causes confusion in climate policy conversations. Two questions about CCUS technologies and related direct air capture (DAC) technologies help cut through this confusion: where did the carbon come from, and where did it go? Asking these questions refocuses the discussion away from vexing technological categories and toward the different roles that these approaches can play in climate policy—namely, carbon removal, carbon recycling, and emissions reductions. Carbon dioxide captured directly from the atmosphere (“air carbon”) or captured from the combustion or fermenting of biomass (“biocarbon”) can be used for carbon removal or carbon recycling, depending on whether it ends up in geological storage or long-lived products or in short-lived products. “Fossil CCUS” can reduce emissions relative to fossil fuels without CCUS, provided that the captured carbon dioxide ends up in geological storage or long-lived products, but it cannot remove or recycle carbon. These relationships are depicted graphically in the last section of the paper. There are also many ways of reducing emissions and removing carbon without DAC or CCUS, but these are outside the scope of this paper.
Topic:
Climate Change, Environment, Science and Technology, Recycling, and Carbon Emissions
Political Geography:
Global Focus

306. A preliminary assessment of the impacts, implications, and opportunities of COVID-19 on the coastal and marine environment and resources

Author:
Cheryl Rita Kaur
Publication Date:
05-2020
Content Type:
Working Paper
Institution:
Maritime Institute of Malaysia
Abstract:
The COVID-19 pandemic exemplifies how human impacts on the natural ecosystems can result in a widespread environmental, social and economic consequences across the globe, including Malaysia. The need to enhance environmental and biodiversity protection is more apparent than ever. Year 2020 has in fact become a year of reflection and opportunity to improve our actions on safeguarding the coastal and marine environment, resources and biodiversity at large, as well as related sectors and industries. This brief piece examines some of the impacts and implications seen in addressing the pandemic, and the way forward.
Topic:
Climate Change, Environment, Maritime, Pandemic, and COVID-19
Political Geography:
Global Focus

307. Climate Change and COVID-19: There Is More Than One Curve to Flatten

Author:
Dania El Akkwai
Publication Date:
06-2020
Content Type:
Journal Article
Journal:
Cairo Review of Global Affairs
Institution:
School of Global Affairs and Public Policy, American University in Cairo
Abstract:
What COVID-19 response can tell us about our readiness to deal with climate change
Topic:
Climate Change, Environment, Public Health, Pandemic, and COVID-19
Political Geography:
Global Focus

308. Ecological Threat Register: Understanding ecological threats, resilience and peace

Publication Date:
01-2020
Content Type:
Special Report
Institution:
Institute for Economics & Peace (IEP)
Abstract:
This is the inaugural edition of the Ecological Threat Register (ETR), which covers 157 independent states and territories. Produced by the Institute for Economics and Peace (IEP), the ETR measures ecological threats that countries are currently facing and provides projections to 2050. The ETR is unique in that it combines measures of resilience with the most comprehensive ecological data available to shed light on the countries least likely to cope with extreme ecological shocks, now and into the future. The ETR includes: population growth, water stress, food insecurity, droughts, floods, cyclones and rising temperature and sea levels. In addition, the report uses IEP’s Positive Peace framework to identify areas where resilience is unlikely to be strong enough to adapt or cope with these future shocks. The ETR clusters threats into two major domains: resource scarcity and natural disasters. The resource scarcity domain includes food insecurity, water scarcity and high population growth. The natural disaster domain measures the threat of floods, droughts, cyclones, sea level rise and rising temperatures.
Topic:
Climate Change, Economics, Environment, Global Security, Peace, and Ecology
Political Geography:
Global Focus

309. Modeling Myths: On the Need for Dynamic Realism in DICE and other Equilibrium Models of Global Climate Mitigation

Author:
Claudia Wieners and Michael Grubb
Publication Date:
01-2020
Content Type:
Working Paper
Institution:
Institute for New Economic Thinking (INET)
Abstract:
We analyze and critique how optimizing Integrated Assessment Models, and specifically the widely-used DICE model, represent abatement costs. Many such models assume temporal independence –abatement costs in one period are not affected by prior abatement. We contrast this with three dimensions of dynamic realism in emitting systems: inertia, induced innovation, and path dependence. We extend the DICE model with a stylized representation of such dynamic factors. By adding a transitional cost component, we characterize the resulting system in terms of its capacity to adapt in path-dependent ways, and the transitional costs of accelerating abatement. We formalize a resulting metric of the pliability of the system, and the characteristic timescales of adjustment. With the resulting DICE-PACE model, we show that in a system with high pliability, the optimal strategy involves much higher initial investment in abatement, sustained at roughly constant levels for some decades, which generates an approximately linear abatement path and emissions declining steadily to zero. This contrasts sharply with the traditional formulation. Characteristic transition timescales of 20-40 years result in an optimum path which stabilizes global temperatures around a degree below the traditional DICE behavior; with otherwise modest assumptions, a pliable system can generate optimal scenarios within the goals of the Paris Agreement, with far lower long run combined costs of abatement and climate damages. We conclude that representing dynamic realism in such models is as important as – and far more empirically tractable than – continued debate about the monetization of climate damages and ‘social cost of carbon’.
Topic:
Climate Change, Economics, Paris Agreement, and Models
Political Geography:
Global Focus

310. Low-Carbon Transition Risks for Finance

Author:
Gregor Semieniuk, Emanuele Campiglio, and Neil Edwards
Publication Date:
10-2020
Content Type:
Working Paper
Institution:
Political Economy Research Institute (PERI), University of Massachusetts Amherst
Abstract:
The transition to a low‐carbon economy will entail a large‐scale structural change. Some industries will have to expand their relative economic weight, while other industries, especially those directly linked to fossil fuel production and consumption, will have to decline. Such a systemic shift may have major repercussions on the stability of financial systems, via abrupt asset revaluations, defaults on debt, and the creation of bubbles in rising industries. Studies on previous industrial transitions have shed light on the financial transition risks originating from rapidly rising “sunrise” industries. In contrast, a similar conceptual understanding of risks from declining “sunset” industries is currently lacking. We substantiate this claim with a critical review of the conceptual and historical literature, which also shows that most literature either examines structural change in the real economy, or risks to financial stability, but rarely both together. We contribute to filling this research gap by developing a consistent theoretical framework of the drivers, transmission channels, and impacts of the phase‐out of carbon‐intensive industries on the financial system and on the feedback from the financial system into the rest of the economy. We also review the state of play of policy aiming to protect the financial system from transition risks and spell out research implications.
Topic:
Climate Change, Finance, Economy, Risk, Fossil Fuels, Carbon Emissions, and Financial Systems
Political Geography:
Global Focus