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1. The Battle for Green Supremacy: Carbon Markets, Artificial Intelligence, and the Problem of Climate Finance

Author:
Carlos Roa and Shubham Dwivedi
Publication Date:
04-2024
Content Type:
Journal Article
Journal:
Baku Dialogues
Institution:
ADA University
Abstract:
Observe the bee as it pollinates flowers, fruits, vegetables, and a wide variety of other crops; according to the United Nations’ Food and Agriculture Organization, around one-third of the world’s food production depends on their little wings. Watch as the beaver builds its dam, shaping the landscape of its local environment. Its pond stores carbon, improves water quality, creates a suitable habitat to support biodiversity, and helps reduce climate impacts. One cannot help but conclude that some higher order guides the work of these and other creatures; someone or something seems to be managing the delicate ecology of our world. Unfortunately, human beings are not as adept at such complex environmental management. As the world increasingly bears witness to the dramatic effects of climate change, the urgency for decisive action has never been more critical. With the planet’s average temperature continuing to rise, resulting in more frequent, severe, and unusual weather events, the global community faces a stark reminder of the imperative to mitigate this environmental degradation. The upcoming UN Climate Change Conference in Baku (COP29) represents a pivotal moment for states to commit to ambitious strategies and deepen international collaboration in the fight against climate change. At the forefront is the pressing need to explore and affordably implement effective mechanisms that can significantly reduce carbon emissions on a global scale.
Topic:
Markets, Climate Finance, Artificial Intelligence, and Carbon Emissions
Political Geography:
Global Focus

2. The flaws in project-based carbon credit trading and the need for jurisdictional alternatives

Author:
Byron Swift, Ken Berlin, George Frampton, and Frank Willey
Publication Date:
04-2024
Content Type:
Policy Brief
Institution:
Atlantic Council
Abstract:
This issue brief highlights several significant, and at times unresolvable, problems with the project-based approach to carbon credit trading, the purpose of which is to reduce deforestation and sequester carbon. Beginning with first-hand observations of the principal author during his experience with forest conservation efforts in the tropics, the brief describes the challenges that arise when this crediting model is implemented in the field, particularly in rainforests and other remote areas of the world. The publication then assesses the three critical structural problems with project-based credit trading that lead to a fundamental lack of integrity in such programs: The intractable challenges of a project-based regulatory structure involving difficult-to-prove requirements of additionally and leakage prevention. The major transaction and intermediary costs that can amount to half of project funding. The credit duration that is far less than the life of the additional CO2 emissions that are consequently emitted. The analysis also explains how economic forces and incentives exacerbate these problems, particularly with programs that are carried out by commercial credit traders as opposed to nonprofit entities. Finally, this brief discusses better alternatives, such as jurisdictional programs administered by governments or Indigenous associations, that could more effectively reduce emissions and strengthen the social fabric of communities required to assure credit integrity, accurate measurement, and adequate co-benefits.
Topic:
Climate Change, Environment, Markets, Governance, Carbon Emissions, Energy, and Energy Transition
Political Geography:
Global Focus

3. Designing a New Paradigm in Global Trade

Author:
Ryan Mulholland, Trevor Sutton, and Timothy Meyer
Publication Date:
05-2024
Content Type:
Special Report
Institution:
Center for American Progress - CAP
Abstract:
How a successful Global Arrangement on Sustainable Steel and Aluminum could function while delivering maximum benefits to workers and the environment.
Topic:
Climate Change, International Trade and Finance, Markets, Treaties and Agreements, Sustainability, and Metals
Political Geography:
Global Focus and United States of America

4. Concentrating Intelligence: Scaling and Market Structure in Artificial Intelligence

Author:
Anton Korinek and Jai Vipra
Publication Date:
10-2024
Content Type:
Working Paper
Institution:
Institute for New Economic Thinking (INET)
Abstract:
This paper examines the evolving structure and competition dynamics of the rapidly growing market for foundation models, focusing on large language models (LLMs). We describe the technological characteristics that shape the industry and have given rise to fierce competition among the leading players. The paper analyzes the cost structure of foundation models, emphasizing the importance of key inputs such as computational resources, data, and talent, and identifies significant economies of scale and scope that may create a tendency towards greater market concentration in the future. We explore two concerns for competition, the risk of market tipping and the implications of vertical integration, and use our analysis to inform policy remedies to maintain a competitive landscape.
Topic:
Markets, Economy, Business, Innovation, Artificial Intelligence, and Large Language Models (LLMs)
Political Geography:
Global Focus

5. Pax Economica: An Interview with Marc-William Palen

Author:
Seokju Oh and Marc-William Palen
Publication Date:
03-2024
Content Type:
Commentary and Analysis
Institution:
The Toynbee Prize Foundation
Abstract:
In his new book Pax Economica: Left-Wing Visions of a Free Trade World (Princeton University Press, 2024), historian Marc-William Palen offers a counter-history of free trade as an ideology and policy. In the nineteenth century, before it became a cherished possession of the Right, free trade was proudly claimed as their own by Left-wing activists, intellectuals, and politicians, those who were unswervingly committed to equality for all and peace among nations. Palen recovers this forgotten history of the “Left-wing free traders” of the late-nineteenth century, showing how liberal radicals, socialists, feminists, and Christian pacifists all viewed free trade as the key antidote to the social problems they encountered. Palen also upends the conventional understanding of the world of the late nineteenth and the early-twentieth centuries and argues that the fin-de-siècle was not the “Golden Age’ of the First Globalization, but actually the “Iron Age” of market enclosures and imperial competition. In February 2024, I had a great pleasure to discuss Pax Economica with Palen. Below is an edited version of the conversation.
Topic:
Economics, Globalization, Markets, History, Free Trade, and Interview
Political Geography:
Global Focus

6. Citizenship Hierarchies: Talent Programs, Commodification Debates and Citizenship at the Nexus of Market and Desirability Logics

Author:
Özlem Altan Olcay and Evren Balta
Publication Date:
12-2024
Content Type:
Journal Article
Journal:
Uluslararasi Iliskiler
Institution:
International Relations Council of Turkey (UİK-IRCT)
Abstract:
In recent years, an increasing number of nations have developed and institutionalized immigration programs aimed at attracting high-net-worth individuals, promising expedited residency and, in many cases, a streamlined path to citizenship. These initiatives target individuals expected to contribute economically, whether through immediate financial investments, capital transfers, or desirable professional skills deemed essential for national economic competitiveness. This article critically examines the rise of talent programs against the backdrop of scholarship studying investment-based citizenship schemes. While there is a developed literature studying investment-based citizenship programs and criticizing the imposition of neoliberal rationalities on state-induced meanings and practices of citizenship, there is less attention paid to the implications of these so-called merit-based citizenship programs. We argue that both sets of schemes follow a neoliberal market logic, prioritizing immigrants based on their perceived economic value. We explore how these programs disembed potential immigrants from their social contexts and perpetuate market-based inequalities. Thus, we propose that despite the distinctions often made between talent programs and investment schemes, both contribute to the reinforcement of a global citizenship hierarchy. Drawing on examples from Organization for Economic Co-operation and Development (OECD) countries’ skilled migration initiatives, we demonstrate how these programs shape discourses of selectivity and “deservingness” for future citizenship. Through a comprehensive analysis of legal frameworks and policy databases, the study highlights the complex interplay between migration policies, commodification of citizenship, and global hierarchies. Ultimately, it calls for a deeper understanding of the continuities and transformations in citizenship logics enabled by the infusion of market dynamics into migration policies.
Topic:
Markets, Migration, Inequality, Citizenship, Hierarchy, and Immigration Policy
Political Geography:
Global Focus

7. A Structural Equation Model Application For Global Innovation Input Dimension To Affect Output Dimension

Author:
Furkan Fahri Altıntaş
Publication Date:
05-2024
Content Type:
Journal Article
Journal:
Bilgi
Institution:
Sakarya University (SAU)
Abstract:
Purpose - The influence of the innovation input dimen-sion on the innovation output dimension has been meas-ured based on the values of the GII criteria of the coun-tries specified in the Global Innovation Index (GII) re-ports. Methodology/Approach/Design- The effects of the in-novation input dimension on the innovation output di-mension has been measured using a structural equation model with the relevant values indicated in the GII re-ports for the years 2008 to 2022 for each country. Findings Firstly, It has been ascertained that the input dimension of the innovation has a notable and construc-tive effect on the output dimension. Secondly, it has been observed that the criteria contributing the most to the relational structure are 'institutions', 'human capital and research', 'infrastructure', and 'market sophistica-tion'. Originality/Value- The assessment of this study sug-gests a potential contribution to the field of innovation. Additionally, significant revelations have been obtained regarding the augmentation of the global interplay be-tween the innovation input and output of various coun-tries, precisely determining the specific innovation input criteria that require refinement.
Topic:
Markets, Infrastructure, Human Capital, and Innovation
Political Geography:
Global Focus

8. The Growth of Private Financial Markets

Author:
Lenore Palladino and Harrison Karlewicz
Publication Date:
05-2024
Content Type:
Working Paper
Institution:
Political Economy Research Institute (PERI), University of Massachusetts Amherst
Abstract:
Over the past decade, “private” financial markets, which face little oversight by regulators, have grown to the point where they dominate financial activity. Private funds have approximately tripled in size in the last decade to $26 trillion in gross assets (compared to the $23 trillion in the U.S. commercial banking industry). Private markets raise more in equity than public markets: in 2021, new stock issuances resulted in $434.7 billion, while private markets raised $1.73 trillion in committed funds that same year–almost four times as much. Private markets are structured differently–organized into funds by asset managers as limited partnerships, which shields general managers from liability. The primary dealers in these private markets are venture capital, private equity, private credit funds, and private real asset managers. In this working paper, we examine four institutional shareholder types: public and private pension funders, endowment plans, and foundations. Institutional shareholders now allocate 28-35% of their assets under management to the “alternative” assets of private markets. Pension funds alone currently account for $2.7 trillion in committed funds to private financial markets, the latter of which has ballooned to $26 trillion in gross assets. This development potentially represents new systemic risks to the economy at large and for the institutional shareholders participating in these markets.
Topic:
Economics, Markets, Regulation, and Financial Markets
Political Geography:
Global Focus

9. How best to ensure international digital competition cooperation

Author:
Christophe Carugati
Publication Date:
02-2023
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
Large digital firms pose similar competition issues worldwide, such as promoting their own services over those of rivals, or imposing unfair terms and conditions. Competition authorities have opened several antitrust investigations and policymakers have proposed digital competition regulations to tackle these issues. G7 competition authorities have called for several years for international cooperation on digital markets. They want competition cases and laws around the world that are consistent and work together. However, the question of how this can be done remains. A toolbox for international cooperation in competition enforcement already exists, but it does not provide for cooperation in competition policy and has shortcomings in relation to competition enforcement. Current and proposed legislation targets the largest digital firms to tackle the characteristics of digital markets, such as multi-sidedness, and the same or very similar behaviours, such as self-preferencing. Legislation in different jurisdictions addresses these issues with similar rules. While there is some convergence, some rules diverge in substance and some are at high risk of divergence in interpretation. Inconsistency is thus likely to arise from a divergence of interpretation rather than substance. The solution would be to ensure a coherent approach to competition in digital markets. This could be done by developing a framework based on four elements: (1) adoption of common legal phases for future digital competition laws to ensure clarity; (2) adoption of a common legal interpretation through guidance drafted by international forums, such as the International Competition Network (ICN); (3) adoption of common technical requirements developed in the context of ICN technical workshops, when the rules require it; and (4) the implementation of an international monitoring committee within the ICN to evaluate whether competition authorities and courts enforce the rules consistently. The impact of the framework might be limited because of the non-binding nature of the approach, and the focus on specific competition-related legislation, excluding laws that can also address the issues, such as civil law. Countries can overcome these limitations if they are willing to cooperate to ensure a consistent approach.
Topic:
Markets, Digital Economy, Digital Cooperation, and Competition
Political Geography:
Global Focus

10. Green Hydrogen Industrial Value Chains: Geopolitical and Market Implications

Author:
Nicola De Blasio and Laima Eicke
Publication Date:
02-2023
Content Type:
Policy Brief
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
The global transition to a low-carbon economy and adopting the needed clean energy technologies at scale will significantly impact existing value chains1 and transform production-to-consumption lifecycles. Regulatory and business models will need to rapidly evolve to manage the resulting substantial cost challenges and dramatic shifts in stakeholder interactions while continuing to create value. Green hydrogen2 is likely to play a pivotal role in a carbon-free future, as its adoption will enable the decarbonization of energy-intensive industrial processes whose emissions are hard to abate through simple electrification—such as steel and cement production. However, to take advantage of the economic opportunities created by its adoption at scale, countries will need to rethink the roles they could play in a new energy landscape and define strategic industrial policies accordingly. Our research3 shows how successful industrial policies must reflect a country’s potential value chain positioning in future green hydrogen markets and elucidates macro geopolitical trends that could reshape international relations as countries compete for industrial leadership, market shares, and opportunities for job creation.
Topic:
Markets, Economy, Carbon Emissions, Value Chains, Hydrogen, and Green Economy
Political Geography:
Global Focus