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11. Energy poverty on the flip side of energy subsidies

Author:
Julian Puig and Leonardo Gasparini
Publication Date:
04-2025
Content Type:
Working Paper
Institution:
Center for Distributive, Labor and Social Studies (CEDLAS)
Abstract:
This paper examines the relationship between energy subsidies and energy poverty (EP). Understanding this relationship is important because subsidies are often justified from an equity perspective to protect the most vulnerable households. Argentina, which has subsidized residential energy consumption since the early 2000s, is used as the case study. Since then, the energy subsidy policy has experienced two well-defined phases: massive and universal subsidies until 2015, followed by an attempt at reduction and targeting. This context, combined with notable regional disparities -including variations in income levels, climatic conditions, energy prices, and residential energy consumption patterns (e.g., electricity vs. piped gas)- makes this case study particularly compelling. EP is analyzed both unidimensionally and multidimensionally. Under both measures, EP follows a U-shaped pattern that reflects the phases of energy subsidies: a significant decrease between 2005 and 2013, followed by a considerable increase by 2018. The paper also highlights the key role of regional disparities which is crucial for interpreting the results beyond the Argentine case. Based on the findings, the paper contributes with globally relevant insights on the link between energy subsidy policies and EP.
Topic:
Poverty, Gas, Electricity, Subsidies, and Energy
Political Geography:
Argentina and South America

12. Net-Zero and Nonproliferation: Assessing Nuclear Power and Its Alternatives

Author:
Henry D. Sokolski
Publication Date:
01-2024
Content Type:
Book
Institution:
Nonproliferation Policy Education Center
Abstract:
Six years ago, NPEC ran a mock execution of a law Congress passed in 1978 but that the Executive refused to implement —Title V of the Nuclear Nonproliferation Act of 1978. Title V called on the State and Energy Departments to conduct country-specific analyses of how developing states might best meet their energy needs without nuclear power. It also called for the creation of an energy Peace Corps and an assessment of what our government was spending on energy development aid-related projects. When NPEC started its efforts, the staff on the Senate Foreign Relations Committee asked to see what NPEC produced to use it to pressure the Executive finally to implement the law. NPEC commissioned a number of studies on how Iran, Saudi Arabia, China, and Taiwan might best meet their energy requirements without nuclear power. The center also contracted studies on the history and intent of Title V and on what government programs were already in play that aligned with Title V‘s stated objectives. As soon as NPEC’s project was completed, the Senate Foreign Relations Committee staff prepared a letter to Secretary of State Hillary Clinton asking the Secretary finally to implement Title V and file the reports required by law. Then, something unexpected occurred. The committee’s legal counsel discovered that the Secretary was under no obligation to comply: Congress had eliminated Title V’s reporting requirements along with several hundred other Congressionally mandated reports back in 1995. Flummoxed, I quietly set the book manuscript aside. Why, then, release it today? Because it is again timely. In October, the Biden Administration announced it is still considering extending civilian nuclear cooperation with Riyadh that would allow the Kingdom to enrich uranium — a process that can bring states within weeks of acquiring the bomb. Administration officials no longer question if Saudi Arabia really needs nuclear energy to meet its energy requirements. Shouldn’t they? Meanwhile, Taiwan’s presidential election this coming Saturday will, among other things, decide if Taiwan will build more nuclear reactors or not. Again, is new nuclear Taiwan’s best energy bet? As for China, the Pentagon has become increasingly concerned that the two “peaceful” fast breeder reactors and plutonium reprocessing plants Beijing is building will be used to make hundreds of bombs worth of weapons plutonium. One of the two fast breeder reactors is already operating. The question these dangerous nuclear activities raise is just how necessary they are to meet China’s energy requirements. Then, there’s Iran, which is intent on building reactors of Iranian design. It plans on expanding its nuclear power program from roughly one gigawatt electrical capacity to 11. Given Iran’s renewables potential and oil and gas reserves, how much sense does this make? Finally, in its efforts to achieve net zero, the Biden Administration has joined 20 other nations in pledging to triple global nuclear generation by 2050. Again, how practical is this? This volume’s aim is to help provide answers. Of course, in light of how long our government has ignored Title V, demanding it be implemented now would be odd. Creating a clean energy Peace Corps, comparing the costs of different types of energy, and trying to determine what investments would reduce emissions quickest and cheapest, however, all should be discussed. It’s my hope that the release of Net-Zero and Nonproliferation: Assessing Nuclear Power and Its Alternatives today might prompt such discussion.
Topic:
International Cooperation, Nuclear Power, Nonproliferation, Legislation, Energy, and Net Zero
Political Geography:
China, Iran, Middle East, Taiwan, Asia, Saudi Arabia, North America, and United States of America

13. From Interconnection to Integration: German-Italian Energy Relations and the SoutH2 Corridor

Author:
Pier Paolo Raimondi and Wolfgang Münchau
Publication Date:
01-2024
Content Type:
Commentary and Analysis
Institution:
Istituto Affari Internazionali
Abstract:
On 22 November 2023, the German Chancellor, Olaf Scholz, and the Italian Prime Minister, Giorgia Meloni, signed a German-Italian Action Plan.[1] The Plan promises greater collaboration between the two countries on the biggest challenges currently facing Europe. Among these priorities is environmentally sustainable economic growth and the acceleration of climate protection. While the Action Plan is relatively terse, focusing on the establishment of fora for greater cooperation rather than providing a detailed roadmap, its energy and climate section does highlight a specific project as an example of closer cooperation: the acceleration of the completion of the so-called South-Central Corridor for the transport of hydrogen throughout Europe. This Corridor has the primary function of enabling the import of hydrogen produced in North Africa into the very core of Europe and thus to the high-demand areas of Germany and Northern Italy. One especially important part is the so-called SouthH2 Corridor, which includes a pipeline running the entire length of the Italian peninsula before connecting to Southern Germany via Austria. There are strong political and strategic arguments for a deeper energy cooperation between Italy and Germany, despite some differences.[2] Hydrogen and gas infrastructure is a key area where intensified cooperation is crucial.[3] Through the SouthH2 Corridor, the two countries have indeed expressed their willingness to collaborate precisely on hydrogen infrastructure, notably the SoutH2 Corridor. However, such cooperation cannot be limited to the infrastructural part; it must extend to a series of related issues in which both countries should seek to align their political and legal initiatives, starting from overcoming uncertainties regarding the development of hydrogen demand and the use of other net-zero technologies in both countries. In short, cooperation on infrastructure can be used as a jumping off point for a deeper collaboration on and exchange of information about their broader transition strategies. Such bilateral coordination would also contribute to the achievement of EU Green Deal objectives more broadly.
Topic:
Climate Change, Bilateral Relations, Natural Resources, Regional Integration, Pipeline, and Energy
Political Geography:
Europe, Germany, and Italy

14. The State of EU-US Digital and Energy Cooperation

Author:
Federica Marconi, Wolfgang Münchau, and Irene Paviotti
Publication Date:
02-2024
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
In a time of rapid technological advancements and changing energy paradigms, the European Union and the United States are trying to coordinate their efforts to navigate the complexities of an ever-evolving landscape. Transatlantic dialogues and cooperative endeavours are key mechanisms for mitigating tensions and fostering a common assessment of the opportunities and risks arising from these advancements. Critical in this regard are the problems of governance emanating from technological development and its consequences in the digital sphere as well as the delicate balance between security, competitiveness and environmental targets in the energy dimension.
Topic:
Climate Change, International Cooperation, Political Economy, Governance, European Union, Transatlantic Relations, Digital Policy, and Energy
Political Geography:
Europe, North America, and United States of America

15. Heydar Aliyev’s Energy and Infrastructure Strategy

Author:
Vitaliy Baylarbayov
Publication Date:
01-2024
Content Type:
Journal Article
Journal:
Baku Dialogues
Institution:
ADA University
Abstract:
National Leader Heydar Aliyev had an exceptional understanding of foreign policy and national security dynamics. Through his strategic vision, he was able to lead the Republic of Azerbaijan from a situation of state collapse at independence to one characterized by political, economic, and security viability. Moreover, Heydar Aliyev’s geopolitical strategy enabled Azerbaijan to conduct independent policies, not dictated by any regional or global power. In support of his geopolitical strategic vision, Heydar Aliyev conceived of and executed an energy and infrastructure strategy that enabled Azerbaijan to become a major oil and natural gas producer and, in turn, to change the energy map of the Caspian region and the European continent. The core of this policy was the establishment of the East-West corridor from the Caspian region through Georgia and Türkiye to the West.
Topic:
Infrastructure, Geopolitics, Trade, Strategic Planning, and Energy
Political Geography:
Azerbaijan and South Caucasus

16. Germany’s Strategy on Climate Foreign Policy: Balancing Sustainable Development and Energy Security

Author:
Jeanette Süß
Publication Date:
03-2024
Content Type:
Case Study
Institution:
Institut français des relations internationales (IFRI)
Abstract:
With the war in Ukraine, Germany’s “traffic light” coalition government has had to adapt its climate policy to the upheavals caused by this war, which has turned its economic, energy, and military model upside down. Against a backdrop of high energy costs and increasing calls for reshoring in Europe, German industry is looking at how to maintain its competitiveness while decarbonizing its industry. To combat climate change and find new forms of energy cooperation that are more sustainable for the planet, the federal government has set up a Strategy on Climate Foreign Policy bringing together its collaborative actions with partner countries. Climate, energy, and development partnerships play a vital role in this context, and emerging countries are key partners for climate initiatives. They have a high demand for energy and exploit resources, though without always respecting environmental, social, and governance standards. Their renewable energy (RE) production potential is significant, and there are major opportunities for CO2 reduction thanks to modernization technologies that Germany is seeking to transfer to its partners. To this end, Germany is using a multitude of diplomatic tools and is leveraging a unique network of international agencies, chambers of commerce and climate finance players.
Topic:
Climate Change, European Union, Sustainable Development Goals, Renewable Energy, and Energy
Political Geography:
Europe and Germany

17. Climate action: Implications for factor market reallocation

Author:
Robert Z. Lawrence
Publication Date:
01-2024
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics (PIIE)
Abstract:
This paper considers climate policies, not from the perspective of their environmental impacts, but rather their likely effects on labor and investments. While the aggregate impact of the green transition on jobs and investment may be modest, it will require significant reallocation of labor and capital within and across industries. Although the green transition brings new opportunities for employment and investment in renewable technologies, many workers and communities tied to the fossil fuel industry may not benefit from these advances due to skills mismatch and geographic constraints. Both the United States and the European Union acknowledge the importance of achieving “climate justice” and “leaving no one behind” in their decarbonization efforts. However, current policies and resources in the United States may fall short, with inadequate assistance reaching too many communities and a narrow focus on green jobs. In Europe, while the Just Transition Fund complements existing programs, effective implementation of place-based policies remains challenging due to the need for specific, localized responses.
Topic:
Climate Change, Environment, Labor Issues, European Union, and Energy
Political Geography:
North America and United States of America

18. The Raw Materials of Economic Security: South Korea’s Evolving Energy and Critical Minerals Policies in an Era of Disruption

Author:
James Bowen
Publication Date:
01-2024
Content Type:
Working Paper
Institution:
Korea Economic Institute of America (KEI)
Abstract:
This paper argues that resource security is central to South Korea’s broader economic security and President Yoon Suk-yeol’s Strategy for a Free, Peaceful, and Prosperous Indo-Pacific Region. The paper contends that postwar Korea has maintained an energy and minerals-intensive economy despite domestic resource scarcity and import dependence. Recent disruptions have, however, threatened the resilience of this relationship. These disruptions include COVID-19, Russia’s war in Ukraine, the escalating climate change crisis and energy transition, and the geoeconomic and geopolitical erosion of the liberal order. Korea’s most important energy security priority is diversifying its energy mix towards cleaner energy—what this paper calls “green security.” This will be a difficult task given the intense national dependence on fossil fuels and policymakers’ desire to avoid disrupting Korea’s manufacturing-heavy, export-focused development model. Korea’s idiosyncratic decarbonization pathway, including a strong presence of hydrogen and, under Yoon, a downgrading of renewables in favor of nuclear, could provide additional challenges. Critical minerals are another rising resource security concern for Seoul. The major priority is to accelerate the development and diversification of international supply chains, particularly away from China. A major obstacle to progress is intense competition across the value chain, influenced by disparate economic and strategic priorities. The paper argues that Seoul must find ways to manage its energy and critical minerals security challenges in a way that is consistent with its preferred development model. The alternative is to accept a new equilibrium in which it has less domestic dependence on foreign resources and on resources-intensive economic activity in aggregate.
Topic:
Geopolitics, Strategic Competition, Minerals, Economic Security, and Energy
Political Geography:
Asia and South Korea

19. Redefining US strategy with Latin America and the Caribbean for a new era

Author:
Jason Marczak, Maria Fernanda Bozmoski, and Matthew Kroenig
Publication Date:
02-2024
Content Type:
Special Report
Institution:
Atlantic Council
Abstract:
The strategic interest of the United States and the countries of Latin America and Caribbean (LAC) lies in strengthening their western hemisphere partnership. Shared borders, economic interests, and security alliances bind these nations, along with a common goal for prosperity. However, the perception of waning US interest and the rise of external influences necessitate the rejuvenation of and renewed focus on this partnership. In May 2023, the Atlantic Council’s Adrienne Arsht Latin America Center and the Scowcroft Center for Strategy and Security established the US-LAC Future Strategy Working Group to redefine the US-LAC partnership. This strategy promotes mutual and inclusive economic growth, renewed cooperation through enhanced commercial and investment ties, a renewed paradigm on bolstering security and reducing migration flows across the region, and a focus on preparedness in the face of natural disasters and the energy transition. Acting on this strategy could significantly benefit US economic and security interests. The United States should capitalize on immediate opportunities, like promoting nearshoring as a means to growth and prosperity across the Americas, while maintaining a medium-term strategy tailored to each country’s specific needs. This strategy paper highlights the importance of adaptability and practicality, particularly as the global economic landscape evolves and power shifts foresee new leading economies by mid-century. In addition, the strategy advocates for the significance of the US-LAC relationship amid the recalibration of US worldwide interests.
Topic:
Foreign Policy, Diplomacy, Migration, Politics, Economy, and Energy
Political Geography:
Latin America, Caribbean, and United States of America

20. Geoeconomic fragmentation and net-zero targets

Author:
Shirin Hakim and Amin Mohseni-Cheraghlou
Publication Date:
04-2024
Content Type:
Policy Brief
Institution:
Atlantic Council
Abstract:
The second half of the twentieth century experienced significant economic integration. International trade, cross-border migration, capital flows, and technological diffusion increased per capita incomes across countries and reduced global poverty. However, events such as the global financial crisis of 2007 to 2009, Brexit, and the COVID-19 pandemic—all against the backdrop of escalating great power rivalry and tensions between the United States and China—have demonstrated the rise of geoeconomic fragmentation (GEF). Since the 2022 Russian invasion of Ukraine, a growing numberof world leaders have addressed the impacts of GEF on global energy and agricultural markets. For one, higher and increasingly volatile food and energy prices have made it increasingly difficult for developing nations to prioritize environmental concerns and implement sustainable development initiatives.
Topic:
Climate Change, Environment, International Trade and Finance, Economy, Economic Growth, Inclusion, Energy, Geoeconomics, and Net Zero
Political Geography:
China, Asia, and United States of America