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1. Overcoming Taiwan’s Energy Trilemma

Author:
Evan A. Feigenbaum and Jen-Yi Hou
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
Taiwan needs to look not just to the energy it needs right now but also to the energy it will need ten to twenty years from now if it is to power its future. This paper focuses on two elements of the paradigmatic transformation that are especially relevant to Taiwan’s future: (1) the rise of new energy and storage technologies, and (2) the dynamics of liquefied natural gas pricing. In particular, it looks at several ways in which new investment partnerships between Taiwan and U.S. players could bolster Taiwan’s ambitious effort to build out renewable energy as a source of industrial and residential power.
Topic:
Energy Policy, Markets, Science and Technology, Investment, and Fossil Fuels
Political Geography:
Middle East, Taiwan, and United States of America

2. India’s Budget 2020: Yet Another Wasted Opportunity

Author:
Gautam Chikermane
Publication Date:
02-2020
Content Type:
Commentary and Analysis
Institution:
Italian Institute for International Political Studies (ISPI)
Abstract:
India’s middle class will count a few rupees, bank depositors will get a little security, privatisation enthusiasts will chew on a new player in the market. But other than high-sounding grandiose statements, India’s Budget 2020 has delivered no expectations. This was preordained, of course. So, if anyone is feeling disappointed, clearly s/he is not reading the economic signals in the economy or the approach of Narendra Modi’s government to it clearly. Finance Minister Nirmala Sitharaman had little room for manoeuvre. Her Budget shows how little. In a line: Budget 2020 is yet another wasted opportunity.
Topic:
Markets, Politics, Budget, Finance, and Narendra Modi
Political Geography:
South Asia and India

3. Should Denmark and Sweden join the banking Union?

Author:
Dirk Schoenmaker and Svend E. Hougaard Jensen
Publication Date:
06-2020
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
Though outside the euro area, Denmark and Sweden could benefit from joining the European Union’s banking union. It would provide protection in case of any need to resolve at national level a large bank with a Scandinavian footprint, and would mark a choice in favour of more cross-border banking. But joining the banking union would also involve some loss of decision-making power.
Topic:
Markets, European Union, Economy, and Banks
Political Geography:
Europe, Denmark, and Sweden

4. The European Union’s post-Brexit reckoning with financial markets

Author:
Rebecca Christie and Thomas Wieser
Publication Date:
05-2020
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
In the negotiations between the European Union and the United Kingdom over their future relationship, we see a high probability of a weak contractual outcome, given the dominance of politics over considerations of market efficiency.
Topic:
Markets, Governance, Europe, Brexit, Negotiation, and Macroeconomics
Political Geography:
United Kingdom and Europe

5. Market versus policy Europeanisation: has an imbalance grown over time?

Author:
Leonardo Cadamuro and Francesco Papadia
Publication Date:
01-2020
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
This Policy Contribution tests the hypothesis that an imbalance has grown in Europe over the last few decades because markets have integrated to a greater extent than European-level policymaking, potentially creating difficulties for the democratic process in managing the economy. This hypothesis has been put forward by several authors but not so far tested empirically.
Topic:
Markets, Governance, Democracy, Regional Integration, Macroeconomics, and Trade Policy
Political Geography:
Europe

6. Transforming the power sector in developing countries: Geopolitics, poverty, and climate change in Bangladesh

Author:
Robert F. Ichford
Publication Date:
01-2020
Content Type:
Policy Brief
Institution:
Atlantic Council
Abstract:
Governments across South Asia face many challenges as they seek to improve the lives of the more than 1.8 billion people that live in the region. Increasing geopolitical competition—especially between and among China, Russia, and the United States—is one factor that is affecting progress. This “great power competition,” including over the South China Sea, is intertwined with regional rivalries (e.g., India and Pakistan, India and China, and the United States and Iran) and has important economic, military, technological, and environmental consequences. Energy is a key strategic sector in this competition as China pursues its expansive Belt and Road Initiative (BRI) infrastructure and trade vision, Russia uses arms sales and nuclear energy to expand its regional presence, and the United States confronts Iran and gears up its free and open Indo-Pacific Strategy and Asia EDGE (Enhancing Development and Growth through Energy) initiative. This issue brief considers the transformation of the electricity sector in Bangladesh. It is the fourth country analysis in the Atlantic Council’s “Transforming the Power Sector in Developing Countries” series. This issue brief applies to Bangladesh the analytical framework developed in the first report in the series, which presents general challenges and strategic priorities for developing countries in the context of their implementation of electric power policies and reforms following the 2015 Paris Agreement on climate change.
Topic:
Security, Climate Change, Energy Policy, Markets, Oil, Governance, Geopolitics, Gas, Renewable Energy, Fossil Fuels, and Transition
Political Geography:
Bangladesh, South Asia, and Asia

7. Energy sector diversification: Meeting demographic challenges in the MENA region

Author:
Bina Hussein
Publication Date:
01-2020
Content Type:
Special Report
Institution:
Atlantic Council
Abstract:
Countries in the Middle East and North Africa (MENA) region are expected to witness a substantial growth in population over the next three decades. Many of the hydrocarbon-rich nations in this region will need to meet a commensurate increase in job demand. This report focuses on four nations that are predominantly reliant on the oil and gas sector: Saudi Arabia, the United Arab Emirates (UAE), Kuwait, and Algeria. In all four nations, the majority of the local population is employed in the public sector, which, in the long term, will become economically unsustainable. In order to meet the growing job demand, these nations must both diversify their economies beyond the energy sector and expand their energy sectors beyond hydrocarbons. Doing so will create important employment opportunities in new industries. Saudi Arabia, the UAE, and Kuwait all have strategies in place that, if followed, could pave the way towards a diversified knowledge-based economy. Algeria, on the other hand, is at a crossroads. Even as it is undergoing a political transition, the transition can create opportunities for the new government to change the country’s course and push economic reforms that are not only aimed at lowering the current unemployment rate but also at making the private sector more enticing. Additionally, all four nations will need to take steps to increase female participation in the workforce by easing current restrictions and making labor laws more favorable towards women. The energy sector plays a large role in the economies of all four nations. This sector has a critical role to play in efforts to diversify the economy and teach skills that will be beneficial in the future or can be applied in other sectors as well. Moreover, all four nations also have sovereign wealth funds that either play, or can play, a key role in diversifying the economy, strengthening existing industries, and helping to create new industries altogether. This report offers the following recommendations on how these four nations can work towards meeting demographic challenges in relation to the economy, specifically the role of the energy sector: Governments can strengthen the private sector through increased foreign investment and by incentivizing entrepreneurship through reforms that open up the economy and make it more lucrative for investors. Governments can create laws and support structures that encourage women to work and increase female participation in the workforce. Opportunities should be provided to teach skills and impart knowledge relevant to the job market that will also be relevant in the future. Lessons should be learned from the experience of the energy sector and leveraged to achieve successes in other areas. For example, the state-owned oil and gas companies have successfully set up a structure that allows them to not only invest in their employees but also take care of the community by offering health care services, education, and more.
Topic:
Demographics, Energy Policy, Markets, Oil, Governance, Geopolitics, Gas, Renewable Energy, Fossil Fuels, and Transition
Political Geography:
Middle East, North Africa, and Gulf Nations

8. Transcending History’s Heavy Hand The Future in Economic Action

Author:
Jens Beckert and Timur Ergen
Publication Date:
03-2020
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
This paper discusses sociological analyses of the formation and role of expectations in the economy. Recognition of the social constitution of expectations advances the understand- ing of economic action under conditions of uncertainty and helps to explain core features of modern capitalist societies. The range of applications of the analytical perspective is il- lustrated by closer examination of three core spheres of capitalist societies: consumption, investment, and innovation. To provide an idea of core challenges of the approach, three major research questions for the sociological analysis of expectations are presented.
Topic:
Economics, Markets, Sociology, Capitalism, and Innovation
Political Geography:
Global Focus

9. Scaling up Private Investment in Low-Carbon Energy Systems through Regional Cooperation: Market-Based Trade Policy Measures

Author:
Kaliappa Kalirajan, Huong Thi Thu Tran, and Yochang Liu
Publication Date:
01-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
This study aims to analyse the possibility and challenges of encouraging private sector investment in low-carbon energy systems in Asia, particularly across the Regional Comprehensive Economic Partnership (RCEP) member countries, and to suggest an effective policy framework that governments could apply to improve the development and dissemination of low-carbon energy goods and technologies. The research questions examined in this study are: What type of policy measures affect trade in low-carbon energy systems transition, particularly the renewable energy transition? How can investment signals and incentives be reframed to scale up private finance in renewable energy through regional cooperation? The objective is to investigate and provide several market-based feasible trade policy and investment policy tools for both national and regional markets that governments could adopt to accelerate the speed of private financing of the low-carbon energy industry, particularly the renewable energy industry.
Topic:
Energy Policy, Markets, Trade, and Renewable Energy
Political Geography:
South Asia, East Asia, Asia, and Southeast Asia

10. Does Home (Output) Import Tariff Reduction Increase Home Exports? Evidence from Korean Manufacturing Plant–Product Data

Author:
Chin Hee Hahn and Ju Hyun Pyun
Publication Date:
02-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
This study examines the effects of domestic output import tariff reduction on domestic plant export dynamics and clarifies the underlying mechanism, using rich plant–product data from the Republic of Korea for 1991–2002. We find that home import liberalisation increases domestic plants’ export market participation (extensive margins), particularly for industry where markup growth is more negative during tariff reductions. However, we do not find evidence that cutting import tariffs significantly affects incumbent home exporters’ export volume (intensive margins). This study unveils a new mechanism – ‘escape competition’ to foreign markets – by showing that reducing import tariffs leads domestic firms under heightened industry competition to look for an opportunity in foreign markets via export inauguration.
Topic:
Markets, Tariffs, and Imports
Political Geography:
Asia and South Korea