Adverse Selection in an Opt-in Emissions Trading Program: The Case of Sectoral Crediting for Transportation
Sectoral crediting mechanisms such as sectoral no-lose targets have been proposed as a way to provide incentives for emission reductions in developing countries as part of an international climate agreement, and scale up carbon trading from the project-level Clean Development Mechanism to the sectoral level.
Countries would generate tradable emission credits (offsets) for reducing emissions in a sector below an agreed crediting baseline. However, large uncertainties in the regulator's predictions of the counterfactual business-as-usual baseline are likely to render sectoral no-lose targets an extremely unattractive mechanism in practice, at least for the transportation case study presented here. Given these uncertainties, the regulator faces a tradeoff between efficiency (setting generous crediting baselines to encourage more countries to opt in) and limiting transfer payments for non-additional offsets (which are generated if the crediting baseline is set above business-as-usual).
The first-best outcome is attainable through setting a generous crediting baseline. However, this comes at the cost of either increased environmental damage (if developed country targets are not adjusted to account for non-additional offsets), or transfers from developed to developing countries that are likely to be too high to be politically feasible (if developed country targets are made more stringent in recognition that many offsets are nonadditional). A more stringent crediting baseline still generates a large proportion of non-additional offsets, but renders sectoral no-lose targets virtually irrelevant as few countries opt in.
Climate change and China's agricultural sector
A new issue brief by Scott Rozelle and fellow researchers Jinxia Wang and Jikun Huang concludes that climate change will have a significant effect on China's crop yields and impact its economy, including the grain trade. It concludes that China's government is responsible for responding in ways that will help the country adapt to and mitigate the effects of climate change. The issue brief was jointly published by the International Centre for Trade and Sustainable Development and the International Food and Agricultural Trade Policy Council.
Evolving US Energy Policies: Promise or peril for tropical conservation
Tropical forests store more than 340 billion tons of carbon, which is 40 times the total current worldwide annual fossil fuel emissions. This has huge implications for global warming, if we continue to expand our farmland into tropical forests at such high rates- Holly Gibbs
From Russia: More heat, less wheat
The heat wave in Russia has captured international media attention, breaking temperature records left and right. It has also captured the attention of commodity traders. You see, in a typical year Russia produces about as much wheat as the United States, and is among the top exporters of wheat flour in the world. But this year, wheat has been decimated in the areas around Moscow, with yield expected to be 30 percent or so below normal. This week Russia announced they are banning all exports of wheat from August 15 through the end of the year. Since late June, wheat prices on the Chicago Board of Trade have risen by 50 percent, to more than $7 a bushel.
It is, and always will be, impossible to say whether a single event is caused by climate change. But we can ask, is this the type of thing we expect to be more common? In terms of warming, we can say with little doubt that heat waves like this will become more common with global warming. Exactly how much more common is tough to say, but it is likely that the average summer in 2050 will be as warm as the warmest summer in the 20th century. I am not aware of anyone who has done the calculation of exactly how common the type of heat experienced this year will be, but based on projections in the UN Intergovernmental Panel on Climate Change (IPCC) reports one can suspect this type of heat wave will be relatively common in Russia in a few decades.
Global Education Network on Food Policy, Food Security, and the Environment
Providing food security for a world that will be warmer, more populous, and continually developing requires the implementation of sound policies that enhance food and agricultural consumption, production, incomes, and trade. FSE is in the midst of hosting a two-year, 12-lecture symposium series on Global Food Policy and Food Security.
Kate Marvel named 2010-2011 Perry Fellow
Kate Marvel has been named the second annual Perry Fellow for the 2010-2011 academic year.
The Perry Fellowship honors an early or mid-career researcher from the United States or abroad with a record of "outstanding work in natural science, engineering or mathematics...who is dedicated to solving international security problems." Marvel, 29, will spend the year at CISAC conducting research on two projects, Understanding the Regional Consequences of Global Climate Change and Game Changers for Nuclear Energy.
"I'm very honored to be recognized," said Marvel, "but truly all of my colleagues would be deserving of this fellowship. I look forward to working with them as my research progresses over the next year."
Marvel spent the past year at CISAC as a postdoctoral fellow after studying at the University of Cambridge where she received her PhD in applied mathematics and theoretical physics. In addition to researching her project, Modeling Distributed Electric Grids, Marvel co-chaired CISAC's weekly Thursday research seminar with Lynn Eden.
Marvel holds a BA in physics and astronomy from the University of California at Berkeley and has worked at Lawrence Berkeley Laboratory, California, and the African Institute for Mathematical Sciences in South Africa. She is active in outreach work and has lectured in settings as diverse as a community center in Lesotho, a physics institute in Tehran, and the Secret Garden Party Festival in the UK.
William J. Perry and the Perry Fellowship
Perry earned bachelor's and master's degrees in mathematics from Stanford in
1949 and 1950, and a doctorate from Pennsylvania State University. He went on
to found the Silicon Valley electronics company ESL, build a venture capital
company and pursue a distinguished career in public service. At the heart of
Perry's work is a commitment to bring the rigors of science to international
security issues. The William J. Perry Fellow in International Security at
Stanford University will pursue this commitment.
Post Doctoral Fellows teach Global Justice class
Research Experience in Carbon Sequestration 2010
Student Union Building
Acoma A&B Rooms
University of New Mexico
Albuquerque, NM 87131
Gang He
616 Serra St.
E420 Encina Hall
Stanford, CA 94305
Gang He's work focuses on China's energy and climate change policy, carbon capture and sequestration, domestic coal and power sectors and their key role in both the global coal market and in international climate policy framework. He also studies other issues related to energy economics and modeling, global climate change and the development of lower-carbon energy sources.
Prior to joining PESD, he was with the World Resources Institute as a Cynthia Helms Fellow. He has also worked for the Global Roundtable on Climate Change of the Earth Institute at Columbia University. With his experiences both in US and China, he has been actively involved in the US-China collaboration on energy and climate change.
Mr. He received an M.A. from Columbia University on Climate and Society, B.S. from Peking University on Geography, and he is currently doing a PhD in the Energy and Resources Group at UC Berkeley.