Economic Affairs
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On Tuesday, September 7, 2010, the Program on Energy and Sustainable Development in collaboration with the Stanford University's Graduate School of Business and Stanford Law School hosted a special conference on Climate Policy Instruments in the Real World.

This conference featured presentations by leading researchers on the political, economic, and regulatory challenges associated with major climate policy instruments.  The goal of this conference was to transfer the state-of-the-art in policy-relevant academic research on key aspects of climate policy design and analysis to the business, regulatory and policymaking communities.  Each presentation was followed by comments from two discussants that develop the practical implications of the research results presented for decision-makers in industry and government.

Topics our experts explored included: setting a price for carbon, engaging the developing world in climate change mitigation, the role of renewable energy sources in climate change mitigation, mechanisms for reducing greenhouse gases from the transportation sector, managing intermittency in the electricity sector, and mechanisms for adapting to climate change.  

We would like to thank everybody for their participation on September 7, 2010.

For more conference information, please visit:

http://www.certain.com/system/profile/web/index.cfm?PKwebID=0x1992925e31&varPage=home

 


Thank you to all our sponsors:

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Bechtel Conference Center

Robert Stavins Speaker Kennedy School of Government
Richard K. Morse Speaker
Severin Borenstein Speaker Haas School of Business, UC Berkeley
Christopher Knittel Speaker Department of Economics, UC Davis

Stanford University 
Economics Department 
579 Jane Stanford Way Stanford, CA 94305-6072 

Website: https://fawolak.org/

(650) 724-1712 (650) 724-1717
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Senior Fellow at the Freeman Spogli Institute for International Studies
Holbrook Working Professor of Commodity Price Studies in Economics
Senior Fellow, by courtesy, at the Stanford Institute for Economic Policy Research
frank_wolak_033.jpg MS, PhD

Frank A. Wolak is a Professor in the Department of Economics at Stanford University. His fields of specialization are Industrial Organization and Econometric Theory. His recent work studies methods for introducing competition into infrastructure industries -- telecommunications, electricity, water delivery and postal delivery services -- and on assessing the impacts of these competition policies on consumer and producer welfare. He is the Chairman of the Market Surveillance Committee of the California Independent System Operator for electricity supply industry in California. He is a visiting scholar at University of California Energy Institute and a Research Associate of the National Bureau of Economic Research (NBER).

Professor Wolak received his Ph.D. and M.S. from Harvard University and his B.A. from Rice University.

Director of the Program on Energy and Sustainable Development
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Frank Wolak Speaker
Matt Kahn Speaker Institute of the Environment and Department of Economics, UCLA
Conferences
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While most Asian economies rode out the recession fairly well, disturbing human development statistics across the region persist. Rapidly increasing wealth is not being shared, and women and minority populations are often the most at risk of falling behind, especially in South Asia.

Barbara Crossette, a former foreign correspondent for The New York Times, is the author of several books on Asia, including So Close to Heaven: The Vanishing Buddhist Kingdoms of the Himalayas, published by Alfred A. Knopf in 1995 and in paperback by Random House/

Vintage Destinations in 1996, and a collection of travel essays about colonial resort towns that are still attracting visitors more than a century after their creation, The Great Hill Stations of Asia, published by Westview Press in 1998 and in paperback by Basic Books in 1999. In 2000, she wrote a survey of India and Indian-American relations, India: Old Civilization in a New World, for the Foreign Policy Association in New York. She is also the author of India Facing the 21st Century, published by Indiana University Press in 1993.

The Great Hill Stations of Asia was a New York Times notable book of the year in 1998. Conde Nast Traveler named it a Book of the Month.

Ms. Crossette is now United Nations correspondent for The Nation and a freelance writer on foreign policy and international affairs. Most recently she was a co-author with George Perkovich of a section on India in the 2009 book Powers and Principles: International Leadership in a Shrinking World. Her articles and essays have appeared periodically in World Policy Journal, published at the New School University in New York. Among her recent articles for the Journal are "Southeast Asia: A Reckoning Looms" [Fall 2006], on recent stumbles in a region that was once a shining model for the developing world; "Who Killed Zia? [Fall 2005], examining the continuing mystery of the death of a former Pakistani president and why the US keeps the records secret; "Hurting the World's Poor in Morality's Name" [Winter 2005], a look at the damaging Bush legacy in global social policies; "India's Sikhs: Waiting for Justice" [Summer 2004], an account of how and why politicians evade responsibility for massacres of minority groups; "What the Poets Thought: Antiwar Sentiment in North Vietnam" [Spring 2003], exclusive interviews with dissident writers who were repressed and imprisoned during the 'American' war; "Sri Lanka: In the Shadow of the Indian Elephant" [Spring 2002], an analysis of terrorism in Sri Lanka and its challenge to both Indian and, lately, American policymakers, and "Killing One's Progeny: America and the United Nations" [Fall 2002].

"Will John Bolton Ruin the UN?" an article published in Foreign Policy, in the July/August 2006, presaged the campaign that led to the resignation of the ambassador.

Ms. Crossette was The New York Times bureau chief at the United Nations from 1994 to 2001. She was earlier a Times chief correspondent in Southeast Asia and South Asia and a diplomatic reporter in Washington. She has also reported from Central America, the Caribbean and Canada, and been deputy foreign editor and senior editor in charge of the Times’ weekend news operations. Before joining newspaper paper in 1973, Ms. Crossette worked for The Evening and Sunday Bulletin in Philadelphia and The Birmingham Post in Birmingham, England.

In 1991, Ms. Crossette won the George Polk Award for foreign reporting for her coverage of the assassination in India of a former prime minister, Rajiv Gandhi. In 1998, she won the 25-year achievement award of The Silurians, a society of New York journalists, and the award for international reporting from InterAction, a coalition of more than 150 international nonprofit aid and development organizations. In 1999, she received the Business Council of the United Nations’ Korn Ferry Award for outstanding reporting on the organization, and in 2003 the United Nations Correspondents’ Association’s lifetime achievement award.

In 2008, Ms. Crossette was awarded a Fulbright prize for her contributions to international understanding.

Ms. Crossette has been a member of the adjunct faculty of the Columbia University Graduate School of Journalism, and in 1980-81 was a Fulbright teaching fellow in journalism at Punjab University in Chandigarh, India. In 1994, she was the Ferris Visiting Professor on Politics and the Press at Princeton University, and later taught a seminar on writing on international affairs for Bard College. In 2003, she led an advanced workshop in journalism at the Royal University of Phnom Penh for writers and editors from Vietnam, Cambodia, Laos and Burma. In 2004-2005 she worked with journalists in Brazil as a Knight International Press Fellow.

Born in Philadelphia on July 12, 1939, Ms. Crossette received a B.A. in history and political science from Muhlenberg College in 1963. She is a member of the Council on Foreign Relations and the Women’s Foreign Policy Group.

She lives in Bucks County, Pennsylvania, where her writing on colonial era inns led to her being named founding editor in 1980 of the guidebook America's Wonderful Little Hotels and Inns.
 

The Shorenstein Journalism Award, which carries a cash prize of $10,000, honors a journalist not only for a distinguished body of work, but also for the particular way that work has helped American readers to understand the complexities of Asia. It is awarded jointly by the Walter H. Shorenstein Asia-Pacific Center in the Freeman Spogli Institute at Stanford University, and the Shorenstein Center on Press, Politics and Public Policy in the Kennedy School of Government at Harvard University. This year’s recipient is Barbara Crossette.

Paul Brest Hall
Building 4, 555 Salvatierra Walk
Stanford, CA 94305

Barbara Crossette Former foreign correspondent for South Asia Speaker New York Times
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Abstract
Social science interpretations of the meltdown emphasize system characteristics such as complexity and coupling, and/or culture as in neo-institutional theories.  Examining regulatory changes, regulatory agents, elected representatives, firms and the many warnings, I argue that the role of human agents has been greatly neglected. Building on earlier work on "executive failure" I offer an agentic interpretation that is missing from both of the social science interpretations. Structure (systems) and culture (neo institutional theory) are valuable but incomplete.

Charles Perrow is an emeritus professor of sociology at Yale University and a visiting professor at CISAC in the winter and spring terms. Among his award-winning research is Organizing America: Wealth, Power, and the Origins of American Capitalism (Princeton, 2002), and Normal Accidents: Living with High Risk Technologies (Princeton, 1999). His recent articles include "Modeling Firms in the Global Economy," Theory and Society, 2009, v 38:3, May, 217-243, "Organizations and Global Warming," in Constance Lever-Tracy, ed. Handbook of Society and Climate change (Routledge, forthcoming, 2010), "Complexity, Catastrophe, and Modularity," Sociological Inquiry 78:2, May 2008 162-73; "Conservative Radicalism," Organization 15:2 2008 271-77; "Disasters Evermore? Reducing our Vulnerabilities to Natural, Industrial, and Terrorist Disasters," Social Research 75:3 Fall, 2008. His recent membership on a National Academy of Science panel on the possibilities of certifying software led to his current work on cyber security. He is also writing on the economic meltdown, but his major interest now is the institutional/organizational aspects of global warming. He received his BA, MA, and PhD from the University of California, Berkeley, all in sociology.

Kenneth Arrow is the Joan Kenney Professor of Economics and Professor of Operations Research, emeritus; a CHP/PCOR fellow; and an FSI senior fellow by courtesy. He is a Nobel Prize-winning economist whose work has been primarily in economic theory and operations, focusing on areas including social choice theory, risk bearing, medical economics, general equilibrium analysis, inventory theory, and the economics of information and innovation. He was one of the first economists to note the existence of a learning curve, and he also showed that under certain conditions an economy reaches a general equilibrium. In 1972, together with Sir John Hicks, he won the Nobel Prize in economics, for his pioneering contributions to general equilibrium theory and welfare theory.

Arrow has served on the economics faculties of the University of Chicago, Harvard and Stanford. Prior to that, he served as a weather officer in the U.S. Air Corps (1942-46), and a research associate at the Cowles Commission for Research in Economics (1947-49). In addition to the Nobel Prize, he has received the American Economic Association's John Bates Clark Medal. He is a member of the National Academy of Sciences and the Institute of Medicine. He received a BS from City College, an MA and PhD from Columbia University, and holds approximately 20 honorary degrees.

Reuben W. Hills Conference Room

Charles Perrow CISAC Visiting Professor Speaker
Kenneth Arrow Joan Kenney Professor of Economics and Professor of Operations Research, Emeritus and CHP/PCOR Fellow; FSI Senior Fellow by courtesy Speaker
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The First Quarter 2010 issue of the International Association for Energy Economics (IAEE) Energy Forum has published an article written by PESD research fellow Varun Rai and PESD affiliated faculty David G. Victor. This issue of the forum  looks at the far east, particularly China and India. There are six articles that look at multiple facets of energy economics in that area and the forum will continue with this focus in the second quarter issue.

Rai and Victor's article titled "Identifying Viable Options in Developing Countries for Climate Change Mitigation: The Case of India" offers a framework for identifying viable and credible climate change mitigation actions in developing countries. The framework is applied to the case of India to suggest that a large number of options to control warming gases are in India's own self-interest, and that leverage on emissions from each of these options could amount to several hundred million tons of CO2 annually over the next decade and an even larger quantity by 2030.

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Robert Hormats, Under Secretary of State for Economics, Energy, and Agricultural Affairs, gave an S.T. Lee seminar at FSI on March 11, addressing "The Rise of the New Economic Powers: How the United States Can Meet the Challenge." He set the stage by discussing the vast new economic geography.

  • The global economy is now multi-polar, with a number of players in global trade, finance, and technology development, especially China, India and Brazil.  The rising powers, however, still have large numbers of poor people and see their domestic needs and objectives differently than developed nations.
  • Second, the big sovereign risk questions now surround the developed, not the developing economies, and the pressures of the global financial crisis have made them more concerned with domestic recovery, rather than global systemic issues, particularly trade.
  • Third, the Internet and rising importance of services has brought gains as well as perils. Global integration of production and supply chains is efficient, but disruptions are readily transmitted across national borders. As increasing portions of investment are devoted to services and intangibles, rapid dissemination puts intellectual property at risk.

Asking how to develop a new international system, Hormats emphasized that the Group of 20 was designed to foster greater inclusion and dialogue, calling cooperation during the recent financial crisis the "largest multilateral collaborative endeavor since World War II." In an effort to move forward with strategic concerns, rather than immediate deliverables, the U.S. government is fostering a number of dialogues with key partners - including Russia, China, and Brazil. Hormats also cited the need to address issues more efficiently. Noting that large scale negotiations like Copenhagen no longer work, he identified a new focus on building coalitions of the willing and able.

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In 2008, for the first time a majority of the world's population lived in cities. Rapidly rising standards of living and migration are contributing to an unprecedented worldwide surge in urbanization--in China alone, if trends continue, by 2025 more than 220 cities will each have more than one million inhabitants. The explosive growth of cities around the Pacific has widespread implications for energy use and has led to the demand for cities to become both smart and green.

But while billions of dollars of investments are pouring into urban energy solutions, and around the Pacific "low-carbon cities" and "eco-cities" are moving center stage, there are enormous challenges (and opportunities) facing the effective application of information technologies (IT), other innovative technologies and industrial growth.

The intersection of IT and environmental sustainability on the urban scale will require a complex integration of expertise, tools, and know-how from multiple disciplines--from building design and real estate development, to mobility and water systems, IT hardware and software, and energy providers. Although innovations in strategies and implementation are evolving quickly in pockets of excellence around the globe, early results have been highly uneven. Frameworks for understanding and analysis are still fragmented, innovative design and implementation rapidly changing, and best practices have yet to be defined.

Purpose
Led by SPRIE at Stanford University, this conference aims to gather an elite group of experts, decision makers, and thought leaders from across disciplines and geographical boundaries to focus on smart green cities around the Pacific. Participants will:

  • Pursue a deeper understanding of the complex interactions among the key drivers that impact the extent that cities are green and smart
  • Focus on core challenges of capitalizing on opportunities and overcoming obstacles--technological, economic, behavioral or political
  • Explore what innovations in strategy or practice are leading to positive outcomes, including human livability, financial viability, economic vitality, and environmental sustainability
  • Discuss implications for the evolution of markets and development of industries 
  • Lay the groundwork for future actions, such as industry strategies, research agendas, and policy recommendations

Participants
"Smart Green Cities" will invite a select group of government, business, and academic leaders from the United States and Asia for two days of expert presentations and fruitful discussion at Stanford University. The summit will enable participants to better lead to improved strategy, action, and outcomes for building the next generation of smart green cities.

Agenda
Agenda is preliminary and not all speakers are confirmed. Please download below

 

Sponsors
Many thanks to our sponsors for making this event possible. 

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Stanford Institute for Economic Policy Research (SIEPR)
John A. and Cynthia Fry Gunn Building
366 Galvez Street
Stanford, CA

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About the talk:
Cleantech/Greentech investing has helped the venture capital (VC industry to contract further during the financial crisis. Over the last few years, it has become a significant part of VC investments around the world. In addition, solutions for large local or even global problems ranging from power generation to power efficiency, as well as water and air pollution, new materials, transportation, waste management, etc. are taking center stage even at every government level in most countries around the world. The seminar will focus on the following areas:

  1. Global cleantech/energy investments by asset class
  2. International VC benchmarks of cleantech investments
  3. Deals IRRs & funds IRRs in the United States/Europe   

Dr. Haemmig was part of a World Economic Forum team that produced a report on "Green Investing 2010," downloadable below.

About the speaker:
Dr. Martin Haemmig's venture capital research covers 13 countries in Asia, Europe, Israel, and USA. He lectures and/or performs research at numerous universities across the U.S., Europe, China and India. He has authored books on the globalization of venture capital. He is Senior Advisor on Venture Capital at SPRIE and advises on venture capital for China's Zhongguancun Science Park. Martin Haemmig earned his electronics degree in Switzerland and his MBA and doctorate in California, and worked for almost 20 years in global high-tech companies in Asia, Europe and the U.S. before returning to his academic career. He became Swiss national champion in marketing in 1994.

Philippines Conference Room

Martin Haemmig Speaker
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About the talk:

Since 2008, the Republic of Korea has pursued a "Green Growth" policy as a way of addressing climate change and at the same time achieving economic growth. As a result, various green infrastructure projects have been taking place not only at the central government levels but also city levels.

Seoul Metropolitan City and Incheon City, for example, have already made significant progress by transforming themselves into Smart Green Cities. While current developments are being driven by the city governments, it is expected there will be ample opportunities for investments from the private sector, particularly in the fields of both energy technologies and information technologies.

Particular focus will be given to the areas of transportation, buildings, and water and waste management where the combination of "green" and IT technologies will be numerous.

About the speaker:

Suh-Yong Chung is Associate Professor in the Division of International Studies at Korea University and is an international expert on sustainable development law and policy. His research covers various emerging issues in the environment and sustainable development including climate change both at global and regional level. His most recent works focus on internationalization of Green Growth policy, post-2010 climate change regime formation, and regional environmental institution building in Northeast Asia.

He is a member of the Compliance Committee of the UN Basel Convention, and has participated in various activities of various international organizations. He has also advised for the Korean Government on the issues of climate change and sustainable development. In 2009, he advised for the Seoul Metropolitan City government on the C40 (Climate 40) Summit Meeting.

Professor Chung holds degrees in law and international relations from Seoul National University, the London School of Economics and Stanford Law School. He was a researcher at Shorenstein APARC and has continuously been involved in its activities as the Secretary General of the Stanford APARC Forum in Korea.

Daniel and Nancy Okimoto Conference Room

Suh-Yong Chung Associate Professor, Division of International Studies Speaker Korea University
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PESD Director Frank Wolak will be among a number of speakers participating at Stanford Institute for Economic Policy Research's Policy Forum - "Using Economics to Confront Climate Change."

Frank will be moderating a discussion of difficult challenges posed by the rapidly rising use of coal in India and China, and challenges to trade policy as studied by PESD researchers Richard Morse, Mark Thurber, and Jeremy Carl.

Bechtel Conference Center

Stanford University 
Economics Department 
579 Jane Stanford Way Stanford, CA 94305-6072 

Website: https://fawolak.org/

(650) 724-1712 (650) 724-1717
0
Senior Fellow at the Freeman Spogli Institute for International Studies
Holbrook Working Professor of Commodity Price Studies in Economics
Senior Fellow, by courtesy, at the Stanford Institute for Economic Policy Research
frank_wolak_033.jpg MS, PhD

Frank A. Wolak is a Professor in the Department of Economics at Stanford University. His fields of specialization are Industrial Organization and Econometric Theory. His recent work studies methods for introducing competition into infrastructure industries -- telecommunications, electricity, water delivery and postal delivery services -- and on assessing the impacts of these competition policies on consumer and producer welfare. He is the Chairman of the Market Surveillance Committee of the California Independent System Operator for electricity supply industry in California. He is a visiting scholar at University of California Energy Institute and a Research Associate of the National Bureau of Economic Research (NBER).

Professor Wolak received his Ph.D. and M.S. from Harvard University and his B.A. from Rice University.

Director of the Program on Energy and Sustainable Development
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Frank Wolak Moderator
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