Energy Working Group: Modeling the World Steam Coal Market: To What Extent Does China Exercise Monopsony Power?
This EWG talk will highlight PESD's first analysis using our new coal model by demonstrating how it can be used to analyze the effects of China's import behavior on world thermal coal consumption. We will explore China's capability as a consumer to exercise market power in the domestic Chinese markets, and to what extent this behavior affects the price, consumption, and production of steam coal globally. Two scenarios will be presented: 1) we assume Chinese consumers with import capability behave competitively and 2) we assume they exercise market power.
The use of coal as a fuel has increased tremendously over the past decade, with most of the growth coming from rapidly expanding economies like those in China and India. As coal continues to be the fuel of choice for electricity generation around the world, PESD is excited to be developing a model to further understand the global steam coal market. In the future, we anticipate the model will help answer questions regarding climate and trade policies, market structure, and technology improvements.
Michael Joined PESD in July of 2010 as a research assistant after graduating from Stanford University with a BA in Economics.
Encina Hall
Stanford University
Michael Miller
616 Serra St.
Encina Hall East
Stanford, CA 94305
Michael joined PESD in July of 2010 after graduating from Stanford with a BA in Economics. He works with the Program Director, Frank A. Wolak, as a Quantitative Research Assistant. At Stanford he discovered his interest in Economics as a tool for encouraging more responsible use of energy and resources. He looks forward to working at PESD where he will continue to explore these interests.
His research interests include studying the effects of price-based climate policies, and to what extent they accelerate the production and adoption of low-carbon energy technologies.
Inter-Korean Relations: Rivalry, Reconciliation, and Reunification
Students learn real-world policy skills
How do you effectively
advise senior-level policymakers when a political crisis emerges? Stanford
students taking the course U.S. Policy
Towards Northeast Asia (IPS 244), sponsored by the Walter H. Shorenstein
Asia-Pacific Research Center (Shorenstein APARC), are learning and putting into
practice these very skills. Over the ten weeks of the 2011 winter quarter,
students will learn about contemporary U.S. policy towards Japan, China, and
Korea, and about how to write and present policy-style memoranda to top-level
government decision makers. They will also take part in an in-class simulation
of a Six-Party meeting to negotiate North Korea's nuclear program.
Students cover a great deal of content in a short amount of time. "Ten weeks
goes by pretty quickly," says course leader Michael H. Armacost, the Shorenstein
Fellow at FSI and a former U.S. Ambassador to Japan and the Philippines. The
real-world approach to the course is similar to what you would find in a
professional international relations school, he explains. In previous years,
Armacost has taught the course both alone and as part of a team with other
former U.S. senior-level policy officials. The current course has been offered in the Ford Dorsey Program in International Policy Studies (IPS) for the last
three years. It is co-taught with Daniel C. Sneider, the associate director for
research at Shorenstein APARC and a former long-time foreign correspondent in
Asia; David Straub, the associate director of the Stanford Korean Studies
Program and a former U.S. senior foreign service officer; and Thomas Fingar,
the Oksenberg/Rohlen Distinguished Fellow at FSI and a former Chairman of the
National Intelligence Council.
In addition to providing a strong understanding of the U.S. foreign
policymaking process, each week of the course is dedicated to a different
aspect of the relationship of the United States with the countries of Northeast
Asia, including Taiwan and the Russian Federation. Students will closely
examine the history and dynamics between the great powers of the region; U.S.
security relations with Japan and China; East Asian regionalism;
democratization in South Korea; the North Korean nuclear crisis; and economics
and human rights in China.
Although the case studies that the policy-writing exercises are based upon are
hypothetical, they are closely tied to real-world issues and events. A previous
year's case study dealt with tensions between China and Japan over rival claims
to the Senkaku/Diaoyu Islands, anticipating the September 2010 conflict between
Japan and China in the waters around these islands. The simulation exercise,
another highlight of the course when students have the opportunity to
collaborate with one another, is also closely tied to current regional events.
In addition to the rich content of the course and the expertise of its
instructors, the diverse background of the students lends itself to the overall
learning experience. Some of the students are pursuing a master's degree
through IPS or the Center for East Asian Studies, while others come from the
Graduate School of Business and various other Stanford units. Each year, there
are always a few undergraduate students, who Armacost describes as "very
strong," as well as early-career foreign affairs and military officials from
Northeast Asia.
Interest in the course remains strong each year, and Shorenstein APARC will
continue to offer it in order to provide solid, real-world policy training for
the next generation of scholars and government officials.
Why Did Japan Stop Growing?
The Japanese economy has been stagnating for almost two decades. During this event, Takeo Hoshi will describe the findings of a report that he co-authored with Anil Kashyap of the Booth School of Business at the University of Chicago, the National Bureau of Economic Research (NBER), and the Federal Reserve Bank of Chicago. In the report, Hoshi and Kashyap utilized the neoclassical growth model in order to try to explain the causes of this stagnation and to identify policy choices that might help restore growth. Their focus was intentionally on longer-term issues, rather than the immediate challenges that are associated with the fallout from the global recession.
Looking at financial globalization and the collapse of the fixed exchange rate regime they found that by the end of the 1970s Japan could not rely on an undervalued currency to boost its exports. It had to rearrange its production system and other economic institutions to cope with globalization to reduce its reliance on external demand.
Japan's population structure was shifting and becoming increasingly elderly. Aging meant slower growth of the labor force. Declining fertility combined with aging eventually reduced the domestic saving that supported economic expansion during the rapid economic growth period.
Finally, monetary and fiscal policy performed poorly. The Bank of Japan consistently undershot its inflation objective. The government pursued massive fiscal stimulus during the 1990s and 2000s, so much so that Japan went from having the best debt position amongst advanced economies to the worst.
Hoshi is a Pacific Economic Cooperation Professor in international economic relations at the Graduate School of International Relations and Pacific Studies at the University of California, San Diego. He is also a research associate at the Tokyo Center for Economic Research, and is on the board of directors for Union Bank. His major research area is the study of the financial aspects of the Japanese economy, especially corporate finance and governance.
He is a recipient of the 2011 Reischauer International Education award, the 2006 Enjoji Jiro Memorial Prize, and the 2005 JEA-Nakahara Prize. Among his many publications is Corporate Financing and Governance in Japan: The Road to the Future (MIT Press, 2001), which received the Nikkei Award for the Best Economics Books in 2002.
Philippines Conference Room
Takeo Hoshi
Takeo Hoshi was Henri and Tomoye Takahashi Senior Fellow at the Freeman Spogli Institute for International Studies (FSI), Professor of Finance (by courtesy) at the Graduate School of Business, and Director of the Japan Program at the Shorenstein Asia-Pacific Research Center (APARC), all at Stanford University. He served in these roles until August 2019.
Before he joined Stanford in 2012, he was Pacific Economic Cooperation Professor in International Economic Relations at the Graduate School of International Relations and Pacific Studies (IR/PS) at University of California, San Diego (UCSD), where he conducted research and taught since 1988.
Hoshi is also Visiting Scholar at Federal Reserve Bank of San Francisco, Research Associate at the National Bureau of Economic Research (NBER) and at the Tokyo Center for Economic Research (TCER), and Senior Fellow at the Asian Bureau of Finance and Economic Research (ABFER). His main research interest includes corporate finance, banking, monetary policy and the Japanese economy.
He received 2015 Japanese Bankers Academic Research Promotion Foundation Award, 2011 Reischauer International Education Award of Japan Society of San Diego and Tijuana, 2006 Enjoji Jiro Memorial Prize of Nihon Keizai Shimbun-sha, and 2005 Japan Economic Association-Nakahara Prize. His book titled Corporate Financing and Governance in Japan: The Road to the Future (MIT Press, 2001) co-authored with Anil Kashyap (Booth School of Business, University of Chicago) received the Nikkei Award for the Best Economics Books in 2002. Other publications include “Will the U.S. and Europe Avoid a Lost Decade? Lessons from Japan’s Post Crisis Experience” (Joint with Anil K Kashyap), IMF Economic Review, 2015, “Japan’s Financial Regulatory Responses to the Global Financial Crisis” (Joint with Kimie Harada, Masami Imai, Satoshi Koibuchi, and Ayako Yasuda), Journal of Financial Economic Policy, 2015, “Defying Gravity: Can Japanese sovereign debt continue to increase without a crisis?” (Joint with Takatoshi Ito) Economic Policy, 2014, “Will the U.S. Bank Recapitalization Succeed? Eight Lessons from Japan” (with Anil Kashyap), Journal of Financial Economics, 2010, and “Zombie Lending and Depressed Restructuring in Japan” (Joint with Ricardo Caballero and Anil Kashyap), American Economic Review, December 2008.
Hoshi received his B.A. in Social Sciences from the University of Tokyo in 1983, and a Ph.D. in Economics from the Massachusetts Institute of Technology in 1988.
African Agricultural R&D and Productivity Growth in a Global Setting
Food and agricultural policy experts Prabhu Pingali and Philip Pardey will each speak on trends in productivity and investments in technology, survey of constraints to productivity, incentives and investment, and opportunities to raise productivity.
The Green Revolution - past successes, unfinished business, and the way forward
Pingali will review strategic components of the Green Revolution and its achievement and limits in terms of agricultural productivity improvement and broader impact at social, environmental and economic levels, including its impact on food and nutrition security. Lessons learned and the strategic insights these provide will be reviewed as the world is preparing a "redux" version of the Green Revolution with more integrative environmental and social impact combined with agricultural and economic development. Pingali will also point to core research & policy gaps that can enhance further spread and sustainable adoption of productivity enhancing technologies.
Prabhu Pingali is the Deputy Director of Agricultural Development at the Bill and Melinda Gates Foundation. Formerly, he served as Director of the Agricultural and Development Economics Division of the Food and Agriculture Organization (FAO) of the United Nations. Pingali was elected to the U.S. National Academy of Sciences as a Foreign Associate in May 2007, and he was elected Fellow of the American Agricultural Economics Association in 2006. Pingali was the President of the International Association of Agricultural Economists (IAAE) from 2003-06. Pingali has over twenty five years of experience in assessing the extent and impact of technical change in agriculture in developing countries, including Asia, Africa and Latin America.
African Agricultural R&D and Productiivity Growth in a Global Setting
Given the continuing importance of agriculture in most African economies, an in-depth understanding of the past and likely future productivity performance of African agriculture is key to assessing the overall economic growth and development prospects of the region. African agriculture operates in increasingly interconnected global commodity markets, so the relative productivity performance of African vis-à-vis rest-of-world agriculture is also relevant. This talk will present new evidence on African agricultural productivity performance and place that evidence in relation to the evolving pattern of agricultural productivity growth worldwide. Technological change is a principal driver of productivity growth, and new, updated evidence on the trends in R&D investments that give rise to these technological changes will also be presented and discussed. The productivity effects of R&D play out over comparatively long periods of time demanding a long-run look at these developments.
Philip Pardey is Professor of Science and Technology Policy in the Department of Applied Economics, and Director of the University of Minnesota's International Science and Technology Practice and Policy (InSTePP) center. His research deals with the finance and conduct of R&D globally, methods for assessing the economic impacts of research, and the economic and policy (especially intellectual property) aspects of genetic resources and the biosciences. He is a Fellow of the American Agricultural Economics Association and a Distinguished Fellow of the Australian Agricultural and Resource Economics Society.
Bechtel Conference Center
Cavallaro on human rights exceptionalism in Brazil
On February 1, James Cavallaro, Clinical Professor of Law at Harvard and Executive Director of Harvard Law School's Program on Human Rights, spoke at the fifth installment of the Sanela Diana Jenkins Speaker Series hosted by the Center on Democracy, Development and the Rule of Law's Program on Human Rights.
While much of Cavallaro's research has focused on the Inter-American Court of Human Rights, his talk focused on his experience working on human rights issues in Brazil. Recounting stories from when he helped establish offices for Human Rights Watch in Brazil, Cavallaro raised the question of why human rights has not caught nearly as much traction in Brazil as in its South American neighbors.
To explain this "Brazilian exceptionalism" with regard to human rights, Cavallaro highlighted the persistently high crime rates that continue to plague Brazilian society. According to Cavallaro, Brazilian police are the worst human rights violators and have been known to torture suspects, employing apparatuses like the Parrot's Perch, and to use firearms and force indiscriminately. However, these violations of human rights agreements are tolerated in Brazil because the general population considers a hard stance on crime necessary to maintain order and to keep crime rates from rising to the levels seen during the early 1990s. Cavallaro noted that when people are forced to weigh their personal security against the rights' of others, people's self-interest almost always take precedence.
However, Cavallaro said that human rights in Brazil could be at a crossroads of sorts. He pointed out that how police forces handle security issues when Brazil hosts both the 2014 World Cup and 2016 Summer Olympic games could potentially mark the course for future human rights advancement or prolonged stagnancy in Brazil. He suggested that these events, during which Brazil's economic development and national pride will be on display, could serve to professionalize the police force and redefine the boundaries of appropriate action. Unfortunately, he said, the likelihood of such a shift in norms is unlikely to develop in the few years before these events.
Comparative policy responses to demographic change in East Asia
East Asia's demographic landscape is rapidly changing and comparative academic research is crucial to help guide well-informed decisions in the many policy areas that are affected, such as security, economics, and immigration. From January 20 to 21, the Walter H. Shorenstein Asia-Pacific Research Center (Shorenstein APARC) gathered subject experts from numerous fields for two days of lively and productive presentations and dialogue to help identify key research issues and questions for its new, three-year research initiative on this significant subject.
Shorenstein APARC held a public panel discussion on January 20, featuring eight scholars from across the United States and Asia. The issue of aging featured prominently in their presentations, as did fertility rates and immigration. A full audio recording of the panel discussion is available on the Shorenstein APARC website and summaries of the presentations follow below. A closed-session workshop took place the next day, the discussions from which will serve as the foundation for future programs and publications related to the research initiative.
January 20 Panel Discussion Presentations
The link between demography and security is more tenuous in East Asia than in other parts of the world, suggested Brian Nichiporuk, a political scientist with the RAND Corporation. Nichiporuk discussed possible policy responses to demographic change in Japan, North and South Korea, the Russian Federation, and China. He suggested, for example, that Japan's new maritime security focus is related to perceived economic and political competition from China, which is magnified by its domestic demographic concerns.
Michael Sutton, a visiting fellow with the East-West Center in Washington, DC, stated that Japan's aging population would remain a major policy issue for the next 20–30 years. He emphasized that the policy challenges posed by this phenomena are complicated by the role that the United States plays in the regional security structure, and also by the growing dominance of China and the history that it shares with Japan. Nonetheless, maintained Sutton, despite the obvious challenges, it is possible for Japan and the other countries facing this demographic issue to successfully adapt.
Social attitudes and policy in East Asia do not favor immigration, as they do in European countries such as Spain and Italy, suggested John Skrentny, director of the Center for Comparative Immigration Studies at the University of California, San Diego. Skrentny focused his talk on low-skill immigrant workers in South Korea and Japan, noting that these two countries, which began receiving workers in the 1970s and 1980s, commonly associate immigrants with social disruption. According to Skrentny, immigration policy is often tied to economics and tends to favor co-ethnic workers.
Chong-En Bai, chair of the Department of Economics at Tsinghua University, discussed numerous economic policy implications and responses related to demographic change in China. He noted areas where successful policies have been adopted but challenges still remain, including savings and investment, labor and urbanization, pension, healthcare, and long-term care. Bai described, for example, how the children of rural migrants now have access to urban schools, but that they still face the logistical challenge of having to travel back to their home provinces to take college entrance examinations.
Examining demographic change and health improvements is essential to understanding the significant economic growth in East Asia over the past several decades, emphasized David Bloom, chair of the Department of Global Health and Population at Harvard University. He noted the success of East Asian countries in lowering their infant mortality rates through investment in public health improvements, such as sanitation and vaccination. Bloom suggested that these and other past successful policy mechanisms have run their course, and that it is now imperative to find ways to address the region's key demographic issue of aging.
Naohiro Ogawa, director of the Population Research Institute at Nihon University, described findings from the National Transfer Accounts (NTA) project, an international effort to gauge economic flows across age groups. He discussed the pressure placed on Japan's working-age population by the increasing cost of caring for children and the elderly, as well as the challenges and possibilities related to having a large, healthy, aging population. Ogawa noted that institutional responses to demographic change, such as increasing the retirement age and adopting more open immigration policy, have moved slowly in Japan.
Andrew Mason, a professor of economics at the University of Hawai'i, Manoa, also utilized NTA data to make predictions about East Asia's economic future. He proposed that the amount of human capital, such as the money that parents spend on the education of their children, is likely to grow quite rapidly. He also suggested that financial wealth in East Asia is likely to increase significantly as the populations of its countries age. Finally, he suggested that the current trend of regional economic growth would continue, although at a somewhat steadier rate. Mason qualified his predictions with questions, such as whether the return on investment in education would be commensurate with what is spent.
James Raymo, a professor of sociology at the University of Wisconsin-Madison, described a wide array of findings about changes in fertility and family structure in Japan and their connections, as well as possible policy implications. Raymo discussed trends in marriage, childbearing, divorce, non-marital cohabitation, and the participation of women in the labor force. He pointed to gaps in current research, and suggested possible linkages to research on other demographic trends, such as Japan's aging population.
Entrepreneurship in the Global Marketplace
About the event
On Tuesday, March 1, SPRIE and Alibaba.com hosted “Entrepreneurship in the Global Marketplace,” a seminar featuring noted venture capitalists, entrepreneurs and executives. The seminar was the first in a series being conducted at several California universities under the auspices of the Schwarzenegger Emerging Entrepreneur Initiative.
Famed venture capitalist Tim Draper kicked off the event, sharing his insight on trends and strategies relevant to global business. Multiple facets of China’s role in supporting and enabling entrepreneurial ventures were spotlighted, including the presentation of new research on the rise and global impact of Chinese e-commerce, a talk by an executive from Chinese e-commerce giant Alibaba.com, and lessons from a diverse set of entrepreneurs whose businesses depend on international trade. Additional perspectives were shared by China- and U.S.-based VCs.
This event was one of many being held at Stanford University during Entrepreneurship Week 2011, including compelling lectures, workshops, mentoring sessions, a job fair, and more. See full details at the Stanford Entrepreneurship Week website.
About the hosts
The Stanford Program on Regions of Innovation and Entrepreneurship (SPRIE) is dedicated to advancing the understanding and practice of innovation and entrepreneurship in leading high technology regions in the global economy. Through and international and interdisciplinary research, publications, executive education, and conferences, SPRIE impacts the arenas of academia, policy, and business.
The Schwarzenegger Emerging Entrepreneur Initiative is a program to spur entrepreneurship and stimulate job growth in California, created by Alibaba.com in partnership with former Governor Arnold Schwarzenegger. Through a series of interactive events, the initiative aims to provide 3,000 California university students with guidance, skills and entrepreneurial know-how to start their own businesses and participate successfully in the knowledge-based networked economy.
Bechtel Conference Center
Duncan Clark
BDA China Ltd
#2908 North Tower, Kerry Centre
1 Guanghua Road
Beijing 100020, China
Duncan Clark is Chairman of BDA China, a consultancy he founded in Beijing in 1994 after four years as an investment banker with Morgan Stanley in London and Hong Kong. Over the past 19 years, Duncan has guided BDA to become the leading investment advisory firm in China specialized in China's technology, internet and e-commerce sectors.
An angel investor in mobile game app developer Happy Latte and digital content metrics company App Annie Duncan has also served on the Advisory Board of Chinese internet company Netease.com (Nasdaq: NTES) and serves on the Advisory Board of the Digital Communication Fund of Geneva-based bank Pictet & Cie.
A UK citizen, Duncan was raised in England, the United States and France. A graduate of the London School of Economics & Political Science, Duncan is a Senior Advisor to the ‘China 2.0' initiative at the Stanford Graduate School of Business’s Stanford Program on Regions of Innovation and Entrepreneurship, where he was invited as a Visiting Scholar in 2010 and 2011.
Duncan is partner in a Beijing-based film production company CIB Productions, and Executive Producer of two China-themed television documentaries including ‘My Beijing Birthday’.
Duncan was appointed Officer of the Order of the British Empire (OBE) in the 2013 New Year Honours for services to British commercial interests in China.