Energy

This image is having trouble loading!FSI researchers examine the role of energy sources from regulatory, economic and societal angles. The Program on Energy and Sustainable Development (PESD) investigates how the production and consumption of energy affect human welfare and environmental quality. Professors assess natural gas and coal markets, as well as the smart energy grid and how to create effective climate policy in an imperfect world. This includes how state-owned enterprises – like oil companies – affect energy markets around the world. Regulatory barriers are examined for understanding obstacles to lowering carbon in energy services. Realistic cap and trade policies in California are studied, as is the creation of a giant coal market in China.

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William J. Perry, former secretary of defense, and Siegfried S. Hecker, former director of Los Alamos National Laboratory, have joined forces to launch the Nuclear Risk Reduction initiative to address the changing nuclear threat following the end of the Cold War and the rise of international terrorism. The project is based at the Center for International Security and Cooperation (CISAC), which Hecker co-directs.

"I have worked with Sig for many years, both inside and outside government," Perry said. "I am particularly pleased to have such an able collaborator on this effort, which I have said is the work to which I will dedicate the rest of my career."

Hecker said he is excited to work with Perry to reduce the global nuclear threat. "Our primary objectives will be to work toward a world with fewer weapons, to have fewer fingers on the nuclear trigger and to keep nuclear weapons and materials out of the wrong hands," he said. "Time is of the essence both because of the urgency of the threat and because of the renewed hope that major powers are willing to take serious steps to realize these goals."

Hecker and Perry, both giants in the field of nuclear defense and security, plan to bring their considerable experience and associations with the U.S. and international policy, military and scientific communities to achieve these objectives.

The Nuclear Risk Reduction initiative (NRR) builds on the work of the Preventive Defense Project (PDP) that was established at Stanford and Harvard 13 years ago under the leadership of Perry and Ashton B. Carter, a former assistant secretary of defense in the Clinton administration. The two men, during their time in government, tackled some of the most important security issues following the breakup of the Soviet Union through promoting the concept of preventive defense, which seeks to diminish the possibility of potential threats escalating into actual threats and conflict. Carter is serving currently in the Obama administration as undersecretary of defense for acquisition, technology and logistics.

Hecker, as director of Los Alamos, was instrumental in creating the U.S. nuclear weapons stockpile stewardship program to meet the challenges of the post-Cold War environment without nuclear testing. He also helped reduce the nuclear threat posed by Russia and other republics in the chaotic years that followed the breakup of the Soviet Union. At Stanford, he has expanded his activities to include work in Northeast Asia, South Asia and the Middle East.

NRR's three-prong approach for making the world a safer place:

1. Working toward a world free of nuclear weapons

Perry, along with former secretaries of state George Shultz and Henry Kissinger, and former Sen. Sam Nunn, launched a joint effort in 2007 to refocus world attention on the critical need to eliminate nuclear weapons, starting with practical measures to make the world a safer place. President Obama, who has embraced this vision, has begun to adopt policies that will move the United States in this direction. The New Strategic Arms Reduction Treaty (New START), signed April 8, 2010, by Obama and Russian President Dmitry Medvedev, reduces the number of strategic arsenals in each country to 1,550 warheads. Now Perry and Hecker, through NRR, are conducting a risk/benefit analysis of ratification of the Comprehensive Test Ban Treaty (CTBT), another critical piece of legislation linked to nuclear weapon reductions. They will also explore with Russian colleagues deeper cuts in their respective nuclear arsenals along with engaging other nuclear weapons states on such critical issues.

2. Preventing proliferation of nuclear weapons

Perry and Hecker believe the risk of using nuclear weapons increases as more countries acquire them. Much of their focus is on the nuclear programs in North Korea and Iran, both of which threaten international peace and stability. In addition, as more states possess nuclear weapons and materials, it will become increasingly likely that fissile materials for an improvised nuclear device could fall into the hands of sub-national groups or terrorists.

Meanwhile, if there is to be a global renaissance of nuclear power, nations must learn how to manage potential proliferation risks associated with nuclear reactors and their fuel cycles. This is particularly critical if nuclear power spreads to developing countries that have expressed interest in this form of energy, since many have neither the requisite technological basis nor political stability to guarantee security.

3. Preventing nuclear terrorism

The 2010 Nuclear Security Summit in Washington, D.C. highlighted the importance of keeping nuclear weapons out of the hands of terrorists. As President Obama stated, "It is increasingly clear that the danger of nuclear terrorism is one of the greatest threats to global security-to our collective security." Despite this, some nations view the terrorist threat with less alarm. NRR plans to engage the technical and military leadership in key countries to promote a common understanding of the dangers posed by such threats and what steps are needed to mitigate them.

President Obama also warned, "Nuclear materials that could be sold or stolen and fashioned into a nuclear weapon exist in dozens of nations." Harvard's Graham Allison stated if countries could, "Lock down all nuclear weapons and bomb-usable material as securely as gold in Fort Knox, they [could] reduce the likelihood of a nuclear 9/11 to nearly zero." During the Nuclear Summit, Obama announced a goal to "lock down" all nuclear materials by 2014. This is a laudable objective, but Perry and Hecker know it will require much more than physical security to protect nuclear sites worldwide. The two men will work toward a cooperative, global effort to help countries develop modern, comprehensive nuclear safeguard systems that can provide proper control and accounting, along with physical protection.

Hecker has experience regarding such work. In 1994, he initiated a nuclear materials protection, control and accounting program (the lab-to-lab program) with Russia's nuclear complex. Perry and Hecker, through NRR, plan to reinvigorate and broaden the scientific cooperation that existed between the United States and Russia in the 1990s. Moreover, they plan to collaborate with the technical, military and policy communities in key countries to realize NRR's ambitious agenda of making the world a safer and more secure place.

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David Lobell
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Advances in high-yield agriculture achieved during the so-called Green Revolution have not only helped feed the planet, but also have helped slow the pace of global warming by cutting the amount of biomass burned - and the resulting greenhouse gas emissions - when forests or grasslands are cleared for farming. Stanford researchers estimate those emissions have been trimmed by over half a trillion tons of carbon dioxide. The paper is being released this week in the Proceedings of the National Academy of Sciences.

Advances in high-yield agriculture over the latter part of the 20th century have prevented massive amounts of greenhouse gases from entering the atmosphere - the equivalent of 590 billion metric tons of carbon dioxide - according to a new study led by two Stanford Earth scientists.

The yield improvements reduced the need to convert forests to farmland, a process that typically involves burning of trees and other plants, which generates carbon dioxide and other greenhouse gases.

The researchers estimate that if not for increased yields, additional greenhouse gas emissions from clearing land for farming would have been equal to as much as a third of the world's total output of greenhouse gases since the dawn of the Industrial Revolution in 1850.

The researchers also calculated that for every dollar spent on agricultural research and development since 1961, emissions of the three principal greenhouse gases - methane, nitrous oxide and carbon dioxide - were reduced by the equivalent of about a quarter of a ton of carbon dioxide - a high rate of financial return compared to other approaches to reducing the gases.

"Our results dispel the notion that modern intensive agriculture is inherently worse for the environment than a more 'old-fashioned' way of doing things," said Jennifer Burney, lead author of a paper describing the study that will be published online by the Proceedings of the National Academy of Sciences.

Adding up the impact

The researchers calculated emissions of carbon dioxide, methane and nitrous oxide, converting the amounts of the latter two gases into the quantities of carbon dioxide that would have an equivalent impact on the atmosphere, to facilitate comparison of total greenhouse gas outputs.

Burney, a postdoctoral researcher with the Program on Food Security and the Environment at Stanford, said agriculture currently accounts for about 12 percent of human-caused greenhouse gas emissions. Although greenhouse gas emissions from the production and use of fertilizer have increased with agricultural intensification, those emissions are far outstripped by the emissions that would have been generated in converting additional forest and grassland to farmland.

"Every time forest or shrub land is cleared for farming, the carbon that was tied up in the biomass is released and rapidly makes its way into the atmosphere - usually by being burned," she said. "Yield intensification has lessened the pressure to clear land and reduced emissions by up to 13 billion tons of carbon dioxide a year."

"When we look at the costs of the research and development that went into these improvements, we find that funding agricultural research ranks among the cheapest ways to prevent greenhouse gas emissions," said Steven Davis, a co-author of the paper and a postdoctoral researcher at the Carnegie Institution at Stanford.

To evaluate the impact of yield intensification on climate change, the researchers compared actual agricultural production between 1961 and 2005 with hypothetical scenarios in which the world's increasing food needs were met by expanding the amount of farmland rather than by the boost in yields produced by the Green Revolution.

"Even without higher yields, population and food demand would likely have climbed to levels close to what they are today," said David Lobell, also a coauthor and assistant professor of environmental Earth system science at Stanford.

"Lower yields per acre would likely have meant more starvation and death, but the population would still have increased because of much higher birth rates," he said. "People tend to have more children when survival of those children is less certain."

Avoiding the need for more farmland

The researchers found that without the advances in high-yield agriculture, several billion additional acres of cropland would have been needed.

Comparing emissions in the theoretical scenarios with real-world emissions from 1961 to 2005, the researchers estimated that the actual improvements in crop yields probably kept greenhouse gas emissions equivalent to at least 317 billion tons of carbon dioxide out of the atmosphere, and perhaps as much as 590 billion tons.

Without the emission reductions from yield improvements, the total amount of greenhouse gas pumped into the atmosphere over the preceding 155 years would have been between 18 and 34 percent greater than it has been, they said.

To calculate how much money was spent on research for each ton of avoided emissions, the researchers calculated the total amount of agricultural research funding related to yield improvements since 1961 through 2005. That produced a price between approximately $4 and $7.50 for each ton of carbon dioxide that was not emitted.

"The size and cost-effectiveness of this carbon reduction is striking when compared with proposed mitigation options in other sectors," said Lobell. "For example, strategies proposed to reduce emissions related to construction would cut emissions by a little less than half the amount that we estimate has been achieved by yield improvements and would cost close to $20 per ton."

The authors also note that raising yields alone won't guarantee lower emissions from land use change.

"It has been shown in several contexts that yield gains alone do not necessarily stop expansion of cropland," Lobell said. "That suggests that intensification must be coupled with conservation and development efforts.

"In certain cases, when yields go up in an area, it increases the profitability of farming there and gives people more incentive to expand their farm. But in general, high yields keep prices low, which reduces the incentive to expand."

The researchers concluded that improvement of crop yields should be prominent among a portfolio of strategies to reduce global greenhouse gases emissions.

"The striking thing is that all of these climate benefits were not the explicit intention of historical investments in agriculture. This was simply a side benefit of efforts to feed the world," Burney noted. "If climate policy intentionally rewarded these kinds of efforts, that could make an even bigger difference. The question going forward is how climate policy might be designed to achieve that."

David Lobell is a Center Fellow at the Freeman Spogli Institute for International Studies and at the Woods Institute for the Environment. The Program on Food Security and the Environment is a joint project of the Woods Institute and the Freeman Spogli Institute. The Precourt Institute for Energy and FSE provided funding for Jennifer Burney's research on agriculture and energy.


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PESD Director Frank Wolak delivered his presentation on "Symmetric Treatment of Load and Generation: A Necessary Condition for Demand Response to Benefit Wholesale Market Efficiency and Manage Intermittency" in his keynote for Agrion's "The Missing Link: Constructing a Dynamic Pricing Plan for a Smarter Grid" event on June 9, 2010.
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California is like many states whose electricity customers are still protected by real-time price risk through fixed retail price.  This fixed retail price, however, restricts the consumer's ability to save money by reducing consumption during peak hours. 

Those queasy about allowing or subjecting customers' to dynamic pricing are up for a fight; major technological barriers to dynamic pricing will soon be eliminated as all three of California's IOUs will have interval meters.  The Home Area Network segment of the Smart Grid Ecosystem Broadband Plan includes some strong words for State PUCs, urging them to in turn push utilities to deliver real time pricing data to consumers.  What remains to be seem is: What set of pricing plans would satisfy both HAN vendors and the PUCs?

Panel discussion topics:

  • Is some dynamic pricing available?
  • What will the plans look like?
  • Research questions
  • What set of pricing plans would satisfy both HAN vendors and the PUCs?

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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.

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Gang He
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Stanford seniors Sam Stone and Ashley Lohmann have been awarded the Firestone Medal and Perry Prize, respectively, for their theses on energy import dependence and the Jihadist terrorist threat to the United States since 9/11.

Stone and Lohmann discussed their findings during a CISAC seminar on June 2. Their papers are available below.

The Firestone Medal for Excellence in Undergraduate Research recognizes the top 10 percent of all honors theses in social science, science and engineering. The William J. Perry Prize is awarded to a student for excellence in policy-relevant research in international security studies. Both recipients are students in CISAC's Undergraduate Honors Program in International Security Studies, directed this year by Senior Fellow Stephen J. Stedman and Thomas Fingar, the Oksenberg/Rohlen Fellow.

Sam Stone, a student in the Department of Mathematics and Program in International Relations, wrote "Gas & Geopolitics: The Foreign Policy Implications of Energy Import Dependency."

Stone's thesis abstract states: "In recent years, much attention has focused on the dangers of dependency on energy imports. Fears of energy import dependency are particularly acute in Eastern Europe, where most countries remain heavily dependent on Russian gas, but similarly dependent relationships exist across the globe. Most energy security research focuses on exporters; this thesis contributes to the study of energy security by exploring the effects of energy dependence on importers."

During 2010-11 academic year, Stone, as a Fulbright Fellow, will study Russian foreign policy, in particular energy security issues and nuclear nonproliferation efforts at Moscow State University. He also plans to continue working with the Stanford US-Russia Forum, an initiative that brings together American and Russian students to explore global issues.

Ashley Lohmann, a student in the Program in International Relations, wrote, "Jihad on Main Street: Explaining the Threat of Jihadist Terrorism to the American Homeland since 9/11."

Lohmann's abstract states: "Since September 11, 2001, 26 jihadist plots and attacks have targeted the American homeland, but because the details of the plots and attacks as well as the profiles of their perpetrators vary greatly, scholars, government officials, and other authorities still disagree about the seriousness of threat posed by jihadist terrorism to the United States. This study provides a clearer understanding of the nature of jihadist terrorism in the U.S. by examining all 26 plots and attacks in detail. It concludes that jihadist terrorism is generally a minimally threatening, homegrown phenomenon, but some plots and attacks still emerge that do pose a serious threat to U.S. national security."

Stedman and Fingar described the award-winning theses as the very best in an exceptionally strong field of submissions by members of this year's honor's class.  "Sam Stone's creative and rigorous use of case studies and 'large N' data to to examine hypotheses about the effects of energy dependence gives decision makers theoretical and empirical tools to anticipate and ameliorate unwanted consequences of dependence on foreign sources of oil and gas," Fingar said. "Ashley Lohmann's rigorous examination of factors contributing to the success or failure of Jihadist threats to the American homeland provides valuable insights on the magnitude and character of such threats and how best to address them. These were the best, but other theses were also worthy of special recognition and we learned much from the work of every member of the class."

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Effectively addressing emissions from deforestation will require both an international policy - to address the global nature of the climate problem, and domestic policies - to effectively respond to the international policies and take unilateral action; Suzi will be focusing on the former. 

The key challenges in reducing emissions from deforestation and degradation (REDD) policy are monitoring, permanence, and additionality - leakage and adverse selection as well as the risks involved if REDD is linked explicitly to international carbon markets.  They propose an international system based on national baselines, temporary rewards for protection and externally replicable monitoring and illustrate the potential outcomes in terms of  additional carbon storage, the cost of emissions reductions, and transfers of resources between countries.  Suzi will also briefly discuss how national governments might respond to an international policy of this type. 

 

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Suzi Kerr graduated from Harvard University in 1995 with a PhD in Economics. Following that she was an Assistant Professor at the University of Maryland - College Park from 1995 through 1998. From 1999 to 2009 Kerr co-founded and was Director of Motu. She has been a visiting scholar at Resources for the Future (USA), Victoria University, and, from Jan - August 2001, in the Joint Center for the Science and Policy of Global Change at MIT.

Suzi Kerr is a Visiting Professor in the Economics Department at Stanford University and a Senior Research Associate in Stanford's Program in Energy and Sustainable Development.  She is also a Senior Fellow at Motu Economic and Public Policy Research in New Zealand. 

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Norway is lauded as the rare example of a major oil and gas exporting country that has managed to avoid the "resource curse." A new study by PESD Associate Director Mark C. Thurber and Consulting Research Associate Benedicte Tangen Istad looks more closely at the Norwegian petroleum experience and the role of national oil company Statoil in it. The reality is messy and political but nonetheless an impressive story of how Norway built a vibrant domestic oil and gas industry on the back of national champion Statoil and a robust system of governance that could curb Statoil's excesses as needed at a few key junctures.
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