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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Zia Mian, a research assistant with the Program on Science and Global Security (PS&GS) at Princeton University and lecturer of public and international affairs at the Woodrow Wilson School, has been with PS&GS since 1997. His interests include nuclear weapons and nuclear energy programs in South Asia, and finding alternative policies that can contribute to disarmament and sustainable development. With Dr. Pervez Hoodbhoy, Mian co-produced Crossing the Lines, a documentary film about India, Pakistan, and the battle over Kashmir, which was shown at CISAC this past summer. He has edited and co-edited a number of books on South Asia, including Out of the Nuclear Shadow (co-edited with Smitu Kothari; Zed Press, London and Rainbow Press, New Delhi, 2001). Mian has also co-edited a volume with Iftikhar Ahmad and Dohra Ahmad, Between Past and Future: Selected Essays on Pakistan by Eqbal Ahmad (Oxford University Press, Karachi).

Reuben W. Hills Conference Room

Zia Mian Research Assistant, Program on Science and Global Security, and Lecturer, Woodrow Wilson School of Public and International Affairs Speaker Princeton University
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"Energy security" is an elastic concept. However, it offers the prospect of linking "hard security" issues, such as territorial protection and supply of vital fuels, in mutually reinforcing ways, with "soft security" issues, such as protection of the environment generally and specifically the limitation of the emissions that lead to global climate change. Such linkages, which could engage a large number of countries and diverse interests, make energy security a good prospect for early action by the L20. Moreover, security of energy supply is once again high on the agenda of most governments because of the current high prices for energy, notably oil. Political action is needed not only because consumers demand it, but also because a large and growing fraction of the world oil supply is under direct control of governments who make supply decisions on the basis of political factors.

Oksenberg Conference Room

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This talk is based on chapter 4 of the speaker's dissertation, "North Korea," provided in the link below.

Alexander H. Montgomery is a post-doctoral fellow at the Center for International Security and Cooperation, Stanford University. He has a BA in physics from the University of Chicago, an MA in energy and resources from the University of California, Berkeley, an MA in sociology from Stanford University, and will be receiving his PhD in political science from Stanford University in fall 2005. He has worked as a research associate in high energy physics on the BaBar experiment at Lawrence Berkeley National Laboratory and as a graduate research assistant at the Center for International Security Affairs at Los Alamos National Laboratory. His research interests include political organizations, weapons of mass disruption and destruction, social studies of technology, and interstate social relations. His dissertation was on post-Cold War U.S. counterproliferation policy, evaluating the efficacy of policies towards North Korea, Iran, and proliferation networks.

Reuben W. Hills Conference Room, East 207 Encina Hall

Alex Montgomery Postdoctoral Fellow Speaker CISAC; PhD, Department of Political Science, Stanford
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Mohamed ElBaradei, director-general of the International Atomic Energy Agency, delivered CISAC's 2004 Drell Lecture.

A year after delivering CISAC's Drell Lecture, Mohamed ElBaradei has won the 2005 Nobel Peace Prize. He shares the prize equally with the International Atomic Energy Agency, which he directs.

The Nobel committee commended the IAEA and its director-general "for their efforts to prevent nuclear energy from being used for military purposes and to ensure that nuclear energy for peaceful purposes is used in the safest possible way."

In "Nuclear Non-Proliferation and Arms Control: The Road Ahead," CISAC's 2004 Drell Lecture, ElBaradei drew lessons from nuclear weapons inspections in Iraq and elsewhere to support a call for politicians, scientists and society to work collectively toward nuclear disarmament. "If we are ever to build a global security culture based on human solidarity and shared human values -- a collective security framework that will serve the interests of all countries equally, and make reliance on nuclear weapons obsolete -- the time is now," ElBaradei said.

The Nobel committee echoed that sentiment in its peace prize announcement. "At a time when the threat of nuclear arms is again increasing, . . . this threat must be met through the broadest possible international cooperation," the committee said. "This principle finds its clearest expression today in the work of the IAEA and its director-general."

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Chaim Braun comments on the essay "Light Water Reactors at the Six Party Talks," which appeared as Policy Forum Online 05-78: 21 September 2005, published by the Nautilus Institue. Braun agrees that it is unlikely the U.S. will approve sending any nuclear-sensitive technology to the DPRK before a complete and verifiable de-nuclearization process takes place and produces results in the field. He surveys other possible sources of nuclear power for North Korea, including building a Russian reactor as suggested in the initial essay.

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David Hafemeister is a physics professor at California Polytechnic State University, but this academic year he's at Stanford University studying ways to keep the Comprehensive Test Ban Treaty viable for the U.S. Senate to consider ratifying. Jonathan Farley, a professor in the mathematics and computer science deparment at the University of the West Indies, is here this year as well, conducting a mathematical analysis of counterterrorism operations. They are among seven science fellows now visiting the Center for International Security and Cooperation (CISAC), part of the Freeman Spogli Institute for International Studies at Stanford.

With fellowships in the sciences and social sciences, CISAC, directed by political science Professor Scott Sagan, brings top scholars to campus to find solutions to complex international problems.

This year's fellows "are a select and exciting set of scholars doing innovative work on important issues of international security--which now includes homeland security," said Lynn Eden, CISAC's associate director for research. "All of us at CISAC are very much looking forward to having our new crew on board."

The other CISAC science fellows are:

  • Manas Baveja and Yifan Liu, both doctoral candidates at the Institute for Computational and Mathematical Engineering at Stanford, who use mathematical models to study homeland security;
  • Chaim Braun of Altos Management Partners, who is working on a United Nations nuclear energy project;
  • Belkis Cabrera-Palmer, a physics doctoral candidate from Syracuse University, who is studying nuclear energy issues in Latin America; and
  • Sonja Schmid, a lecturer in Stanford's Science, Technology and Society Program, who is working on a book aimed at understanding the decisions that produced and sustained the civilian nuclear energy program in the Soviet Union from the 1950s through the 1980s.

Charles Perrow, professor emeritus of sociology from Yale University, is among seven pre- and postdoctoral fellows in social science disciplines who are also visiting CISAC. Perrow is working on a project to reduce homeland security vulnerabilities. CISAC's other postdoctoral social science fellows are:

  • Tarak Barkawi, a lecturer at the Centre for International Studies at the University of Cambridge in England, who is examining why small wars have big consequences, and
  • Alex Montgomery, a doctoral candidate in political science at Stanford, whose project deals with U.S. post-Cold War nuclear counterproliferation strategies.

CISAC's predoctoral fellows in social science are:

  • Dara Cohen, a doctoral candidate in political science at Stanford, who will examine the efficacy of post-9/11 domestic security legislation;
  • Matthew Rojansky, a law student at Stanford, whose project explores the legitimacy of international institutions and legal instruments in the war on terror;
  • Jacob Shapiro, a doctoral candidate in political science at Stanford, whose project looks at the organizational consequences of terrorist motivation; and
  • Jessica Stanton, a doctoral candidate in political science at Columbia University, who is examining compliance with international laws of war during civil war.

CISAC also is hosting Robert Carlin of the Korean Peninsula Energy Development Organization, a visiting scholar whose project addresses U.S.-North Korea relations, and Laura Donohue, who is writing a book, Counterterrorism and the Death of Liberalism, while completing a law degree at Stanford Law School. Patrick Roberts, who comes to Stanford from the University of Virginia, where he earned a doctorate in politics, will examine bureaucratic autonomy and homeland security reorganization.

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For nearly two decades, most major developing countries have struggled to introduce market forces in their electric power systems. In every case, that effort has proceeded more slowly than reformers hoped and the outcomes have been hybrids that are far from the efficiency and organization of the "ideal" textbook model for a marketbased power system.

At the same time, growing concern about global climate change has put the spotlight on the need to build an international regulatory regime that includes strong incentives for key developing countries to control their emissions of greenhouse gases. In most of these countries, the power sector is a large source of emissions that, with effort, could be controlled.

The United Nations Framework Convention on Climate Change and the Kyoto Protocol included mechanisms that would reward developing nations that cut emissions, but so far the performance of these mechanisms has fallen far short of their potential.

Beginning in 2002, the Program on Energy and Sustainable Development (PESD) at the Stanford Institute for International Studies (SIIS) and the Indian Institute of Management in Ahmedabad (IIMA) have conducted a set of studies to examine the intersection of these two crucial challenges for the organization of energy infrastructures in the developing world. This research, funded by the U.S. Agency for International Development, examined power-market reforms and greenhouse-gas emissions in two key states in India. At the same time PESD was conducting a comprehensive study of electricity-market reforms in five developing countries (Brazil, China, India, Mexico, and South Africa) as well as detailed analyses of the greenhouse-gas emissions from three provinces in China in conjunction with other research partners.

PESD and IIMA presented their findings at a workshop on January 27-28, 2005, at Stanford University. The workshop brought together scholars studying the organization of the electric-power sector and other infrastructures in developing countries with energy policy makers, technologists, and those studying the effectiveness of international legal regimes, with the aim of not only focusing on new theories that are emerging to explain the organization of the power sector and the design of meaningful international institutions, but also identifying practical implications for investors, regulators, and policymakers.

The workshop offered diagnoses of what has gone wrong and what opportunities have nonetheless emerged. It focused on practical solutions and a look at the prospects for different technologies to meet the growing demand for power while minimizing the ecological footprint of power generation.

One of the key conclusions of the research and the workshop, as discussed by David Victor, director of PESD, is that electricity markets in the developing world have not progressed inexorably and consistently from a state-owned model to an open market-based model. Rather, much as the experience of the past ten years in the United States has demonstrated, reform of electric-power systems has proceeded differentially between parts of the industry and between jurisdictional units, with some segments of the power generation, transmission, and distribution systems still dominated by the state and some segments now fully responsive to signals from the market.

This hybrid condition-with portions of the electricity enterprise deregulated and other portions still fully regulated-has proven to be virtually universal and quite durable as well. For the most part, it also has proven beneficial to the overall operation of the system as well as to climate mitigation due to the fact that introduction of market forces to parts of the system tends to have a spillover effect, helping to improve efficiency in parts of the system that remain under state control.

Tom Heller, SIIS senior fellow, noted that the negotiations leading up to the

development of the Kyoto Protocol and subsequent discussions and experience have

demonstrated that the burden-sharing metaphor-expecting developing nations to

make a proportional investment and effort in reducing greenhouse-gas emissions-

will not be successful. Rather, as gross and per capita energy consumption increases in developing nations, which is occurring especially rapidly in China and India, policies and mechanisms that facilitate investment in efficient and clean energy production, transmission, and end-use infrastructures will need to be developed and rolled out.

The Kyoto Protocol provided a Clean Development Mechanism (CDM) to encourage such investment. However, the conclusion reached by practitioners developing such projects in China is that CDM is an inefficient and insufficient mechanism for fostering the magnitude of development projects that will be required to help mitigate the environmental effects of energy growth in the developing nations.

Two problems with CDM were raised at the workshop. First, the bureaucratic hurdles facing developers of CDM projects are daunting. To date no such project has received certification. Second, the Kyoto Protocol's current round of reductions targets expires in 2012, and uncertainty regarding the likely direction and form of future U.S. and European initiatives provides a disincentive to investment in CDM projects.

Alberto Chiappa, managing director of Energy Systems International, noted the good news is that in spite of these difficulties, investors are finding opportunities to develop projects to provide cleaner sources of energy and improve end-use energy efficiency. Professor P.R. Shukla of IIMA pointed out that there is a great need to align development and climate concerns if future mechanisms for climate mitigation in the developing world are to be successful.

Douglas Ogden, program officer at the Energy Foundation, noted that China has made a firm commitment to greatly increase the market share of electricity from renewable sources to 5 percent by 2010 and 20 percent by 2020 and in 2008 will adopt an automobile fuel-economy standard 20 percent more efficient than U.S. CAFE standards. Also, both China and India are engaged in developing natural gas markets in sectors traditionally dominated by coal.

Mario Pereira, director of Power Systems Research, discussed Brazil's current efforts to develop economical and efficient electricity supply through biomass-specifically ethanol derived from sugarcane bagasse. The ethanol industry was originally developed as a reaction to the oil shocks of the 1970s. Although the majority of electricity in Brazil is provided by hydroelectric projects, sugarcane ethanol has some important advantages. First, the sugarcane fields are geographically close to major centers of demand, and second, sugarcane thrives during drier periods of the year when hydroelectric production declines. The experience in Brazil thus demonstrates that renewables can provide an economically attractive source of energy for developing nations.

Looking toward the future, PESD has several projects under way pertaining to the

intersection of electricity-market reforms and global climate change. The program is expanding its research on power-market reforms through a set of case studies on independent power producer projects in ten developing nations and is also initiating a set of studies examining the introduction of natural gas to regions in India and China.

Much work remains to be done before the interface between electricity-market reform and global climate change is well understood. As energy markets in the developing world expand, addressing this question will become more and more important if we are to stabilize atmospheric levels of greenhouse gases.

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Mark H. Hayes
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The PESD paper includes the main conclusions from a multi-year collaborative study with the Baker Institute for Public Policy at Rice University.

The working paper is also chapter 14 in the forthcoming text "Natural Gas and Geopolitics: From 1970 to 2040" to be published by Cambridge University Press in 2006.

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Siegfried S. Hecker, a senior fellow and emeritus director of Los Alamos National Laboratory, will join CISAC as a visiting professor in 2005-2006. He will teach undergraduates and pursue research and policy advising on nuclear proliferation and the security of nuclear weapons stockpiles.

As the Los Alamos director, Hecker advised the U.S. Congress on nuclear security challenges created by the Soviet Union's dissolution. He worked with Russian counterparts to consolidate nuclear weapons from four former Soviet states and to implement new security measures agreed to under the Nunn-Lugar Cooperative Threat Reduction program.

"Russia is the key link to fighting nuclear proliferation," Hecker said. He continues to advise Congress members and staff and to work closely with the Russian Academy of Sciences and the Russian Ministry of Atomic Energy on several cooperative threat reduction programs.

On his arrival this fall, Hecker will be one of two former national lab directors at CISAC. Emeritus Professor Michael M. May formerly directed Lawrence Livermore National Laboratory.

Science magazine announced Hecker's CISAC appointment in its Aug. 5 issue.

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