Environment

FSI scholars approach their research on the environment from regulatory, economic and societal angles. The Center on Food Security and the Environment weighs the connection between climate change and agriculture; the impact of biofuel expansion on land and food supply; how to increase crop yields without expanding agricultural lands; and the trends in aquaculture. FSE’s research spans the globe – from the potential of smallholder irrigation to reduce hunger and improve development in sub-Saharan Africa to the devastation of drought on Iowa farms. David Lobell, a senior fellow at FSI and a recipient of a MacArthur “genius” grant, has looked at the impacts of increasing wheat and corn crops in Africa, South Asia, Mexico and the United States; and has studied the effects of extreme heat on the world’s staple crops.

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Liz Carlson is a 2010-2011 pre-doctoral fellow at CDDRL and a PhD candidate in the department of Political Science at UCLA (to be completed in 2011). While at CDDRL, she will work on her dissertation which uses experimental and survey methods to investigate whether ethnic voting in Uganda is fundamentally expressive or has its roots in the experience or expectation of ethnic patronage. She will also work on projects on the distribution of electrification in Kenya and a panel study on the impact of new oil on democratic consolidation in Ghana and Uganda. Her research has been funded by the National Science Foundation, among other sources.

Encina Ground Floor Conference Room

CURRENT INSTITUTION:
Program on Democracy, Yale MacMillan Center for International and Area Studies

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CDDRL Fellow 2010-2011
Carlson.jpg PhD

Liz Carlson is a 2010-2011 pre-doctoral fellow at CDDRL and a PhD candidate in the department of Political Science at UCLA (to be completed in 2011). While at CDDRL, she will work on her dissertation which uses experimental and survey methods to investigate whether ethnic voting in Uganda is fundamentally expressive or has its roots in the experience or expectation of ethnic patronage. She will also work on projects on the distribution of electrification in Kenya and a panel study on the impact of new oil on democratic consolidation in Ghana and Uganda. Her research has been funded by the National Science Foundation, among other sources.

Elizabeth Carlson CDDRL Fellow 2010-2011 Speaker
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The world watches closely as China, the world's top energy consumer, announces its plans for the next five years: a series of comprehensive economic reform, development, and transformation guidelines that will shape how the country - and to a large extent the world - uses energy and addresses climate change.

How will China balance economic growth with environmental concerns? How will it manage its transformation from an investment-based and export-led economy to one having a robust domestic demand, all the while ensuring energy efficiency and sustainability? And what role will China play in developing renewable and clean tech solutions for the rest of the world? These are questions that have a profound impact on the world energy and climate landscape for years to come.

In this EWG discussion, we will highlight some of the proposed energy, efficiency and climate goals and policies, look back on China's progress and challenges in achieving its last five-year plan, and consider broader implications on the road ahead.

Stanford University

Joe Chang Speaker
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The recent upheavals in staple food prices, financial markets, and the global economy raise questions about the state of food insecurity, the nature of price variability, and the appropriate strategies for international agricultural development. For decades preceding this turmoil, agriculture had received waning attention from the global development community as real food prices declined on trend. Analysts who worried about food insecurity focused on the fate of poor producers. The dramatic upswing in prices in 2007-08 turned attention toward poor consumers as many countries struggled with food riots, mounting malnutrition, and the adoption of grain self-sufficiency policies. New debates have been spurred over whether real agricultural prices will resume their long downward decline or whether there has been a more general reversal in the real price of food.

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Population and Development Review
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Rosamond L. Naylor
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Conventional wisdom holds that oil sector nationalizations are rooted in political motives of the petroleum states, which perceive value in the direct control of resource development though a state enterprise.  State motives are inarguably important.  At the same time, we argue in this paper that constraints of risk significantly affect a state's choice of which agent to employ to extract its hydrocarbons.  Implicit in much current debate is the idea that private, international oil companies (IOCs) and the state-controlled, national oil companies (NOCs) are direct competitors, and that the former may face threats to their very existence in an era of increased state control. 

In fact, IOCs and NOCs characteristically supply very different functions to governments when it comes to managing risk.  For reasons we discuss, IOCs excel at managing risk while NOCs typically do not.  IOCs, NOCs, and a third type of player, the oil service company, will all continue to exist because their distinct talents are needed by states seeking to realize the value of their petroleum resources.  However, the relative positions of these different players have changed substantially over time, and will continue to do so, in response to the shifting needs of oil-rich states.

In the first part of this paper, we explore the nature and sources of risk in the petroleum industry, how these risks change over time, the task of managing petroleum risks, and the variable capacity of state and private companies to manage them.  In the second part, we apply qualitative and quantitative approaches to test the idea that risk significantly affects the state's choice of which agent to use for petroleum extraction.  First, we review the events leading to the cluster of nationalizations that occurred in the early 1970s and assess whether they were significantly affected by considerations of risk.  Second, we explore how well variation in risk and state capacity for risk can explain changing ownership over time within a particular oil province - the UK and Norwegian zones of the North Sea.  Third, we use data from energy research and consulting firm Wood Mackenzie to quantitatively test our hypothesis about the key role of risk, looking in particular at the case of oil and gas company exploration behavior.  

In all three cases, our observations are broadly consistent with the hypothesis that risk significantly affects the state's choice of hydrocarbon agent, although, as expected, other factors emerge as important drivers of outcomes as well.

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Program on Energy and Sustainable Development
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Mark C. Thurber
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China's coal market is now in the midst of a radical restructuring that has the potential to change how coal is produced, traded and consumed both in China and the rest of the world.  The restructuring aims to integrate the coal and power sectors at giant "coal-power bases" that combined would churn out more coal annually than all the coal produced in the entire United States. 

Coal-power integration is now a focal point of the Chinese government's energy policy, driven by the dramatic "coal-power conflict".  Coal prices are market-based, but power prices are tightly controlled by the government.  This has caused massive losses for Chinese power generators in 2008 and 2010 and triggered government intervention in the coal market with attempts to cap the price of coal.  The pervasive conflict between coal and power is now driving the Chinese government to remake these markets.

Coal-power base policy aims to establish upwards of 14 major coal-power bases, each producing over 100 mt of coal with consuming industries on-site.  The plan envisions that roughly half of China's coal production would be produced at a handful major coal-power base sites that are controlled by key state-owned enterprises (SOEs) and the central government.    

PESD's new research analyzes China's coal-power base reforms and how they will impact Chinese and global coal markets.  Several key findings are:

First, the implementation of coal-power bases would enhance central government's control over the coal sector and over coal prices.  The government could control coal pricing in a large share of the market and mitigate power sector losses by mandating lower coal transaction prices within integrated SOEs.  Using this kind of internal transfer pricing at below market prices for up to half of China's coal would represent a meaningful shift in how coal is priced in China.  If a large share of China's coal were transacted in this manner, it might create an unofficial two-tiered pricing structure in the coal market.

Second, coal-power base policy would bring about modernization and mechanization of a larger share of China's coal production, in theory bringing larger economies of scale to the sector.  While up-front capital investment per ton produced will certainly increase, the marginal cost of coal production should decrease, all other things equal. 

Third, the massive rebalancing of China's coal market implied by coal-power bases is poised to have important impacts on the globally traded coal market.  Since 2009, China's import behavior has become a dominant factor determining the price of globally traded coal.  In simple terms, when Chinese domestic prices are higher than global prices, the country imports.  The development of coal-power bases could radically alter coal price formation in China and directly impact China's appetite for imports, and therefore has the potential to alter coal price formation globally.

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Program on Energy and Sustainable Development
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Gang He
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Brazil has developed a large-scale commercial agricultural system, recognized worldwide for its role in domestic economic growth and expanding exports. However, the success of this sector has been associated with widespread destruction of Brazilian ecosystems, especially the Cerrado and the Brazilian Amazon rainforest, as well as environmental degradation. Brazil's agricultural development has also led to land consolidation, aggravating a historical land distribution inequality. This pattern of agricultural growth has reinforced Brazil's status as one of the world's most inequitable countries in terms of income distribution, making it difficult to assert that the nation is pursuing a sustainable development path. In order to achieve sustainable development Brazil must reconcile its increasingly productive, modern tropical agricultural system with environmental preservation, social equity, and poverty alleviation in rural and urban areas. Although a daunting task, Brazil has the opportunity to lead tropical countries in combining modernized agriculture with highly diverse and functional ecosystems. Continued improvement in socioeconomic conditions is equally important and will require stronger efforts to decrease inequalities in income and land distribution in the rural sector.

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Current Opinion in Environmental Sustainability
Authors
Luiz Martinelli
Rosamond L. Naylor
Peter Vitousek

CURRENT INSTITUTION:
Program on Democracy, Yale MacMillan Center for International and Area Studies

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CDDRL Fellow 2010-2011
Carlson.jpg PhD

Liz Carlson is a 2010-2011 pre-doctoral fellow at CDDRL and a PhD candidate in the department of Political Science at UCLA (to be completed in 2011). While at CDDRL, she will work on her dissertation which uses experimental and survey methods to investigate whether ethnic voting in Uganda is fundamentally expressive or has its roots in the experience or expectation of ethnic patronage. She will also work on projects on the distribution of electrification in Kenya and a panel study on the impact of new oil on democratic consolidation in Ghana and Uganda. Her research has been funded by the National Science Foundation, among other sources.

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From November 29 to December 10, 2010, the United Nations Climate Change Conference will take place in Cancun, Mexico.  Through an invitation by the International Emissions Trading Association (IETA), PESD researcher Richard K. Morse will be presenting PESD research findings on carbon markets.  Morse will also be attending conference meetings with key carbon market players and academics during this trip.

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The TomKat Center for Sustainable Energy has awarded four research grants totaling $1.2 million to Stanford University researchers for smart power grid related studies.  One of the four grants went to a PESD-led project that will help regulators overcome barriers to the development of electricity transmission lines needed to facilitate renewable energy deployment.  At present, the lack of adequate transmission infrastructure makes it difficult to connect generators in regions with rich wind or solar potential to major population centers.

One of the biggest challenges in the current transmission planning process is accurately characterizing the benefits of transmission lines to build a case for their development.  "Our research will develop key analytical tools to help regulators and policymakers assess the economic and environmental benefits of transmission expansions to support renewable generation," Wolak said. Such tools can ultimately be built in to grid planning, expansion, and pricing methodologies.

 

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The Freeman Spogli Institute for International Studies (FSI) at Stanford University has awarded six seed grants in the first round of funding from the Global Underdevelopment Action Fund. The grants are intended to jumpstart early-stage multidisciplinary research projects that tackle persistent problems of global underdevelopment. The Action Fund, which is supported by expendable gifts from FSI donors, matching funds from the Office of the President, and FSI, grew out of the Institute's spring 2010 conference on Technology, Governance, and Global Development, which featured keynote speaker Bill Gates, together with leaders from business, government, and nonprofit organizations, the media, and the academic community, to examine novel integrative approaches to poverty alleviation and human development around the world. The Action Fund projects range across disciplines, focusing primarily on problems in developing and transitioning societies. The majority of the projects have a health dimension, reflecting the degree to which poor health outcomes mirror a country's development status.

"Stanford is uniquely placed among American universities to bring cutting edge research to bear on practical problems of development.  No other institution has lower barriers to multidisciplinary work.  The Action Fund award recipients are drawn from many different parts of the university but united in their concern for promoting development," said Stephen D. Krasner,  the Graham H. Stuart Professor of International Relations, Senior Associate Dean of the Social Sciences at H&S, and deputy director of FSI.

Six multidisciplinary research teams led by Stanford faculty from across the university will receive a total of $236,000 in seed grants. The projects were selected by a faculty committee chaired by Stephen Krasner, with a focus on early-stage, multidisciplinary, policy-relevant research. All, projects are required to have a training component for Stanford undergraduate or graduate students.

The award-winning projects and their principal investigators are:

  • Explaining and Improving U.S. Global Health Financing
    Eran Bendavid, assistant professor of medicine and affiliate in FSI’s Center for Health Policy. Co-investigator: Rajaie Batniji, postdoctoral fellow, Department of Medicine. With a sharp divergence between justifications for global health funding and the countries and diseases to which funding is disbursed, this study will conduct a quantitative analysis of the determinants of U.S. financing for the 171 countries receiving development assistance for health in 2009. The project seeks to identify the key drivers for U.S. global health financing by country and facilitate research on how to make global health financing work better. 
  • Peasants into Democrats: Evaluating the Impact of Information on Local Governance in Mali
    James D. Fearon, professor of political science. Co-investigator and trainee: Jessica Gottlieb, PhD student in political science. Recent research suggests that enhancing voter information holds promise for increasing government accountability in new democracies. This project will undertake a field experiment in Mali, a model of an underperforming new democracy, to test the theory that information that sufficiently raises citizen voter expectations of government performance can have an important effect on governance. It will examine the impact of an intervention that provides citizens with a civics course on voter and government behavior.
  • Effects of “Best Buy Health and Nutrition Toolkit” for Improving Educational Outcomes in Rural China
    Scott Rozelle, FSI Senior Fellow. Co-investigator and trainee: Paul H. Wise, professor of pediatrics, FSI senior fellow, and Patricia Foo, MD/PhD student, economics. Studies show high levels of anemia, nearsightedness, intestinal worms, and poor health and sanitation among children in China’s rural boarding schools. This project will measure initial health and nutrition levels of students in a randomized control setting, and deploy a set of affordable and sustainable interventions in treatment schools that includes multivitamins, eyeglasses, deworming medication, and nutrition and sanitation training. The project will then assess what works and what does not by comparing improvements in academic performance in treatment and control groups. The results of this experiment are intended to inform education and nutrition policy in China at the central and provincial levels.
  • Controlling Drug-Resistant Tuberculosis: A Cooperative Agenda for China and North Korea
    Gary K. Schoolnik, professor of medicine and microbiology and immunology, and FSI senior fellow. Co-investigator: Sharon Perry, senior research scientist, Department of Medicine and FSI/CISAC. Rates of tuberculosis, a disease that thrives on poverty, malnutrition, and interrupted medical care, are now among the highest in the world in the Democratic People’s Republic of Korea (DPRK, North Korea), elevating the risk of an epidemic of drug-resistant strains and a spread into China. This project represents a unique historical opportunity to examine the relationship between food security, malnutrition, and the epidemiology of tuberculosis in a present-day famine.

  • Political Causes of Russia’s Public Health Crisis
    Kathryn Stoner, FSI senior fellow. Co-investigator: Rajaie Batniji, postdoctoral fellow, Department of Medicine. In spite of the economic advances and increases in GDP since the collapse of communism, Russia suffers from a range of dismal public health outcomes reminiscent of a much poorer country. This study seeks to understand what role political factors play in the country’s high adult mortality rate and declining life expectancy by mining World Bank and World Health Organization data and examining how Russians access healthcare services and information

  • Factors Affecting Adoption and Ongoing Use of Improved Biomass Stoves in Karnataka and Maharashtra, India
    Frank Wolak, professor of economics and FSI senior fellow. Co-investigator: Mark C. Thurber, research scholar, FSI/Program on Energy and Sustainable Development. Burning of biomass in traditional stoves is associated with a host of ills among an estimated 2.5 billion people around the world, even though cleaner and more efficient technologies exist that could mitigate the problems. This study will examine what factors affect cooking mode choice and utilization, with the objective of developing an econometric model that is useful for efforts that encourage the adoption of improved biomass stoves. The project also seeks to offer insights on poorly understood processes of technology adoption among poor populations and to understand the magnitude of health, development, and environmental benefits that might be achievable.
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