Renewable Resources
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The majority of rural residents in China are dependent on traditional fuels, but the quality and quantity of existing data on the process of fuel switching in rural China are insufficient to have a clear picture of current conditions and a well-grounded outlook for the future.

Based on an analysis of a rural household survey data in Hubei province in 2004, we explore patterns of residential fuel use within the conceptual framework of
fuel switching using statistical approaches. Cross-sectional data show that the transition from biomass to modern commercial sources is still at an early stage, incomes may have to rise substantially in order for absolute biomass use to fall, and residential fuel use varies tremendously across geographic regions due to disparities in availability of different energy sources. Regression analysis using logit and tobit models suggest that income, fuel prices, demographic characteristics, and topography have significant effects on fuel switching.

Moreover, while switching is occurring, the commercial energy source which appears to be the principal substitute for biomass in rural households is coal. Given that burning coal in the household is a major contributor to general air pollution in China and to negative health outcomes due to indoor air pollution, further transition to modern and clean fuels such as biogas, LPG, natural gas and electricity is important. Further income growth induced by New Countryside Construction and improvement of modern and clean energy accessibility will play a critical role in the switching process.

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Journal Articles
Publication Date
Journal Publisher
The Journal of the International Energy Initiative; Elsevier
Authors
Peng Wuyuan
Hisham Zerriffi
Hisham Zerriffi
Jiahua Pan
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A preliminary list of regulatory barriers that restrain the commercialization of technologies that would reduce the carbon content of energy services consumed in the United States.

At the request of the Kauffman Foundation, PESD director Frank Wolak compiled a list of state and local regulatory barriers that restrain the commercialization of technologies that would reduce the carbon content of energy services consumed in the United States.

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Policy Briefs
Publication Date
Journal Publisher
Program on Energy and Sustainable Development
Authors
Frank Wolak
Frank Wolak
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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

(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
Frank Wolak Speaker
Matt Kahn Speaker Institute of the Environment and Department of Economics, UCLA
Conferences
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The Clean Development Mechanism (CDM) is the leading international carbon market and a driving force for sustainable development globally. But the eruption of controversy over offsets from Chinese wind power has exposed cracks at the core of how carbon credits are verified in developing economies. It has become almost impossible to determine whether offsets from Chinese wind are "additional" and that they in fact represent "real" reductions beyond business as usual. Unless this problem can be resolved, it threatens to spread beyond wind in China and could threaten the ability of carbon markets to deliver the mitigation demanded by international climate policy.

In 2009 the CDM Executive Board (EB) shocked the carbon market by forcing an unprecedented review of whether multiple Chinese wind projects satisfied UNFCCC additionality requirements. CDM investors reeled as the safest CDM bet became the riskiest; the Chinese government publicly criticized the UN's oversight of carbon markets; and the CDM EB prepared itself for an unprecedented fight over how carbon offsets could be verified in the world's largest CDM market.

At the center of the controversy is the Chinese power tariff for wind.

When the EB observed decreases over time in power tariffs granted by China's National Development and Reform Commission (NDRC) to wind projects, it became concerned that China might be manipulating power tariffs in order to guarantee additionality and subsidize its domestic wind development with international finance. If the Chinese government were controlling additionality, then the CDM's ability to validate carbon offsets would be dealt a near‐lethal blow because the problems posed by Chinese wind extend to nearly all power sector projects in almost every developing country. If offsets cannot be credibly verified, then the integrity of emissions caps set by the Kyoto Protocol is directly threatened.

The Chinese wind controversy therefore has direct implications for the design and negotiation of any successor to the Kyoto Protocol. Despite largely failed negotiations in Copenhagen, the design of reliable, efficient carbon markets remains the world's most serious prospect for international cooperation. The developed world has committed USD 30 billion in climate aid by 2012, but the majority of these funds will likely have to be private capital delivered through markets. In order for carbon markets to avoid controversy and function effectively, the lessons from the Chinese wind controversy must be used to implement key reforms.

This report examines the application of additionality in the Chinese wind power market and draws implications for the design of effective global carbon offset policy. It demonstrates the causes of the wind power controversy, highlights underlying structural flaws in how additionality is applied in China, and charts a reform path that can strengthen the credibility of global carbon markets.

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Publication Type
Working Papers
Publication Date
Journal Publisher
Program on Energy and Sustainable Development Working Paper #90
Authors
Gang He
Gang He
Richard K. Morse
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Proponents of public subsidies to renewable energy technologies often claim that subsidizing renewables today accelerates their realization of cost reductions in the future on account of learning-by-doing. A number of previous studies claim to find evidence that certain renewable energy technologies are characterized by statistically and economically significant learning effects; however, these studies assume away potentially important channels of cost reductions besides learning. John's paper uses data for the U.S. wind energy industry to show the implications of the assumptions implicit in previous studies of learning in renewable energy technologies.

Encina Hall East

John Anderson Graduate Researcher Speaker
Seminars
Authors
Jeremy Carl
Jeremy Carl
News Type
Commentary
Date
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Jeremy Carl argues that despite India’s lack of a concrete binding target for significant CO2 emissions reductions, India’s climate commitments come through on other fronts.

Sometimes in diplomacy what is not announced is more revealing than what is. Such is certainly the case in India's recent climate and energy negotiations with the US, as both countries prepare to head to global climate talks in Copenhagen. The occasion of Manmohan Singh's state visit to the US brought the announcement of a flurry of energy and climate-related initiatives. These initiatives were a combination of substance and political theatre, with potentially important initiatives on environmental and regulatory capacity-building and technology partnerships buried under a deep layer of bureaucratic niceties.

What was more noticed was what was not announced: any agreement for India to have a binding target for CO2 emissions reductions, something US and European environmentalists have long claimed is necessary as part of a global effort to stave off severe climate change. And while the Indian government has eventually announced a targeted reduction in what is known as "emissions intensity", CO2 emissions per unit of GDP, that wasn't a big stretch, given India's current annual efficiency improvements. Furthermore, Minister for Environment and Forests Jairam Ramesh has made it abundantly clear in Parliament that such targets would be voluntary and not part of a binding international agreement.

With more than 60 world leaders in attendance, we can be assured that Copenhagen will not end in public failure. But the better question is whether the announced success in Copenhagen will have any practical meaning other than determining that diplomats can spin a "success" out of any actual events. Some Indian commentators have seemed to hope for a "success" of that sort - fretting about India being outmanoeuvred on the public stage by China and other developing countries that may be able to strike a more cooperative posture.

While from a tactical standpoint, such concerns are understandable (there is little reason for India to not commit to doing things it would like to do anyway, such as developing more efficient power plants or cars), from the perspective of actually taking leadership in addressing the climate problem, they mean little. In some ways, India is emulating the example of the US from the previous Kyoto climate round: while the US certainly should have been more proactive and engaged, at least the Americans had the integrity not to ratify an agreement that they couldn't keep. Many other nations could not claim that; they either missed their targets entirely, or resorted to bogus accounting tricks to meet their goals.

That India is showing its seriousness by not making climate commitments it won't live by should actually be seen as a mature and responsible decision, not an intransigent one. Does anyone think that China won't walk away from its promise if they have trouble meeting their emissions reduction goals?

As an alternative to the hot air that is likely to come out of Copenhagen, it is instructive to look at the potentially useful energy and climate agreements the US and India did sign during the PM's recent visit. The fact that clean energy was the second item listed behind security issues in the joint communiqué announced by Singh and Obama is clear evidence that both India and the US place a high importance on this aspect of their relationship.

India and the US announced numerous programmes, from the joint deployment of solar electricity in Indian cities to the strengthening of India's environmental regulatory and monitoring capacity - which is sure to be a critical step if India is to make serious and verifiable long-term commitments to emissions reductions. Perhaps most important, at least symbolically, was the announcement of joint scientific R&D work for renewable energy technologies. The Indo-US Clean Energy Research and Deployment Initiative, which promises joint development of new energy technologies and the development of a joint research centre with a public-private funding model, is one such initiative.

Ultimately, despite the bluster of diplomats in Delhi, Washington or Copenhagen, the solutions to the climate change problem must come through a technological revolution in the world's energy infrastructure. And it is here that India, with its burgeoning corps of bright young engineers, could make the biggest impact on climate change mitigation. Circumstances may not permit

India to lead the deal-making in Denmark, but if the Indian government gets serious about turning more of India's brightest young minds towards solving the clean energy problem, then India's contribution to solving the climate change conundrum may be significant indeed.

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Authors
David G. Victor
David G. Victor
News Type
News
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Google's initiative RE < C seeks to develop sources of renewable energy that are cheaper than coal-fired power. David G. Victor speaks to an audience at Google's Mountain View, CA headquarters about the current status and future prospects for coal -- the right hand side of Google's equation. 

 

 

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