PESD's new research analyzes China's coal-power base reforms and how they will impact Chinese and global coal markets. Read more »
New PESD Working Paper explains China's dramatic surge in coal imports and its major impact on global coal marketsAnnouncement
PESD researchers Morse and He devise a model that explains Chinese coal import patterns and that can allow the coal market to understand, and to some degree predict, China's coal import behavior in PESD Working Paper #94 - "The World's Greatest Coal Arbitrage: China's Coal Import Behavior and Implications for the Global Coal Market."
- » The World's Greatest Coal Arbitrage: China's Coal Import Behavior and Implications for the Global Coal Market
China's need to lower its carbon and sulfur dioxide emissions could steer its energy demand towards natural gas. However, this shift would be contingent on financial reforms in particular. This study delves deeper into the geo-political factors behind the potential for this energy source in three major urbanizing regions in China. Read more »
PESD work on the role of carbon offsets in climate change mitigation attracts international attention
Michael Wara and David Victor's recent work, A Realistic Policy on International Carbon Offsets, addresses problems with the world's largest offset program, the UN's Clean Development Mechanism. Wara and Victor argue that much of the CDM investment doesn't actually meet the UN's crucial additionality standards, and they outline ways to fix the problem.
- » Wall Street Journal: French firm cashes in under UN warming program
- » Science Magazine: California emissions plan to explore use of offsets
- » Wall Street Journal: UN warming program draws fire
Michael Wara Discusses Coal and the CDMin the news: Wall Street Journal on July 11, 2008
The CDM Executive Board recently approved several gas-fired power plants under the UN's carbon offset scheme, opening the door for subsidizing coal generation and stoking controversy. Michael Wara questions the additionality of such projects and argues subsidies are better spent on other clean-energy development.
Carbon markets need reform, say Wara and Victorin the news
A new PESD working paper, "A Realistic Policy on International Carbon Offsets" by Michael Wara and David Victor, argues that a substantial fraction of the international carbon market does not actually represent real reductions in emissions. They also argue that these international credits, which are part of the Kyoto Protocol's "Clean Development Mechanism (CDM)," will not offer companies reliable ways to contain the cost of complying with limits on emissions. Links below to the original paper and reporting in many sources, including the Economist, Guardian, Le Monde, National Public Radio, and BBC Radio.
- » A Realistic Policy on International Carbon Offsets
- » Guardian (UK)
- » Le Monde (France)
- » Economist
- » Sydney Morning Herald, Australia
Substantial part of carbon offset market doesn't mean reduction, Wara and Victor say
PESD scholars Michael Wara and David Victor suggest that a substantial fraction of the $12b market for international carbon offsets does not represent real reductions and that the market is unlikely to provide reliable cost-control for a domestic carbon market. Instead, they suggest that a broader array of strategies will be needed to make a real dent in developing world emissions and that more explicit cost control mechanisms be considered for a U.S. cap-and- trade market for greenhouse gases.