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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 

Website: https://fawolak.org/

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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.

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Matt Kahn Speaker Institute of the Environment and Department of Economics, UCLA
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Abstract
India's nuclear development has been accompanied by a dual track strategy of developing and building weapons while criticising the non-proliferation regime as discriminatory and simultaneously making public statements and proposals in favour of nuclear disarmament. But with international progress likely on aspects of nuclear disarmament over the next few months, India will be in the spotlight at the forthcoming 2010 Non-Proliferation Treaty (NPT) Review Conference to help move the disarmament and non-proliferation agenda forward. This article proposes that India meet this challenge by announcing specific commitments on permanently ending nuclear testing and plutonium production for weapons by a set date. In the course of reaching this conclusion, the article traces the history of India's role in the development of the international non-proliferation regime, its proposals on disarmament, and also its relationship with the United States with respect to India's nuclear development and ambitions.

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Leonard Weiss
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Article Highlights * After a spring and summer filled with rocket and nuclear tests, relations with North Korea have calmed. * Washington should use this period of quiet to its advantage by abandoning its current hard-line strategy against Pyongyang in favor of a strategy of engagement. * Such a change will better help the United States reach its ultimate goal--a denuclearized North Korea.

It is routine in U.S. foreign policy for a pot not boiling over to be moved to the back burner. Precisely because the North Korean issue is not boiling, however, might offer an all-too-rare chance to make progress with Pyongyang. Over the past several months, the North has signaled publicly and privately that it is in engagement mode. In Washington, arguments abound about whether or not this is a stall tactic or a trick, but we'll never know if we don't move ahead with serious and sustained probing of the North's position. So long as our government sticks to an all-or-nothing approach in terms of Pyongyang, the opportunity to advance vital U.S. security interests in northeast Asia could be lost.

Underlying Washington's current position are two beliefs, so firmly held that they approach dogma. The first is that we should wait until the situation with North Korea breaks in our favor or sanctions force North Korean leadership to reassess its attachment to nuclear weapons. A year into the Obama administration, this waiting borders on self-imposed paralysis even though North Korea remains capable of badly damaging regional stability as well as U.S. nonproliferation goals. So instead of positively defining and shaping the realities on the ground, we have taken shelter behind fixed positions: enforcing U.N. Security Council sanctions and demanding that the North make progress on denuclearization at the Six-Party Talks. These may be useful parts of an overall policy, but they cannot be effective by themselves and must be handled carefully.

Sanctions will inevitably get in the way of diplomatic progress, and there needs to be a way to use their loosening--as much as their tightening--in support of negotiations. Moreover, Washington's single-minded insistence that the North return to the Six-Party Talks actually has ceded to Pyongyang a great deal of tactical initiative. There is nothing the North Koreans love more than leaping over our heads to a new position just as we think we have them cornered. As such, in mid-January, they reversed their opposition to talks in the framework of the September 2005 Six-Party joint statement and have proposed that talks proceed on all fronts simultaneously.

The second part of Washington's dogma is that there is no sense in negotiating with Pyongyang because history shows that agreements with North Korea always fail and the United States ends up snookered. But the idea that our deals with the North have all been useless is based on a flawed reading of the record, a lingering misrepresentation of the accomplishments of the 1994 U.S.-North Korea Agreed Framework. In fact, the utility of that agreement (which lasted from 1994 until 2002) is still evident. Without it, North Korea would have produced far more fissile material and a significantly larger arsenal of nuclear weapons. Two hulking, unfinished North Korean nuclear reactors testify to its lasting legacy.

Reinforcing the belief that we don't need to, or shouldn't, pursue an active policy toward North Korea is the Obama administration's apparent concern that it will be vulnerable to charges of being "weak" if it approaches Pyongyang from anything but the toughest position possible. Thus, on the grounds that the September 2005 joint statement calls for progress on the North's denuclearization before talks can begin on replacing the 1953 Korean Armistice with permanent peace arrangements, Washington rejected out of hand Pyongyang's recent proposals to move on both issues simultaneously. We may find it difficult to hold that position because it is neither what the joint statement actually says nor what some of the other parties (especially the Chinese) intended.

The fundamental U.S. goal is exactly right: We want North Korea to denuclearize and to return to the international nuclear nonproliferation regime. But stating the goal isn't the same as moving closer to it. To do so, we must accomplish things that can help stabilize the situation, make it less likely that the strategic threat from the North will get worse, and begin exploring with Pyongyang a range of ideas for reducing tensions on the Korean Peninsula and in the region. A couple of mid-term steps could include a halt in nuclear testing and long-range ballistic missile launches, along with a complete freeze of the Yongbyon nuclear center, which would involve further decommissioning and a return of international inspectors.

These interim steps won't "solve" the nuclear problem, but they aren't beyond what we can accomplish. They will do considerably more to protect our interests and those of our allies than the current all-or-nothing policy, which is going nowhere fast.

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In their latest op-ed in "The Wall Street Journal," William Perry, George Shultz, Henry Kissinger, and Sam Nunn argue that maintaining confidence in the U.S. nuclear arsenal is necessary as the number of weapons decreases.

The four of us have come together, now joined by many others, to support a global effort to reduce reliance on nuclear weapons, to prevent their spread into potentially dangerous hands, and ultimately to end them as a threat to the world. We do so in recognition of a clear and threatening development.

The accelerating spread of nuclear weapons, nuclear know-how, and nuclear material has brought us to a tipping point. We face a very real possibility that the deadliest weapons ever invented could fall into dangerous hands.

But as we work to reduce nuclear weaponry and to realize the vision of a world without nuclear weapons, we recognize the necessity to maintain the safety, security and reliability of our own weapons. They need to be safe so they do not detonate unintentionally; secure so they cannot be used by an unauthorized party; and reliable so they can continue to provide the deterrent we need so long as other countries have these weapons. This is a solemn responsibility, given the extreme consequences of potential failure on any one of these counts.

For the past 15 years these tasks have been successfully performed by the engineers and scientists at the nation's nuclear-weapons production plants and at the three national laboratories (Lawrence Livermore in California, Los Alamos in New Mexico, and Sandia in New Mexico and California). Teams of gifted people, using increasingly powerful and sophisticated equipment, have produced methods of certifying that the stockpile meets the required high standards. The work of these scientists has enabled the secretary of defense and the secretary of energy to certify the safety, security and the reliability of the U.S. nuclear stockpile every year since the certification program was initiated in 1995.

The three labs in particular should be applauded for the success they have achieved in extending the life of existing weapons. Their work has led to important advances in the scientific understanding of nuclear explosions and obviated the need for underground nuclear explosive tests.

Yet there are potential problems ahead, as identified by the Strategic Posture Commission led by former Defense Secretaries Perry and James R. Schlesinger. This commission, which submitted its report to Congress last year, calls for significant investments in a repaired and modernized nuclear weapons infrastructure and added resources for the three national laboratories.

These investments are urgently needed to undo the adverse consequences of deep reductions over the past five years in the laboratories' budgets for the science, technology and engineering programs that support and underwrite the nation's nuclear deterrent. The United States must continue to attract, develop and retain the outstanding scientists, engineers, designers and technicians we will need to maintain our nuclear arsenal, whatever its size, for as long as the nation's security requires it.

This scientific capability is equally important to the long-term goal of achieving and maintaining a world free of nuclear weapons—with all the attendant expertise on verification, detection, prevention and enforcement that is required.

Our recommendations for maintaining a safe, secure and reliable nuclear arsenal are consistent with the findings of a recently completed technical study commissioned by the National Nuclear Security Administration in the Department of Energy. This study was performed by JASON, an independent defense advisory group of senior scientists who had full access to the pertinent classified information.

The JASON study found that the "[l]ifetimes of today's nuclear warheads could be extended for decades, with no anticipated loss in confidence, by using approaches similar to those employed in Life Extension Programs to date." But the JASON scientists also expressed concern that "[a]ll options for extending the life of the nuclear weapons stockpile rely on the continuing maintenance and renewal of expertise and capabilities in science, technology, engineering, and production unique to the nuclear weapons program." The study team said it was "concerned that this expertise is threatened by lack of program stability, perceived lack of mission importance, and degradation of the work environment."

These concerns can and must be addressed by providing adequate and stable funding for the program. Maintaining high confidence in our nuclear arsenal is critical as the number of these weapons goes down. It is also consistent with and necessary for U.S. leadership in nonproliferation, risk reduction, and arms reduction goals.

By providing for the long-term investments required, we also strengthen trust and confidence in our technical capabilities to take the essential steps needed to reduce nuclear dangers throughout the globe. These steps include preventing proliferation and preventing nuclear weapons or weapons-usable material from getting into dangerous hands.

If we are to succeed in avoiding these dangers, increased international cooperation is vital. As we work to build this cooperation, our friends and allies, as well as our adversaries, will take note of our own actions in the nuclear arena. Providing for this nation's defense will always take precedence over all other priorities.

Departures from our existing stewardship strategies should be taken when they are essential to maintain a safe, secure and effective deterrent. But as our colleague Bill Perry noted in his preface to America's Strategic Posture report, we must "move in two parallel paths—one path which reduces nuclear dangers by maintaining our deterrence, and the other which reduces nuclear dangers through arms control and international programs to prevent proliferation." Given today's threats of nuclear proliferation and nuclear terrorism, these are not mutually exclusive imperatives. To protect our nation's security, we must succeed in both.

Beyond our concern about our own stockpile, we have a deep security interest in ensuring that all nuclear weapons everywhere are resistant to accidental detonation and to detonation by terrorists or other unauthorized users. We should seek a dialogue with other states that possess nuclear weapons and share our safety and security concepts and technologies consistent with our own national security.

Mr. Shultz was secretary of state from 1982 to 1989. Mr. Perry was secretary of defense from 1994 to 1997. Mr. Kissinger was secretary of state from 1973 to 1977. Mr. Nunn is former chairman of the Senate Armed Services Committee.

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This two-volume special issue of Daedalus highlights the challenges associated
with the global expansion of nuclear power. The topics covered include environmental
impacts, nuclear safety, and the economics of nuclear power production, but the major emphasis is on nonproliferation and security aspects. To develop an understanding of possible problems and their potential solutions in all of these areas, it is necessary to
understand the nuclear fuel cycle. This article focuses on the back-end stages of the fuel cycle--namely, storage, reprocessing and disposal.

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Nonproliferation efforts have traditionally focused on controlling supply of proliferation-relevant technology, expertise, and material. As barriers to diffusion of all three have been lowered, there is increased acknowledgement of the need to reduce demand for such weapons, and, in cases where efforts to prevent proliferation have failed, the need to develop effective international responses. However, with few exceptions, approaches to nonproliferation have not changed qualitatively in the last 40 years. This research explores the concept of resilience as understood for other complex interactive systems, extracts key features, and applies them to nonproliferation. In addition, it examines unintended consequences of traditional nonproliferation strategies and feedbacks among them.  Based on insights gained from this exercise, a new analytical framework for nonproliferation will be proposed.

Arian L. Pregenzer is a 2009-2010 CISAC visiting scholar and a Senior Scientist in the Global Security Program at Sandia National Laboratories in Albuquerque, New Mexico. She is responsible for initiating new programs in arms control and nonproliferation and for developing strategies for international engagement for multiple laboratory programs. In addition, she provides leadership for Sandia's efforts to integrate across nuclear weapons, arms control, and nonproliferation missions to effectively meet nuclear security challenges.

Most recently, Dr. Pregenzer has focused on near-term steps that can enhance nuclear security while advancing the goals of NPT Article VI. She is particularly interested in how international technical cooperation on topics such as verification methods for nuclear arms control, nuclear weapons security and accountability, and nuclear fuel cycle management can establish the technical basis for moving toward a world without nuclear weapons.

Dr. Pregenzer has bachelors' degrees in physics, mathematics, and philosophy from the University of New Mexico, and a Ph.D. in theoretical condensed matter physics from the University of California at San Diego. Prior to her career in international security, she worked at Sandia to develop lithium ion sources for particle-beam-driven inertial confinement fusion.

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Arian Pregenzer CISAC Visiting Scholar Speaker
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The spread of nuclear weapons is one of the most significant challenges to global security in the 21st century. Limiting the proliferation of nuclear weapons and materials may be the key to preventing a nuclear war or a catastrophic act of nuclear terrorism. Going Nuclear offers conceptual, historical, and analytical perspectives on current problems in controlling nuclear proliferation. It includes essays that examine why countries seek nuclear weapons as well as studies of the nuclear programs of India, Pakistan, and South Africa. The final section of the book offers recommendations for responding to the major contemporary proliferation challenges: keeping nuclear weapons and materials out of the hands of terrorists, ensuring that countries that renounce nuclear weapons never change their minds, and cracking down on networks that illicitly spread nuclear technologies.

Nearly all the chapters in this book have been previously published in the journal International Security. It contains a new preface and one chapter commissioned specifically for the volume, Matthew Bunn's "Nuclear Terrorism: A Strategy for Prevention."

 

CISAC contributors: Consulting Professor Chaim Braun, Co-Director Scott Sagan.

Other contributors, including former CISAC scholars: Samina Ahmed, Matthew Bunn, Christopher F. Chyba, Matthew Fuhrmann, Šumit Ganguly, S. Paul Kapur, Ariel E. Levite, Peter Liberman, Austin Long, Sean M. Lynn-Jones, Alexander H. Montgomery, Gaukhar Mukhatzhanova, William C. Potter, Whitney Raas, Etel Solingen.

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Executive Summary of Report

Nearly twenty years after the end of the Cold War, Russia and the United States continue to maintain hundreds of nuclear weapons capable of striking the other side, and to have at least some of these nuclear forces at Cold War levels of alert, that is, ready to fire within a few minutes of receiving an order to do so.

Even during the Cold War, alert levels were not static and moved up or down in step with changes in the strategic and tactical environments. While the operational readiness of some weapon systems has been reduced, there has been no major change in the readiness levels of most of the nuclear weapon systems in the post-Cold War era. This is in considerable part because Russia and the United States believe that despite fundamental changes in their overall relationship, vital interest requires maintaining a high level of nuclear deterrence.

The post-Cold War experience also demonstrates that alert levels can be reduced and measures can be taken to reduce the risk of accidents or unauthorized takeover of nuclear weapons. Further measures could be taken to reduce operational readiness of nuclear arsenals. U.S. and Russian experts alike stressed survivability as a key element in the acceptance of these measures because of its importance to maintaining deterrence.

Cold War legacy postures under which thousands of weapons are kept on high readiness can be altered through top-down policy initiatives, as was the case in the early 1990s with one class of nuclear weapons.

Technical issues related to the peculiar "ready" character of land-based ICBMs can be resolved by bringing designers into discussions on decreasing operational readiness of nuclear weapons. There was a sense that technical solutions to the problems of nuclear risk reduction are available and can be multilateralized. Information sharing can help implementation of these solutions.

Concerns over "re-alerting" races and vulnerability of "de-alerted" forces to conventional or nuclear strikes during "reversal" can be addressed through survivable forces, dialogue, and confidence building.

Other nuclear weapon states apparently have alert practices that differ from those of Russia and the United States. It was debated whether this state of affairs can be ascribed to an absence of nuclear war fighting capabilities or to a different assessment of the post-Cold War nuclear security environment. There was a sense that nuclear doctrines and alert practices of different nuclear weapon states cannot be analyzed in a vacuum and must be evaluated as parts of a larger political and security framework.

Non-nuclear weapon states' experts forcefully asserted the legitimate interest their states have in the issue and underlined the practical and constructive approach of the U.N. General Assembly resolution on reducing operational readiness of nuclear forces.

Non-nuclear weapon states say that lowering of the operational status of nuclear weapons would both reduce the risk of accidental or unintended nuclear war and provide a much-needed practical boost for disarmament and nonproliferation. Decreasing the operational readiness of nuclear weapons would be a highly desirable confidence-building measure between nuclear weapon states and non-nuclear weapon states. It would also be a welcome step in the lead-up to the 2010 Non-Proliferation Treaty (NPT) Review Conference.

The principal objection to decreasing operational readiness of nuclear weapons as commonly understood has been that it seeks to address a problem that does not exist. Even if it does exist in some instances, it can be addressed by technical and organizational means updated to cover current threats such as nuclear terrorism. Furthermore, the remedy itself could end up undermining nuclear deterrence and strategic or crisis stability.

The insight that emerged during the meeting was that the above objection flows from a narrow view of de-alerting as meaning measures that make it physically impossible to promptly launch an attack on order. Such a view also leads to a somewhat excessive focus on verification of technical measures, which ends up giving an easy argument to the opponents of de-alerting-that it is not verifiable and therefore should not be attempted.

There are no fundamental obstacles to many useful measures of decreasing operational readiness of nuclear weapons, provided the issue is not framed narrowly. De-alert has to be seen not only as a technical fix but also as a strategic step in deemphasizing the military role of nuclear weapons, in other words, moving to retaliatory strike postures and doctrines instead of legacy preemptive or "launch on warning" postures. The ongoing U.S. Nuclear Posture Review (NPR) offers an opportunity for such a perceptual shift.

If decreasing operational readiness of nuclear weapons is reframed in this manner, several concrete steps become possible:

As part of the START follow-on negotiations, Russia and the United States could examine how measures to reduce operational readiness can accompany the bilateral arms control process.

Both Russia and the United States could further strengthen controls against unauthorized action, takeover, and tampering; further increase the capability of warning systems to discriminate real from imagined attacks; and enhance the survivability of their forces and their command and control systems.

Arrangements related to data exchange and ensuring a capability to destroy a "rogue" missile in flight could be multilateralized, at least in terms of sharing data, to bring other declared nuclear weapon states into the process.

Multilateralization of institutions such as the Joint Data Exchange Center may also have collateral benefits in the area of space security.

The premise of maintaining nuclear deterrence between Russia and the United States should not be considered immutable. A dialogue on legacy nuclear postures and doctrines in the Russia-U.S. context may trigger a broader dialogue among relevant states on reducing the salience of nuclear weapons, thus facilitating progress on disarmament and nonproliferation.

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Stanford's Center for International Security and Cooperation (CISAC) has been invited to participate in a new nuclear security fellowship program funded by The Stanton Foundation.

The five-year program will provide $300,000 a year for fellowships aimed at pre- and post-doctoral students and junior faculty studying policy relevant issues related to nuclear security. The first fellows, who will be mentored by CISAC faculty, will start in fall 2010. The deadline for receiving applications is Feb. 1, 2010.

"The CISAC faculty are thrilled to receive these generous funds from the Stanton Foundation to support new Nuclear Security Fellows at the center next year," Co-Director Scott D. Sagan said. "This program will be enormously helpful in CISAC's efforts to train and nurture the next generation of scientists and social scientists addressing the complex global problems of nuclear safety, security and non-proliferation."

In addition to CISAC, Harvard's Belfer Center for Science and International Affairs, the Council on Foreign Relations, the RAND Corporation, the Carnegie Endowment for International Peace and the International Institute for Strategic Studies in London have been selected as host institutions for the fellowships. During their residency, fellows will be expected to complete a policy relevant article, report or book on topics ranging from nuclear terrorism to nuclear proliferation and nuclear weapons.

The Stanton Foundation
Frank Stanton, the president of CBS News from 1946-71, established The Stanton Foundation. During his 25 years at the network's helm, Stanton turned an also-ran radio network into a broadcasting powerhouse. Stanton died in 2006, aged 98 years.

According to information provided by the foundation, Stanton was a strong defender of free speech and was determined to use television as an "instrument of civic education." For example, in 1960, he supported the first televised presidential debates with Richard Nixon and John Kennedy, which required a special act of Congress before they could proceed. These debates were credited with helping Kennedy win the presidency, and have since become a staple of U.S. presidential campaigns.

Throughout his life, Stanton was interested in international security and U.S. foreign policy. He served on several presidential commissions charged with preparing the United States for the challenges of living in a nuclear world. In 1954, Dwight Eisenhower appointed Stanton to a committee convened to develop the first comprehensive plan for the nation's survival of the following a nuclear attack. Stanton was responsible for developing plans for national and international communication in the aftermath of a nuclear incident. According to a statement from the foundation, "The Stanton Foundation aims, through its support of the Nuclear Security Fellows program, to perpetuate his efforts to meet [such] challenges."

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