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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Why do community-based education and social persuasion programs for promoting healthy lifestyle and preventing chronic disease sometimes fall short of our expectations? Why are population effects so difficult to engineer and why are they so ephemeral? This research carried out at USC, the Claremont Graduate University, and collaborating institutions in China integrates across social, behavioral, and neurocognitive sciences to address those questions.

We conclude tentatively that the answer to each of the questions may lie in individual and context variability relative to program response, and that in order to more fully address the question of prevention program response variability requires engagement and integration across several levels of science to consider the roles of social groupings, environmental selection and design, social influence processes, and brain biology. What works in one social, cultural or organizational setting may not be so effective in another. What works for persons with certain genetic and experiential backgrounds may be totally ineffective for persons with different dispositional or personality characteristics. In a series of community/school based prevention trials carried out in markedly different southern California and central China settings, we have uncovered domains of consistent response, and other domains of substantial environment- and disposition-based response variability. A social influences based smoking prevention program framed in collectivist values and objectives worked to prevent smoking in one cultural setting but not another. And an individualist framed social influences program worked in the setting where the collectivist program did not. But the characteristics of the particular settings which defined program success or failure were different from what conventional (e.g., cultural psychology) wisdom would have led us to expect. Furthermore, both within and across cultural settings, the same individual dispositional characteristics moderated or determined program effectiveness, again in ways not predicted by the common cultural and behavioral science wisdom. In recent studies carried out both in China and the U.S. we have found affective decision deficits, with known neural underpinnings, to account for rapid progression to regular smoking and binge drinking. These deficits are akin to the dispositional characteristics found earlier to moderate prevention program effects. Subsequent brain imaging studies confirm the hypothesized regions of neural involvement. Together these findings hold promise for more effective – situation and phenotype specific – approaches to engendering and sustaining more optimal individual and population health behavior.

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Carl Anderson Johnson Dean & Professor Speaker School of Community & Global Health, Claremont Graduate School
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Carbon capture and storage (CCS) is a promising technology that might allow for significant reductions in CO2 emissions. But at present CCS is very expensive and its performance is highly uncertain at the scale of commercial power plants. Such challenges to deployment, though, are not new to students of technological change. Several successful technologies, including energy technologies, have faced similar challenges as CCS faces now. In this paper we draw lessons for the CCS industry from the history of other energy technologies that, as with CCS today, were risky and expensive early in their commercial development. Specifically, we analyze the development of the US nuclear-power industry, the US SO2-scrubber industry, and the global LNG industry.

We focus on three major questions in the development of these analogous industries. First, we consider the creation of the initial market to prove the technology: how and by whom was the initial niche market for these industries created? Second, we look at how risk-reduction strategies for path-breaking projects allowed the technology to evolve into a form so that it could capture a wider market and diffuse broadly into service. Third, we explore the "learning curves" that describe the cost reduction as these technologies started to capture significant market share.

Our findings suggest that directly applying to CCS the conventional wisdom that is prevalent regarding the deployment and diffusion of technologies can be very misleading. The conventional wisdom may be summarized as: "Technologies are best deployed if left in the hands of private players"; "Don't pick technology winners" or "Technology forcing is wrong"; and "Technology costs reduce as its cumulative installed capacity increases". We find that none of these readily applies when thinking about deployment of CCS.

Through analyzing the development the analogous industries, we arrive at three principal observations:  

  • First, government played a decisive role in the development of all of these analogous technologies. Much of the early government role was to provide direct backing for R&D work and demonstration projects that validated the technological concepts. For example, the US government directly supported for over two decades most of the basic science and engineering research in both SO2 scrubbers and nuclear power. Most of the demonstration projects were significantly underwritten by government as well; the Japanese government was the principal backer of LNG technology through its promises to buy most of the world's LNG output over many years. Direct government support created the niche opportunities for these technologies.
  • Second, diffusion of these technologies beyond the early demonstration and niche projects hinged on the credibility of incentives for industry to invest in commercial-scale projects. In each of the historical cases, government made a shift in its support strategy as the technology diffused more widely. In the early phase (when commercial uncertainties were so high that businesses found it extremely risky to participate in more than small, isolated projects) success in achieving technology diffusion required a direct role for government. But as uncertainties about the technology's performance reduced and operational experience accumulated, direct financial support became less important, and indirect instruments to lower commercial risk rose in prominence. Those instruments included tax breaks, portfolio/performance standards, purchase guarantees, and low-interest-rate loans linked to specific commercial-scale investments. It is conceivable that such incentives could have been supplied by non-governmental institutions, such as large firms or industry associations, but the three analogs point strongly to a governmental role-perhaps because only government action was viewed as credible. (In the United States, many of the key decisions to support new technologies were crafted at the state level, such as through rate base decisions to allow utilities to purchase nuclear plants.)
  • Third, the conventional wisdom that experience with technologies inevitably reduces costs does not necessarily hold. Risky and capital-intensive technologies may be particularly vulnerable to diffusion without accompanying reductions in cost. In fact, we find the opposite of the conventional wisdom to be true for nuclear power in the US (1960-1980) and global LNG (1960-1995). Costs increased as cumulative installed capacity increased. A very rapid expansion of nuclear power plants in the US around 1970 led to spiraling costs, as the industry had no chance to pass lessons from one generation of investment to the next-a fact evident, for example, in the failure to standardize design and regulation that would allow firms to exploit economies of scale. For natural gas liquefaction plants, costs stayed high for decades due to a market structure marked by little competition among technology suppliers and the presence of a single dominant customer (Japanese firms organized by the Japanese government) willing to pay a premium for safety and security of supply. The same attributes that allowed LNG to expand rapidly-namely, promises of assured demand made credible by the singular backing of the Japanese state-were also a special liability as the technology struggled to compete in other markets. The experience with SO2 scrubbers was more encouraging-costs declined fairly promptly once industrial-scale investment was under way. But that happened only after sufficient clarity on technological performance and capability of FGD systems had been established. What followed was a strict performance standard-in the form of a government mandate, imposed by environmental regulators-that effectively picked FGD as a technology winner. The guaranteed market for FGD led to serious investment, innovations, and learning-by-doing cost reductions. We do not argue that this technology-forcing approach was economically efficient but merely underscore that rates of diffusion of FGD technology akin to what is imagined for CCS technology today were possible only under this technology-forcing regulatory regime.

As CCS commercialization proceeds, policymakers must remain mindful that cost reduction is not automatic-it can be derailed especially by non-competitive markets, unanticipated shifts in regulation, and unexpected technological challenges. At the same time, there may be some inevitable tradeoffs, at least for a period, between providing credible mechanisms to reduce commercial risk, such as promises of assured demand for early technology providers, and stimulating market competition that can lead to lower costs. History suggests that government-backed assurances are essential to creating the market for capital-intensive technologies; yet those very assurances can also create the context that makes it difficult for investors to feel the pressure of competition that, over successive generations of technology, leads to learning and lower costs.

We are also mindful that our history here-drawn on the experience of three technologies that have been successful in obtaining a substantial market share-is a biased one. By looking at successes we are perhaps overly prone to derive lessons for success when, in fact, most visions for substantial technological change actually fail to get traction.

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Program on Energy and Sustainable Development, Working Paper #81
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Varun Rai
David G. Victor
Mark C. Thurber

There is a potential for large gains in the efficiency of energy use with substantial economic payoffs: in buildings, motor vehicles, traffic control, electricity grids, industry. All of these applications involve the use of information technologies. This workshop will focus on demand and efficiency topics that are becoming increasingly salient.

This invitation-only workshop involves three important actors on the world energy scene: California and Mainland China are large consumers of oil while Taiwan, for its size a substantial consumer of oil and emitter of greenhouse gases, plays a leading role in information technologies. California’s size and commitment to energy efficiency makes its role an important one within the US while China’s ongoing urbanization has major energy implications.

This workshop is the first in a series with the goal of convening leading experts from these three regions to focus on key energy-economic efficiency issues, form a research agenda and collaborate on possible solutions.

Topics for discussion will include:

  • strategic policy choices, especially the challenges posed by cap-and-trading of carbon emissions
  • improving industry use of energy
  • urbanization 2.0: transportation and buildings
  • how IT helps green the planet, including the use of smart meters 
  • how consumers respond to better data
  • new venture capital investments in clean tech
  • energy efficiency start-ups in Silicon Valley

Preliminary agenda:

Day 1: Tuesday, February 17

8:00 am – 8:30 am Check-in and Continental Breakfast

8:30 am – 8:45 am Introduction

Professor Henry Rowen, Co-Director, Stanford Program on Regions of Innovation and Entrepreneurship

8:45 am – 9:45 am Keynote

“How to Think About Energy Efficiency” 
Dr. James Sweeney, Director, Precourt Institute for Energy Efficiency, Stanford University

10:00 am Strategic Choices

Moderator: Marguerite Hancock, Associate Director, SPRIE 

10:00 am – 10:45 am

Overview: “Trading Carbon in California”   
Dr. Lawrence Goulder, Chair, Economics Department, Stanford University; Member, California Public Utilities Commission

10:45 am – 12:00 pm Panel

“Taiwan’s 2025 Carbon Reduction Goals: Options and Challenges” 
Dr. Robert J. Yang, Senior Advisor, Industrial Technology Research Institute

“A Synthesis of Energy Tax, Carbon Tax and CO2 Emission Trading System in Taiwan” 
Dr. Chi-Yuan Liang, Research Fellow, Institute of Economics, Academia Sinica & Professor, National Central University

“Measurement of Energy Efficiency in Taiwan and Relevance to CO2 Decoupling” 
Dr. Chung-Huang Huang, Dean, College of Transportation and Tourism, Kainan University and Professor, Department of Economics, National Tsing Hua University

1:00 pm Industry Uses

Moderator: Dr. Chin-Tay Shih, Dean of College of Technology Management, National Tsing-Hua University

1:00 pm – 1:45 pm

Overview: “Improving Energy Efficiency in Industry” 
Dr. Eric Masanet, Principal Scientific Engineering Associate, Energy Analysis Dept., Lawrence Berkeley National Laboratory

1:45 pm – 3:00 pm Panel

“Technology R&D and Industry Development of Distributed Energy System in Taiwan”
Dr. Hsin-Sen Chu, Executive Vice President, Industrial Technology Research Institute

“Energy Saving Potential and Trend Analysis in Taiwan” 
Dr. Jyh-Shing Yang, Senior Consultant, IEK/ITRI and Professor, National Central University

“Industrial innovation toward low carbon economy in Hsinchu Science Park”
Dr. Kung Wang, Professor, School of Management, National Central University, Taiwan

3:15 pm – 5:30 pm The Urban Environment: Buildings and Transportation

Moderator: Dr. William Miller, Co-Director, Stanford Program on Regions of Innovation and Entrepreneurship

Framing Remarks: Dr. Lee Schipper, Precourt Institute for Energy Efficiency, Stanford University

"Integrated management of energy performance of buildings, building portfolios, and cities"
Dr. Martin Fischer, Professor of Civil and Environmental Engineering, and Director, Center for Integrated Facility Engineering, Stanford University

“Challenges, priorities and strategies for energy efficiency in the electric car industry”
Mr. Fred Ni, General Manager, BYD America Corporation

"Urban Motorization in China: Energy Challenges and Solutions"
Ms. Wei-Shiuen Ng, Consultant, previously with World Resources Institute

Title TBA—delivered via video link
Mr. David Nieh, General Manager of Planning and Development, Shui On Land Corporation

 

Commentator: Dr. Fang Rong, Researcher, Center for Industrial Development & Environmental Governance, Tsinghua University

 

Day 2: Wednesday, February 18

8:00 am – 8:30 am Check-in and Continental Breakfast

8:30 am How IT Helps Green the Planet

Moderator: Dr. John Weyant, Deputy Director, Precourt Institute for Energy Efficiency

8:30 am – 9:00 am

“Challenges for Energy Efficiency Innovation and Convergence with Green Environmental Technology”
Dr. Simon C. Tung, General Director, Energy and Environmental Research Laboratories, ITRI

9:00 am – 10:00 am Panel: Two Perspectives on California Initiatives

“Demand Response: Time-differentiating technologies, rates, programs, metrics and customer behavior” 

Dr. Joy Morgenstern, California Public Utilities Commission

“The PG&E Smart Meter Program” 
Ms. Jana Corey, Director of AMI Initiatives, The Pacific Gas and Electric Co.

10:00 am – 10:30 am

Overview: “Behavioral Responses”
Dr. Carrie Armel, Research Associate, Precourt Institute for Energy Efficiency

10:45 a.m. – 12:00 p.m. A Conversation on IT’s Impact on Energy

Moderator: Professor Henry Rowen, Co-Director, Stanford Program on Regions of Innovation and Entrepreneurship

  • Dr. Banny Banerjee, Associate Professor, Mechanical Engineering, Stanford University
  • Dr. Sam Chiu, Professor, Management Science and Engineering, Stanford University 
  • Dr. Hsin-Sen Chu, Executive Vice President, Industrial Technology Research Institute
  • Dr. Lee Schipper, Precourt Institute for Energy Efficiency, Stanford University

1:00 p.m. – 3:00 p.m. Operating in the Cleantech Space

Moderator: Dr. Craig Lawrence, Accel Partners

  • Mr. Mike Harrigan, VP Business Development, Coulomb Technology (charging hardware and software infrastructure for electric vehicles)
  • Mr. David Leonard, CEO Redwood Systems (LED lighting management systems)
  • Mr. Frank Paniagua, Jr., CEO GreenPlug (intelligent DC charging for consumer electronics devices)

3:15 p.m – 4:30 p.m. A Venture Capital Perspective

Moderator: Dr. William Miller, Co-Director, Stanford Program on Regions of Innovation and Entrepreneurship

  • Mr. Maurice Gunderson, Senior Partner, CMEA Capital
  • Dr. Marc Porat, CEO, Calstar Cement
  • Dr. Marianne Wu, Mohr Davidow Ventures

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    FSI Senior Fellow Emeritus and Director-Emeritus, Shorenstein APARC
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    Henry S. Rowen was a senior fellow at the Hoover Institution, a professor of public policy and management emeritus at Stanford University's Graduate School of Business, and a senior fellow emeritus of the Walter H. Shorenstein Asia-Pacific Research Center (Shorenstein APARC). Rowen was an expert on international security, economic development, and high tech industries in the United States and Asia. His most current research focused on the rise of Asia in high technologies.

    In 2004 and 2005, Rowen served on the Presidential Commission on the Intelligence of the United States Regarding Weapons of Mass Destruction. From 2001 to 2004, he served on the Secretary of Defense Policy Advisory Board. Rowen was assistant secretary of defense for international security affairs in the U.S. Department of Defense from 1989 to 1991. He was also chairman of the National Intelligence Council from 1981 to 1983. Rowen served as president of the RAND Corporation from 1967 to 1972, and was assistant director of the U.S. Bureau of the Budget from 1965 to 1966.

    Rowen most recently co-edited Greater China's Quest for Innovation (Shorenstein APARC, 2008). He also co-edited Making IT: The Rise of Asia in High Tech (Stanford University Press, 2006) and The Silicon Valley Edge: A Habitat for Innovation and Entrepreneurship (2000). Rowen's other books include Prospects for Peace in South Asia (edited with Rafiq Dossani) and Behind East Asian Growth: The Political and Social Foundations of Prosperity (1998). Among his articles are "The Short March: China's Road to Democracy," in National Interest (1996); "Inchon in the Desert: My Rejected Plan," in National Interest (1995); and "The Tide underneath the 'Third Wave,'" in Journal of Democracy (1995).

    Born in Boston in 1925, Rowen earned a bachelors degree in industrial management from the Massachusetts Institute of Technology in 1949 and a masters in economics from Oxford University in 1955.

    Faculty Co-director Emeritus, SPRIE
    Senior Fellow, Hoover Institution
    Henry S. Rowen Moderator
    William F. Miller Moderator
    Marguerite Gong Hancock Moderator
    Workshops
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    On March 17 the Freeman Spogli Institute for International Studies will host a book launch for a pathbreaking new book, Power and Responsibility: Building International Order in an Era of Transnational Threats, co-authored by Stephen Stedman, Senior Fellow, FSI and Director of the Ford Dorsey Program in International Policy Studies, Bruce Jones, Co-Director of the Center on International Cooperation, New York University, and Carlos Pascual, Director of Foreign Policy Studies, the Brookings Institution. Power and Responsibility has been produced by the Managing Global Insecurity Project, a multi-year, multi-continent collaboration between the Brookings Institution, NYU's Center on International Cooperation, and Stanford's Freeman Spogli Institute, seeking to coalesce the best thinking on international security affairs today.

    As the authors note, the post-World War II fabric of global security, designed and maintained by the United States, has dangerously frayed. Built for a different age, current international institutions are ill-equipped to address today's pressing transnational security challenges-- such as climate change, nuclear proliferation, civil strife, and terrorism, which are beyond the power of any one state to address.

    Revitalizing the institutions of cooperation will require a new conceptual foundation for global security. The "national sovereignty" of the twentieth century must give way to "responsible sovereignty" - a principle requiring nations not only to protect their own people, but also to cooperate across borders to safeguard common resources and tackle common threats. Achieving this will require American leadership and commitment to a rule-based international order.

    With timely and hard-hitting recomendations, Power and Responsibility seeks to galvanize more effective global action against transnational threats and to build the political support networks needed to reform and revitalize international institutions.

    Following an introduction by Coit D. Blacker, the Olivier Nomellini Professor in International Studies and Director, the Freeman Spogli Institute, all three authors will comment on key ways that revitalized institutions and commitments could address issues topping the foreign policy agendas of the U.S. and its global partners.

    A book signing and reception will follow the authors' commentary.

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    Bruce Jones Director, Center on International Cooperation, New York University Speaker
    Carlos Pascual Vice President, Director of Foreign Policy Studies, the Brookings Institution Speaker

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    Encina Hall, C152
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    Stanford, CA 94305-6055

    (650) 725-2705 (650) 724-2996
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    Senior Fellow at the Freeman Spogli Institute for International Studies
    Professor, by courtesy, of Political Science
    Stedman_Steve.jpg PhD

    Stephen Stedman is a Senior Fellow at the Freeman Spogli Institute for International Studies (FSI) and the Center on Democracy, Development and the Rule of Law (CDDRL), an affiliated faculty member at CISAC, and professor of political science (by courtesy) at Stanford University. He is director of CDDRL's Fisher Family Honors Program in Democracy, Development and Rule of Law, and will be faculty director of the Program on International Relations in the School of Humanities and Sciences effective Fall 2025.

    In 2011-12 Professor Stedman served as the Director for the Global Commission on Elections, Democracy, and Security, a body of eminent persons tasked with developing recommendations on promoting and protecting the integrity of elections and international electoral assistance. The Commission is a joint project of the Kofi Annan Foundation and International IDEA, an intergovernmental organization that works on international democracy and electoral assistance.

    In 2003-04 Professor Stedman was Research Director of the United Nations High-level Panel on Threats, Challenges and Change and was a principal drafter of the Panel’s report, A More Secure World: Our Shared Responsibility.

    In 2005 he served as Assistant Secretary-General and Special Advisor to the Secretary- General of the United Nations, with responsibility for working with governments to adopt the Panel’s recommendations for strengthening collective security and for implementing changes within the United Nations Secretariat, including the creation of a Peacebuilding Support Office, a Counter Terrorism Task Force, and a Policy Committee to act as a cabinet to the Secretary-General.

    His most recent book, with Bruce Jones and Carlos Pascual, is Power and Responsibility: Creating International Order in an Era of Transnational Threats (Washington DC: Brookings Institution, 2009).

    Director, Fisher Family Honors Program in Democracy, Development and Rule of Law
    Director, Program in International Relations
    Affiliated faculty at the Center for International Security and Cooperation
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    Stephen J. Stedman Senior Fellow, FSI, and Director, Ford Dorsey Program in International Policy Studies Speaker
    Conferences
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    Come hear four successful entrepreneurial leaders share insights about the crucial element of talent for start-ups in a global environment: how to build a team, recruit the best people, and manage across borders. Draw on their wealth of experiences: they have founded, funded and led many firms, pioneered technologies and business practices, led start-ups and Fortune 500 firms, and recruited and mentored scores of company leaders.

    After the panel discussion there will be a question and answer period, followed by Chinese appetizers and networking.

    This event is open to students, the Stanford community and the general public and is part of Entrepreneurship Week at Stanford University. You can see the entire line-up of Entrepreneurship Week events at eweek.stanford.edu.

    About the panelists

    Benhamou thumb Eric Benhamou
    Eric Benhamou is chairman and CEO of Benhamou Global Ventures, which invests and plays an active role in innovative high tech firms worldwide. He is chairman of the board of directors of 3Com Corporation, an adjunct professor at INSEAD, and a visiting professor at Ben Gurion University. He served as chairman of the board of directors of Palm, Inc. from 1999-07 and as CEO of Palm from 2001-03. Benhamou served as CEO of 3Com Corporation from 1990-2000. Benhamou has served on US government advisory committes and panels, corporate and educational boards and is the recipient of numerous honorary doctorates and awards, including the Packard Award. He holds an MS from the Stanford University School of Engineering.

    chao thumb David Chao
    David Chao, as co-founder and general partner of DCM, guides portfolio companies in formulating marketing strategies, developing management teams and implementing domestic and international partnerships. Prior to DCM, David was a co-founder, acting CFO and CTO of Japan Communications Inc., a provider of mobile data and voice communications services. Chao was part of Apple Computer's Marketing/Promotions group that helped Apple Japan grow from a $25 million company to $500 million in less than 2 years. He has a BA from Brown University and an MBA from Stanford.

    yoon thumb Kyung Yoon
    Kyung Yoon is CEO of Talent Age Associates, a cross-border talent company offering board and executive recruitment, coaching, and leadership development to clients in the US, Europe and Asia. Previously, she was Vice Chairman of Heidrick & Struggles, a executive search and leadership consulting firm, and President of Benten Investments, Inc. She is Chairman of the Asia America MultiTechnology Association and is a former AAMA President. She has served on numerous corporate and civic boards, including the Silicon Valley Bank Financial Group. Yoon holds a BA in Economics from Goucher College and an MBA from the University of Chicago.

    zhao Michael Zhao
    Michael Zhao, CEO and President of Array Networks, has more than 20 years worth of experience in executive roles at Internet infrastructure and systems integration companies. Most recently, Michael was founder and COO of AsiaInfo - a $500M systems integration company he led to a Nasdaq IPO. He is considered a major industry leader throughout Asia and holds a Ph.D. in Engineering from State University of New York at Buffalo and an MBA from Rutgers, the State University of New Jersey. He currently serves as President of the Asia America MultiTechnology Association (AAMA).

    Bechtel Conference Center

    Eric Benhamou Chairman and CEO Panelist Benhamou Global Ventures
    David Chao Co-founder and General Partner Panelist DCM (Doll Capital)
    Kyung Yoon President and CEO Panelist Talent Age
    Michael Zhao President and CEO Panelist Array Networks
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    A major dimension of effective international cooperation on climate change will be to more successfully engage developing countries in curbing greenhouse gases. The carrots and sticks that have been used for compliance under the current international affairs regime have not given good prospects for the reduction of CO2. This is largely because of the mis-alignment of countries' interests and capabilities. Victor provides an innovative scenario on designing a new institutional framework that would engage developing countries based on current accession protocols used in international economic institutions such as the WTO, OECD, and IMF.

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    Effective strategies for managing the dangers of global climate change are proving very difficult to design and implement.  They require governments to undertake a portfolio of costly efforts that yield uncertain benefits far in the future.  That portfolio includes tasks such as putting a price on carbon and devising complementary regulations to encourage firms and individuals to reduce their carbon footprint.  It includes correcting for the tendency for firms to under-invest in the public good of new technologies and knowledge that will be needed for achieving cost-effective and deep cuts in emissions.  And it also includes investments to help societies prepare for a changing climate by adapting to new climates and also readying "geoengineering" systems in case they are needed.  Many of those efforts require international coordination that has proven especially difficult to mobilize and sustain because international institutions are usually weak and thus unable to force collective action.  All these dimensions of climate diplomacy are the subject of my larger book project and a host of complementary research here at the Program on Energy & Sustainable Development.  

    By far, the most important yet challenging aspect of international climate policy has been to encourage developing countries to contribute to this portfolio of efforts.  Those nations, so far, have been nearly universal in their refusal to make credible commitments to reduce growth in their emissions of greenhouse gases for two reasons.  First, most put a higher priority on economic growth-even at the expense of distant, global environmental goods.  That's why the developing country governments that have signaled their intention to slow the rise in their emissions have offered policies that differ little from what they would have done anyway to promote economic growth.  Second, the governments of the largest and most rapidly developing countries-such as China and India-actually have little administrative ability to control emissions in many sectors of their economy.  Even if they adopted policies to control emissions it is not clear that firms and local governments would actually follow.  

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    Program on Energy and Sustainable Development Working Paper #82
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    David G. Victor
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    In a Jan. 12 press conference, Stanford President John Hennessy announced a new interdisciplinary initiative on energy issues and $100 million in new spending for energy research. The initiative will be housed at the Precourt Institute for Energy Efficiency and will draw upon intellectual resources from the entire university, including FSI's Program on Energy and Sustainable Development (PESD), which has been studying the production and consumption of energy and its effects on sustainable development since 2001.

    One of the issues Hennessy singled out - finding an alternative to coal that is environmentally friendly yet cheap enough to sell to China - is at the core of PESD's Global Coal Markets platform, one of the program's four active research platforms. Richard K. Morse and others are tracking power generation in China, India, and the U.S. and finding that coal use is on the rise but the whole picture is complex due to the current world economic crisis. On the issue of climate change, David G. Victor recently proposed a new policy framework, "climate accession deals," for more successfully engaging developing nations in a post-Kyoto world.

    On Feb. 12, PESD will host a public conference titled "Public Forum: How Will Global Warming Affect the World's Fuel Markets?", as part of the program's winter seminar on coal. Peter Hughes, director of Arthur D. Little's Global Energy & Utilities Division, will talk about whether natural gas is the "default climate change option." Hughes' presentation will be followed by a panel discussion with FSI Director Coit D. Blacker, Stu Dalton from EPRI, and PESD Director David Victor.

    PESD research findings are regularly featured in the New York Times, energy blogs, Newsweek, scholarly journals, and in printed book publications. The relevancy of its research findings derives from its interdisciplinary look at energy through law, political science, and economics.

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    Bush gave democracy promotion a bad name, Larry Diamond writes in Newsweek. The new administration needs to get it right.

    The new U.S. President will face more than one kind of global recession. In addition to the economic downturn, the world is suffering a democratic contraction. In Russia, awash with oil money, Vladimir Putin and his KGB cronies have sharply restricted freedom. In Latin America, authoritarian (and anti-American) populism is on the rise. In Nigeria, the Philippines and once again in Pakistan, democracy is foundering amid massive corruption, weak government and a loss of public faith. In Thailand, the government is paralyzed by mass protests. In Africa, more than a dozen fragile democracies must face the economic storm unprepared. And in the Middle East—the Bush administration's great democratic showcase—the push for freedom lies in ruins.

    In the past decade, the breathtaking democratic wave that swept the world during the final quarter of the 20th century reversed course. Making democracy work proved harder than bringing down authoritarian rule. And receptive peoples everywhere were alienated by the arrogance and unilateralism of President George W. Bush's approach, which associated "democracy promotion" with the use of force and squandered America's soft power. Advancing democracy abroad remains vital to the U.S. national interest. But the next president will have to craft a more modest, realistic and sustainable strategy.

    It's easy today to forget how far freedom has advanced in the past 30 years. When the wave of liberation began in 1974 in Portugal, barely a quarter of the world's states met the minimal test of democracy: a place where the people are able, through universal suffrage, to choose and replace their leaders in regular, free and fair elections. Over the course of the next two decades, dictatorships gave way to freely elected governments first in Southern Europe, then in Latin America, then in East Asia. Finally, an explosion of freedom in the early '90s liberated Eastern Europe and spread democracy from Moscow to Pretoria. Old assumptions—that democracy required Western values, high levels of education and a large middle class—crumbled. Half of sub-Saharan Africa's 48 states became democracies, and of the world's poorest countries, about two in every five are democracies today.

    This great shift coincided with an unprecedented moment of U.S. military, economic and cultural dominance. Not only was America the world's last remaining superpower, but U.S. values—individual freedom, popular sovereignty, limited government and the rule of law—were embraced by progressive leaders around the world. Opinion surveys showed democracy to be the ideal of most people as well.

    In recent years, however, this mighty tide has receded. This democratic recession has coincided with Bush's presidency, and can be traced in no small measure to his administration's imperial overreach. But it actually started in 1999, with the military coup in Pakistan, an upheaval welcomed by a public weary of endemic corruption, economic mismanagement and ethnic and political violence. Pakistan's woes exposed more than the growing frailty of a nuclear-weapon state. They were also the harbinger of a more widespread malaise. Many emerging democracies were experiencing similar crises. In Latin America and the post-communist world, and in parts of Asia and Africa, trust in political parties and parliaments was sinking dramatically, as scandals mounted and elected governments defaulted on their vows to control corruption and improve the welfare of ordinary people.

    Thanks to bad governance and popular disaffection, democracy has lost ground. Since the start of the democratic wave, 24 states have reverted to authoritarian rule. Two thirds of these reversals have occurred in the past nine years—and included some big and important states such as Russia, Venezuela, Bangladesh, Thailand and (if one takes seriously the definition of democracy) Nigeria and the Philippines as well. Pakistan and Thailand have recently returned to rule by elected civilians, and Bangladesh is about to do so, but ongoing crises keep public confidence low. Democracy is also threatened in Bolivia and Ecuador, which confront rising levels of political polarization. And other strategically important democracies once thought to be doing well—Turkey, South Africa and Ukraine—face serious strains.

    This isn't to say there haven't been a few heartening successes in recent years. Indonesia, the world's most populous Muslim country, has become a robust democracy nearly a decade after its turbulent transition from authoritarian rule. Brazil, under the left-leaning Luiz Inácio Lula da Silva, has also strengthened its democratic institutions while maintaining fiscal discipline and a market orientation and reducing poverty. In Africa, Ghana has maintained a quite liberal democracy while generating significant economic growth, and several smaller African countries have moved in this direction.

    But the combination of tough economic times, diminished U.S. power and the renewed energy of major authoritarian states will pose a stiff challenge to some 60 insecure democracies in Asia, Africa, Latin America and the former Soviet bloc. If they don't strengthen their political institutions, reduce corruption and figure out how to govern more effectively, many of these democracies could fail in the coming years.

    Part of the tragedy is that Washington has made things worse, not better. The Bush administration was right that spreading democracy would advance the U.S. national interest—that truly democratic states would be more responsible, peaceful and law-abiding and so become better contributors to international security. But the administration's unilateral and self-righteous approach led it to overestimate U.S. power and rush the dynamics of change, while exposing itself to charges of hypocrisy with its use of torture and the abuse of due process in the war on terror. Instead of advancing freedom and democracy in the Middle East, 2005 and 2006 witnessed a series of embarrassing shocks: Hamas winning in the Palestinian territories and Islamist parties winning in Iraq; Hizbullah surging in Lebanon and the Muslim Brotherhood surging in Egypt. After a brief moment of optimism, the United States backed away and Middle Eastern democrats grew embittered.

    The new American administration will have to fashion a fresh approach—and fast. That will mean setting clear priorities and bringing objectives into alignment with means. The United States does not have the power, resources or moral standing to quickly transform the world's entrenched dictatorships. Besides, isolating and confronting them never seems to work: in Cuba, for example, this policy has been a total failure. This does not mean that the United States should not support democratic change in places like Cuba, Burma, Iran and Syria. But it needs a more subtle and sophisticated approach.

    The best strategy would be to open up such places to the freer flow of people, goods, ideas and information. The next administration should therefore start by immediately lifting the self-defeating embargo on Cuba. It should offer to establish full diplomatic ties with Havana and free flows of trade and investment in exchange for a Cuban commitment to improve human rights. Washington should also work with Tehran to hammer out a comprehensive deal that would lift economic sanctions, renounce the use of force to effect regime change and incorporate Iran into the WTO, in exchange for a verifiable halt to nuclear-weapons development, more responsible behavior on Iraq and terrorism, and improved human-rights protection and monitoring. Critics will charge that talking to such odious governments only legitimizes them. In fact, engaging closed societies is the best way to foster democratic change.

    At the same time, the United States should continue to support diaspora groups that seek peaceful democratic change back home, and should expand international radio broadcasting, through the Voice of America and more specialized efforts, that transmits independent news and information as well as democratic values and ideas.

    In the near term, however, Washington must focus on shoring up existing democracies. Fragile states need assistance to help them adjust to the shocks of the current economic crisis. But they also need deep reforms to strengthen their democratic institutions and improve governance. This will require coordinated help from America and its Western allies to do three things.

    First, they must ramp up technical assistance and training programs to help the machinery of government—parliaments, local authorities, courts, executive agencies and regulatory institutions—work more transparently and deliver what people want: the rule of law, less corruption, fair elections and a government that responds to their economic and social needs. This also means strengthening democratic oversight.

    Second, we know from experience that these kinds of assistance don't work unless the political leaders on the receiving end are willing to let them. So we need to generate strong incentives for rulers to opt for a different logic of governance, one that defines success as delivering development and reducing poverty rather than skimming public resources and buying support or rigging elections. This will mean setting clear conditions that will have to be met before economic and political aid is doled out to governments.

    The third priority is to expand assistance to independent organizations, mass media and think tanks in these fragile states that will increase public demand for better governance and monitor what governments do. This means aiding democratic professional associations, trade unions, chambers of commerce, student groups and organizations devoted to human rights, women's rights, transparency, civic education, election monitoring and countless other democratic activities. Ordinary people must be educated to know their rights and responsibilities as citizens—and be ready to defend them.

    While Western countries have provided this kind of aid for more than two decades, economic assistance handed out at the same time has often undermined democracy efforts by subsidizing corrupt, abusive governments. Aid donors should thus strike a new bargain with recipients, telling them: if you get serious about containing corruption, building a rule of law and improving people's lives, we will get serious about helping you. Those that show a real commitment should get significant new rewards of aid and freer trade. Those unwilling to reform should get little, though the West should continue to fight disease and directly help people in dire need wherever they are.

    Finally, the new president should keep in mind the power of example. Washington can't promote democracy abroad if it erodes it at home. The contradictions between the rhetoric of Bush's "freedom agenda" and the realities of Abu Ghraib, Guantánamo, torture, warrantless surveillance and boundless executive privilege have led even many of the United States' natural allies to dismiss U.S. efforts as hypocritical. Thus the new president must immediately shut down Guantánamo and unequivocally renounce the use of torture; few gestures would restore American credibility more quickly. The United States should also reduce the power of lobbyists, enhance executive and legislative transparency and reform campaign-finance rules—both for its own good and for the message it would send.

    Make no mistake: thanks to the global economic crisis and antidemocratic trends, things may get worse before they get better. But supporting democracy abroad advances U.S. national interests and engages universal human aspirations. A more consistent, realistic and multilateral approach will help to secure at-risk democracies and plant the seeds of freedom in oppressed countries. Patience, persistence and savvy diplomacy will serve the next president far better than moralistic rhetoric that divides the world into good and evil. We've seen where that got us.

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