Sustainable development
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A major type of policy response to climate change is mitigating carbon emissions by putting an explicit or implicit price on carbon. While such policies have many attractive features and ought to be implemented as part of any climate protection regime, there are strong arguments for going beyond so-called "market based" instruments in attacking the climate change problem. One such argument is that even with a price on carbon, the private sector will systematically under invest in developing new low- or non-carbon emitting energy technologies from a societal point of view. This talk will briefly review the arguments for public support of advanced energy technology Research and Development (R&D) and then try to answer another set of challenges that emerge when it is decided to go beyond market forces by providing public support for energy technology R&D. In that case, the most fundamental questions to be addressed are how much to spend on R&D and what to spend it on.

John P. Weyant is Professor of Management Science and Engineering, a Senior Fellow in the Freeman Spogli Institute for International Studies, and Director of the Energy Modeling Forum (EMF) at Stanford University. Established in 1976, the EMF conducts model comparison studies on major energy/environmental policy issues by convening international working groups of leading experts on mathematical modeling and policy development. Prof. Weyant earned a BS/MS in Aeronautical Engineering and Astronautics, MS degrees in Engineering Management and in Operations Research and Statistics all from Rensselaer Polytechnic Institute, and a PhD in Management Science with minors in Economics, Operations Research, and Organization Theory from University of California at Berkeley. He also was also a National Science Foundation Post-Doctoral Fellow at Harvard's Kennedy School of Government. His current research focuses on analysis of global climate change policy options, energy technology assessment, and models for strategic planning.

Weyant has been a convening lead author or lead author for the Intergovernmental Panel on Climate Change for chapters on integrated assessment, greenhouse gas mitigation, integrated climate impacts, and sustainable development, and most recently served as a review editor for the climate change mitigation working group of the IPCC's assessment report number four. He has been active in the U.S. debate on climate change policy through the Department of State, the Department of Energy and the Environmental Protection Agency. In California, he is a member of the California Air Resources Board's Economic and Technology Advancement Advisory Committee (ETAAC) which is charged with making recommendations for implementing AB 32, The Global Warming Solutions Act of 2006.

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Clean coal is a possible answer for China and India, says Jeremy Carl, a PhD student in the Interdisciplinary Graduate Program in Environment and Resources at Stanford and a fellow at the Program on Energy and Sustainable Development (PESD). Carl describes clean coal options from desulfurization to integrated gasification-combined-cycle (IGCC) plants to carbon capture and sequestration.

Coal is dirty. But coal is driving the U.S., Chinese and Indian economies. And therefore, coal is not going away. Renewable energy sources like solar and wind generate only 1 percent of the world's electricity. Do the math: Making coal burn cleaner might be the most pressing environmental problem that no one talks about.

Despite recent estimates that pollution from China's booming coal industry reaches U.S. shores in as little as five days, the green-tech investment boom that has funded the rise of biofuels has bypassed coal. Even the head of the World Coal Institute recently proclaimed the last 10 years "a lost decade" for clean coal, saying it's time to play catch-up.

Stanford's Jeremy Carl, a research fellow in the Program on Energy and Sustainable Development, couldn't agree more. He spoke on the phone with Wired News to discuss China, the holy grail of clean coal and how many coal plants he'd trade for Kyoto's accomplishments.

Stanford research fellow Jeremy Carl says, "Coal is as dirty as it gets," but warns against throwing the possibly cleaned-up baby out with the dirty bathwater.

Wired News: Why'd you get into clean coal?

Jeremy Carl: I looked at the numbers. It's a question of where the big sources of emissions are and where we can attack them.

WN: Can you give us an idea of the scale of coal power? Can you put coal in context as an energy source?

Carl: Only oil makes a bigger contribution to global energy. In terms of energy in the industrial world, it's about 40 percent of electricity production.

WN: How dirty is coal?

Carl: Coal is as dirty as it gets. Coal has every element in the periodic table. And depending where in the world you get it from, "coal" can mean 100 different substances. If you sent the sort of coal you might use in a typical Indian plant to a supermodern boiler in Japan, it would shut the place down.

WN: But there's got to be good things about coal.

Carl: It's cheap. And coal doesn't have the kind of extreme risk that nuclear power has. You're not going to build a dirty bomb out of coal. And unlike other fossil fuels, it is really widely distributed, so there is less of a coal OPEC.

WN: And that distribution would seem to make resource wars less likely to break out over coal?

Carl: Yes.

WN: Is there an energy source that could replace coal?

Carl: Natural gas is the only viable replacement, and it's not clear that the natural-gas supply could scale up to replace coal.

WN: So, how can we can make coal cleaner?

Carl: The most-well-known is flue-gas desulfurization, which takes sulfur dioxide out of smoke stacks, and came out of concerns about acid rain. There are other pollution-control devices for nitrogen oxide and mercury filters.

WN: What about up-and-coming technologies like carbon capture and sequestration? Can you tell us about that?

Carl: You're taking carbon from a smokestack and pressure-injecting it into a geological formation of some sort. We actually already do this process at an industrial level. We know how this works.

WN: Seems like we're spending a lot of time on the backend scrubbing pollutants out. Should we be designing in a cleaner process on the front end?

Carl: A lot of people point to integrated gasification-combined-cycle (IGCC) plants, which gasify coal before burning it, as the holy grail because they get you a cleaner process. It gives you a more concentrated stream of carbon that you can sequester underground more cheaply. The capital cost is very high, though, and we don't have a lot of experience in designing them.

WN: We hear a lot about China's coal industry. Can you compare it with the U.S. industry, which ranks second in the world?

Carl: We mine about (1.1 billion tons) of coal per year. China was at about 1.4 billion tons seven years ago. Now they are at 2.4 billion tons. So, they essentially took the second-biggest coal industry in the whole world and replicated it in seven years. And if you look at the Chinese plans, they plan to ramp it up even more in the future.

WN: Given the obvious environmental impacts of these plants, why don't we have better answers for these problems than the Kyoto Protocol (which the United States didn't sign, and which exempted China and India from emissions restrictions)?

Carl: I'll give you a speculative, personal answer. It has to do with the politics of the type of people who were negotiating Kyoto. And the pressure put on by environmental groups that were uncomfortable with coal. There was just so much pressure on the symbolic importance of getting a deal done.

WN: What would you have rather seen?

Carl: I think there has been some really good criticism that says, "Was the U.N. really a good forum for this? Or would it have been better to have taken the 10 countries who consume 60 percent of global energy and do something with real teeth in it?" I think that would have been a much better approach.

I would have happily traded every emissions gain from Kyoto for eight clean coal plants sequestering carbon in different countries. Because then we could have a real discussion that says, "This works. Now let's see who has to bear the cost."

WN: Why would that be such a big deal?

Carl: Because right now we're having a conversation with China and India where we're trying to get China and India to build clean coal plants by saying, "Here's this thing that's never been tried before at a mass scale. You should build one." And that's not going to work.

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The integration of the agricultural and energy sectors caused by rapid growth in the biofuels market signals a new era in food policy and sustainable development. For the first time in decades, agricultural commodity markets could experience a sustained increase in prices, breaking the long-term price decline that has benefited food consumers worldwide. Whether this transition occurs, and how it will affect global hunger and poverty, remain to be seen. Will food markets begin to track the volatile energy market in terms of price and availability? Will changes in agricultural commodity markets benefit net food producers and raise farm incomes in poor countries? How will biofuels-induced changes in agricultural commodity markets affect net consumers of food? At risk are over 800 million food-insecure people, mostly in rural areas and dependant to some extent on agriculture for incomes, who live on less than $1 per day and spend the majority of their incomes on food. An additional 2 to 2.5 billion people living on $1 to $2 per day are also at risk, as rising commodity prices could pull them swiftly into a food-insecure state.

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Rosamond L. Naylor
Scott Rozelle
Kenneth Cassman
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The Program on Energy and Sustainable Development and the Department of Energy Resources Engineering host this discussion with Thamir Abbas Ghadhban on the state of Iraqi oil. Mr. Ghadhban will present before a discussion with moderators Lou Durlofsky and David Victor, followed by a Q&A with the audience.

After the fall of the Iraqi regime in April 2003, Mr. Ghadhban took initiative to play a leading role in managing the severely damaged Iraqi oil industry. He became CEO of the Ministry of Oil in 2003 and later Minister of Oil in June 2004 through May 2005.

On January 30, 2005, Thamir Ghadhban was elected for membership to the Iraq National Assembly and became a member of the constitutional and economic committees. The next year he continued his service by becoming advisor to the Vice President in March 2006. Currently, he advises the Iraqi Prime Minister on oil and energy.

Author & co-author of more than fifty studies and technical papers dealing with various aspects of Iraqi oil fields in addition to several published papers about Iraq's oil industry, Thamir Ghadhban holds a B.Sc. in Geology from University College and an M.Sc in Petroleum Reservoir Engineering from the Imperial College, London University. He has worked in Iraqi oil since 1973.

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School of International Relations and Pacific Studies
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Professor at the School of International Relations and Pacific Studies and Director of the School’s new Laboratory on International Law and Regulation
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The Center for Environmental Science and Policy (CESP), one of FSI's longstanding research centers dedicated to interdisciplinary research on the environment, transitioned to its new home in the Woods Institute for the Environment on September 1, 2007. An outgrowth of the university's Environmental Forum, CESP was formally established in 1998 under the leadership of Walter P. Falcon, the Farnsworth Professor of International Agricultural Policy, Emeritus, and Donald Kennedy, Bing Professor of Environmental Science, Emeritus, and former president of Stanford, followed by co-directors Pamela Matson, now the dean of the School of Earth Sciences, and Stephen Schneider, Melvin and Joan Lane Professor for Interdisciplinary Studies.

The center's principal mission was to provide a venue at Stanford for interdisciplinary research on the environment. Groundbreaking projects and programs launched over the past decade by CESP include: the Integrated Studies of Sustainability: Land-Water systems of the Yaqui Basin, which brought together specialists to explore management and policy alternatives that could increase human welfare and minimize resource and environmental risks in the Yaqui Basin in Sonora, Mexico; the Program on Energy and Sustainable Development (PESD), an interdisciplinary program that draws on the fields of political science, law and economics to investigate how the production and consumption of energy affect human welfare and environmental quality; and the Program on Food Security and the Environment (FSE), which examines potential solutions to the persistent problems of global hunger and environmental damage from agricultural practices worldwide. PESD was spun off as a freestanding program under the direction of David G. Victor, while FSE continues as a joint program of Woods and FSI under the direction of Rosamond L. Naylor. FSI would like to recognize CESP for the extraordinary contributions over the past decade to environmental research and policy, and to wish its faculty, researchers, and staff success in their new interdisciplinary home within Woods.

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David Hults is a Research Affiliate at Stanford University's Program on Energy and Sustainable Development (PESD).  His areas of academic interest include the role of energy in the developing world, climate change, and Latin American law.  From 2008 to 2009, David served as a Postdoctoral Fellow at PESD.  David received a J.D. with distinction from Stanford Law School in 2008, where he was Senior Editor for the Stanford Law Review and Senior Articles Editor for the Stanford Journal of International Law.  Before coming to Stanford, David worked on Latin American economic issues at the U.S. Department of State for more than three years.  David previously earned a B.A. in International Studies from the University of Florida and an M.A. in International Relations from Yale University. 

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The BP Foundation has awarded a five-year, $7.5 million grant to Stanford University's Program on Energy and Sustainable Development to support research on modern energy markets. The foundation is funded by BP, one of the world's largest energy companies.

The gift follows the BP Foundation's initial grant of $1.8 million over three years, which was pledged in 2004 in support of the program.

"BP's support has allowed our program to study the world's most pressing energy problems, such as global warming, energy poverty and the prospects for the world oil market," said program director and Stanford law Professor David G. Victor. "In addition to BP Foundation support, we learn from BP's experience as an energy company because they operate in all the markets where we do research--such as in China and India."

"BP Foundation believes the work undertaken at Stanford deals directly with global issues that are key to meeting the world's growing energy needs," said Steve Elbert, chairman of the BP Foundation. "The drive to research and implement strategies to further understand today's energy markets is important work, and we are proud to partner again with Stanford."

The Program on Energy and Sustainable Development, part of the Freeman Spogli Institute for International Studies, concentrates on the legal, political and institutional dimensions of how societies derive value from energy. The BP Foundation grant is part of a rapid expansion of Stanford's research and teaching on energy issues, much of which focuses on the technical aspects of energy systems.

All of the program's research is public and published openly, including on its website. The gift from the BP Foundation, as well as all similar gifts to support the program's research, includes special provisions that assure the research program's independence in setting its research agenda.

The agreement with Stanford is one in a series of BP partnerships with universities in the United Kingdom, the United States and China, representing a total commitment of more than $600 million. The program at Stanford complements work on similar topics at Princeton University, Tsinghua University and Imperial College, among others.

Founded in 2001, the Program on Energy and Sustainable Development focuses on the "political economy" of modern energy services--the interaction of political, institutional and economic forces that often dominate energy markets. It collaborates with the Stanford Law School and other university departments and schools, including economics, engineering and earth sciences. About half of the program's resources are devoted to research partnerships in key developing countries, including Brazil, China, India, Mexico and South Africa. Program researchers have examined the emergence of a global business in natural gas, reforms of electric power markets and the supply of modern energy services to low-income rural households in developing countries.

The program's other major sponsor is the Electric Power Research Institute in Palo Alto, Calif., a research consortium that includes most of the world's largest electric companies.

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Mark C. Thurber is Associate Director of the Program on Energy and Sustainable Development (PESD) at Stanford University, where he studies and teaches about energy and environmental markets and policy. Dr. Thurber has written and edited books and articles on topics including global fossil fuel markets, climate policy, integration of renewable energy into electricity markets, and provision of energy services to low-income populations.

Dr. Thurber co-edited and contributed to Oil and Governance: State-owned Enterprises and the World Energy Supply  (Cambridge University Press, 2012) and The Global Coal Market: Supplying the Major Fuel for Emerging Economies (Cambridge University Press, 2015). He is the author of Coal (Polity Press, 2019) about why coal has thus far remained the preeminent fuel for electricity generation around the world despite its negative impacts on local air quality and the global climate.

Dr. Thurber teaches a course on energy markets and policy at Stanford, in which he runs a game-based simulation of electricity, carbon, and renewable energy markets. With Dr. Frank Wolak, he also conducts game-based workshops for policymakers and regulators. These workshops explore timely policy topics including how to ensure resource adequacy in a world with very high shares of renewable energy generation.

Dr. Thurber has previous experience working in high-tech industry. From 2003-2005, he was an engineering manager at a plant in Guadalajara, México that manufactured hard disk drive heads. He holds a Ph.D. from Stanford University and a B.S.E. from Princeton University.

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The BP Foundation has awarded a five-year, $7.5 million grant to Stanford University's Program on Energy and Sustainable Development to support research on modern energy markets. The foundation is funded by BP, one of the world's largest energy companies.

The gift follows the BP Foundation's initial grant of $1.8 million over three years, which was pledged in 2004 in support of the program.

"BP's support has allowed our program to study the world's most pressing energy problems, such as global warming, energy poverty and the prospects for the world oil market," said program director and Stanford law Professor David G. Victor. "In addition to BP Foundation support, we learn from BP's experience as an energy company because they operate in all the markets where we do research--such as in China and India."

"BP Foundation believes the work undertaken at Stanford deals directly with global issues that are key to meeting the world's growing energy needs," said Steve Elbert, chairman of the BP Foundation. "The drive to research and implement strategies to further understand today's energy markets is important work, and we are proud to partner again with Stanford."

The Program on Energy and Sustainable Development, part of the Freeman Spogli Institute for International Studies, concentrates on the legal, political and institutional dimensions of how societies derive value from energy. The BP Foundation grant is part of a rapid expansion of Stanford's research and teaching on energy issues, much of which focuses on the technical aspects of energy systems.

All of the program's research is public and published openly, including on its website (http://pesd.stanford.edu/). The gift from the BP Foundation, as well as all similar gifts to support the program's research, includes special provisions that assure the research program's independence in setting its research agenda.

The agreement with Stanford is one in a series of BP partnerships with universities in the United Kingdom, the United States and China, representing a total commitment of more than $600 million. The program at Stanford complements work on similar topics at Princeton University, Tsinghua University and Imperial College, among others.

Founded in 2001, the Program on Energy and Sustainable Development focuses on the "political economy" of modern energy services--the interaction of political, institutional and economic forces that often dominate energy markets. It collaborates with the Stanford Law School and other university departments and schools, including economics, engineering and earth sciences. About half of the program's resources are devoted to research partnerships in key developing countries, including Brazil, China, India, Mexico and South Africa. Program researchers have examined the emergence of a global business in natural gas, reforms of electric power markets and the supply of modern energy services to low-income rural households in developing countries.

The program's other major sponsor is the Electric Power Research Institute in Palo Alto, Calif., a research consortium that includes most of the world's largest electric companies.

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