This report Confronting Scarcity examines the constraints on water, energy and land and how they interrelate. It also considers how these resources can be managed together to promote growth in developing countries that is both socially inclusive and sustainable.
This paper addresses several broad issues for governments aiming to encourage private sector investment in low-carbon climate resilient (LCR) infrastructure, in both developed and developing world contexts. LCR infrastructure is defined, recognizing the interdependencies between infrastructure systems, and the opportunities to tackle climate change adaptation and mitigation simultaneously in national strategic infrastructure plans. Review of the performance of OECD countries in reducing greenhouse gas emissions related to three categories of gross fixed capital formation is mixed. Half of the countries analysed achieved decoupling of emissions from capital formation in the residential building sector, but only two in the transportation sector and nine in power and industry. The paper reviews future global infrastructure needs under low carbon and business-as–usual scenarios. Although cost estimates are incomplete, the technical interdependency and financial tradeoffs between infrastructure systems suggests the potential to generate virtuous cycles of low carbon growth.
Large public investments in clean energy technology arguably constitute an industrial policy. One rationale points to market failures that have not been corrected by other policies, most notably greenhouse gas emissions and dependence on oil. Another inspiration for clean energy policy reflects economic arguments of the 1980s. It suggests strategic government investments would increase U.S. firms' market share of a growing industry and thus help American firms and workers. This paper examines the reasoning for clean energy policy and concludes that:
Over the past several years, labeling schemes that focus on a wide range of environmental and social metrics have proliferated. Although little empirical evidence has been generated yet with respect to carbon footprint labels, much can be learned from our experience with similar product labels. We first review the theory and evidence on the role of product labeling in affecting consumer and firm behavior. Next, we consider the role of governments and nongovernmental organizations, concluding that international, multistakeholder organizations have a critical part to play in setting protocols and standards. We argue that it is important to consider the entire life cycle of a product being labeled and develop an international standard for measurement and reporting. Finally, we examine the potential impact of carbon product labeling, discussing methodological and trade challenges and proposing a framework for choosing products best suited for labeling.
This article appeared in the Energy Economics Supplemental Issue: Green Perspectives.
Africa is well endowed with potential for hydro and solar power, but its other endowments – shortages of capital, skills, and governance capacity – make most of the green options relatively expensive, while its abundance of hydro-carbons makes fossil fuels relatively cheap. Current power shortages make expansion of power capacity a priority. Africa's endowments, and the consequent scarcities and relative prices, are not immutable and can be changed to bring opportunity costs in Africa closer to those in the rest of the world. The international community can support by increasing Africa's supply of the scarce factors of capital, skills, and governance.
This article appeared in the Energy Economics Supplemental Issue: Green Perspectives.
The 1992 Framework Convention on Climate Change created the basic international architecture for addressing climate change. That treaty was negotiated at a time when the research literature examining emissions mitigation and the role of energy technology was relatively limited. In the two subsequent decades a great deal has been learned. The problem of stabilizing the concentration of greenhouse gases in the atmosphere has proved far more difficult than envisioned in 1992 and the role of technology appears even more important when emissions mitigation strategies are co-developed in the context of multiple competing ends.
This article appeared in the Energy Economics Supplemental Issue: Green Perspectives.