Policy Briefs & Testimonies

Recent research in economics shows how not to design climate treaties—and suggests how to get it right.

Robert Stavins argues for an economic approach to solving environmental problems and explains why "environmental economics" is not an oxymoron.

The United States' extended system of security commitments creates a set of institutional relationships that foster political communication. Alliance institutions are first about security protection, but they also bind states together and create institutional channels of communication. For example, NATO has facilitated ties and associated institutions that increase the ability of the United States and Europe to talk to each other and to do business. Likewise, the bilateral alliances in East Asia also play a communication role beyond narrow security issues. Consultations and exchanges spill over into other policy areas. This gives the United States the capacity to work across issue areas, using assets and bargaining chips in one area to make progress in another.

The United States has considerable tax administration and cap-and-trade expertise that could highlight potentially successful carbon pricing approaches. Although this experience is not climate-related, the United States deploys an efficient and highly compliant excise tax system, and it could assist developing country efforts to build their own capacity to tax carbon. The United States also has long experience with cap-and-trade systems for criteria air pollutants, much of which is transferable to greenhouse-gas emissions trading.

"China narrowed the gap in terms of gross domestic product (GDP) and will likely overtake the United States as the world's largest economy sometime between 2015 and 2040. What matters for national power, however, is not gross wealth, but net wealth—the wealth left over after people are clothed and fed. China's 1.3 billion people produce a large volume of output, but they also consume most of it immediately, leaving little left over for national purposes."

"Amid setbacks and chronic challenges in almost every major region, Washington views South Korea as a linchpin on a global scale. From hosting the G20 summit in 2010 to preparing to host the next Nuclear Security Summit in 2012, South Korea has been establishing itself as a global partner in addressing common challenges, ranging from rebalancing the international economy to preventing the use of nuclear materials for terrorist attacks. For President Lee, the state visit is an important opportunity to demonstrate South Korea’s unique role as a bridge between the developed and developing countries."

The Kyoto Protocol establishes a very complex and ambitious regime, in architecture if not stringency. The problem is that relatively few states, representing only about a quarter of the world's emissions, have been willing to assume emission targets under Kyoto....The future of the Protocol thus seems doubtful at best. Even in the most optimistic scenario, a new round of emissions targets couldn't be agreed in time to prevent a legal gap between the first and second commitment periods. A possible middle ground would be to establish a transitional regime that would be political in nature, but that could evolve over time into a legally-binding regime.