Commentary: FERC Order 2023: Will it Unplug the Bottleneck?
The average wait for a new generation project to interconnect to the grid continues to rise, with the median time from interconnection request to commercial operation hitting five years for projects completed in 2022. Wait times are even longer for wind and solar projects. These delays significantly increase the costs and timelines associated with decarbonizing the grid. In this commentary, we discuss the policy landscape for reducing interconnection delays.
Implications of the IRA on Deployment of Low-Carbon Ammonia Technologies
A new working paper examines the economic impact of the U.S. Inflation Reduction Act on ammonia production: steam-methane reforming (SMR), SMR with carbon capture (CCS), alkaline electrolysis, and biomass gasification under different policies – subsidies, carbon pricing, and renewable hydrogen rules. To decarbonize ammonia production efficiently, the researchers outline areas policymakers and academia should focus on.
Designing Incentive Regulation in the Electricity Sector
In industries with extensive infrastructure needs and pronounced scale economies, consumers can be better served by well-designed regulation than by competition. Incentive regulation attempts to harness the regulated firm’s superior knowledge of industry conditions to achieve regulatory objectives. A new working paper reviews key principles of incentive regulation, and examines how incentive regulation can be designed to enhance performance in the electricity sector.
Consequences of the Missing Risk Market Problem for Power System Emissions
Financial risk is a central concern for investors in electricity technologies. Investors are both risk-averse and unable to optimally manage risk due to the incompleteness of financial markets. This working paper explores the consequences of this missing market problem for societal goals to decarbonize power systems. The researchers find that the risks firms face in an absence of risk markets skew investment decisions away from clean energy technologies and raise power system emissions.
Commentary: Is Net-Zero a Possible Solution to the Climate Problem?
In this commentary, MIT Institute Professor John M. Deutch noted that many observers of climate policy do not believe that the widely adopted policy of Net-zero emissions by 2050 is possible yet often do not have clear reasons for why they hold this belief. He explains why he believes achieving global Net-zero is highly unlikely by any certain date and, even if achieved, will not necessarily solve the climate problem. The major obstacles to successful Net-zero are unpredictable, involve significant political issues, and are not easily described in econometric models.
Application Open for new Postdoctoral Associate position
MIT CEEPR will now accept applications for a new postdoctoral associate to assume a position in energy and environmental economics analysis. The selected candidate will work with Professor Christopher R. Knittel on research related to energy and environmental economics, including topics such as the impact of aircraft noise on real estate values, consumer preferences in transportation, and the value of environmental amenities. If you are interested, please review the job post at the link below and submit an application through the MIT HR link.
Learn More
In a first, MIT trains students to resolve clean energy conflicts
Curbing climate change — and extreme weather for future generations — depends squarely on society’s ability to rapidly build new clean energy infrastructure despite the messy puzzle of local, state and federal reviews projects must overcome. Six MIT Technology and Policy Program students, including CEEPR Graduate Research Assistant Kailin Graham (pictured), are enrolled in the MIT Renewable Energy Clinic which is designed to train students in negotiation and mediation for siting and development of clean energy projects. Read more about this first-of-its-kind course.
Learn More
Op-Ed: Petrostates usually benefit from war. Let’s make sure Iran and Russia don’t.
An unfortunate fact about oil markets is that all petrostates profit from violence — whether they perpetrate it themselves or benefit when other petrostates do. And that creates a conundrum for U.S. policymakers: How to punish Iran for its suspected assistance to Hamas without helping Russia during its war on Ukraine? CEEPR faculty affiliate Catherine Wolfram and MIT Sloan professor Simon Johnson propose a solution: Impose a price cap on Iran’s oil exports. Read more about their thinking in the full Op-Ed at the Washington Post.
Learn More
The Roosevelt Project
The Roosevelt Project takes a multidisciplinary approach to examine the transitional challenges associated with progress toward a deeply decarbonized U.S. economy. The project aims to chart a path forward through the transition that minimizes worker and community dislocations and enables at-risk communities to sustain employment levels by taking advantage of the economic opportunities present for regional economic development.
Learn More
The CATE Project
The Climate Action Through Education Project aims to develop a science-based climate curriculum for U.S high school students, placing particular emphasis on reaching populations who are underserved and on countering climate denial messages. The curriculum will inform students about the causes and consequences of anthropogenic climate change, while equipping them with the knowledge and sense of agency to contribute to climate mitigation and adaptation.
Learn More
The E2e Project
Through an interdisciplinary approach to the so-called ‘energy efficiency gap’, the E2e Project seeks to evaluate and strengthen policies and incentives for improved energy efficiency. Proven research designs used to achieve these aims include randomized controlled trials (RCTs) and quasi-experimental designs, with data and customer access provided through formal partnerships with private-sector companies.
Learn More