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    Catherine Wolfram: High-energy scholar

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    In the mid 2000s, Catherine Wolfram PhD ’96 reached what she calls “an inflection point” in her career. After about a decade of studying U.S. electricity markets, she had come to recognize that “you couldn’t study the energy industries without thinking about climate mitigation,” as she puts it.At the same time, Wolfram understood that the trajectory of energy use in the developing world was a massively important part of the climate picture. To get a comprehensive grasp on global dynamics, she says, “I realized I needed to start thinking about the rest of the world.”An accomplished scholar and policy expert, Wolfram has been on the faculty at Harvard University, the University of California at Berkeley — and now MIT, where she is the William Barton Rogers Professor in Energy. She has also served as deputy assistant secretary for climate and energy economics at the U.S. Treasury.Yet even leading experts want to keep learning. So, when she hit that inflection point, Wolfram started carving out a new phase of her research career.“One of the things I love about being an academic is, I could just decide to do that,” Wolfram says. “I didn’t need to check with a boss. I could just pivot my career to being more focused to thinking about energy in the developing world.”Over the last decade, Wolfram has published a wide array of original studies about energy consumption in the developing world. From Kenya to Mexico to South Asia, she has shed light on the dynamics of economics growth and energy consumption — while spending some of that time serving the government too. Last year, Wolfram joined the faculty of the MIT Sloan School of Management, where her work bolsters the Institute’s growing effort to combat climate change.Studying at MITWolfram largely grew up in Minnesota, where her father was a legal scholar, although he moved to Cornell University around the time she started high school. As an undergraduate, she majored in economics at Harvard University, and after graduation she worked first for a consultant, then for the Massachusetts Department of Public Utilities, the agency regulating energy rates. In the latter job, Wolfram kept noticing that people were often citing the research of an MIT scholar named Paul Joskow (who is now the Elizabeth and James Killian Professor of Economics Emeritus in MIT’s Department of Economics) and Richard Schmalensee (a former dean of the MIT Sloan School of Management and now the Howard W. Johnson Professor of Management Emeritus). Seeing how consequential economics research could be for policymaking, Wolfram decided to get a PhD in the field and was accepted into MIT’s doctoral program.“I went into graduate school with an unusually specific view of what I wanted to do,” Wolfram says. “I wanted to work with Paul Joskow and Dick Schmalensee on electricity markets, and that’s how I wound up here.”At MIT, Wolfram also ended up working extensively with Nancy Rose, the Charles P. Kindleberger Professor of Applied Economics and a former head of the Department of Economics, who helped oversee Wolfram’s thesis; Rose has extensively studied market regulation as well.Wolfram’s dissertation research largely focused on price-setting behavior in the U.K.’s newly deregulated electricity markets, which, it turned out, applied handily to the U.S., where a similar process was taking place. “I was fortunate because this was around the time California was thinking about restructuring, as it was known,” Wolfram says. She spent four years on the faculty at Harvard, then moved to UC Berkeley. Wolfram’s studies have shown that deregulation has had some medium-term benefits, for instance in making power plants operate more efficiently.Turning on the ACBy around 2010, though, Wolfram began shifting her scholarly focus in earnest, conducting innovative studies about energy in the developing world. One strand of her research has centered on Kenya, to better understand how more energy access for people without electricity might fit into growth in the developing world.In this case, Wolfram’s perhaps surprising conclusion is that electrification itself is not a magic ticket to prosperity; people without electricity are more eager to adopt it when they have a practical economic need for it. Meanwhile, they have other essential needs that are not necessarily being addressed.“The 800 million people in the world who don’t have electricity also don’t have access to good health care or running water,” Wolfram says. “Giving them better housing infrastructure is important, and harder to tackle. It’s not clear that bringing people electricity alone is the single most useful thing from a development perspective. Although electricity is a super-important component of modern living.”Wolfram has even delved into topics such as air conditioner use in the developing world — an important driver of energy use. As her research shows, many countries, with a combined population far bigger than the U.S., are among the fastest-growing adopters of air conditioners and have an even greater need for them, based on their climates. Adoption of air conditioning within those countries also is characterized by marked economic inequality.From early 2021 until late 2022, Wolfram also served in the administration of President Joe Biden, where her work also centered on global energy issues. Among other things, Wolfram was part of the team working out a price-cap policy for Russian oil exports, a concept that she thinks could be applied to many other products globally. Although, she notes, working with countries heavily dependent on exporting energy materials will always require careful engagement.“We need to be mindful of that dependence and importance as we go through this massive effort to decarbonize the energy sector and shift it to a whole new paradigm,” Wolfram says.At MIT againStill, she notes, the world does need a whole new energy paradigm, and fast. Her arrival at MIT overlaps with the emergence of a new Institute-wide effort, the Climate Project at MIT, that aims to accelerate and scale climate solutions and good climate policy, including through the new Climate Policy Center at MIT Sloan. That kind of effort, Wolfram says, matters to her.“It’s part of why I’ve come to MIT,” Wolfram says. “Technology will be one part of the climate solution, but I do think an innovative mindset, how can we think about doing things better, can be productively applied to climate policy.” On being at MIT, she adds: “It’s great, it’s awesome. One of the things that pleasantly surprised me is how tight-knit and friendly the MIT faculty all are, and how many interactions I’ve had with people from other departments.”Wolfram has also been enjoying her teaching at MIT, and will be offering a large class in spring 2025, 15.016 (Climate and Energy in the Global Economy), that she debuted this past academic year.“It’s super fun to have students from around the world, who have personal stories and knowledge of energy systems in their countries and can contribute to our discussions,” she says.When it comes to tackling climate change, many things seem daunting. But there is still a world of knowledge to be acquired while we try to keep the planet from overheating, and Wolfram has a can-do attitude about learning more and applying those lessons.“We’ve made a lot of progress,” Wolfram says. “But we still have a lot more to do.” More

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      J-PAL North America announces new evaluation incubator collaborators from state and local governments

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      J-PAL North America recently selected government partners for the 2024-25 Leveraging Evaluation and Evidence for Equitable Recovery (LEVER) Evaluation Incubator cohort. Selected collaborators will receive funding and technical assistance to develop or launch a randomized evaluation for one of their programs. These collaborations represent jurisdictions across the United States and demonstrate the growing enthusiasm for evidence-based policymaking.Launched in 2023, LEVER is a joint venture between J-PAL North America and Results for America. Through the Evaluation Incubator, trainings, and other program offerings, LEVER seeks to address the barriers many state and local governments face around finding and generating evidence to inform program design. LEVER offers government leaders the opportunity to learn best practices for policy evaluations and how to integrate evidence into decision-making. Since the program’s inception, more than 80 government jurisdictions have participated in LEVER offerings.J-PAL North America’s Evaluation Incubator helps collaborators turn policy-relevant research questions into well-designed randomized evaluations, generating rigorous evidence to inform pressing programmatic and policy decisions. The program also aims to build a culture of evidence use and give government partners the tools to continue generating and utilizing evidence in their day-to-day operations.In addition to funding and technical assistance, the selected state and local government collaborators will be connected with researchers from J-PAL’s network to help advance their evaluation ideas. Evaluation support will also be centered on community-engaged research practices, which emphasize collaborating with and learning from the groups most affected by the program being evaluated.Evaluation Incubator selected projectsPierce County Human Services (PCHS) in the state of Washington will evaluate two programs as part of the Evaluation Incubator. The first will examine how extending stays in a fentanyl detox program affects the successful completion of inpatient treatment and hospital utilization for individuals. “PCHS is interested in evaluating longer fentanyl detox stays to inform our funding decisions, streamline our resource utilization, and encourage additional financial commitments to address the unmet needs of individuals dealing with opioid use disorder,” says Trish Crocker, grant coordinator.The second PCHS program will evaluate the impact of providing medication and outreach services via a mobile distribution unit to individuals with opioid use disorders on program take-up and substance usage. Margo Burnison, a behavioral health manager with PCHS, says that the team is “thrilled to be partnering with J-PAL North America to dive deep into the data to inform our elected leaders on the best way to utilize available resources.”The City of Los Angeles Youth Development Department (YDD) seeks to evaluate a research-informed program: Student Engagement, Exploration, and Development in STEM (SEEDS). This intergenerational STEM mentorship program supports underrepresented middle school and college students in STEM by providing culturally responsive mentorship. The program seeks to foster these students’ STEM identity and degree attainment in higher education. YDD has been working with researchers at the University of Southern California to measure the SEEDS program’s impact, but is interested in developing a randomized evaluation to generate further evidence. Darnell Cole, professor and co-director of the Research Center for Education, Identity and Social Justice, shares his excitement about the collaboration with J-PAL: “We welcome the opportunity to measure the impact of the SEEDS program on our students’ educational experience. Rigorously testing the SEEDS program will help us improve support for STEM students, ultimately enhancing their persistence and success.”The Fort Wayne Police Department’s Hope and Recovery Team in Indiana will evaluate the impact of two programs that connect social workers with people who have experienced an overdose, or who have a mental health illness, to treatment and resources. “We believe we are on the right track in the work we are doing with the crisis intervention social worker and the recovery coach, but having an outside evaluation of both programs would be extremely helpful in understanding whether and what aspects of these programs are most effective,” says Police Captain Kevin Hunter.The County of San Diego’s Office of Evaluation, Performance and Analytics, and Planning & Development Services will engage with J-PAL staff to explore evaluation opportunities for two programs that are a part of the county’s Climate Action Plan. The Equity-Driven Tree Planting Program seeks to increase tree canopy coverage, and the Climate Smart Land Stewardship Program will encourage climate-smart agricultural practices. Ricardo Basurto-Davila, chief evaluation officer, says that “the county is dedicated to evidence-based policymaking and taking decisive action against climate change. The work with J-PAL will support us in combining these commitments to maximize the effectiveness in decreasing emissions through these programs.”J-PAL North America looks forward to working with the selected collaborators in the coming months to learn more about these promising programs, clarify our partner’s evidence goals, and design randomized evaluations to measure their impact. More

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      in Energy

      The changing geography of “energy poverty”

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      A growing portion of Americans who are struggling to pay for their household energy live in the South and Southwest, reflecting a climate-driven shift away from heating needs and toward air conditioning use, an MIT study finds.The newly published research also reveals that a major U.S. federal program that provides energy subsidies to households, by assigning block grants to states, does not yet fully match these recent trends.The work evaluates the “energy burden” on households, which reflects the percentage of income needed to pay for energy necessities, from 2015 to 2020. Households with an energy burden greater than 6 percent of income are considered to be in “energy poverty.” With climate change, rising temperatures are expected to add financial stress in the South, where air conditioning is increasingly needed. Meanwhile, milder winters are expected to reduce heating costs in some colder regions.“From 2015 to 2020, there is an increase in burden generally, and you do also see this southern shift,” says Christopher Knittel, an MIT energy economist and co-author of a new paper detailing the study’s results. About federal aid, he adds, “When you compare the distribution of the energy burden to where the money is going, it’s not aligned too well.”The paper, “U.S. federal resource allocations are inconsistent with concentrations of energy poverty,” is published today in Science Advances.The authors are Carlos Batlle, a professor at Comillas University in Spain and a senior lecturer with the MIT Energy Initiative; Peter Heller SM ’24, a recent graduate of the MIT Technology and Policy Program; Knittel, the George P. Shultz Professor at the MIT Sloan School of Management and associate dean for climate and sustainability at MIT; and Tim Schittekatte, a senior lecturer at MIT Sloan.A scorching decadeThe study, which grew out of graduate research that Heller conducted at MIT, deploys a machine-learning estimation technique that the scholars applied to U.S. energy use data.Specifically, the researchers took a sample of about 20,000 households from the U.S. Energy Information Administration’s Residential Energy Consumption Survey, which includes a wide variety of demographic characteristics about residents, along with building-type and geographic information. Then, using the U.S. Census Bureau’s American Community Survey data for 2015 and 2020, the research team estimated the average household energy burden for every census tract in the lower 48 states — 73,057 in 2015, and 84,414 in 2020.That allowed the researchers to chart the changes in energy burden in recent years, including the shift toward a greater energy burden in southern states. In 2015, Maine, Mississippi, Arkansas, Vermont, and Alabama were the five states (ranked in descending order) with the highest energy burden across census bureau tracts. In 2020, that had shifted somewhat, with Maine and Vermont dropping on the list and southern states increasingly having a larger energy burden. That year, the top five states in descending order were Mississippi, Arkansas, Alabama, West Virginia, and Maine.The data also reflect a urban-rural shift. In 2015, 23 percent of the census tracts where the average household is living in energy poverty were urban. That figure shrank to 14 percent by 2020.All told, the data are consistent with the picture of a warming world, in which milder winters in the North, Northwest, and Mountain West require less heating fuel, while more extreme summer temperatures in the South require more air conditioning.“Who’s going to be harmed most from climate change?” asks Knittel. “In the U.S., not surprisingly, it’s going to be the southern part of the U.S. And our study is confirming that, but also suggesting it’s the southern part of the U.S that’s least able to respond. If you’re already burdened, the burden’s growing.”An evolution for LIHEAP?In addition to identifying the shift in energy needs during the last decade, the study also illuminates a longer-term change in U.S. household energy needs, dating back to the 1980s. The researchers compared the present-day geography of U.S. energy burden to the help currently provided by the federal Low Income Home Energy Assistance Program (LIHEAP), which dates to 1981.Federal aid for energy needs actually predates LIHEAP, but the current program was introduced in 1981, then updated in 1984 to include cooling needs such as air conditioning. When the formula was updated in 1984, two “hold harmless” clauses were also adopted, guaranteeing states a minimum amount of funding.Still, LIHEAP’s parameters also predate the rise of temperatures over the last 40 years, and the current study shows that, compared to the current landscape of energy poverty, LIHEAP distributes relatively less of its funding to southern and southwestern states.“The way Congress uses formulas set in the 1980s keeps funding distributions nearly the same as it was in the 1980s,” Heller observes. “Our paper illustrates the shift in need that has occurred over the decades since then.”Currently, it would take a fourfold increase in LIHEAP to ensure that no U.S. household experiences energy poverty. But the researchers tested out a new funding design, which would help the worst-off households first, nationally, ensuring that no household would have an energy burden of greater than 20.3 percent.“We think that’s probably the most equitable way to allocate the money, and by doing that, you now have a different amount of money that should go to each state, so that no one state is worse off than the others,” Knittel says.And while the new distribution concept would require a certain amount of subsidy reallocation among states, it would be with the goal of helping all households avoid a certain level of energy poverty, across the country, at a time of changing climate, warming weather, and shifting energy needs in the U.S.“We can optimize where we spend the money, and that optimization approach is an important thing to think about,” Knittel says.  More

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      in Energy

      Study: EV charging stations boost spending at nearby businesses

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      Charging stations for electric vehicles are essential for cleaning up the transportation sector. A new study by MIT researchers suggests they’re good for business, too.The study found that, in California, opening a charging station boosted annual spending at each nearby business by an average of about $1,500 in 2019 and about $400 between January 2021 and June 2023. The spending bump amounts to thousands of extra dollars annually for nearby businesses, with the increase particularly pronounced for businesses in underresourced areas.The study’s authors hope the research paints a more holistic picture of the benefits of EV charging stations, beyond environmental factors.“These increases are equal to a significant chunk of the cost of installing an EV charger, and I hope this study sheds light on these economic benefits,” says lead author Yunhan Zheng MCP ’21, SM ’21, PhD ’24, a postdoc at the Singapore-MIT Alliance for Research and Technology (SMART). “The findings could also diversify the income stream for charger providers and site hosts, and lead to more informed business models for EV charging stations.”Zheng’s co-authors on the paper, which was published today in Nature Communications, are David Keith, a senior lecturer at the MIT Sloan School of Management; Jinhua Zhao, an MIT professor of cities and transportation; and alumni Shenhao Wang MCP ’17, SM ’17, PhD ’20 and Mi Diao MCP ’06, PhD ’10.Understanding the EV effectIncreasing the number of electric vehicle charging stations is seen as a key prerequisite for the transition to a cleaner, electrified transportation sector. As such, the 2021 U.S. Infrastructure Investment and Jobs Act committed $7.5 billion to build a national network of public electric vehicle chargers across the U.S.But a large amount of private investment will also be needed to make charging stations ubiquitous.“The U.S. is investing a lot in EV chargers and really encouraging EV adoption, but many EV charging providers can’t make enough money at this stage, and getting to profitability is a major challenge,” Zheng says.EV advocates have long argued that the presence of charging stations brings economic benefits to surrounding communities, but Zheng says previous studies on their impact relied on surveys or were small-scale. Her team of collaborators wanted to make advocates’ claims more empirical.For their study, the researchers collected data from over 4,000 charging stations in California and 140,000 businesses, relying on anonymized credit and debit card transactions to measure changes in consumer spending. The researchers used data from 2019 through June of 2023, skipping the year 2020 to minimize the impact of the pandemic.To judge whether charging stations caused customer spending increases, the researchers compared data from businesses within 500 meters of new charging stations before and after their installation. They also analyzed transactions from similar businesses in the same time frame that weren’t near charging stations.Supercharging nearby businessesThe researchers found that installing a charging station boosted annual spending at nearby establishments by an average of 1.4 percent in 2019 and 0.8 percent from January 2021 to June 2023.While that might sound like a small amount per business, it amounts to thousands of dollars in overall consumer spending increases. Specifically, those percentages translate to almost $23,000 in cumulative spending increases in 2019 and about $3,400 per year from 2021 through June 2023.Zheng says the decline in spending increases over the two time periods might be due to a saturation of EV chargers, leading to lower utilization, as well as an overall decrease in spending per business after the Covid-19 pandemic and a reduced number of businesses served by each EV charging station in the second period. Despite this decline, the annual impact of a charging station on all its surrounding businesses would still cover approximately 11.2 percent of the average infrastructure and installation cost of a standard charging station.Through both time frames, the spending increases were highest for businesses within about a football field’s distance from the new stations. They were also significant for businesses in disadvantaged and low-income areas, as designated by California and the Justice40 Initiative.“The positive impacts of EV charging stations on businesses are not constrained solely to some high-income neighborhoods,” Wang says. “It highlights the importance for policymakers to develop EV charging stations in marginalized areas, because they not only foster a cleaner environment, but also serve as a catalyst for enhancing economic vitality.”Zheng believes the findings hold a lesson for charging station developers seeking to improve the profitability of their projects.“The joint gas station and convenience store business model could also be adopted to EV charging stations,” Zheng says. “Traditionally, many gas stations are affiliated with retail store chains, which enables owners to both sell fuel and attract customers to diversify their revenue stream. EV charging providers could consider a similar approach to internalize the positive impact of EV charging stations.”Zheng also says the findings could support the creation of new funding models for charging stations, such as multiple businesses sharing the costs of construction so they can all benefit from the added spending.Those changes could accelerate the creation of charging networks, but Zheng cautions that further research is needed to understand how much the study’s findings can be extrapolated to other areas. She encourages other researchers to study the economic effects of charging stations and hopes future research includes states beyond California and even other countries.“A huge number of studies have focused on retail sales effects from traditional transportation infrastructure, such as rail and subway stations, bus stops, and street configurations,” Zhao says. “This research provides evidence for an important, emerging piece of transportation infrastructure and shows a consistently positive effect on local businesses, paving the way for future research in this area.”The research was supported, in part, by the Singapore-MIT Alliance for Research and Technology (SMART) and the Singapore National Research Foundation. Diao was partially supported by the Natural Science Foundation of Shanghai and the Fundamental Research Funds for the Central Universities of China. More

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      in Environment

      Balancing economic development with natural resources protection

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      It’s one of the paradoxes of economic development: Many countries currently offer large subsidies to their industrial fishing fleets, even though the harms of overfishing are well-known. Governments might be willing to end this practice, if they saw that its costs outweighed its benefits. But each country, acting individually, faces an incentive to keep subsidies in place.This trap evokes the classic “tragedy of the commons” that economists have studied for generations. But despite the familiarity of the problem in theory, they don’t yet have a lot of hard evidence to offer policymakers about solutions, especially on a global scale. PhD student Aaron Berman is working on a set of projects that may change that.“Our goal is to get some empirical traction on the problem,” he says.Berman and his collaborators are combining a variety of datasets — not only economic data but also projections from ecological models — to identify how these subsidies are impacting fish stocks. They also hope to determine whether countries might benefit instead from sustainability measures to help rebuild fisheries, say through new trade arrangements or other international policy agreements.As a fourth-year doctoral candidate in MIT’s Department of Economics, Berman has a variety of other research projects underway as well, all connected by the central question of how to balance economic development with the pressure it puts on the environment and natural resources. While his study of fishing subsidies is global in scope, other projects are distinctly local: He is studying air pollution generated by road infrastructure in Pakistan, groundwater irrigation in Texas, the scallop fishing industry in New England, and industrial carbon-reduction measures in Turkey. For all of these projects, Berman and his collaborators are bringing data and models from many fields of science to bear on economic questions, from seafloor images taken by NOAA to atmospheric models of pollution dispersion.“One thing I find really exciting and joyful about the work I’m doing in environmental economics is that all of these projects involve some kind of crossover into the natural sciences,” he says.Several of Berman’s projects are so ambitious that he hopes to continue working on them even after completing his PhD. He acknowledges that keeping so many irons in the fire is a lot of work, but says he finds motivation in the knowledge that his research could shape policy and benefit society in a concrete way.“Something that MIT has really instilled in me is the value of going into the field and learning about how the research you’re doing connects to real-world issues,” he says. “You want your findings as a researcher to ultimately be useful to someone.”Testing the watersThe son of two public school teachers, Berman grew up in Maryland and then attended Yale University, where he majored in global affairs as an undergraduate, then stayed to get his master’s in public health, concentrating on global health in both programs.A pivotal moment came while taking an undergraduate class in development economics. “That class helped me realize the same questions I cared a lot about from a public health standpoint were also being studied by economists using very rigorous methods,” Berman says. “Economics has a lot to say about very pressing societal issues.”After reading the work of MIT economists and Nobel laureates Esther Duflo and Abhijit Banerjee in that same class, he decided to pivot and “test the waters of economics a little bit more seriously.” The professor teaching that class also played an important role, by encouraging Berman to pursue a predoctoral research position as a first step toward a graduate degree in economics.Following that advice, Berman landed at the Harvard Kennedy School’s Evidence for Policy Design, a research initiative seeking to foster economic development by improving the policy design process. His time with this organization included five months in Jakarta, Indonesia, where he collaborated with professors Rema Hanna and Ben Olken — of Harvard and MIT, respectively — on a portfolio of projects focused on analyzing social protection and poverty alleviation.The work, which included working closely with government partners, “required me to think creatively about how to talk about economics research to several different types of audiences,” he says. “This also gave me experience thinking about the intersection between what is academically interesting and what is a policy priority.”The experience also gave him the skills and confidence to apply to the economics PhD program at MIT.(Re)discovering teachingAs an economist, Berman is now channeling his interests in global affairs to exploring the relationship between economic development and protecting the natural environment. (He’s aided by an affinity for languages — he speaks five, with varying degrees of proficiency, in addition to English: Mandarin, Cantonese, Spanish, Portuguese, and Indonesian.) His interest in natural resource governance was piqued while co-authoring a paper on the economic drivers of climate-altering tropical deforestation.The review article, written alongside Olken and two professors from the London School of Economics, explored questions such as “What does the current state of the evidence tell us about what causes deforestation in the tropics, and what further evidence is needed?” and “What are the economic barriers to implementing policies to prevent deforestation?” — the kinds of questions he seeks to answer broadly in his ongoing dissertation work.“I gained an appreciation for the importance and complexity of natural resource governance, both in developing and developed countries,” he says. “It really was a launching point for a lot of the things that I’m doing now.”These days, when not doing research, Berman can be found playing on MIT’s club tennis team or working as a teaching assistant, which he particularly enjoys. He’s ever mindful of the Yale professor whose encouragement shaped his own path, and he hopes that he can pay that forward in his own teaching roles.“The fact that he saw I had the ability to make this transition and encouraged me to take a leap of faith is really meaningful to me. I would like to be able to do that for others,” Berman says.His interest in teaching also connects him further with his family: His father is a middle school science teacher and mother is a paraeducator for students with special needs. He says they’ve encouraged him throughout his academic journey, even though they initially didn’t know much about what a PhD in economics entailed. Berman jokes that the most common question people ask economists is what stocks they should invest in, and his family was no exception.“But they’ve always been very excited to hear about the kinds of things I’m working on and very supportive,” he says. “It’s been a really amazing learning experience thus far,” Berman says about his doctoral program. “One of the coolest parts of economics research is to have a sense that you’re tangibly doing something that’s going to have an impact in the world.” More

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      in Environment

      Improving working environments amid environmental distress

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      In less than a decade, MIT economist Namrata Kala has produced a corpus of work too rich, inventive, and diverse to be easily summarized. Let’s try anyway.Kala, an associate professor at the MIT Sloan School of Management, often studies environmental problems and their effects on workers and firms, with implications for government policy, corporate managers, and anyone concerned about climate change. She also examines the effects of innovation on productivity, from farms to factories, and scrutinizes firm organization in light of such major changes.Kala has published papers on topics including the long-term effects of climate change on agriculture in Africa and India; the impact of mechanization on farmers’ incomes; the extent to which linguistic differences create barriers to trade; and even the impact of LED light bulbs on factory productivity. Characteristically, Kala looks at issues of global scale and pinpoints their effects at the level of individuals.Consider one paper Kala and two colleagues published a couple of years ago, about the effects of air pollution on garment factory workers in India. The scholars examined patterns of particulate-matter pollution and linked that to detailed, worker-level data about how productive workers were along the production line. The study shows that air pollution damages sewing productivity, and that some managers (not all) are adept at recognizing which workers are most affected by it.What emerges from much of this work is a real-time picture of human adaptation in a time of environmental distress.“I feel like I’m part of a long tradition of trying to understand resilience and adaptation, but now in the face of a changing world,” Kala says. “Understanding interventions that are good for resilience while the world is changing is what motivates me, along with the fact that the vast majority of the world is vulnerable to events that may impact economic growth.”For her research and teaching, Kala was awarded tenure at MIT last year.Joining academia, then staying in itKala, who grew up in Punjab, India, was long mindful of big issues pertaining to society, the economy, and the environment.“Growing up in India, it’s very difficult not to be interested in the some of the questions that are important for development and environmental economics,” Kala says.However, Kala did not expect that interest to lead her into academia. She attended Delhi University as an undergraduate, earning her degree with honors in economics while expecting to find a job in the area of development. To help facilitate that, Kala enrolled in a one-year master’s program at Yale University, in international and development economics.Before that year was out, Kala had a new realization: Studying development problems was integral to solving them. Academia is not on the sidelines when it comes to development, but helps generate crucial knowledge to foster better and smarter growth policies.“I came to Yale for a one-year master’s because I didn’t know if I wanted to be in a university for another two years,” Kala says. “I wanted to work on problems in the world. And that’s when I became enthralled with research. It was this wonderful year where I could study anything, and it completely changed my perspective on what I could do next. So I did the PhD, and that’s how I became an economist.”After receiving her PhD in 2015, Kala spent the next two years supported by a Prize Fellowship in Economics, History, and Politics at Harvard University and a postdoctoral fellowship at MIT’s own Abdul Latif Jameel Poverty Action Lab (J-PAL). In 2017, she joined the MIT faculty on a full-time basis, and has remained at the Institute since then.The source material for Kala’s studies varies widely, though in all cases she is looking for ways to construct well-defined empirical studies tackling major questions, with key issues often revealed in policy or firm details.“I find reading stuff about policy reform strangely interesting,” she quips.Development, but with environmental qualityIndeed, sometimes the spark for Kala’s studies comes from her own broad knowledge of past policy reforms, combined with an ability to locate data that reveals their effects.For instance, one working paper Kala and a colleague recently completed looks at an Indian policy to move industrial firms out of Delhi in order to help solve the city’s pollution problems; the policy randomly relocated companies in an industrial belt around the city. But what effect did this have on the firms? After examining the records of 20,000 companies, the researchers found these firms’ survival rate was 8 percent to 20 percent lower than if the policy called for them to be clustered more efficiently.That finding suggests how related environmental policies can be designed in the future.“This environmental policy was important in that it improved air quality in Delhi, but there’s a way to do that which also reduces the cost on firms,” Kala says.Kala says she expects India to be the locus of many, though hardly all, of her future studies. The country provides a wide range of opportunities for research.“India currently has both the largest number of poor people in the world as well as 21 of the 30 most polluted cities in the world,” Kala says. “Clearly, the tradeoff between development and environmental quality is extremely salient, and we need progress in understanding industrial policies that are at least environmentally neutral or improving environmental quality.”Kala will continue to look for new ways to take pressing, large-scale issues and study their effects in daily life. But the fact that her work ranges so widely is not just due to the places she studies; it is also because of the place she studies them from. MIT, she believes, has provided her with an environment of its own, which in this case enhances her own productivity.“One thing that helps a lot is having colleagues and co-authors to bounce ideas of off,” Kala says. “Sloan is the heart of so much interdisciplinary work. That is one big reason why I’ve had a broad set of interests and continue to work on many things.”“At Sloan,” she adds, “there are people doing fascinating things that I’m happy to listen to, as well as people in different disciplines working on related things who have a perspective I find extremely enriching. There are excellent economists, but I also go into seminars about work or productivity or the environment and come away with a perspective I don’t think I could have come up with myself.” More

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      in Environment

      School of Engineering welcomes new faculty

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      The School of Engineering welcomes 15 new faculty members across six of its academic departments. This new cohort of faculty members, who have either recently started their roles at MIT or will start within the next year, conduct research across a diverse range of disciplines.Many of these new faculty specialize in research that intersects with multiple fields. In addition to positions in the School of Engineering, a number of these faculty have positions at other units across MIT. Faculty with appointments in the Department of Electrical Engineering and Computer Science (EECS) report into both the School of Engineering and the MIT Stephen A. Schwarzman College of Computing. This year, new faculty also have joint appointments between the School of Engineering and the School of Humanities, Arts, and Social Sciences and the School of Science.“I am delighted to welcome this cohort of talented new faculty to the School of Engineering,” says Anantha Chandrakasan, chief innovation and strategy officer, dean of engineering, and Vannevar Bush Professor of Electrical Engineering and Computer Science. “I am particularly struck by the interdisciplinary approach many of these new faculty take in their research. They are working in areas that are poised to have tremendous impact. I look forward to seeing them grow as researchers and educators.”The new engineering faculty include:Stephen Bates joined the Department of Electrical Engineering and Computer Science as an assistant professor in September 2023. He is also a member of the Laboratory for Information and Decision Systems (LIDS). Bates uses data and AI for reliable decision-making in the presence of uncertainty. In particular, he develops tools for statistical inference with AI models, data impacted by strategic behavior, and settings with distribution shift. Bates also works on applications in life sciences and sustainability. He previously worked as a postdoc in the Statistics and EECS departments at the University of California at Berkeley (UC Berkeley). Bates received a BS in statistics and mathematics at Harvard University and a PhD from Stanford University.Abigail Bodner joined the Department of EECS and Department of Earth, Atmospheric and Planetary Sciences as an assistant professor in January. She is also a member of the LIDS. Bodner’s research interests span climate, physical oceanography, geophysical fluid dynamics, and turbulence. Previously, she worked as a Simons Junior Fellow at the Courant Institute of Mathematical Sciences at New York University. Bodner received her BS in geophysics and mathematics and MS in geophysics from Tel Aviv University, and her SM in applied mathematics and PhD from Brown University.Andreea Bobu ’17 will join the Department of Aeronautics and Astronautics as an assistant professor in July. Her research sits at the intersection of robotics, mathematical human modeling, and deep learning. Previously, she was a research scientist at the Boston Dynamics AI Institute, focusing on how robots and humans can efficiently arrive at shared representations of their tasks for more seamless and reliable interactions. Bobu earned a BS in computer science and engineering from MIT and a PhD in electrical engineering and computer science from UC Berkeley.Suraj Cheema will join the Department of Materials Science and Engineering, with a joint appointment in the Department of EECS, as an assistant professor in July. His research explores atomic-scale engineering of electronic materials to tackle challenges related to energy consumption, storage, and generation, aiming for more sustainable microelectronics. This spans computing and energy technologies via integrated ferroelectric devices. He previously worked as a postdoc at UC Berkeley. Cheema earned a BS in applied physics and applied mathematics from Columbia University and a PhD in materials science and engineering from UC Berkeley.Samantha Coday joins the Department of EECS as an assistant professor in July. She will also be a member of the MIT Research Laboratory of Electronics. Her research interests include ultra-dense power converters enabling renewable energy integration, hybrid electric aircraft and future space exploration. To enable high-performance converters for these critical applications her research focuses on the optimization, design, and control of hybrid switched-capacitor converters. Coday earned a BS in electrical engineering and mathematics from Southern Methodist University and an MS and a PhD in electrical engineering and computer science from UC Berkeley.Mitchell Gordon will join the Department of EECS as an assistant professor in July. He will also be a member of the MIT Computer Science and Artificial Intelligence Laboratory. In his research, Gordon designs interactive systems and evaluation approaches that bridge principles of human-computer interaction with the realities of machine learning. He currently works as a postdoc at the University of Washington. Gordon received a BS from the University of Rochester, and MS and PhD from Stanford University, all in computer science.Kaiming He joined the Department of EECS as an associate professor in February. He will also be a member of the MIT Computer Science and Artificial Intelligence Laboratory (CSAIL). His research interests cover a wide range of topics in computer vision and deep learning. He is currently focused on building computer models that can learn representations and develop intelligence from and for the complex world. Long term, he hopes to augment human intelligence with improved artificial intelligence. Before joining MIT, He was a research scientist at Facebook AI. He earned a BS from Tsinghua University and a PhD from the Chinese University of Hong Kong.Anna Huang SM ’08 will join the departments of EECS and Music and Theater Arts as assistant professor in September. She will help develop graduate programming focused on music technology. Previously, she spent eight years with Magenta at Google Brain and DeepMind, spearheading efforts in generative modeling, reinforcement learning, and human-computer interaction to support human-AI partnerships in music-making. She is the creator of Music Transformer and Coconet (which powered the Bach Google Doodle). She was a judge and organizer for the AI Song Contest. Anna holds a Canada CIFAR AI Chair at Mila, a BM in music composition, and BS in computer science from the University of Southern California, an MS from the MIT Media Lab, and a PhD from Harvard University.Yael Kalai PhD ’06 will join the Department of EECS as a professor in September. She is also a member of CSAIL. Her research interests include cryptography, the theory of computation, and security and privacy. Kalai currently focuses on both the theoretical and real-world applications of cryptography, including work on succinct and easily verifiable non-interactive proofs. She received her bachelor’s degree from the Hebrew University of Jerusalem, a master’s degree at the Weizmann Institute of Science, and a PhD from MIT.Sendhil Mullainathan will join the departments of EECS and Economics as a professor in July. His research uses machine learning to understand complex problems in human behavior, social policy, and medicine. Previously, Mullainathan spent five years at MIT before joining the faculty at Harvard in 2004, and then the University of Chicago in 2018. He received his BA in computer science, mathematics, and economics from Cornell University and his PhD from Harvard University.Alex Rives will join the Department of EECS as an assistant professor in September, with a core membership in the Broad Institute of MIT and Harvard. In his research, Rives is focused on AI for scientific understanding, discovery, and design for biology. Rives worked with Meta as a New York University graduate student, where he founded and led the Evolutionary Scale Modeling team that developed large language models for proteins. Rives received his BS in philosophy and biology from Yale University and is completing his PhD in computer science at NYU.Sungho Shin will join the Department of Chemical Engineering as an assistant professor in July. His research interests include control theory, optimization algorithms, high-performance computing, and their applications to decision-making in complex systems, such as energy infrastructures. Shin is a postdoc at the Mathematics and Computer Science Division at Argonne National Laboratory. He received a BS in mathematics and chemical engineering from Seoul National University and a PhD in chemical engineering from the University of Wisconsin-Madison.Jessica Stark joined the Department of Biological Engineering as an assistant professor in January. In her research, Stark is developing technologies to realize the largely untapped potential of cell-surface sugars, called glycans, for immunological discovery and immunotherapy. Previously, Stark was an American Cancer Society postdoc at Stanford University. She earned a BS in chemical and biomolecular engineering from Cornell University and a PhD in chemical and biological engineering at Northwestern University.Thomas John “T.J.” Wallin joined the Department of Materials Science and Engineering as an assistant professor in January. As a researcher, Wallin’s interests lay in advanced manufacturing of functional soft matter, with an emphasis on soft wearable technologies and their applications in human-computer interfaces. Previously, he was a research scientist at Meta’s Reality Labs Research working in their haptic interaction team. Wallin earned a BS in physics and chemistry from the College of William and Mary, and an MS and PhD in materials science and engineering from Cornell University.Gioele Zardini joined the Department of Civil and Environmental Engineering as an assistant professor in September. He will also join LIDS and the Institute for Data, Systems, and Society. Driven by societal challenges, Zardini’s research interests include the co-design of sociotechnical systems, compositionality in engineering, applied category theory, decision and control, optimization, and game theory, with society-critical applications to intelligent transportation systems, autonomy, and complex networks and infrastructures. He received his BS, MS, and PhD in mechanical engineering with a focus on robotics, systems, and control from ETH Zurich, and spent time at MIT, Stanford University, and Motional. More

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      in Environment

      Bringing an investigator’s eye to complex social challenges

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      Anna Russo likes puzzles. They require patience, organization, and a view of the big picture. She brings an investigator’s eye to big institutional and societal challenges whose solutions can have wide-ranging, long-term impacts.

      Russo’s path to MIT began with questions. She didn’t have the whole picture yet. “I had no idea what I wanted to do with my life,” says Russo, who is completing her PhD in economics in 2024. “I was good at math and science and thought I wanted to be a doctor.”

      While completing her undergraduate studies at Yale University, where she double majored in economics and applied math, Russo discovered a passion for problem-solving, where she could apply an analytical lens to answering the kinds of thorny questions whose solutions could improve policy. “Empirical research is fun and exciting,” Russo says.

      After Yale, Russo considered what to do next. She worked as a full-time research assistant with MIT economist Amy Finkelstein. Russo’s work with Finkelstein led her toward identifying, studying, and developing answers to complex questions. 

      “My research combines ideas from two fields of economic inquiry — public finance and industrial organization — and applies them to questions about the design of environmental and health care policy,” Russo says. “I like the way economists think analytically about social problems.”

      Narrowing her focus

      Studying with and being advised by renowned economists as both an undergraduate and a doctoral student helped Russo narrow her research focus, fitting more pieces into the puzzle. “What drew me to MIT was its investment in its graduate students,” Russo says.

      Economic research meant digging into policy questions, identifying market failures, and proposing solutions. Doctoral study allowed Russo to assemble data to rigorously follow each line of inquiry.

      “Doctoral study means you get to write about something you’re really interested in,” Russo notes. This led her to study policy responses to climate change adaptation and mitigation. 

      “In my first year, I worked on a project exploring the notion that floodplain regulation design doesn’t do a good job of incentivizing the right level of development in flood-prone areas,” she says. “How can economists help governments convince people to act in society’s best interest?”

      It’s important to understand institutional details, Russo adds, which can help investigators identify and implement solutions. 

      “Feedback, advice, and support from faculty were crucial as I grew as a researcher at MIT,” she says. Beyond her two main MIT advisors, Finkelstein and economist Nikhil Agarwal — educators she describes as “phenomenal, dedicated advisors and mentors” — Russo interacted regularly with faculty across the department. 

      Russo later discovered another challenge she hoped to solve: inefficiencies in conservation and carbon offset programs. She set her sights on the United States Department of Agriculture’s Conservation Reserve Program because she believes it and programs like it can be improved. 

      The CRP is a land conservation plan administered by USDA’s Farm Service Agency. In exchange for a yearly rental payment, farmers enrolled in the program agree to remove environmentally sensitive land from agricultural production and plant species that will improve environmental health and quality.

      “I think we can tweak the program’s design to improve cost-effectiveness,” Russo says. “There’s a trove of data available.” The data include information like auction participants’ bids in response to well-specified auction rules, which Russo links to satellite data measuring land use outcomes. Understanding how landowners bid in CRP auctions can help identify and improve the program’s function. 

      “We may be able to improve targeting and achieve more cost-effective conservation by adjusting the CRP’s scoring system,” Russo argues. Opportunities may exist to scale the incremental changes under study for other conservation programs and carbon offset markets more generally.  

      Economics, Russo believes, can help us conceptualize problems and recommend effective alternative solutions.

      The next puzzle

      Russo wants to find her next challenge while continuing her research. She plans to continue her work as a junior fellow at the Harvard Society of Fellows, after which she’ll join the Harvard Department of Economics as an assistant professor. Russo also plans to continue helping other budding economists since she believes in the importance of supporting other students.   

      Russo’s advisors are some of her biggest supporters. 

      Finklestein emphasizes Russo’s curiosity, enthusiasm, and energy as key drivers in her success. “Her genuine curiosity and interest in getting to the bottom of a problem with the data — with an econometric analysis, with a modeling issue — is the best antidote for [the stress that can be associated with research],” Finklestein says. “It’s a key ingredient in her ability to produce important and credible work.”

      “She’s also incredibly generous with her time and advice,” Finklestein continues, “whether it’s helping an undergraduate research assistant with her senior thesis, or helping an advisor such as myself navigate a data access process she’s previously been through.”

      “Instead of an advisor-advisee relationship, working with her on a thesis felt more like a collaboration between equals,” Agarwal adds. “[She] has the maturity and smarts to produce pathbreaking research.

      “Doctoral study is an opportunity for students to find their paths collaboratively,” Russo says. “If I can help someone else solve a small piece of their puzzle, that’s a huge positive. Research is a series of many, many small steps forward.” 

      Identifying important causes for further investigation and study will always be important to Russo. “I also want to dig into some other market that’s not working well and figure out how to make it better,” she says. “Right now I’m really excited about understanding California wildfire mitigation.” 

      Puzzles are made to be solved, after all. More

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      in Energy

      A delicate dance

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      In early 2022, economist Catherine Wolfram was at her desk in the U.S. Treasury building. She could see the east wing of the White House, just steps away.

      Russia had just invaded Ukraine, and Wolfram was thinking about Russia, oil, and sanctions. She and her colleagues had been tasked with figuring out how to restrict the revenues that Russia was using to fuel its brutal war while keeping Russian oil available and affordable to the countries that depended on it.

      Now the William F. Pounds Professor of Energy Economics at MIT, Wolfram was on leave from academia to serve as deputy assistant secretary for climate and energy economics.

      Working for Treasury Secretary Janet L. Yellen, Wolfram and her colleagues developed dozens of models and forecasts and projections. It struck her, she said later, that “huge decisions [affecting the global economy] would be made on the basis of spreadsheets that I was helping create.” Wolfram composed a memo to the Biden administration and hoped her projections would pan out the way she believed they would.

      Tackling conundrums that weigh competing, sometimes contradictory, interests has defined much of Wolfram’s career.

      Wolfram specializes in the economics of energy markets. She looks at ways to decarbonize global energy systems while recognizing that energy drives economic development, especially in the developing world.

      “The way we’re currently making energy is contributing to climate change. There’s a delicate dance we have to do to make sure that we treat this important industry carefully, but also transform it rapidly to a cleaner, decarbonized system,” she says.

      Economists as influencers

      While Wolfram was growing up in a suburb of St. Paul, Minnesota, her father was a law professor and her mother taught English as a second language. Her mother helped spawn Wolfram’s interest in other cultures and her love of travel, but it was an experience closer to home that sparked her awareness of the effect of human activities on the state of the planet.

      Minnesota’s nickname is “Land of 10,000 Lakes.” Wolfram remembers swimming in a nearby lake sometimes covered by a thick sludge of algae. “Thinking back on it, it must’ve had to do with fertilizer runoff,” she says. “That was probably the first thing that made me think about the environment and policy.”

      In high school, Wolfram liked “the fact that you could use math to understand the world. I also was interested in the types of questions about human behavior that economists were thinking about.

      “I definitely think economics is good at sussing out how different actors are likely to react to a particular policy and then designing policies with that in mind.”

      After receiving a bachelor’s degree in economics from Harvard University in 1989, Wolfram worked with a Massachusetts agency that governed rate hikes for utilities. Seeing its reliance on research, she says, illuminated the role academics could play in policy setting. It made her think she could make a difference from within academia.

      While pursuing a PhD in economics from MIT, Wolfram counted Paul L. Joskow, the Elizabeth and James Killian Professor of Economics and former director of the MIT Center for Energy and Environmental Policy Research, and Nancy L. Rose, the Charles P. Kindleberger Professor of Applied Economics, among her mentors and influencers.

      After spending 1996 to 2000 as an assistant professor of economics at Harvard, she joined the faculty at the Haas School of Business at the University of California at Berkeley.

      At Berkeley, it struck Wolfram that while she labored over ways to marginally boost the energy efficiency of U.S. power plants, the economies of China and India were growing rapidly, with a corresponding growth in energy use and carbon dioxide emissions. “It hit home that to understand the climate issue, I needed to understand energy demand in the developing world,” she says.

      The problem was that the developing world didn’t always offer up the kind of neatly packaged, comprehensive data economists relied on. She wondered if, by relying on readily accessible data, the field was looking under the lamppost — while losing sight of what the rest of the street looked like.

      To make up for a lack of available data on the state of electrification in sub-Saharan Africa, for instance, Wolfram developed and administered surveys to individual, remote rural households using on-the-ground field teams.

      Her results suggested that in the world’s poorest countries, the challenges involved in expanding the grid in rural areas should be weighed against potentially greater economic and social returns on investments in the transportation, education, or health sectors.

      Taking the lead

      Within months of Wolfram’s memo to the Biden administration, leaders of the intergovernmental political forum Group of Seven (G7) agreed to the price cap. Tankers from coalition countries would only transport Russian crude sold at or below the price cap level, initially set at $60 per barrel.

      “A price cap was not something that had ever been done before,” Wolfram says. “In some ways, we were making it up out of whole cloth. It was exciting to see that I wrote one of the original memos about it, and then literally three-and-a-half months later, the G7 was making an announcement.

      “As economists and as policymakers, we must set the parameters and get the incentives right. The price cap was basically asking developing countries to buy cheap oil, which was consistent with their incentives.”

      In May 2023, the U.S. Department of the Treasury reported that despite widespread initial skepticism about the price cap, market participants and geopolitical analysts believe it is accomplishing its goals of restricting Russia’s oil revenues while maintaining the supply of Russian oil and keeping energy costs in check for consumers and businesses around the world.

      Wolfram held the U.S. Treasury post from March 2021 to October 2022 while on leave from UC Berkeley. In July 2023, she joined MIT Sloan School of Management partly to be geographically closer to the policymakers of the nation’s capital. She’s also excited about the work taking place elsewhere at the Institute to stay ahead of climate change.

      Her time in D.C. was eye-opening, particularly in terms of the leadership power of the United States. She worries that the United States is falling prey to “lost opportunities” in terms of addressing climate change. “We were showing real leadership on the price cap, and if we could only do that on climate, I think we could make faster inroads on a global agreement,” she says.

      Now focused on structuring global agreements in energy policy among developed and developing countries, she’s considering how the United States can take advantage of its position as a world leader. “We need to be thinking about how what we do in the U.S. affects the rest of the world from a climate perspective. We can’t go it alone.

      “The U.S. needs to be more aligned with the European Union, Canada, and Japan to try to find areas where we’re taking a common approach to addressing climate change,” she says. She will touch on some of those areas in the class she will teach in spring 2024 titled “Climate and Energy in the Global Economy,” offered through MIT Sloan.

      Looking ahead, she says, “I’m a techno optimist. I believe in human innovation. I’m optimistic that we’ll find ways to live with climate change and, hopefully, ways to minimize it.”

      This article appears in the Winter 2024 issue of Energy Futures, the magazine of the MIT Energy Initiative. More