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    A delicate dance

    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

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    Reflecting on COP28 — and humanity’s progress toward meeting global climate goals

    With 85,000 delegates, the 2023 United Nations climate change conference, known as COP28, was the largest U.N. climate conference in history. It was held at the end of the hottest year in recorded history. And after 12 days of negotiations, from Nov. 30 to Dec. 12, it produced a decision that included, for the first time, language calling for “transitioning away from fossil fuels,” though it stopped short of calling for their complete phase-out.

    U.N. Climate Change Executive Secretary Simon Stiell said the outcome in Dubai, United Arab Emirates, COP28’s host city, signaled “the beginning of the end” of the fossil fuel era. 

    COP stands for “conference of the parties” to the U.N. Framework Convention on Climate Change, held this year for the 28th time. Through the negotiations — and the immense conference and expo that takes place alongside them — a delegation of faculty, students, and staff from MIT was in Dubai to observe the negotiations, present new climate technologies, speak on panels, network, and conduct research.

    On Jan. 17, the MIT Center for International Studies (CIS) hosted a panel discussion with MIT delegates who shared their reflections on the experience. Asking what’s going on at COP is “like saying, ‘What’s going on in the city of Boston today?’” quipped Evan Lieberman, the Total Professor of Political Science and Contemporary Africa, director of CIS, and faculty director of MIT International Science and Technology Initiatives (MISTI). “The value added that all of us can provide for the MIT community is [to share] what we saw firsthand and how we experienced it.” 

    Phase-out, phase down, transition away?

    In the first week of COP28, over 100 countries issued a joint statement that included a call for “the global phase out of unabated fossil fuels.” The question of whether the COP28 decision — dubbed the “UAE Consensus” — would include this phase-out language animated much of the discussion in the days and weeks leading up to COP28. 

    Ultimately, the decision called for “transitioning away from fossil fuels in energy systems, in a just, orderly and equitable manner.” It also called for “accelerating efforts towards the phase down of unabated coal power,” referring to the combustion of coal without efforts to capture and store its emissions.

    In Dubai to observe the negotiations, graduate student Alessandra Fabbri said she was “confronted” by the degree to which semantic differences could impose significant ramifications — for example, when negotiators referred to a “just transition,” or to “developed vs. developing nations” — particularly where evolution in recent scholarship has produced more nuanced understandings of the terms.

    COP28 also marked the conclusion of the first global stocktake, a core component of the 2015 Paris Agreement. The effort every five years to assess the world’s progress in responding to climate change is intended as a basis for encouraging countries to strengthen their climate goals over time, a process often referred to as the Paris Agreement’s “ratchet mechanism.” 

    The technical report of the first global stocktake, published in September 2023, found that while the world has taken actions that have reduced forecasts of future warming, they are not sufficient to meet the goals of the Paris Agreement, which aims to limit global average temperature increase to “well below” 2 degrees Celsius, while pursuing efforts to limit the increase to 1.5 degrees above pre-industrial levels.

    “Despite minor, punctual advancements in climate action, parties are far from being on track to meet the long-term goals of the Paris Agreement,” said Fabbri, a graduate student in the School of Architecture and Planning and a fellow in MIT’s Leventhal Center for Advanced Urbanism. Citing a number of persistent challenges, including some parties’ fears that rapid economic transition may create or exacerbate vulnerabilities, she added, “There is a noted lack of accountability among certain countries in adhering to their commitments and responsibilities under international climate agreements.” 

    Climate and trade

    COP28 was the first climate summit to formally acknowledge the importance of international trade by featuring an official “Trade Day” on Dec. 4. Internationally traded goods account for about a quarter of global greenhouse gas emissions, raising complex questions of accountability and concerns about offshoring of industrial manufacturing, a phenomenon known as “emissions leakage.” Addressing the nexus of climate and trade is therefore considered essential for successful decarbonization, and a growing number of countries are leveraging trade policies — such as carbon fees applied to imported goods — to secure climate benefits. 

    Members of the MIT delegation participated in several related activities, sharing research and informing decision-makers. Catherine Wolfram, professor of applied economics in the MIT Sloan School of Management, and Michael Mehling, deputy director of the MIT Center for Energy and Environmental Policy Research (CEEPR), presented options for international cooperation on such trade policies at side events, including ones hosted by the World Trade Organization and European Parliament. 

    “While COPs are often criticized for highlighting statements that don’t have any bite, they are also tremendous opportunities to get people from around the world who care about climate and think deeply about these issues in one place,” said Wolfram.

    Climate and health

    For the first time in the conference’s nearly 30-year history, COP28 included a thematic “Health Day” that featured talks on the relationship between climate and health. Researchers from MIT’s Abdul Latif Jameel Poverty Action Lab (J-PAL) have been testing policy solutions in this area for years through research funds such as the King Climate Action Initiative (K-CAI). 

    “An important but often-neglected area where climate action can lead to improved health is combating air pollution,” said Andre Zollinger, K-CAI’s senior policy manager. “COP28’s announcement on reducing methane leaks is an important step because action in this area could translate to relatively quick, cost-effective ways to curb climate change while improving air quality, especially for people living near these industrial sites.” K-CAI has an ongoing project in Colorado investigating the use of machine learning to predict leaks and improve the framework for regulating industrial methane emissions, Zollinger noted.

    This was J-PAL’s third time at COP, which Zollinger said typically presented an opportunity for researchers to share new findings and analysis with government partners, nongovernmental organizations, and companies. This year, he said, “We have [also] been working with negotiators in the [Middle East and North Africa] region in the months preceding COP to plug them into the latest evidence on water conservation, on energy access, on different challenging areas of adaptation that could be useful for them during the conference.”

    Sharing knowledge, learning from others

    MIT student Runako Gentles described COP28 as a “springboard” to greater impact. A senior from Jamaica studying civil and environmental engineering, Gentles said it was exciting to introduce himself as an MIT undergraduate to U.N. employees and Jamaican delegates in Dubai. “There’s a lot of talk on mitigation and cutting carbon emissions, but there needs to be much more going into climate adaptation, especially for small-island developing states like those in the Caribbean,” he said. “One of the things I can do, while I still try to finish my degree, is communicate — get the story out there to raise awareness.”

    At an official side event at COP28 hosted by MIT, Pennsylvania State University, and the American Geophysical Union, Maria T. Zuber, MIT’s vice president for research, stressed the importance of opportunities to share knowledge and learn from people around the world.

    “The reason this two-way learning is so important for us is simple: The ideas we come up with in a university setting, whether they’re technological or policy or any other kind of innovations — they only matter in the practical world if they can be put to good use and scaled up,” said Zuber. “And the only way we can know that our work has practical relevance for addressing climate is by working hand-in-hand with communities, industries, governments, and others.”

    Marcela Angel, research program director at the Environmental Solutions Initiative, and Sergey Paltsev, deputy director of MIT’s Joint Program on the Science and Policy of Global Change, also spoke at the event, which was moderated by Bethany Patten, director of policy and engagement for sustainability at the MIT Sloan School of Management.  More

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    Meeting the clean energy needs of tomorrow

    Yuri Sebregts, chief technology officer at Shell, succinctly laid out the energy dilemma facing the world over the rest of this century. On one hand, demand for energy is quickly growing as countries in the developing world modernize and the global population grows, with 100 gigajoules of energy per person needed annually to enable quality-of-life benefits and industrialization around the globe. On the other, traditional energy sources are quickly warming the planet, with the world already seeing the devastating effects of increasingly frequent extreme weather events. 

    While the goals of energy security and energy sustainability are seemingly at odds with one another, the two must be pursued in tandem, Sebregts said during his address at the MIT Energy Initiative Fall Colloquium.

    “An environmentally sustainable energy system that isn’t also a secure energy system is not sustainable,” Sebregts said. “And conversely, a secure energy system that is not environmentally sustainable will do little to ensure long-term energy access and affordability. Therefore, security and sustainability must go hand-in-hand. You can’t trade off one for the other.”

    Sebregts noted that there are several potential pathways to help strike this balance, including investments in renewable energy sources, the use of carbon offsets, and the creation of more efficient tools, products, and processes. However, he acknowledged that meeting growing energy demands while minimizing environmental impacts is a global challenge requiring an unprecedented level of cooperation among countries and corporations across the world. 

    “At Shell, we recognize that this will require a lot of collaboration between governments, businesses, and civil society,” Sebregts said. “That’s not always easy.”

    Global conflict and global warming

    In 2021, Sebregts noted, world leaders gathered in Glasgow, Scotland and collectively promised to deliver on the “stretch goal” of the 2015 Paris Agreement, which would limit global warming to 1.5 degrees Celsius — a level that scientists believe will help avoid the worst potential impacts of climate change. But, just a few months later, Russia invaded Ukraine, resulting in chaos in global energy markets and illustrating the massive impact that geopolitical friction can have on efforts to reduce carbon emissions.

    “Even though global volatility has been a near constant of this century, the situation in Ukraine is proving to be a turning point,” Sebregts said. “The stress it placed on the global supply of energy, food, and other critical materials was enormous.”

    In Europe, Sebregts noted, countries affected by the loss of Russia’s natural gas supply began importing from the Middle East and the United States. This, in turn, drove up prices. While this did result in some efforts to limit energy use, such as Europeans lowering their thermostats in the winter, it also caused some energy buyers to turn to coal. For instance, the German government approved additional coal mining to boost its energy security — temporarily reversing a decades-long transition away from the fuel. To put this into wider perspective, in a single quarter, China increased its coal generation capacity by as much as Germany had reduced its own over the previous 20 years.

    The promise of electrification

    Sebregts noted the strides being made toward electrification, which is expected to have a significant impact on global carbon emissions. To meet net-zero emissions (the point at which humans are adding no more carbon to the atmosphere than they are removing) by 2050, the share of electricity as a portion of total worldwide energy consumption must reach 37 percent by 2030, up from 20 percent in 2020, Sebregts said.

    He pointed out that Shell has become one of the world’s largest electric vehicle charging companies, with more than 30,000 public charge points. By 2025, that number will increase to 70,000, and it is expected to soar to 200,000 by 2030. While demand and infrastructure for electric vehicles are growing, Sebregts said that the “real needle-mover” will be industrial electrification, especially in so-called “hard-to-abate” sectors.

    This progress will depend heavily on global cooperation — Sebregts pointed out that China dominates the international market for many rare elements that are key components of electrification infrastructure. “It shouldn’t be a surprise that the political instability, shifting geopolitical tensions, and environmental and social governance issues are significant risks for the energy transition,” he said. “It is imperative that we reduce, control, and mitigate these risks as much as possible.”

    Two possible paths

    For decades, Sebregts said, Shell has created scenarios to help senior managers think through the long-term challenges facing the company. While Sebregts stressed that these scenarios are not predictions, they do take into account real-world conditions, and they are meant to give leaders the opportunity to grapple with plausible situations.

    With this in mind, Sebregts outlined Shell’s most recent Energy Security Scenarios, describing the potential future consequences of attempts to balance growing energy demand with sustainability — scenarios that envision vastly different levels of global cooperation, with huge differences in projected results. 

    The first scenario, dubbed “Archipelagos,” imagines countries pursuing energy security through self-interest — a fragmented, competitive process that would result in a global temperature increase of 2.2 degrees Celsius by the end of this century. The second scenario, “Sky 2050,” envisions countries around the world collaborating to change the energy system for their mutual benefit. This more optimistic scenario would see a much lower global temperature increase of 1.2 C by 2100.

    “The good news is that in both scenarios, the world is heading for net-zero emissions at some point,” Sebregts said. “The difference is a question of when it gets there. In Sky 2050, it is the middle of the century. In Archipelagos, it is early in the next century.”

    On the other hand, Sebregts added, the average global temperature will increase by more than 1.5 C for some period of time in either scenario. But, in the Archipelagos scenario, this overshoot will be much larger, and will take much longer to come down. “So, two very different futures,” Sebregts said. “Two very different worlds.”

    The work ahead

    Questioned about the costs of transitioning to a net-zero energy ecosystem, Sebregts said that it is “very hard” to provide an accurate answer. “If you impose an additional constraint … you’re going to have to add some level of cost,” he said. “But then, of course, there’s 30 years of technology development pathway that might counteract some of that.”

    In some cases, such as air travel, Sebregts said, it will likely remain impractical to either rely on electrification or sequester carbon at the source of emission. Direct air capture (DAC) methods, which mechanically pull carbon directly from the atmosphere, will have a role to play in offsetting these emissions, he said. Sebregts predicted that the price of DAC could come down significantly by the middle of this century. “I would venture that a price of $200 to $250 a ton of CO2 by 2050 is something that the world would be willing to spend, at least in developed economies, to offset those very hard-to-abate instances.”

    Sebregts noted that Shell is working on demonstrating DAC technologies in Houston, Texas, constructing what will become Europe’s largest hydrogen plant in the Netherlands, and taking other steps to profitably transition to a net-zero emissions energy company by 2050. “We need to understand what can help our customers transition quicker and how we can continue to satisfy their needs,” he said. “We must ensure that energy is affordable, accessible, and sustainable, as soon as possible.” More

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    How to tackle the global deforestation crisis

    Imagine if France, Germany, and Spain were completely blanketed in forests — and then all those trees were quickly chopped down. That’s nearly the amount of deforestation that occurred globally between 2001 and 2020, with profound consequences.

    Deforestation is a major contributor to climate change, producing between 6 and 17 percent of global greenhouse gas emissions, according to a 2009 study. Meanwhile, because trees also absorb carbon dioxide, removing it from the atmosphere, they help keep the Earth cooler. And climate change aside, forests protect biodiversity.

    “Climate change and biodiversity make this a global problem, not a local problem,” says MIT economist Ben Olken. “Deciding to cut down trees or not has huge implications for the world.”

    But deforestation is often financially profitable, so it continues at a rapid rate. Researchers can now measure this trend closely: In the last quarter-century, satellite-based technology has led to a paradigm change in charting deforestation. New deforestation datasets, based on the Landsat satellites, for instance, track forest change since 2000 with resolution at 30 meters, while many other products now offer frequent imaging at close resolution.

    “Part of this revolution in measurement is accuracy, and the other part is coverage,” says Clare Balboni, an assistant professor of economics at the London School of Economics (LSE). “On-site observation is very expensive and logistically challenging, and you’re talking about case studies. These satellite-based data sets just open up opportunities to see deforestation at scale, systematically, across the globe.”

    Balboni and Olken have now helped write a new paper providing a road map for thinking about this crisis. The open-access article, “The Economics of Tropical Deforestation,” appears this month in the Annual Review of Economics. The co-authors are Balboni, a former MIT faculty member; Aaron Berman, a PhD candidate in MIT’s Department of Economics; Robin Burgess, an LSE professor; and Olken, MIT’s Jane Berkowitz Carlton and Dennis William Carlton Professor of Microeconomics. Balboni and Olken have also conducted primary research in this area, along with Burgess.

    So, how can the world tackle deforestation? It starts with understanding the problem.

    Replacing forests with farms

    Several decades ago, some thinkers, including the famous MIT economist Paul Samuelson in the 1970s, built models to study forests as a renewable resource; Samuelson calculated the “maximum sustained yield” at which a forest could be cleared while being regrown. These frameworks were designed to think about tree farms or the U.S. national forest system, where a fraction of trees would be cut each year, and then new trees would be grown over time to take their place.

    But deforestation today, particularly in tropical areas, often looks very different, and forest regeneration is not common.

    Indeed, as Balboni and Olken emphasize, deforestation is now rampant partly because the profits from chopping down trees come not just from timber, but from replacing forests with agriculture. In Brazil, deforestation has increased along with agricultural prices; in Indonesia, clearing trees accelerated as the global price of palm oil went up, leading companies to replace forests with palm tree orchards.

    All this tree-clearing creates a familiar situation: The globally shared costs of climate change from deforestation are “externalities,” as economists say, imposed on everyone else by the people removing forest land. It is akin to a company that pollutes into a river, affecting the water quality of residents.

    “Economics has changed the way it thinks about this over the last 50 years, and two things are central,” Olken says. “The relevance of global externalities is very important, and the conceptualization of alternate land uses is very important.” This also means traditional forest-management guidance about regrowth is not enough. With the economic dynamics in mind, which policies might work, and why?

    The search for solutions

    As Balboni and Olken note, economists often recommend “Pigouvian” taxes (named after the British economist Arthur Pigou) in these cases, levied against people imposing externalities on others. And yet, it can be hard to identify who is doing the deforesting.

    Instead of taxing people for clearing forests, governments can pay people to keep forests intact. The UN uses Payments for Environmental Services (PES) as part of its REDD+ (Reducing Emissions from Deforestation and forest Degradation) program. However, it is similarly tough to identify the optimal landowners to subsidize, and these payments may not match the quick cash-in of deforestation. A 2017 study in Uganda showed PES reduced deforestation somewhat; a 2022 study in Indonesia found no reduction; another 2022 study, in Brazil, showed again that some forest protection resulted.

    “There’s mixed evidence from many of these [studies],” Balboni says. These policies, she notes, must reach people who would otherwise clear forests, and a key question is, “How can we assess their success compared to what would have happened anyway?”

    Some places have tried cash transfer programs for larger populations. In Indonesia, a 2020 study found such subsidies reduced deforestation near villages by 30 percent. But in Mexico, a similar program meant more people could afford milk and meat, again creating demand for more agriculture and thus leading to more forest-clearing.

    At this point, it might seem that laws simply banning deforestation in key areas would work best — indeed, about 16 percent of the world’s land overall is protected in some way. Yet the dynamics of protection are tricky. Even with protected areas in place, there is still “leakage” of deforestation into other regions. 

    Still more approaches exist, including “nonstate agreements,” such as the Amazon Soy Moratorium in Brazil, in which grain traders pledged not to buy soy from deforested lands, and reduced deforestation without “leakage.”

    Also, intriguingly, a 2008 policy change in the Brazilian Amazon made agricultural credit harder to obtain by requiring recipients to comply with environmental and land registration rules. The result? Deforestation dropped by up to 60 percent over nearly a decade. 

    Politics and pulp

    Overall, Balboni and Olken observe, beyond “externalities,” two major challenges exist. One, it is often unclear who holds property rights in forests. In these circumstances, deforestation seems to increase. Two, deforestation is subject to political battles.

    For instance, as economist Bard Harstad of Stanford University has observed, environmental lobbying is asymmetric. Balboni and Olken write: “The conservationist lobby must pay the government in perpetuity … while the deforestation-oriented lobby need pay only once to deforest in the present.” And political instability leads to more deforestation because “the current administration places lower value on future conservation payments.”

    Even so, national political measures can work. In the Amazon from 2001 to 2005, Brazilian deforestation rates were three to four times higher than on similar land across the border, but that imbalance vanished once the country passed conservation measures in 2006. However, deforestation ramped up again after a 2014 change in government. Looking at particular monitoring approaches, a study of Brazil’s satellite-based Real-Time System for Detection of Deforestation (DETER), launched in 2004, suggests that a 50 percent annual increase in its use in municipalities created a 25 percent reduction in deforestation from 2006 to 2016.

    How precisely politics matters may depend on the context. In a 2021 paper, Balboni and Olken (with three colleagues) found that deforestation actually decreased around elections in Indonesia. Conversely, in Brazil, one study found that deforestation rates were 8 to 10 percent higher where mayors were running for re-election between 2002 and 2012, suggesting incumbents had deforestation industry support.

    “The research there is aiming to understand what the political economy drivers are,” Olken says, “with the idea that if you understand those things, reform in those countries is more likely.”

    Looking ahead, Balboni and Olken also suggest that new research estimating the value of intact forest land intact could influence public debates. And while many scholars have studied deforestation in Brazil and Indonesia, fewer have examined the Democratic Republic of Congo, another deforestation leader, and sub-Saharan Africa.

    Deforestation is an ongoing crisis. But thanks to satellites and many recent studies, experts know vastly more about the problem than they did a decade or two ago, and with an economics toolkit, can evaluate the incentives and dynamics at play.

    “To the extent that there’s ambuiguity across different contexts with different findings, part of the point of our review piece is to draw out common themes — the important considerations in determining which policy levers can [work] in different circumstances,” Balboni says. “That’s a fast-evolving area. We don’t have all the answers, but part of the process is bringing together growing evidence about [everything] that affects how successful those choices can be.” More

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    Arina Khotimsky ’23 awarded 2023 Michel David-Weill Scholarship

    Arina Khotimsky ’23 was selected for the 2023 Michel David-Weill scholarship, awarded each year to one student from the United States in a master’s program at Sciences Po in France who exemplifies the core values embodied by its namesake: excellence, leadership, multiculturalism, and high achievement. This fall Khotimsky will enter the master’s program in international energy, which is part of Sciences Po’s Paris School of International Affairs. The program aims to provide a holistic understanding of energy issues, across disciplines and across all energy sources.

    Khotimsky graduated this year from MIT with a major in materials science and engineering, and minors in energy studies and in French.

    Asked what drew her to her major, Khotimsky talked about her love of the outdoors. Seeing effects of climate change on the world around made her made her want to explore solutions. “I settled on material science and engineering because there’s so many different applications: whether it be solar power, developing different battery materials and chemistries, or some other technology. Getting that technical background at MIT can help me understand how we can implement solutions around the world, with diverse cultures in mind.”

    One of Khotimsky’s material sciences professors, Polina Anikeeva, observes that “Arina possesses the spirit of creativity, optimism, and unparalleled work ethic — all necessary ingredients to solve energy and climate challenges of our century.”

    Khotimsky is well aware of the big stakes in discussions around energy policy. She explains, “We have to cooperate internationally to make a dent in carbon emissions. The United States is historically the biggest CO2 emitter and has a large role to play to transition to a more sustainable future.”

    Her interest in studying climate change solutions on a world scale also converged with her interest in studying other languages and cultures. Her main language studies at MIT have been in French, although she also speaks Russian and beginner Chinese.

    Due to her achievement in MIT French classes, Khotimsky was one of nine students selected for a two-week cultural immersion program in Paris last June, led by MIT Professor Bruno Perreau. Perreau also had her in class last fall, and spoke about the energy and commitment she brought to class, describing her as “one of my very best students since I started to teach 22 years ago.” Khotimsky is excited to be living in France for her master’s program and putting her French skills to work.

    Khotimsky’s impressive undergraduate career has also included being co-president of the MIT Energy and Climate Club, and participating in the MIT delegation to 2022 Conference of the Parties summit (COP27) of the United Nations in Egypt last November. She also participated in the NEET Decarbonizing Ulaanbaatar project, traveling to Mongolia in Independent Activities Period 2023 with a group of students and instructors to work on clean heating technologies for traditional ger homes.

    In addition to her academic work and other extracurricular activities, Khotimsky was also a member of the MIT women’s rowing team. She walked onto the team as a first-year student, making it into the Varsity 8 boat for her senior season. Holly Metcalf, MIT women’s varsity openweight rowing coach, explains, “Being on the rowing team has in many ways become a metaphor for what Arina has come to study … She realized that rowing is about so much more than physics — it is about who one must become as an individual to contribute to the sum of mental and physical strength of the entire team.” Khotimsky was recognized on May 22 by the Patriot League, who named her the 2023 Patriot League Women’s Rowing Scholar-Athlete of the Year.

    Looking ahead, Khotimsky envisions her future involving international energy negotiations or policy. “The master’s degree I’m pursuing in international relations will help me develop skills to communicate with stakeholders from around the world and figure out how to implement solutions globally.” More

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    MIT Energy Conference grapples with geopolitics

    As Russia’s war in Ukraine rages on, this year’s MIT Energy Conference spotlighted the role of geopolitics in the world’s efforts to lower greenhouse gas emissions and mitigate the worst effects of climate change.

    Each year, the student-run conference, which its organizers say is the largest of its kind, brings together leaders from around the globe to discuss humanity’s most pressing energy and sustainability challenges.

    The event always involves perspectives from the investment, business, research, and startup communities. But this year, as more than 600 attendees gathered on April 11 and 12 for a whirlwind of keynote talks, fireside chats, and panel discussions, common themes also included the influence of Russia’s war, rising tensions between the U.S. and China, and international collaboration.

    As participants grappled with the evolving geopolitical landscape, some speakers encouraged moving past isolationist tendencies.

    “Some people push for self-sufficiency, others emphasize that we should not rely on trading partners that don’t share our values — I think both arguments are misguided,” said Juan Carlos Jobet, Chile’s former ministry of energy and mining. “No country has all that’s needed to create an energy system that’s affordable, clean, and secure. … A third of the world’s energy output is generated in nondemocratic countries. Can we really make our energy systems affordable and secure and curb climate change while excluding those countries from our collective effort? If we enter an area of protectionism and disintegration, we will all be worse off.”

    Another theme was optimism, such as that expressed by Volodymyr Kudrytskyi, CEO of Ukraine’s national power company, who spoke to the conference live from Kyiv. Kudrytskyi outlined Russia’s attacks on Ukraine’s power grids, which included more than 1,000 heavy missiles, making it the largest-ever campaign against a country’s power grid.

    Still, Kudrytskyi said he was confident he’d be able to attend the conference in person next year. As it happened, Kudrytskyi’s presentation marked the day Ukraine resumed its energy exports to other countries.

    “The good news is, after all of that, our system survived and continues operations,” he said.

    Energy security and the green transition

    Richard Duke, the U.S. Department of State’s deputy special envoy for climate, opened the conference with a keynote centered on the U.S.’ role in the global shift toward cleaner energy. Duke was among those advocating for a more integrated and diversified global energy system, noting that no country can address climate change on its own.

    “We need to do all of these things in parallel, in concert with other governments, and through the architecture of the Paris Climate agreement that wraps it together in ambitious net greenhouse gas abatement targets,” Duke said.

    Following his talk, Ditte Juul Jørgensen, the European Commission’s director general for energy, discussed the shift in the EU’s energy policies spurred by the Russian invasion of Ukraine.

    She admitted the EU had grown too dependent on Russian natural gas, but said the invasion forced European states to revise their energy strategy while keeping their long-term objective of net neutrality by 2050.

    “We see energy security and the green transition as interlinked. There is no energy security without the energy transition toward climate neutrality, and there’s no energy transition without energy security,” Jorgensen said.

    Jørgensen also outlined steps the EU has taken to improve its energy security over the last year, including rolling out additional renewable energy projects and replacing Russian fuel with fuel from the U.S., which has now become the continent’s main supplier of energy.

    “The fight against climate change is our shared ambition, it’s our shared responsibility, and I think we’ve shown over these last few years that we can turn that ambition into action and bring results,” she said.

    A challenge and an opportunity

    Optimism also shone through in the way speakers framed the green energy transition as a business opportunity. In keeping with the idea, the conference included a showcase of more than 30 startups focused on clean energy and sustainability.

    “We’re all battling a huge problem that needs a collective effort,” said Malav Sukhadia of Sol Clarity, a conference exhibitor that uses electricity to clean solar panels as a way to replace water cleaning. “This is one of the best energy conferences in the world. We felt if you’re in climate tech, you have to be here.”

    Technological development was a pillar of the conference, and a big topic in those discussions was green hydrogen, a clean fuel source that could replace natural gas in a number of applications and be produced using renewable energy. In one panel discussion on the technology, Sunita Satyapal of the Department of Energy noted the agency has been funding hydrogen development since the 1970s. Other panel members also stressed the maturity of the technology.

    “A lot of the technology needed to advance the ecosystem exists now,” said Laura Parkan, vice president of hydrogen energy at Air Liquide Americas. “The challenge is to get things to a large enough scale so that the costs come down to make it more affordable and really advance the hydrogen ecosystem.”

    Still, panel members acknowledged more technological development is needed to leverage the full potential of hydrogen, such as better mechanisms for storage and transportation.

    Other advanced technologies mentioned in panel discussions included advanced geothermal energy and small modular nuclear reactors that could be built and deployed more quickly than conventional reactors.

    “Exploring these different technologies may actually get us to the net zero — or even a zero carbon future — that we’re hoping for in electricity generation,” said Emma Wong of the OECD Nuclear Energy Agency, noting there are more than 80 advanced reactor designs that have been explored around the world. “There are various challenges and enabling conditions to be addressed, but places like China and Russia are already building these things, so there’s not a technological barrier.”

    “Glass half full”

    Despite the tall tasks that lie ahead, some speakers took a moment to celebrate accomplishments thus far.

    “It’s incredible to think about the progress we’ve made in the last 10 years,” said Neil Brown of the KKR investment firm, whose company is working to build a large offshore wind project. “Solar and wind and electric vehicles have gone from impossibly expensive and hard to imagine penetrating the market to being very close to, if not already at, cost parity. We’ve really come an awful long way.”

    Other speakers mixed their positivity with a confession of envy for the opportunity ahead of the young people in the audience, many of them students from MIT.

    “I have a mix of excitement from the speakers we’ve heard so far and a little bit of envy as well for the open road the young students and professionals here have in front of them,” said Jobert. “Coming back to this place has made me reconnect with the sense of opportunity and responsibility that I felt as a student.”

    Jobert offered lessons learned from his country’s struggles with an energy crisis, populist policies, and severe droughts. His talk finished with questions that struck at the heart of the conference.

    “The evidence is clear: The Earth will change. How much is still to be decided,” Jobert said. “The energy sector has been a central part of the problem. We now must work to become an essential pierce of the solution. Where should we focus our efforts? What can we learn from each other?” More

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    Responding to Ukraine’s “ocean of suffering”

    Within 72 hours of the first Russian missiles striking Kyiv, Ukraine, in February 2022, Ian Miller SM ’19 boarded a flight for Poland.

    Later, he’d say he felt motivated by Kyiv’s “tragic ocean of suffering” and Ukrainian President Zelensky’s pleas for help. But he arrived with little notion of what to do.

    As he’d anticipated, his hotel in Rzeszów turned out to be a hub for aid workers and journalists. Miller was on his laptop, using the lobby Wi-Fi to work remotely as an MIT Energy Initiative (MITEI) project manager, when he overheard a reporter interviewing a Finnish man about his efforts to get bulletproof vests and helmets to the front lines.

    Miller soon found himself loading supplies onto trains that had brought huge numbers of refugees — mostly women, children, and the elderly — to the station in Rzeszów. The trains ran back at night, their empty seats filled with medical supplies, generators, and baby food, their lights dimmed to reduce the chances of attack.

    In April 2022, Miller and volunteers from a half-dozen countries planned and drove a convoy of trucks packed with tourniquets, bandages, and bulletproof vests across the border, arriving at the site of the Bucha massacre soon after the Russians retreated.

    Miller peered into a mass grave. “They were still excavating it, and those weren’t soldiers, you know?” he says. “I try to avoid looking at things like that too often, because it doesn’t help us save lives to be horrified all the time.” He downplays any potential danger to himself, telling his family he’s safer where he is than in parts of the United States.

    Soon after his first trip across the border, Miller convinced his former MIT roommate, Evan Platt SM ’20, to come help. “Just for a week,” he told Platt.

    Inspired by energy

    Miller and Platt met in 2008 in Washington, where Platt was interning at the White House and Miller was about to start his senior year at Georgetown University.

    Miller majored in government, but his interest in energy policy and technology grew during the years after graduation he spent teaching science to primary and secondary school students in New York, where he’d grown up; in Boston; and in Kampala, Uganda. “Some of the most fun, inspiring, engaging lessons and modules I did with the kids were focused on energy,” he recalls.

    While pursuing an MIT master of science in chemical engineering from 2016 to 2018, he started researching photovoltaics and wind power. He held leadership positions with the MIT Energy Conference and the MIT Energy Club.

    After joining MITEI, Miller worked on electric vehicles (EVs), EV charging patterns, and other applications. He became project manager and research specialist for the Sustainable Energy System Analysis Modeling Environment (SESAME), which models the levels of greenhouse gas emissions from multiple energy sectors in future scenarios.

    Miller and Platt reconnected and shared an apartment for three years. Platt studied systems design and management through a joint MIT School of Engineering and Sloan School of Management program, then stayed on to work for the MIT Technology Licensing Office.

    Platt left MIT to pursue other interests in 2020. The next time the two would see each other would be in Poland.

    “It’s not easy living and working in an active combat zone,” Platt says. “There is nobody on Earth I would rather be navigating this environment with than Ian.”

    Navigating the last mile

    In Rzeszów and Ukraine, Miller and U.S. Air Force veteran Mark Lindquist oversaw fulfillment for the new team. With the help of Google Translate, their phones lit up with encrypted texts to and from Polish customs agents and Ukrainian warehouse operators.

    Platt and two Ukrainian team members took the lead on a needs analysis of what was most in demand at the front. Another team member led procurement. Their efforts crystallized in the creation of Zero Line, a tax-exempt nonprofit that works closely with the Ukrainian government at the front line (a.k.a. “the zero line”).

    With Platt on board, “we got more rigorous and quantitative in terms of lives-saved-per-dollar,” Miller says. A hundred dollars buys four tourniquets. A thousand dollars adds crude steel armor to a Jeep. Two thousand dollars provides a small observation drone or a satellite phone, equipment that locates Russian artillery and detects Russian attacks.

    “Russian artillery shells are the No. 1 killer of Ukrainians, causing around 80 percent of casualties,” he says. “Tourniquets save people injured by Russian shells, vehicles help evacuate them, and communications equipment prevents deadly injuries from occurring in the first place.”

    Miller’s skills in transportation and power system modeling, developed at MITEI under Principal Research Scientist Emre Gençer, helped the team transport more than 150 used vehicles — Nissan Pathfinders and vans for moving civilians away from the front, Ford pickups for transporting anti-missile defense systems — and hundreds of batteries, generators, drones, bulletproof vests, and helmets to the front through nightmarish logistical bottlenecks.

    Typically, supplies from the United States, Asia, and elsewhere in Europe move through Gdansk and Warsaw, then proceed via train or vehicle to warehouses in Lviv, around 70 kilometers east of the border. Next is the seven-hour trip to Kyiv or the 12-hour drive to Dnipro (the current southern edge of the safe “green zone”) and the final 200 kilometers to the front. Here, says Miller, drivers with training and protective gear, often members of the Ukrainian military, take vehicles and supplies to front-line end users.

    “From day one, we asked our Ukrainian members and partners for introductions, and we’re constantly looking for more,” Miller says. “When our vehicles reach the front lines, Evan’s team always does interviews about needs, and what’s working, what’s not. What’s saving the most lives.”

    “From my early days with Ian, it’s clear he was always looking for ways to help people. Connections were really important to him,” says MITEI Director Robert C. Armstrong. “When war broke out, he found the call to answer human need irresistible. I think many of us think of doing that, but we get bogged down in the mechanics of everyday life. He just picked up and went.

    “Ian is just a terrific person and a great role model,” Armstrong says.

    Accelerating peace

    From the time Miller arrived in late February through October 2022, he continued working remotely for MITEI. He now works full time as co-director of Zero Line. For the foreseeable future, Miller will remain in Ukraine and Poland.

    He wants to see Ukrainians “follow in the happy, free, prospering footsteps of other ex-Soviet states, like the Baltics,” he says. He’d like to see the supply-chain innovations he and Platt achieved applied to humanitarian crises elsewhere.

    To date, Zero Line has raised more than $5 million in donations and delivered hundreds of tons of high-impact aid. “A key part of our approach has always been to support Ukrainians who excel in saving lives,” Miller says. To that end, the group works with Ukrainian software programmers and military units to create digital maps and processes to replace paper maps and operations “reminiscent of World War II,” Platt says. “Modernizing the intelligence infrastructure to facilitate better military operations is an important part of how a smaller military can beat a larger, more powerful military.”

    The fact that energy underlies so many aspects of the war is never far from Miller’s mind. Russia cut off energy supplies to Europe, then targeted Ukraine’s energy infrastructure. On one hand, he understands that billions of people in developing countries such as India need and deserve affordable energy. On the other hand, he says, oil and gas purchases by those countries are directly funding Russia’s war machine.

    “Everyone wants cheap renewables and we’re getting there, but it’s taking time. Lowering the costs of renewables and energy storage and supporting nascent commercial fusion — that’s a very important focus of MITEI. In the long run, that’ll help us reach a more peaceful world, without a doubt.”

    Work at MITEI and at Zero Line, Miller says, “truly could accelerate peace.” More

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    Energy, war, and the crisis in Ukraine

    Russia’s invasion of Ukraine is having a global impact on many areas of the world today, affecting the balance of power among states and creating a contest between democratic and authoritarian alliances. It is also having a major impact on the global energy supply. European states have scrambled to reorient their consumption away from Russian natural gas, while Russia has used its energy assets as political leverage while finding new economic partners.

    In short, there is also a battle over energy surrounding the invasion, as a panel of experts analyzed at a public MIT event on Friday. The online discussion, “Energy As a Weapon of War,” was the latest Starr Forum, MIT’s prominent event series on foreign policy and international relations.

    The forum’s two featured speakers both discussed energy issues as well as the larger course of the war. Margarita Balmaceda, a professor of diplomacy and international relations at Seton Hall University and an associate of the Harvard Ukrainian Research Institute, listed three key aspects of the energy issue implicated in the invasion.

    In the first place, she noted, European reliance on Russian natural gas is a long-term issue that also existed with the Russian occupation of Crimea in 2014, but is only now being managed differently.

    “If we look at the case of Germany … you can see that the temptation of this reliance in particular on Russian natural gas was not simply something that you could ascribe to one or two corrupt politicians,” said Balmaceda, author of the book “Russian Energy Chains: The Remaking of Technopolitics from Siberia to Ukraine to the European Union.” Instead, she said, “it’s something that went to all levels of economic life,” including industrial consumers of natural gas, regional governments, and other stakeholders. 

    Secondly, Balmaceda observed, many core manufacturing industries, especially in Germany, have been particularly dependent on Russian energy, making the need for alternatives something that has direct effects in key production sectors.

    “In my view, the real story, and the story we have to pay much more attention to, has to do with … industrial users of natural gas,” Balmaceda said. In fact, she noted, gas consumption is a major part of the production cycle in Europe’s chemical, cement, steel, and paper industries, supporting about 8 million jobs.

    Finally, Balmaceda observed, European boycotts of Russian energy may have temporarily stymied Russia, but the regime has subsequently found new markets in China, India, and elsewhere.

    “It’s very important to understand that this story does not end in the European Union and North America, and if we don’t deal with the real energy concerns of global South countries, we will not get very far in trying to reduce Russia’s energy power moving forward,” she said.

    Constanze Steinmuller, director and Fritz Stern Chair of the Center on the United States and Europe at the Brookings Institution, offered some political context as well as her own perspective on paths forward in the war.

    While policymakers in Europe frequently praise the response of the Biden administration in the U.S., in support of Ukraine, “It’s also remarkable how steadfast the European response has been,” Steinmuller said. She added, “It’s something I was very worried about.” She also praised the German government for “decoupling German dependence from Russian gas and oil imports in ways I honestly would not have thought possible.”

    While the alliance supporting Ukraine has been valuable, Steinmuller said, she believes the U.S. and Europe need to give Ukraine even more backing in terms of weaponry in particular. “It is unclear, at this point still, whether Ukraine will have the means to retain full control over its territory.”

    Meanwhile, Russia’s relationship with China, she added, is profoundly consequential for the long-term trajectory of the war. So far, China has been nominally pledging broad support of Russia while publicly de-escalating the nuclear rhetoric arising from the war. However, Steinmuller added, if China decides to “actively support” Russia militarily, “That would be, I think, the worst game-changer of all, and one that … would be the single greatest challenge that I can envision to our ability to help Ukraine win, and to maintain our own security in Europe.”

    The Starr Forum is organized by MIT’s Center for International Studies (CIS). Friday’s event was co-sponsored by MIT’s Security Studies Program and the MIT-Eurasia program, in addition to CIS.

    The event’s moderators were Elizabeth Wood, a professor of history at MIT, author of the 2016 book “Roots of Russia’s War in Ukraine,” and co-director of the MISTI MIT-Eurasia Program; and Carol Saivetz, a senior advisor in MIT’s Security Studies Program and expert on Soviet and Russian foreign policy. Wood and Saivetz have helped host a series of Starr Forum events over the last year scrutinizing several aspects of Russia’s invasion and Ukraine’s defense.  

    Understanding the role of energy in the war “is obviously of critical importance today,” Wood said in her opening remarks. That includes, she noted, “How energy is being used by Russia as a tool of aggression, how Ukraine is suffering from attacks upon its critical infrastructure, and how the alliance of European [states] and the U.S. is responding.” 

    In response to audience questions, the scholars outlined multiple scenarios in which the war could end, either on more favorable terms for Ukraine or in ways that strengthen Russia. One audience member also queried about the extent to which the current war could also be thought of as a “carbon war, or climate war,” in which a move toward clean energy also lessens global dependence on large gas and oil suppliers, such as Russia.

    In response, Balmaceda noted that the ongoing infrastructure development in Ukraine might, in theory, leave it with no choice but to modernize its energy infrastructure (though its own orientation toward fossil fuels represents just a small portion of global demand). Steinmuller added that “Ukraine will need much more than just to reorient its energy [demand]. … It will have to change its role in the global economy,” given its own industrial reliance on coal and other fossil fuels.

    Overall, Balmaceda added, “Regardless of whether Russia wins this conflict or loses, the rottenness within Russia is deep enough to be bad news for all of us for a long time.” For her part, Steinmuller underscored again how vital increased alliance support would be.

    “We should show that we are willing and able to defend not just a country that has been attacked by a great power, but willing to defend ourselves,” Steinmuller said. Otherwise, she added, “If we didn’t do that, we would have set for all the world to see a precedent of giving in to blackmail, including nuclear blackmail, and allowing this to happen without us being willing to see the defense of Ukraine through to the end.” More