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The Two Giants: Energy Policy in China and the United States

The Two Giants: Energy Policy in China and the United States. Gilley: Authoritarian vs. Democratic Environmentalism. Authoritarian –concentrates authority in few executive agencies manned by capable and uncorrupt elites seeking to improve environmental outcomes

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The Two Giants: Energy Policy in China and the United States

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  1. The Two Giants: Energy Policy in China and the United States

  2. Gilley: Authoritarian vs. Democratic Environmentalism • Authoritarian –concentrates authority in few executive agencies manned by capable and uncorrupt elites seeking to improve environmental outcomes • Democratic--spreads authority over several levels and agencies of government, including representative legislatures, and that encourages direct public participation from a wide cross-section of society

  3. Gilley: Authoritarian Environmentalism in China • “Citizen participation is limited to learning and obeying state policies.” p. 291

  4. China – energy governance • National Development and Reform Commission (NDRC) -primary policymaking and regulatory authority in the energy sector, • National Energy Administration (NEA) (formed 2008) key energy regulator for the country • approves new energy projects • sets domestic wholesale energy prices • implements central government's energy policies, • National Energy Commission (formed 2010) – coordinate energy policy among the various agencies under the State Council

  5. China’s boom • Average annual growth rate 2000-10: 10% • From 1990 to 2009, moved from net exporter of oil to world’s second largest net importer • World’s largest producer and consumer of coal –46% world’s coal consumption

  6. US still 2x net oil importer

  7. China – National Oil Companies • China National Petroleum Corporation (CNPC) • leading upstream player in China • publicly-listed arm PetroChina, • together account for roughly 60 % domestic oil and 80% natural gas output • China Petroleum and Chemical Corporation (Sinopec) • downstream activities (refining and distribution) •  China National Offshore Oil Corporation (CNOOC): offshore oil exploration and production

  8. China - Coal

  9. Oil, Coal consumption – US v China coal oil US 2010 – 19.1 million bpd China 2010 – 9.4 million bpd • US 2010 – 1.0 billion short tons (flat or declining) • China 2010 – 3.7 billion short tons (rising)

  10. Renewable share in electricity – US v China China US ss • ss

  11. China GHG trends

  12. 2008 emissions Per capita: China: 4.6 tonnes/capita US: 19.1 tonnes/capita Projections are that by 2030 China will account for ½ global

  13. China GHG policy • Reduce emission intensity of GDP 40-45% by 2020 (over 2005 levels) • At Durban , China agreed to negotiate a legally binding treaty (including the possibility of an absolute emission cap) by 2020

  14. Does authoritarian work? • Can produce a rapid response to problem • But if fragmentation remains, can undermine implementation due to illegitimacy • Low social concern makes authoritarianism more necessary and more difficult

  15. 2009 State of Union: To truly transform our economy, protect our security, and save our planet from the ravages of climate change, ne need to ultimately make clean, renewable energy the profitable kind of energy

  16. US governance • Federalism: gives extensive powers to 50 states • Separation of powers • Congress • 2 equal chambers • House – 435 seat elected every 2 years • Senate – 2 seats per state elected every 6 years • President – elected separately every 4 years • Courts

  17. US governance: extraordinary majorities • House: 50% +1 • Senate: effective majority is 60% • Treaties: 2/3rd of Senate requires • President needs to sign laws passed by Congress • If president vetos, 2/3rd of both houses can overturn

  18. US governance: extraordinary majorities Congress and president same party: working majority is 60% Congress and president different party: working majority is 67% Note contrast to Canada, China

  19. Party Balance in Congress - Obama • 2009 House: 257 D 178 R • 2009 Senate: 58 D 40 R 2 I

  20. Party Balance in House - Obama • 2011 House: 193 D 242 R (55.6%)

  21. Party Balance in Senate - Obama • 2011 Senate: 51 D 47 R 2 I

  22. Automobile efficiency standard • 2001 – US cars and trucks averaged 24.7 m.p.g. • 2011 --29.6 m.p.g. • New regs: up to 55 m.p.g. by 2025 • Obama weekly address • Nov 2011, Canada announced it would attempt to meet US 2025 targets • But unclear whether by regulation or voluntary Sustainable Energy Policy

  23. Climate Legislation - federal • 2009 – House passes Waxman-Markey • 17% reduction by 2020 • Riddled with concession • 2010 Senate • Coalition building required giving everything away • Coalition of senators fell apart when initiative got framed as “gas tax” • “on climate change, Obama grew timid and gave up, leaving the dysfunctional Senate to figure out the issue on its own” • Personal impact

  24. State initiatives: renewables • As of April 2011, 32 states have RPS or Alternative Energy Portfolio Standards; another six have voluntary standards (Pew Centre on Global Climate Change, 2011) • California most aggressive

  25. State initiatives - GHG • California leadership • Western Climate Initiative

  26. Reflections on Two Giants

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