Rise to the Occasion? A Critique of the World Bank’s Regulatory Indicators for Sustainable Energy

The World Bank’s Regulatory Indicators for Sustainable Energy (RISE) scorecard evaluates countries’ sustainable energy policies against global `best practices.’ Here I demonstrate that many of these so-called best practices are inappropriate in the context of limited state capacity. Using several examples from the RISE report, I argue that the World Bank should replace the pursuit of one-size-fits-all best practices and instead focus on generating knowledge about the contextual fit of different policy approaches. Drawing inspiration from research on adaptive reform strategies in the developing country context, I argue that an adaptive and flexible strategy could help national governments to surmount obstacles to policies that over time make the dream of sustainable energy for all a global reality.

United States Non-Cooperation and the Paris Agreement

In June 2017, the Trump administration decided to withdraw the United States from the Paris Agreement, a landmark climate agreement adopted in 2015 by 195 nations. The exit of the U.S. has not just raised concern that the U.S. will miss its domestic emission reduction targets, but also that other parties to the Paris Agreement might backtrack on their initial pledges regarding emission reductions or financial contributions. Here we assess the magnitude of the threat that U.S. non-cooperation poses to the Paris Agreement from an international relations perspective. We argue that U.S. non-cooperation does not fundamentally alter U.S. emissions, which will likely continue to decline even in the absence of new federal climate policies. Nor does it undermine nationally determined contributions under pledge and review, as the Paris Agreement has introduced a new logic of domestically-driven climate policies and the cost of low-carbon technologies keeps falling. However, U.S. non-participation in raising climate finance could raise high barriers to global climate cooperation in the future. Political strategies to mitigate these threats include direct engagement by climate leaders such as the European Union with key emerging economies, notably China and India, and domestic climate policies that furnish benefits to traditional opponents of ambitious climate policy.

How Do Sectoral Interests Shape Distributive Politics? Evidence from Gasoline and Diesel Subsidy Reforms

Sectoral interests play an important role in distributive politics, but their influence is difficult to measure. We compare the effect of international oil prices on subsidies for domestic gasoline and diesel consumption. Because diesel is used by a smaller number of organized agricultural and transportation interests, they are more capable of collective action than the dispersed beneficiaries of gasoline subsidies. The conventional wisdom holds that sectoral interests could mobilize to stop reform (e.g., price increases, deregulation). Challenging this view, we consider the possibility that sectoral interests promote reform by facilitating the targeted allocation of compensation and exemptions. An empirical analysis of gasoline and diesel prices, 1991-2012, strongly supports the second hypothesis: diesel prices respond to international oil prices more strongly than do gasoline prices. Quantitative tests and case studies allow us to explore causal mechanisms, verify that the gasoline-diesel difference is related to actual policy reforms, and reject alternative explanations.

Geography, Community, Household: Adoption of Distributed Solar Power Across India

We investigate the determinants of distributed solar technology adoption at the village and household level in India. Using spatial data on insolation, census records, and original surveys, we show that remote and poor but large villages with abundant sunshine have led the wave of solar technology adoption as an alternative to grid electricity. At the household level, however, wealth and financial access are positively associated with solar technology adoption, a result that holds for both solar lanterns and home systems. Moreover, remote villages are more likely to see solar technology adoption when households have access to finance through banks. We also find that the use of household solar technology is strongly associated with a household’s subjective satisfaction with domestic lighting. These results demonstrate that understanding solar technology adoption in geographies requires considering both community and household characteristics. They also underscore the importance of financial access as a precondition for using distributed solar power as an alternative to grid connectivity.