Energy →
- 15 Nov 2012
- Research & Ideas
Funding the Design of Livable Cities
As a burgeoning global population migrates to the world's urban centers, it's crucial to design livable cities that function with scarce natural resources. John Macomber discusses the critical connection between real estate financing and innovative design in the built environment. Open for comment; 0 Comments.
- 14 Nov 2012
- Research & Ideas
New Agenda for Corporate Accountability Reporting
Professor Karthik Ramanna explains three ways to make corporate accountability reports potentially more useful to constituencies that include shareholders, communities, bondholders, and customers. Open for comment; 0 Comments.
- 06 Nov 2012
- Op-Ed
Stop Talking About the Weather and Do Something: Three Ways to Finance Sustainable Cities
How do we ensure that our cities are resilient in the face of inevitable future weather events like Hurricane Sandy? John Macomber offers three ways that the private sector can take action. Open for comment; 0 Comments.
- 02 Jul 2012
- Research & Ideas
Why Good Deeds Invite Bad Publicity
Many executives assume that investments in corporate social responsibility create public goodwill. But do they? Felix Oberholzer-Gee and colleagues find surprising results when it comes to oil spills. Closed for comment; 0 Comments.
- 14 Jun 2012
- Working Paper Summaries
“Power from Sunshine”: A Business History of Solar Energy
In each generation, the concept of getting "power from sunshine" has attracted entrepreneurial visionaries who encountered a perennial problem: Solar energy was expensive compared to conventional fuels that were not priced to incorporate wider environmental costs. This paper by Geoffrey Jones and Loubna Bouamane provides a business history of solar energy between the nineteenth century and the present day. Its covers early attempts to develop solar energy, the use of passive solar in architecture before World War II, the subsequent growth of the modern photovoltaic (PV) industry, and alternative non-PV technologies such as parabolic collectors. As the authors argue, building viable business models proved crucially dependent on two factors: the prices of alternative conventional fuels and public policy. Key concepts include: The potential of solar power has attracted entrepreneurs for well over a century, but they have all struggled to build commercial businesses. The invention of PV cells in the 1950s, the "space age electronic marvel," transformed the potential of solar energy, but also vastly raised the financing stakes as the new technology was complicated and capital-expensive. Niche markets were found, especially among end-users such as satellites, pocket calculators and roof tops, but the widespread use of solar to generate electricity in large grid systems required government subsidies and other support, especially because the environmental costs of fossil fuels were not included in pricing. Subsidies and feed-in tariffs drove the growth of the solar industry over the last decade, especially in Europe and China, but they also distorted incentives and sometimes encouraged rent-seeking. Regular and unpredictable shifts in government policies, influenced by lobbying and shifts in the price of conventional energy sources, were especially damaging to renewable energy, with shifting Federal and state policies in the United States providing a prime example. Closed for comment; 0 Comments.
- 08 Mar 2012
- Research & Ideas
Unplugged: What Happened to the Smart Grid?
Replacing the antiquated electrical system in the United States with a super-efficient smart grid always seemed a surefire opportunity for entrepreneurs. So what went wrong? asks Professor Rebecca M. Henderson. Closed for comment; 0 Comments.
- 06 Dec 2011
- Working Paper Summaries
What Impedes Oil and Gas Companies’ Transparency?
Oil and gas companies face asset expropriations and corruption by foreign governments in many of the countries where they operate. In addition, most of these companies operate in multiple host countries. What determines their disclosure of business activities and hence transparency? Paul Healy, Venkat Kuppuswamy, and George Serafeim examine three forms of disclosure costs that oil and gas managers could potentially consider. Both the US government and the European Union are currently considering laws that would require oil and gas companies to disclose information about operations in host countries. Key concepts include: Competitive risks are an important factor underlying differences in oil and gas firms' disclosure ratings across the host countries in which they operate. Requiring disclosure of payments to foreign governments is unlikely to increase proprietary costs for oil and gas companies. Mandating disclosures about the performance of oil and gas companies in host countries, however, is likely to increase proprietary costs, particularly risk of expropriations and costs related to product market competition. Companies that are coming from more corrupt home countries tend to be less transparent about their payments to host country governments. Closed for comment; 0 Comments.
- 18 Oct 2011
- Working Paper Summaries
Historical Trajectories and Corporate Competences in Wind Energy
Analyzing developments in the wind turbine business over more than a century, Geoffrey Jones and Loubna Bouamane argue that public policy has been a key variable in the spread of wind energy since the 1980s, but that public policy was more of a problem than a facilitator in the earlier history of the industry. Geography has mattered to some extent, also: Both in the United States and Denmark, the existence of rural areas not supplied by electricity provided the initial stimulus to entrepreneurs and innovators. Building firm-level capabilities has been essential in an industry which has been both technically difficult and vulnerable to policy shifts. Key concepts include: Firms from Denmark have been unusually prominent throughout the history of the wind energy business. The basis of the competitive Danish industry was laid without support or even encouragement from its government. US-based firms have also been regularly found among the leading wind energy companies. But their relative importance varied considerably over time, has rarely reflected the overall importance of the U.S. market, and has involved a changing cast of actual firms. German and Spanish, and more recently Indian and Chinese firms, have emerged to become amongst the largest turbine manufacturers in the industry. The most striking change over the last decade has been in the competitive landscape. Engineering powerhouses, such as GE and Siemens, and wholly or partly state-owned Chinese firms with low-cost bases, are now prominent actors in this industry. Closed for comment; 0 Comments.
- 08 Jun 2011
- Lessons from the Classroom
Twenty-first Century Skill: Trading Carbon Credits
As cap and trade becomes an increasingly popular mechanism for governments to cut corporate pollution, students at Harvard Business School use a simulation to learn how it works. An interview with professor Peter Coles. Key concepts include: The simulation provides a classroom experience for students to see the impact of different design principles in the cap-and-trade mechanism. Open for comment; 0 Comments.
- 26 Apr 2011
- Op-Ed
HBS Faculty Comment on Environmental Issues for Earth Day
Harvard Business School faculty members offer their views on the many business facets of "going green." Open for comment; 0 Comments.
- 08 Apr 2011
- Research & Ideas
Will the Japan Disaster Remake the Landscape for Green Energy in Asia?
Entrepreneurs at the recent Asia Business Conference at Harvard Business School said the disaster in Japan could accelerate the move toward "green" energy sources in Asia, opening opportunities. Closed for comment; 0 Comments.
- 07 Apr 2011
- What Do You Think?
When Should the Public Sector Take Over in a Meltdown?
Summing Up Jim Heskett's readers have wildly differing opinions as to what extent governments should step in to remedy public sector "meltdowns." Closed for comment; 0 Comments.
- 03 Mar 2011
- Research & Ideas
HBS Faculty on Revolution in the Middle East and North Africa
The historic events in North Africa and the Middle East are examined by three professors: Deepak Malhotra, an authority on negotiation strategy; Noel Maurer, an expert on the politics and economics of the energy business; and Magnus Thor Torfason, an authority on how behavior is influenced by the social structures of individuals and organizations. Key concepts include: The US response to events in the Middle East and North Africa needs to be guided by three key tenets of effective diplomacy: considering our enemies tomorrow, not just our friends today; identifying what makes these situations different from other, similar situations; and being steered by values that can be clearly and consistently articulated. Although they bring uncertainty and higher oil prices in the short term, these revolutions offer the possibility of enhanced representation that will bring the people in these nations more stability, public goods, and a better and more competitive business environment. In autocratic states, protestors always face the threat of violent retribution. Social media networks helped to allay fears by showing people beforehand that the protests would be huge, thus providing some reassurance that it would be difficult for the regimes to retaliate. However, powerful international networks formed through major organizations, such as the United Nations, may be necessary to determine whether the protests are ultimately successful. Open for comment; 0 Comments.
- 18 Oct 2010
- Lessons from the Classroom
Venture Capital’s Disconnect with Clean Tech
Clean-tech start-ups depend on patience and public policy to thrive—the Internet models for VC funding don't apply. That's why Harvard Business School professor Joseph Lassiter is making an unusual recommendation to his entrepreneurship students: Spend a few years serving time in a government job. Key concepts include: MBA students and young venture capitalists often assume that all promising start-ups can grow and exit as fast as Internet start-ups, but they're mistaken. Clean-tech start-ups are often stymied by a "valley of death"—that precarious stage between researching and developing a product and going to market. The success of clean-tech companies often is dependent on public policy, so it behooves budding VCs and entrepreneurs to spend a few years learning the ropes in a government or corporate job. Closed for comment; 0 Comments.
- 07 Oct 2010
- Working Paper Summaries
The Profits of Power: Commercial Realpolitik in Eurasia
The concept of good old-fashioned realpolitik-politics primarily shaped by practicality and power-has returned to Europe, clashing with the traditional ideologies of the European Union, says Harvard Business School professor Rawi Abdelal. Citing supporting evidence from the Russian gas giant Gazprom, he argues that scholars need to pay better attention to the role of large corporations in international relations. Key concepts include: Corporate firms, not states, are responsible for the return of realpolitik in Europe. The international political economy needs a better understanding of the role that these firms play in world politics. Closed for comment; 0 Comments.
- 09 Aug 2010
- Research & Ideas
How to Speed Up Energy Innovation
We know the grand challenge posed by shifting away from dirty energy sources. The good news, says Harvard Business School professor Rebecca Henderson, is that we have seen such change before in fields including agriculture and biotech, giving us a clearer pathway to what it will take. Key concepts include: The research brings attention to industries that experienced radical transformation at great speed: agriculture, chemicals, life sciences, and information technology. The problem: Energy is a commodity product that can't be differentiated, the sector already exists, and the change needs to happen at enormous scale. Trying to speed innovation without simultaneously creating demand for low-carbon energy is unlikely to have much of an effect. History shows it's unlikely we can pick the winning technology in advance. Closed for comment; 0 Comments.
- 06 Jul 2010
- Research & Ideas
Renewable Energy: Winds at Our Back?
It certainly stirred up controversy in 2001 when an entrepreneur proposed erecting 130 wind turbines off the coast of Massachusetts' Cape Cod. After nine years of struggle over regulatory, environmental, safety, and social issues, the plan appears closer to becoming a reality. HBS professor Richard Vietor reflects on wind energy and innovations in the renewable energy industry. Key concepts include: The Cape Wind project has sparked controversy in the eastern United States related to regulatory, political, environmental, and social concerns. Wind power is important for the near term, but in the longer term solar and nuclear power may gain ground. The United States is rapidly falling behind other developed countries in its approach to renewable energy sources. Nevertheless, President Obama's stimulus package provides significant incentives and subsidies for green energy projects. More than 30 states have renewable production standards that require utilities to purchase or develop from 15 percent to 30 percent of their power from renewables over the next 10 to 15 years. Closed for comment; 0 Comments.
- 30 Jun 2010
- Working Paper Summaries
The Empire Struck Back: The Mexican Oil Expropriation of 1938 Reconsidered
The Mexican petroleum expropriation of 1938 looms large as the beginning of Latin American resource nationalism and the apogee of America's "Good Neighbor" policy. In Mexico, the expropriation is viewed as a patriotic triumph, in which the federal government seized control of the country's most valuable natural resource. In the U.S., the temperate reaction of the Roosevelt Administration is seen as the decisive break with Washington's imperial relationship towards Latin America. Washington "curbed its finance capital," it is said, and downgraded the protection of American overseas private investments. In this paper, HBS professor Noel Maurer explains how the actual historical record diverges substantially from the accepted view. Key concepts include: The oil companies developed political strategies that maneuvered the very reluctant Roosevelt Administration into defending their interests. A detailed understanding of the key players in the executive branch was fundamental to these strategies. The U.S. government succeeded using sanctions and the threat of sanctions to force Mexico to compensate—in fact, overcompensate—American companies. The Mexican oil industry was in decline by the 1930s for geological (not political) reasons. As a result, the American oil companies with interests in Mexico were in financial distress during the same period. The oil companies deliberately provoked the expropriation, because they could not afford to give in to union demands to control all hiring and firing. The expropriation did not increase the Mexican government's petroleum revenues or the wages paid to Mexican oil workers. The key difference between the environment of the 1930s and today is that in the 1930s, domestic courts still refused to use their authority against foreign governments. Today, that is no longer the case. Closed for comment; 0 Comments.
- 24 Feb 2010
- Working Paper Summaries
Accelerating Innovation In Energy: Insights from Multiple Sectors
How should the energy sector best respond to the threat of climate change? In this introductory chapter to a forthcoming book, Harvard Business School's Rebecca M. Henderson and Richard G. Newell of Duke University frame the discussion by highlighting the volume's contributions concerning four particularly innovative sectors of the U.S. economy: agriculture, chemicals, life sciences, and information technology. These four sectors have been extraordinarily important in driving recent economic growth. Henderson and Newell describe why accelerating innovation in energy could play an important role in shaping an effective response to climate change. Key concepts include: An effective innovation system has three key elements: accelerating demand for new technology; institutions that support abundant generation and dissemination of fundamental scientific and technical knowledge; and a vibrant, competitive private sector. Public policy has played a role in building and/or sustaining all three elements. If the goal of federal policy is to encourage effective technological solutions to mitigate climate change, then a short-term commitment is unlikely to meet expectations, even if the commitment is extraordinarily intense, such as was seen with the Department of Defense's Manhattan Project. If federal agencies increase investment in energy innovation at the same time that vigorous efforts are made to enhance the demand for carbon-free technology, it is likely that technological innovation could play a decisive role in mitigating some of the key economic and social risks arising from climate change. Closed for comment; 0 Comments.
LEED-ing by Example
When a local government decides to pursue environmentally aware construction policies for its own buildings, the private sector follows suit, according to new research by Timothy Simcoe and Michael W. Toffel. Closed for comment; 0 Comments.