Energy →
- 10 Jul 2009
- Research Event
Business Summit: The Coming World Oil Crisis
Without enormous changes the world faces an imminent oil crisis—and there are no silver bullet solutions. People must wake up to the sobering ramifications of peak oil, which may be the defining issue of this century. Closed for comment; 0 Comments.
- 26 Jun 2009
- Research Event
Business Summit: Business and the Environment
If the causes for global climate change are not addressed, the consequences for the planet are likely to be disastrous. Governments, business, and consumers must act. Closed for comment; 0 Comments.
- 11 Mar 2009
- HBS Case
The Energy Politics of Russia vs. Ukraine
A recent Harvard Business School case looks at Russia's decision in 2006 to cut off supply of natural gas to Ukraine's energy company—a move repeated this year. Is Russia just an energy bully? Students of professor Rawi Abdelal learn there is nothing black and white when it comes to Russia's energy politics. From HBS Alumni Bulletin. Key concepts include: The Western notion that Russia uses energy as a weapon is a media oversimplification of very complicated politics. Gazprom is the country's single most important company and biggest taxpayer. Because natural gas is much cleaner than oil or coal, Europe will likely become even more dependent on Russian gas. Energy can be a tool for influence but it's not an effective tool for domination. Russia will be in trouble if Europe decides to stop buying Russian gas. Closed for comment; 0 Comments.
- 26 Feb 2009
- Working Paper Summaries
Barriers to Acting in Time on Energy and Strategies for Overcoming Them
What can the new presidential administration do to address our energy problems? For the past decade, most experts have accepted climate change as a fact, making the issue difficult to ignore—yet many politicians, and the voters who elect them, have done exactly that: ignored the problem. Scientists, policymakers, and others have come up with good ideas to address climate change and other energy issues. Many people seek to identify one cause of climate change, when it is abundantly clear that there are multiple causes. Cognitive, organizational, and political barriers exist that prevent us from addressing energy problems despite clearly identified courses of action. The creation and implementation of wise policy recommendations requires us to anticipate resistance to change and develop strategies that can overcome these barriers. Enacting wise legislation to act in time to solve energy problems requires surmounting cognitive, organizational, and political barriers to change. Key concepts include: The new U.S. presidential administration should identify energy policies that make wise tradeoffs across issues. The administration should communicate that decisions will be made to maximize benefits to society rather than to special-interest groups. The administration should seek energy policies that make sense even if climate change is less of a problem than best current estimates suggest. The administration should identify a series of small changes (nudges) that significantly influence the behaviors of individuals and organizations in a positive direction without infringing on personal liberties. When discounting of the future creates an insurmountable barrier to the implementation of wise policies, consider implementation on a mild delay. Closed for comment; 0 Comments.
- 03 Nov 2008
- HBS Case
Economics of the Ethanol Business
What happens when a group of Missouri corn farmers gets into the energy business? What appears to be a very lucrative decision quickly turns out to be much more risky. Professor Forest Reinhardt leads a case discussion on what the protagonists should do next. From HBS Alumni Bulletin. Key concepts include: The case examines the complex political and economic underpinnings of the ethanol industry. By investing in corn-based ethanol, farmers reduce their exposure to corn prices, but at the expense of exposure to the oil market. The case promotes greater understanding of the way materials and energy flow in the modern U.S. agricultural system. Closed for comment; 0 Comments.
- 08 Sep 2008
- HBS Case
The Value of Environmental Activists
With decidedly non-profit goals leading them on, how do environmental protection groups such as Greenpeace and World Wildlife Fund create value? Can it be measured? A Q&A with Harvard Business School professor Ramon Casadesus-Masanell and case writer Jordan Mitchell. Key concepts include: The challenge for a business student is how to put a quantifiable measure on whether Greenpeace and WWF are successful in reaching goals. WWF and Greenpeace create value by increasing the world's willingness-to-pay on environmental issues. Most scientists agree that the earth is deteriorating at a faster rate than during the 1960s and 1970s, but it would be worse off had it not been for the tireless campaigning of environmental NGOs. Closed for comment; 0 Comments.
- 07 Jul 2008
- Research & Ideas
Innovation Corrupted: How Managers Can Avoid Another Enron
The train wreck that was Enron provides key insights for improving corporate governance and financial incentives as well as organizational processes that strengthen ethical discipline, says HBS professor emeritus Malcolm S. Salter. His new book, Innovation Corrupted: The Origins and Legacy of Enron's Collapse, is a deep reflection on the present and future of business. Key concepts include: Enron's stated purpose was too general to permit disciplined and responsible decision-making in the face of difficulty. The lessons of Enron relate to strengthening board oversight, avoiding perverse financial incentives for executives, and instilling ethical discipline throughout business organizations. Directors of public companies can adapt key aspects of the private-equity governance model to ensure that they fulfill their oversight responsibilities. Incentive systems should reward accomplishments other than economic performance, and penalize failures. Companies can take steps to help senior executives avoid the two sources of leadership failure at Enron: personal opportunism and flights to utopianism. Closed for comment; 0 Comments.
- 09 Jan 2008
- Working Paper Summaries
A Resource Belief-Curse: Oil and Individualism
Capitalism is not as widespread as economists would hope. Data from surveys of public opinion, as well as on the distribution of political parties, confirm the idea that capitalism doesn't flow to poor countries. In some countries, anti-market sentiment has increased in recent years, a period where the price of oil and other primary commodities have soared. This combination of anti-market sentiment and high oil prices has led to renegotiations of oil contracts and even nationalizations in some countries such as Bolivia and Venezuela. It is tempting for economists trained in the theory of political capture to argue that this is just another instance where special interests exploit the circumstances to make an extra dollar. Given that these nationalizations are often popular with the majority of voters, however, the researchers resist this temptation and ask if there are explanations where a positive correlation emerges between voter anti-market sentiment and dependence on oil. Key concepts include: Antipathy toward markets has become particularly acute in Latin America. In Bolivia, Venezuela, Ecuador, and Argentina, policymakers have focused their anti-market energies and attention on natural resource companies, in several cases even renegotiating their contracts. A connection between dependence on oil and receptivity to populist rhetoric is both natural in economic models and has some support in the data. Closed for comment; 0 Comments.
- 31 Oct 2007
- HBS Case
Climate Change Puts Heat on GMs
Ready or not, companies are being swept up in the increasing public debate over global climate change. How should firms respond? A case study exploring how financial service giant UBS thinks through the issues has students coming down on different sides. Key concepts include: Firms are increasingly called upon to respond to public concerns and actions by competitors on the issue of climate change. 'Green' responses that are simple profit maximization won't impress activist organizations looking to reward exemplars. Companies who take leadership roles in the environmental arena also open themselves up as critical targets should something go wrong. In responding to requests from organizations, general managers should think strategically about how, if they get the decision right, the company can serve society while also improving the bottom line. Closed for comment; 0 Comments.
- 20 Aug 2007
- Research & Ideas
HBS Cases: Using Investor Relations Proactively
Investor relations has a delicate balancing act. It communicates with stakeholders, of course, but can also help employees take a step back and analyze their firm as outsiders do. Harvard Business School's Gregory S. Miller, Vincent Dessain, and Daniela Beyersdorfer explain where IR is going, with energy giants BP and Total leading the way. Key concepts include: Good news for stockholders can be bad news for other stakeholders. IR should be consistent and proactive on all fronts. Investors increasingly care about geopolitics, the environment, and social responsibility; financial communication will need to factor this in. Develop IR in a way consistent with your firm's unique operating position. Outside information is important, but the extent to which it should influence a firm's decision-making is an open question. Closed for comment; 0 Comments.
- 11 Jun 2007
- Lessons from the Classroom
Teaching the Next Generation of Energy Executives
A new generation of energy industry managers will make decisions that affect the quality of life for hundreds of millions of people. At Harvard Business School, students in professor Forest Reinhardt's Energy course are learning the complexities and realities of developing and implementing strategy in such a complex environment. Key concepts include: Energy executives face a complicated playing field on which to develop strategy, buffeted by factors including increased demand, dwindling resources, technology breakthroughs, and the regulatory environment. General managers will be of great value because many aspects of business contribute to the energy industry. Closed for comment; 0 Comments.
- 06 Apr 2007
- What Do You Think?
Will Market Forces Stop Global Warming?
HBS professor Jim Heskett sums up many creative responses from readers on the role of business in combatting global climate change. Online forum now closed. Closed for comment; 0 Comments.
- 05 Mar 2007
- Research & Ideas
Risky Business? Protecting Foreign Investments
After a string of forced nationalizations of private enterprises in the 1960s and 1970s, the pendulum swung back and companies were again encouraged by host countries to build and run major infrastructure projects such as power and water. But a set of new property protections has done little to manage the risk in many of these politically unstable environments. Professor Louis T. Wells, coauthor of a new book on making foreign investment safe, discusses the current landscape. Key concepts include: Although property rights protections for investors in developing nations have improved since 1980, the new instruments are failing to satisfy the interests of either host countries or their business partners. Protections can be improved by developing a real consensus on the part of investors' home countries, host countries, and investors themselves. Business managers must take a significant role in pushing for a multilateral agreement on foreign direct investment, or at least become active in promoting lesser changes that will lead to more balance and security in the current system. Otherwise businesses will lose profitable opportunities and find themselves in the middle of disputes that hurt their future prospects. And poor countries will fail to benefit from what investors can bring them. Absent strong protections, managers must ask themselves a series of questions before investing in developing countries, such as: Is my investment project politically sensitive? If so, will the country continue to need my participation in the project? Closed for comment; 0 Comments.
- 27 Nov 2006
- Research & Ideas
Manly Men, Oil Platforms, and Breaking Stereotypes
Men who work in dangerous places often act invulnerable to prove their merit as workers and as men—objectives that can lead to decreased safety and efficiency. Professor Robin Ely and her team helicoptered to offshore oil platforms in order to understand "manly men" and how working environments can be changed to alter men's enactments of manhood. Key concepts include: Men's masculine identity (like women's feminine identity) is a profoundly social and cultural phenomenon. In dangerous, male-dominated work settings, men's tendency to gain respect by demonstrating and defending their masculinity is costly. Efforts to appear invulnerable block precisely the kinds of actions that encourage safety and effectiveness. Offshore oil platforms, although male dominated, are also improving safety dramatically. Rather than seeking to prove how tough, proficient, and cool-headed they are, platform workers purposefully make themselves vulnerable in order to perform their jobs more safely and effectively. Closed for comment; 0 Comments.
Is a Stringent Climate Change Agreement a Pot of Gold?
Reading this month's comments, HBS professor Jim Heskett wonders if we even need a climate change agreement as a catalyst to foster innovation and the VC investment required to support it. (Online forum has closed; next forum opens February 4.) Closed for comment; 0 Comments.