Ellis S. Krauss

Bio: Ellis S. Krauss is an academic researcher from University of Pittsburgh. The author has contributed to research in topics: Keiretsu & State (polity). The author has an hindex of 1, co-authored 1 publications receiving 11 citations.

Political Economy: Policymaking and Industrial Policy in Japan *

Abstract: The Importance of Japan's Political Economy: The importance of Japan's political economy probably will be more obvious than any other subject concerning Japanese politics. Being the world's second largest economy and the United States' greatest overseas trading partner, and with increasing Japanese investment in America, the politics and policy-making that affect Japan's industry and economy probably have a more direct impact on the lives of more Americans than any other subject concerning a foreign country that American students can study.With increasing friction over trade and investment beginning to undermine the United States-Japan relationship, one that former Ambassador to Japan Mike Mansfield liked to call the most important bilateral relationship in the world, Japan's political economy has become the stuff of daily newspaper headlines for many Americans. How much, how, and how well the Japanese state intervenes in the economy to promote economic growth has probably received more attention in the United States in recent years than any other topic concerning Japan. Words previously unfamiliar to American ears, such as “industrial policy,” “targeting,” “MITI,” keiretsu, and so forth, are now common in the American media and in policy debates in Washington about the origins of Japan's massive trade deficit with the United States and what the United States can and should do about it. No college graduate, indeed no American citizen, can claim to be politically literate today without some knowledge of this subject.

Report of the high-level commission on carbon prices

Abstract: During the 22nd Conference of the Parties (COP) of the United Nations Framework Convention on Climate Change (UNFCCC) held in Marrakech, Morocco, in 2016, at the invitation of the Co-Chairs of the Carbon Pricing Leadership Coalition (CPLC) High-Level Assembly, Segolene Royal and Feike Sijbesma, Joseph Stiglitz, Nobel Laureate in Economics, and Lord Nicholas Stern, accepted to chair a new High-Level Commission on Carbon Prices comprising economists, and climate change and energy specialists from all over the world, to help spur successful implementation of the Paris Agreement. The Commission’s objective is to identify indicative corridors of carbon prices that can be used to guide the design of carbon-pricing instruments and other climate policies, regulations, and measures to incentivize bold climate action and stimulate learning and innovation to deliver on the ambition of the Paris Agreement and support the achievement of the Sustainable Development Goals.

Decarbonizing Development: Three Steps to a Zero-Carbon Future

Abstract: This report lays out three steps for a smooth transition to a zero-carbon future and provides data, examples and policy advice to help countries makes the shift. Overview Getting to zero net emissions and stabilizing climate change starts with planning for the long-term future and not stopping at short-term goals. It means getting prices right as part of a broad policy package that can trigger changes in both investments and behaviors, and it requires smoothing the transition for those most affected. A new World Bank report walks policymakers through those three steps with data, examples and policy advice to help put countries on a path to decarbonizing their development in a smooth and orderly way. The solutions exist, and they are affordable – if governments take action today, the report says.

Green Industrial Policies : When and How

Abstract: Green industrial policies can be defined as industrial policies with an environmental goal -- or more precisely, as sector-targeted policies that affect the economic production structure with the aim of generating environmental benefits. This paper provides a framework to assess their desirability depending on the effectiveness and political acceptability of price instruments. The main messages are the following. (i) Greening growth processes to the extent and with the speed needed cannot be done without industrial policies, even if prices can be adjusted to reflect environmental objectives. (ii) "Sunrise" green industrial policies are needed because they support the development of critical new technologies and sectors, bring down costs, and allow for reduced emissions in the short term even in the absence of carbon pricing. (iii) "Sunset" green industrial policies and trade policies may be needed in conjunction with safety nets to make carbon pricing politically or socially acceptable. They can help mitigate the impact of a carbon price on competitiveness and unemployment and smooth the transition by helping industries adjust to the new conditions. (iv) Green or not, industrial policy requires carefully navigating the twin dangers of market and governance failure. The viability of supported technologies and sectors is difficult to assess through a market-test given their dependence on continued environmental policies or pricing -- such as a carbon price. Particular attention must be paid to avoid potential unintended negative effects, such as rebound effects (especially if prices are inappropriate), misallocation of capital, or capture and rent-seeking behaviors.

Climate Policies and Nationally Determined Contributions: Reconciling the Needed Ambition with the Political Economy

Abstract: Countries have pledged to stabilize global warming at a 1.5–2°C increase. Either target requires reaching net zero emissions before the end of the century, which implies a major transformation of the economic system. This study reviews the literature on how policymakers can design climate policies and their nationally determined contributions to reach zero-net emissions before the end of the century in a socially and politically acceptable manner. To get the ambition right, policymakers can use sectoral roadmaps with targets and indicators that track progress toward zero emissions (e.g., regarding renewable power or reforestation). Indeed, monitoring economy-wide emissions-reductions alone would not ensure that short-term action contributes meaningfully to the long-term decarbonization goal. To get the political economy right, climate policies can be designed so that they contribute to nonclimate objectives and create broad coalitions of supporters. For instance, carbon taxes revenues can fund social assistance and infrastructure investment, while reducing tax evasion and informality. To minimize social and economic disruptions and avoid stranded assets, policymakers can also start with a low carbon price level and use complementary policies. Designed at the sector level, complementary policies such as performance standards or feebates for cars, building norms, or moratoriums on new coal power plants can be negotiated in partnership with local stakeholders and trigger a transition to zero carbon that does not directly affect existing polluting capital. For further resources related to this article, please visit the WIREs website.