Energy

This image is having trouble loading!FSI researchers examine the role of energy sources from regulatory, economic and societal angles. The Program on Energy and Sustainable Development (PESD) investigates how the production and consumption of energy affect human welfare and environmental quality. Professors assess natural gas and coal markets, as well as the smart energy grid and how to create effective climate policy in an imperfect world. This includes how state-owned enterprises – like oil companies – affect energy markets around the world. Regulatory barriers are examined for understanding obstacles to lowering carbon in energy services. Realistic cap and trade policies in California are studied, as is the creation of a giant coal market in China.

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Japan's massive earthquake and tsunami three weeks ago and the challenging recovery process continue to make news headlines around the world. It is difficult to separate fact and reasonable speculation about the future from the terror-filled coverage about radiation leaking from the Fukushima nuclear complex. In an effort to make sense of recent events, the Walter H. Shorenstein Asia-Pacific Research Center (Shorenstein APARC) convened a panel of experts for a discussion about the possible future implications arising from this complex and emotionally charged situation for Japan's energy policy, economy, and politics.

Addressing an audience of one hundred students, faculty, and members of the general public on March 30, Shorenstein APARC associate director for research Daniel C. Sneider expressed the center's deep sympathy for those affected by the natural disasters and its profound admiration for the way in which the people of Japan are dealing with the aftermath. Members of the panel echoed these sentiments throughout the event.

Michio Harada, Deputy Counsel General at the Consulate General of Japan in San Francisco, cited official government figures indicating that, as of March 28, twenty-eight thousand people were dead or missing and one-hundred-and-eighty thousand people were still in evacuation shelters. Faced with such staggering figures, Japan remains in a rescue and recovery phase, he said, but is receiving a tremendous amount of global support. More than one hundred and thirty countries have provided financial assistance, and eighteen countries and regions have sent rescue teams. Collective public spirit is currently very strong, Deputy Counsel Harada emphasized. Japan's challenge moving forward, he suggested, will be to adopt pragmatic measures to fund reconstruction projects in the areas destroyed or damaged by the natural disasters.

Understanding the situation at the Fukushima nuclear power facility and the information circulating about the potential health risks of radiation exposure is complicated, stressed Siegfried S. Hecker, co-director of the Center for International Security and Cooperation. He described the intricate design and structure of the reactors and outlined the sequence of events up to the present, explaining the immediate, crucial challenge of continuing to cool the reactors and deal with the leakage of radiation from them. While there are definite and potentially very serious health threats from radiation exposure and contamination, Hecker said, fear and stress about the situation could also negatively affect mental and physical wellbeing. It is too soon to know the long-term implications for energy policy in Japan and other countries, he suggested, emphasizing the significance of learning from this experience in order to improve any future use of nuclear power.

Robert Eberhart, a researcher with the Stanford Program on Regions of Innovation and Entrepreneurship, proposed that the global supply chain is flexible enough to absorb any manufacturing disruptions in Japan. He noted that in the past twenty years most of Japan's heavy manufacturing has moved overseas, and that the components made there are a comparatively less significant part of the supply chain. In terms of the overall impact on Japan's economy, Eberhart suggested that the net effect on the GDP would be neutral over the next two years, explaining that the imminent loss of business and investment in some areas would be offset by the growth of firms involved in the reconstruction process.

Phillip Lipscy, a center fellow at the Freeman Spogli Institute for International Studies and an assistant professor with the Department of Political Science, stated that events and immediate needs during the early stages of reconstruction may have long-term affects on policymaking and the government structure in Japan. For example, the continued use of nuclear energy—a relatively clean and efficient source of power accounting for 30 percent of Japan's total energy consumption—will face public opposition due to rising concerns about safety and pressing energy needs. In addition, while Prime Minister Naoto Kan's prompt response after the natural disasters helped boost popular sentiment for him and the Democratic Party of Japan (DPJ), how they fare in the long term—especially with regard to the DPJ's relationship with the opposition Liberal Democratic Party and reconstruction-related modifications to its key economic policies—remains to be seen, Lipscy said.

Sneider closed the event with a comparison between the events in Japan and the April 2010 Gulf of Mexico oil spill, pointing to criticism that the Obama and Kan administrations have received for not regulating large corporations closely enough. A prompt resolution to the dangerous—and contentious—situation at the Fukushima nuclear complex is the most immediate concern, and one that will help foretell the long-term political implications for Japan's government, he concluded.

Although there is still a long road ahead in Japan—especially until the accident at Fukushima's nuclear reactor is contained and the actual after-effects of radiation are better understood—the underlying message during the panel discussion was that Japan will indeed recover and that the terrible events of the past weeks have brought people—and even the competing political parties—closer together.

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U.S. airmen and sailors work together with Japanese residents to pull a vehicle out of the tree line at the Misawa City fishing port, March 19, 2011.
U.S. Air Force photo by Staff Sgt. Marie Brown
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From how failure drives innovation to the role of government in supporting entrepreneurship, two expert professors at Stanford led a training session for executives from Chinese state-owned enterprises (SOE) as part of the 2011 Cisco China 21st Century Enterprise Leader Program (ELP) hosted by Stanford Program on Regions of Innovation and Entrepreneurship (SPRIE) on March 22, 2011.

Professor William F. Miller, Co-Director of SPRIE, kicked off the session with a stimulating presentation on Silicon Valley's habitat for innovation. He pointed out that turning technology into business was the essence of Silicon Valley, and a favorable business, social and political environment in the region had facilitated the process. Despite the emergence of other venture capital locations, Silicon Valley scooped up almost 40% of venture deals and dollars across the U.S. in the last quarter of 2010, according to the MoneyTree Report.

The "restless pioneer spirit" of Stanford had always played a crucial role in the effective interaction between research institutes and industry, Miller argued.

Following Miller's discussion of features of Silicon Valley's entrepreneurial habitat, William Barnett, Thomas M. Siebel Professor of Business Leadership, Strategy, and Organizations at the Stanford Graduate School of Business, shared his thoughts on how to discover successful business models.

"Having great technologies is not enough," said Barnett. "Entrepreneurs are like scientists. Successful business models are learned from failures." Barnett encouraged the leaders present to create a working environment within which failure would be tolerated. He further urged them to accelerate the learning process by asking what might go wrong.

The purpose of the SPRIE session, which is part of a 12-day US-based program organized by Cisco Systems and China's State-owned Assets Supervision and Administration Commission (SASAC), is to help the SOE executives understand how to foster innovation and to drive operational excellence. The delegation is composed of SASAC officials, Peking University professors and leaders from 17 SOEs in China, including Southern Power Grid, Three Gorges Corporation, China Telecom, China Unicom, China Mobile, China FAW Group, Harbin Electric Corp., Anshan Iron and Steel Group, Baosteel Group, China Ocean Shipping Company, China Eastern Airlines, China Oil and Foodstuffs Corporation, State Development and Investment Corporation, China Merchants, China Railway Group and China Railway Construction.

 

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Professor William Barnett at 2011 Cisco China 21C Enterprise Leader Program training session hosted by SPRIE on March 22, 2011.
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"The bigger vision of the AP Scholars Program is that the connections live on after the two years, and that they are fruitful because of the friendships and better understanding established during the discussions." 

-Thomas Fingar
Oksenberg/Rohlen Distinguished Fellow at FSI

Former President Gerhard Casper launched the Asia-Pacific Scholars Program (AP Scholars Program) in 1997 to strengthen and expand Stanford University's ties with Asia. The program was loosely modeled on Oxford University's Rhodes Scholarship. Led by renowned China scholar Michel Oksenberg of the Asia/Pacific Research Center (the predecessor organization of the Walter H. Shorenstein Asia-Pacific Research Center), the first program brought together a highly diverse class of nineteen graduate students from the United Kingdom, the United States, and numerous countries in Asia. The AP Scholars Program thrived under Oksenberg's direction, but fell dormant for nearly a decade following his death in 2001.

Thomas FingarThomas Fingar, the Oksenberg/Rohlen Distinguished Fellow at the Freeman Spogli Institute for International Studies and a former chairman of the National Intelligence Council, re-launched the AP Scholars Program in September 2010. "I am delighted to have been asked to revive it," states Fingar. In keeping with its original design, the two-year program is open to Stanford doctoral students from Asia-Pacific countries and to those studying issues related to the region. The twelve current participants come from China, Japan, Korea, Thailand, and the United States, and are studying disciplines ranging from art history to engineering. In the future, incoming students will be invited to participate in the program, creating a dynamic cohort of new and continuing students.

The AP Scholars Program serves as a forum for discussing significant and often-sensitive issues relating to the Asia-Pacific region, and for building a strong academic and professional network linking Asia and Stanford. In its current format, it is designed to broaden students' understanding of how U.S. government officials think about and make policy decisions on Asia, and to provide insight into how American scholars study Asia in relation to global issues. Additionally, it offers the significant opportunity for students from different countries and academic disciplines to dialogue not only with one another, but also with leading academics and former senior-level U.S. government officials at Stanford. 

"This is really an incredible enrichment opportunity," emphasizes Fingar. Students meet once a month during the academic year for a two-hour dinner seminar featuring a presentation and a question-and-answer session with a guest speaker. These informal sessions offer a rare and a highly insightful window into the experience of individuals who have been involved in recent decades with key policy decisions about Asia and with major research shaping understanding of Asia in the United States. After each presentation, the speaker and students engage in candid dialogue.

During the 2010-2011 academic year, students will hear from academic experts on climate change, nuclear proliferation, and food and energy security, and from former senior U.S. government officials who served in the Department of Defense, the Department of State, the National Intelligence Council, and Congress. Fingar leads a wrap-up discussion after each presentation, during which the students provide their own perspectives on the issues presented. In this environment, difficult topics are discussed in an open, and thoughtful manner. There are no readings or other outside preparation required to participate in the AP Scholars Program.

Waraporn Tongprasit, a student with the Department of Management Science and Engineering who is originally from Thailand, appreciates the different issues discussed during the presentation sessions, and the opportunity for networking that the program offers. "Through the AP Scholars Program, I am learning about political, social, and economic issues in my home country and region, and about the perspective of U.S. scholars and the U.S. government on these issues," she says. "I also have an opportunity to establish connections with other students from the Asia-Pacific region who are experts in many different areas."

Yezhou Shi, a Materials Science and Engineering student from China, values the unique chance to speak so candidly with prominent scholars and former government officials, and to hear about their experience with major global issues and events. "These are stories that I could probably never know without attending the AP Scholar Program seminars—these are really inside stories," he says. Shi also enjoys the opportunity to speak with students from different countries on issues that he would not normally feel comfortable discussing. "In daily conversation, I would not bring up some of these issues unless it was with a really close friend," he stresses. "[In the program,] of course, I pay attention to what I say, but I think that everyone understands that we are there to discuss important issues."

Fingar is optimistic as he looks to the future of the program, and its continuing impact after the current class of students completes it in 2012. "The bigger vision of the AP Scholars Program is that the connections live on after the two years," he says, "and that they are fruitful because of the friendships and better understanding established during the discussions."

Pacific Vision: The inaugural AP Scholars class
 

The film Pacific Vision was released in 1998 to commemorate the AP Scholars Program's inaugural year. A clip from the film, featuring interviews with Casper and Oksenberg, is available here courtesy the Stanford University Archives. 
 

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President Barack Obama, First Lady Michelle Obama, and President Hu Jintao of China greet the U.S. delegation, including Secretary of State Hillary Rodham Clinton, on the South Lawn of the White House, Jan. 19, 2011.
Official White House photo by Pete Souza
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In September, Crystal Chang and Jeremy M. Menchik will join the Walter H. Shorenstein Asia-Pacific Research Center (Shorenstein APARC) as its Shorenstein Fellows for the 2011–2012 academic year. 



Crystal ChangCrystal Chang, a PhD candidate with the Department of Political Science at the University of California, Berkeley, is currently completing her dissertation on China's growing independent automotive industry. Her research examines Chinese automakers alongside historical case studies from Japan and Korea. During her time at Shorenstein APARC, she will expand her dissertation to include a comparative study of India's contemporary automotive industry, which, like China's, has experienced domestic and international success. She will also continue research that she is currently conducting about China's private energy sector, with a focus on the solar power industry. Chang holds an MPIA degree in international management from the University of California, San Diego, and a BA in international relations from Stanford University.



Jeremy M. MenchikJeremy Menchik, a PhD candidate with the Department of Political Science at the University of Wisconsin-Madison (UW-Madison), is finishing his dissertation, which poses the question: what is the basis for religious tolerance in Indonesia, and why does it sometimes break down? He addresses this question through a study of Indonesian civil society and of three of the country's largest and oldest Islamic organizations: Nahdlatul Ulama, Muhammadiyah, and Persatuan Islam. Menchik has conducted extensive field research in Indonesia during the course of his graduate studies. At Shorenstein APARC, he will prepare his dissertation for publication and develop related projects on Islamic law, political tolerance, and political symbolism in Indonesian elections. Menchik holds an MA in political science from UW-Madison and a BA, also in political science, from the University of Michigan.

 

Established in 2002 through the generosity of Walter H. Shorenstein, the Shorenstein Fellowship in Contemporary Asia is an exciting opportunity for junior scholars to spend a year at Shorenstein APARC, engaging with other scholars and experiencing the world-class resources—ranging from libraries to events—that Stanford University has to offer. Shorenstein APARC looks forward to welcoming Chang and Menchik to the center in the coming academic year.

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Today nuclear negotiations with North Korea, begun twenty years ago, have returned to their starting point. The Geneva Agreement of 1994 collapsed as a result of North Korea’s clandestine uranium enrichment program, and the PRC-hosted Six Party talks have failed to halt nuclear tests by North Korea. Neither the engagement policy of the Clinton Administration nor the coercive policy of President Bush succeeded in resolving the North Korean nuclear conundrum. The North now claims it should be treated as a nuclear weapons state.

North Korea is currently waging a "peace offensive" to deflect criticism from the international community for its reckless military provocations against South Korea last year. The North may also need dialogue with the international community more than we do, to obtain economic assistance, since starving people would not support their regime and nuclear weapons cannot feed its people. The United States and South Korea agree, however, that under present circumstances, engagement with North Korea would be futile. They maintain that their refusal to resume talks with North Korea is a deliberate and strategic decision. Looking back on real-world experience, North Korea has consistently used provocations as "leverage" to arrive at negotiations on its terms. In most cases, it has gained considerable concessions, using its well-known brinkmanship tactics.

Now that North Korea has confirmed the existence of its uranium enrichment program and announced it will begin constructions of LWRs on its own, neighboring countries are deeply concerned about nuclear safety—not to mention nuclear security—in North Korea. This provides a reason for an unconditional dialogue with North Korea, apparently precisely the situation North sought. In this light, Mr. Yu will review the last twenty years of negotiations with North Korea to draw lessons for dealing with the regime in the future.

Mr. Yu is a former Minister of Foreign Affairs and Trade of Korea. He served as Korea's Ambassador to Israel, Japan and Philippines.

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Mr. Yu is a former Minister of Foreign Affairs and Trade of Korea. He served as Korea's Ambassador to Israel, Japan and Philippines.

Myung Hwan Yu former Minister of Foreign Affairs and Trade, South Korea Speaker
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This two-day international forum at Stanford University brought together experts from academia, government, and industry to analyze leading cases of current institutional models for innovation in smart and green industries. Cases included multi-company collaborations, public-private partnerships, and government-funded consortia. To enable more focus and comparative analysis, sectors selected for focus included the built environment and intelligent transportation.

FORUM Speakers & DISCUSSANTS (listed in alphabetical order)

  • Rohit T. Aggarwala, Special Advisor to the Chair, C40 Cities Climate Leadership Group
  • Alan Beebe, Managing Director, China Greentech Initiative
  • Sven Beiker, Executive Director, Center for Automotive Research at Stanford (CARS)
  • Ann Bordetsky, North America Market Development, Better Place
  • Dennis Bracy, cEO, US-China Clean Energy Forum
  • Curtis R. Carlson, President and CEO, SRI International
  • Jaching Chou, Senior Transportation Analyst, Institute of Transportation
  • Stephen J. Eglash, Executive Director, Energy and Environment Affiliates Program, Stanford University
  • Henry Etzkowitz, President of Triple Helix Association; Senior Researcher, Human Sciences and Technology Advanced Research Institute (H-STAR), Stanford University; Visiting Professor at University of Edinburgh Business School
  • Gordon Feller, Director of Urban Innovation, Cisco Systems
  • TJ Glauthier, President, TJG Energy Associates, LLC
  • Russell Hancock, President & Chief Executive Officer, Joint Venture: Silicon Valley Network
  • Ted Howes, Business for Social Responsibility
  • Asim Hussain, Director of Product Marketing, Bloom Energy
  • Paul Chao-Chia Huang, Deputy General Director, Service Systems Technology Center, Industrial Technology Research Institute, Taiwan
  • Kristina M. Johnson, Former Under Secretary of Energy, U.S. Department of Energy
  • Jeffrey Heller, President, Heller Manus Architects
  • Allan King, Senior Manager, Institute for Information Industry, Taiwan
  • Michael Marlaire, Director, NASA Research Park
  • David Nieh, General Manager, Shui On Land Limited
  • Jon Sandelin, Senior Associate Emeritus, Office of Technology and Licensing, Stanford University
  • Gerald Sanders, CEO & Chairman, SkyTran
  • Tim Schweikert, President & CEO, China Region for GE Technology Infrastructure, GE
  • Jonathan Thorpe, Senior Vice President, Gale International
  • Kung Wang, Professor, China University of Technology
  • Sean Wang, President, ITRI International Inc.
  • Jonathan Woetzel, Director, McKinsey & Co; Co-Chair, Urban China Initiative

Questions for presentations and discussion included:

  • What roles are public-private partnerships and other forms of collaboration playing to advance innovations in smart green industries, such as in the built environment or intelligent transportation?
  • What innovations - not only in technologies and products but also in processes, models and platforms - are leading the way?
  • What results are emerging from living labs, leading cities, or other outstanding examples of public-private partnerships around the world?
  • How do results stack up against economic, energy and social metrics, e.g. economic productivity, quality of life, energy impact, financial payback, user response, etc.?
  • What are implications for business strategies?
  • What government policies are effectively nurturing advancement in these areas?

Outcomes will include policy recommendations as well as highlights to be included in a book published by SPRIE at Stanford.

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Go out there and change the world.
- Tim Draper, Draper Fisher Jurvetson

"Whatever the world looks like now, it will change," said Tim Draper, founder and managing director of Draper Fisher Jurvetson (DFJ), during the keynote session at the March 1 Entrepreneurship in the Global Marketplace seminar, organized by the Stanford Program on Regions of Innovation and Entrepreneurship (SPRIE) with sponsorship from Alibaba.com, the first in a series of seminars by the Schwarzenegger Emerging Entrepreneur Initiative. Concluding his remarks, Draper urged the overflow audience: "Go out there and change the world."

Draper and the nine other participants shared different perspectives on entrepreneurship, but a key message underlying all of the presentations was that the world is a dynamic, rapidly changing place where entrepreneurs can succeed by anticipating and responding to global trends. In doing so, many suggested, it is also possible to change the world—for the better. The participants all concurred that China is one of the key places in the world—now and in the future—to do business, representing a challenging but a vast frontier of opportunity.

Global demographic trends are a major factor that venture capitalists consider when making investments. Addressing the worldwide aging phenomenon, which is particularly acute in Asia-Pacific countries such as Japan and China, Draper explained how DFJ has invested in a company that manufactures videogame-like devices designed to improve cognition, noting the growing market for such devices that help keep cognitive health apace with a longer life span. Hans Tung, a partner with the Shanghai-based venture capital firm Qiming Ventures, described how his firm is tracking the large segment of China's population living in small cities away from commercial hubs. These members of the populace, who prefer to shop online where they can find a wider selection of goods than in their local shopping malls, are quickly becoming a driving force in China's e-commerce market.

It is China's e-commerce and other Internet firms—fueled by the explosion of Internet users—that carry increasingly significant weight in China's domestic and the global economy. 
Duncan Clark, a visiting scholar at SPRIE, presented related findings from SPRIE's China 2.0: The Rise of a Digital Superpower research initiative, which is led by Marguerite Gong Hancock, associate director of SPRIE. China 2.0, explores the conditions generating such rapid growth of the Internet, and investigates questions surrounding the possible global implications of it. Clark noted that as China's three largest Internet firms—search engine Baidu, instant-messaging service Tencent, and e-commerce portal Taobao—expand, domestic competition will not only intensify, but move further into the global economic arena. The "big three" firms are already ranked among the top 20 Internet sites in the world based on site traffic. According to Clark, the key question in the future for U.S. companies will be how to partner with Chinese companies in order to insure their own growth.

Riding the global wave of innovation and entrepreneurship, Jonathan Ross Shriftman, co-founder of Solé Bicycle Company, and Ryder Fyrwald, vice president of global operations at the Kairos Society, have discovered opportunities to effect positive change despite a global climate of intense economic competition. Shriftman, a recent University of Southern California (USC) graduate, described the lessons that he has learned through his company's quest to manufacture low-cost, quality fixed-gear bicycles that provide a stylish, alternate form of transportation. Despite funding and language challenges, Shriftman and his partner succeeded in connecting with a manufacturer in China through Alibaba.com, and have sold nearly 800 bicycles to date. Fyrwald, who is still an undergraduate at USC's Marshall School of Business, explained the philosophy behind the Kairos Society, an international network of student entrepreneurs who seek to solve world issues through entrepreneurship and innovation. He cited the example of WaterWalla, a company that has developed, among other technologies, a low-cost water purification device for use by urban slum dwellers.

From the perspective of seasoned venture capitalists Draper and Tung and emerging entrepreneurs Shriftman and Fyrwald, the message at Entrepreneurship in the Global Marketplace was clear: the way to succeed in a rapidly changing world is to react promptly—and creatively—to global trends. And, as Shriftman suggested, it is possible to "do well by doing good," and change the world in a positive way.

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Ryder Fyrwald (left), vice president of global operations at the Kairos Society, and Jonathan Ross Shriftman, co-founder of Sole Bicycle Company.
Courtesy Alibaba.com
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About the seminar

As China's Internet population surges towards the half billion mark—double the United States—how are U.S. Internet companies faring in China? Google, Facebook, eBay, Yahoo and others have all faced challenges in China. These include external (competition, regulation/censorship) and internal (management, strategy). Can these firms find a viable position in China? Will emerging players such as Groupon fare any better? Although U.S. Internet companies have struggled, U.S. institutional investors have reaped rich rewards from stakes in leading Chinese firms such as Tencent, Baidu and Alibaba/Taobao. Is this approach a better bet than hoping that U.S. firms gain a foothold in China? If leading Chinese Internet firms continue to dominate their home market, do they stand a chance to succeed internationally including through expansion or M&A in the US?

About the Speaker

Duncan Clark is Chairman of BDA China, a company he founded in Beijing in 1994. Previously, Duncan was an investment banker with Morgan Stanley in London and Hong Kong, where he focused on telecommunications, media and technology (TMT) transactions.

He has guided BDA to become the leading consultancy servicing participants and investors in the TMT sectors in China and India. With a team of over 50 in Beijing and an office of 15 in New Delhi (opened in 2006), BDA has in recent years added to TMT an advisory capacity serving leading private equity firms investing in other fast-growing sectors in these countries such as education, retail and alternative energy.

Clark holds a B.Sc degree in economics with honors from the London School of Economics and Political Science, and currently chairs the school's alumni group in China. A UK citizen, Clark was raised in the UK, the United States and France.


Media X is the partner of this seminar.


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Duncan Clark Visiting Scholar Speaker Stanford Program on Regions of Innovation and Entrepreneurship (SPRIE)
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