With the recent enactment of the CHIPS and Science Act, the conversation about industrial policy has started up again. Are state-directed economic policies back, and will such initiatives work?

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I. Overview

H.R. 5376, previously known…

President Andrés Manuel López Obrador’s investment policies, which aim to return Mexico to the protectionist, state-led policies of the 1960s and 1970s, seem almost certain to stagnate the country’s economy.

The authors take a realistic look at what's needed for the global energy transition to succeed and warn that moving away from fossil fuels too quickly could backfire — stranding climate progress in the so-called “valley of death.”

Many climate policy approaches place a disproportionate burden on lower-income families, writes fellow Mark Finley. Political leaders have started to recognize that climate policy must approach fossil fuels and energy transition as an “AND”, not an “either/or”, and that the distributional impact of policy must also be addressed. Read more on the Baker Institute Blog. This post originally appeared in the Forbes blog on January 26, 2022.

"With the pressures of climate change and the urgency to incorporate alternative energy resources like wind and solar, the fixation on the purported benefits of energy transition technologies overshadows the glaring reality — an absence of strategy around identifying and quantifying other life cycle externalities, such as waste disposal or environmental impacts," write fellow Rachel Meidl and research assistant Mathilde Saada. Read more on the Baker Institute Blog.

Recycling solar panels is an expensive, complicated and energy-intensive process, writes energy fellow Rachel Meidl. But with cumulative solar waste projections expected to rise globally over the next few decades, she argues that it is vital to design a more circular and sustainable management system for end-of-life panels.

This October the U.S. and Mexico agreed on a new bilateral security program, but "unless the United States and Mexico pursue domestic structural reforms ... both nations risk backsliding to the failures of the drug wars," writes MGA student and Drug Policy guest contributor Sidney Phillips.

By subsidizing only electric vehicles and EV batteries produced by union labor in the U.S., the auto industry could face trouble in valuable trade partnerships with Canada and Mexico, writes fellow David Gantz.