By Jeff McMahon

China needs natural gas. The United States has tons of it. But Donald Trump has smothered the potential for trade between the two countries, effectively preserving the trade deficit his trade war was supposed to eliminate.

That view emerged Friday among panelists at the U.S.-China Forum hosted by the University of Chicago.

“I think natural gas is an area that is lurking as a potential real problem,” said Michael Greenstone, the Milton Friedman Professor in Economics and director of the Energy Policy Institute at Chicago.

“I think China would love to stop using so much coal, and it’s been said that there’s not enough natural-gas there, and we’re just swimming in the stuff,” he said.

“So the trade war could interrupt very profitable trade between the U.S. of natural-gas-from-shale being exported to China, and I think in principle that would help China solve both its economic growth and its pollution, but the trade war could disrupt that.”

Continue reading at Forbes…

Read More

Areas of Focus: Energy Markets
Definition
Energy Markets
Well-functioning markets are essential for providing access to reliable, affordable energy. EPIC research is uncovering the policies, prices and information needed to help energy markets work efficiently.
Fossil Fuels
Definition
Fossil Fuels
Under current policies, fossil fuels will play an important role in the energy system for the foreseeable future. EPIC research is exploring the costs and benefits of these fuels as...
Climate Change
Definition
Climate Change
Climate change is an urgent global challenge. EPIC research is helping to assess its impacts, quantify its costs, and identify an efficient set of policies to reduce emissions and adapt...
Climate Economics
Definition
Climate Economics
Climate change will affect every sector of the economy, both locally and globally. EPIC research is quantifying these effects to help guide policymakers, businesses, and individuals working to mitigate and...
Climate Law & Policy
Definition
Climate Law & Policy
As countries around the world implement policies to confront climate change, EPIC research is calculating which policies will have the most impact for the least cost.
Fossil Fuels
Definition
Fossil Fuels
Under current policies, fossil fuels will play an important role in the energy system for the foreseeable future. EPIC research is exploring the costs and benefits of these fuels as...