With the globalization of economic and social activities comes new global risks, which need to be addressed through well-defined global responses. In that sense, the real crisis we are facing is not merely energy independence, but rather energy interdependence across nations. And, as is often the case, the leaders of a response will be the first ones to glean the benefits of action. Although this concept has been developed in the context of nuclear fuel supplies, there is nothing to stop it from being expanded into a larger mutual insurance company that focuses on interdependence across different sources of energy. The impact on foreign policy could be considerable, and the market opportunities are undoubtedly significant.
Debra Decker ([email protected]) is an associate with Booz Allen Hamilton in McLean, Va., and a research associate at Harvard University’s Belfer Center for Science and International Affairs at the John F. Kennedy School of Government. She specializes in strategic planning and focuses on nuclear energy and national security issues.
Erwann Michel-Kerjan ([email protected]) is managing director of the Risk Management and Decision Processes Center at the Wharton School, where his work focuses on managing and financing extreme events. In 2007, he was named a Young Global Leader by the World Economic Forum, an honor recognizing the most extraordinary leaders of the world under the age of 40.