measuring excess capital capacity in agricultural production we introduce the concept excess capital capacity and employ a stochastic input requirement frontier to measure excess capital capacity in agricultural production we also propose a two step estimation method that allows endogenous regressors in stochastic frontier models the first step uses generalized method of moments to get consistent estimates of the frontier parameters in the presence of endogenous regressors the second step uses maximum likelihood to measure excess capital capacity and evaluate the factors that influence it the empirical application to dutch cash crop farms found varying degrees of excess capital capacity the policy implications of excess capital capacity are discussed

the stochastic convergence of co2 emissions a long memory approach in response to equity concerns surrounding the spatial distribution of co2 emissions and assumptions of co2 convergence within some climate models this paper examines the convergence of co2 emissions within the oecd over the period 1870 2004 more specifically using the local whittle estimator and its variants we examine whether relative per capita co2 emissions are fractionally integrated that is they are long memory processes which although highly persistant may revert to the mean trend in the long run our results suggest that co2 emissions within 13 out of 18 oecd countries are indeed fractionally integrated implying that they converge over time albeit slowly interestingly though the countries whose emissions are not found to be fractionally integrated are some of the highest polluters within the oecd at least in per capita terms our results have implications both for future studies of co2 convergence and for climate policy

co2 emissions and income dynamics what does the global evidence tell us this paper analyzes the co evolution of two major determinants of social welfare namely income and carbon emissions in particular by using a distribution dynamics approach based on markov chains we investigate the shape and behavior of the joint distribution of per capita income and carbon dioxide emissions we arrive at several interesting conclusions especially in the context of international negotiations on climate change first evidence does not support theoretical models predicting the existence of a poverty environment trap specifically in the long run two main groups of countries will emerge poor versus polluting countries second the typical development path leads initially to high emission levels and subsequently to high income third the convergence process towards the stationary distribution is very slow finally for carbon emissions whenever it is observed the environmental kuznets curve seems to be only a transitory phenomenon

questioning the empirical basis of the environmental kuznets curve for co2 new evidence from a panel stationarity test robust to multiple breaks and cross dependence abstract this paper investigates the time series properties of per capita co2 emissions and per capita gdp levels for a sample of 86 countries over the period 1960 2000 for that purpose we employ a state of the art panel stationarity test which incorporates multiple shifts in level and slope thereby controlling for cross sectional dependence through bootstrap methods our analysis renders clear cut evidence that per capita gdp levels are nonstationary for the world as a whole while per capita co2 is found to be regime wise trend stationary the analysis of country groups shows that for africa and asia per capita co2 is best described as nonstationary while per capita gdp appears stationary around a broken trend in addition we find evidence of regime wise trend stationarity in both variables for the country groups consisting of america europe and oceania the results of our analysis carry important implications for the statistical modelling of the environmental kuznets curve for co2 since the differing order of integration in both variables for the world as a whole and for africa and asia calls into question the validity of panel cointegration techniques which assume that both variables are nonstationary and cointegrated with one another cointegration techniques would not be appropriate either for the case of america europe and oceania which are characterised by per capita gdp and co2 emissions being stationary around a broken trend similar conclusions are reached when we analyse country groups based on levels of development failure to properly characterise the time series properties of the data by not controlling for an unknown number of structural breaks and for cross sectional dependence could be responsible for the fragility and lack of robustness surrounding the estimation of environmental kuznets curves

are the determinants of co2 emissions converging among oecd countries this paper studies convergence in co2emission intensity co2 emissions over gdp among oecd countries over the period 1960 2008 based on its determinants namely energy intensity energy consumption over gdp and the so called carbonisation index co2 emissions over energy consumption we apply the phillips and sul 2007 methodology which tests for the existence of convergence clubs our results highlight that differences in emission intensity convergence are more determined by differences in convergence of the carbonisation index rather than by differences in the dynamic convergence of energy intensity

dynamics and determinants of energy intensity in the service sector a cross country analysis 1980 2005 we present a detailed analysis of energy intensity developments across 23 service sectors in 18 oecd countries over the period 1980 2005 we find that the shift towards a service economy has contributed to lower overall energy intensity levels in the oecd but this contribution would have been considerably larger if the service sector had realized the same degree of energy efficiency improvements as the manufacturing sector in most oecd countries energy intensity levels in services tend to decrease relatively slow especially after 1995 if we control this trend for the impact of structural changes within the services sector by means of a decomposition analysis we find that in about one third of the oecd countries energy intensity levels in services have increased over time the impact of structural changes on aggregate energy intensity dynamics in services has increased considerably after 1995 highlighting a relatively poor energy efficiency performance within a wide range of service sectors we show that the introduction of information and communication technology ict plays a potentially important role here using panel data regression analysis we find a limited role for energy prices in explaining variation in energy productivity while climate conditions clearly impact energy productivity

electricity intensity convergence in iea oecd countries aggregate and sectoral analysis convergence in electricity intensity is analyzed among a sample of iea countries sigma convergence the narrowing of the distribution and to a lesser degree gamma convergence movement within the distribution are detected however electricity intensity convergence is less dramatic than energy intensity convergence convergence within the end use sectors is more diverse in terms of the rates timing extent and ultimate modal structure of the distributions commercial electricity intensity has more recently converged toward a bell shape distribution by contrast industry electricity intensity is largely converging toward two distinct groups of countries one with relatively high electricity intensity and another one with relatively low electricity intensity different still is related residential electricity consumption per capita where a small group of countries has stopped growing another group has slowed considerably while a third group experienced rapid growth

convergence in per capita carbon dioxide emissions among g7 countries a tar panel unit root approach the subject of this paper is the examination the convergence of per capita carbon dioxide emissions of the g7 countries during the 1960 2005 period in a nonlinear panel analysis framework in this approach first the linearity of the series was tested and when the linearity was rejected the threshold autoregressive tar panel unit root test which splits the data into two regimes was employed to examine the stationarity properties of the series because the null of linearity was rejected in the first step we tested the stationarity of the series using the tar panel unit root test in the tar panel unit root test we found that the united kingdom was the transition country whose per capita carbon dioxide co2 emissions determined the switch from one regime to the other the results showed that convergence existed in the first regime and divergence in the second when we tested whether absolute or conditional convergence existed we found that the per capita co2 emissions were conditionally converging in the first regime

energy consumption and co2 emissions convergence in european union member countries a tonneau des danaides abstract as the consumption of energy is responsible for approximately 80 of ghg in eu iea 2008 the impact of energy activity on the environment has received increasing attention over the last decades from scholars researchers politicians and society as a whole within eu member countries it is commonly accepted that the design of energy and mitigation policies either at national or at european level require a detailed and integrated investigation of convergence divergence pattern among the participating countries in this paper we examine the distribution dynamics of energy consumption and co2 emissions their intensities as well as the carbonization index in 23 european countries over a forty one year period in particular from 1970 to 2010 for this purpose we used quah s methodology which is based on the dynamics of cross section distributions the main conclusion is that for all the examined variables the hypothesis of convergence patterns for the eu sample is not valid moreover regarding each examined variable different groups of polarization established important differences occur across eu countries according to the climate type with respect to the examined variables our analysis provides strong evidence supporting the fact that national and european energy and mitigation policies should be implemented according to the non convergence paradigm the body of evidence provided by our analysis is of great importance to energy policy makers and for issues related to climate change

technical efficiency of french nuclear energy plants this article analyses the efficiency of french nuclear energy plants belonging to edf electricity of france from 2004 to 2008 with a dea data envelopment analysis model the convexity model is used to investigate the technical efficiency of a representative sample of nuclear plants the results indicated that some plants have undergone an improvement in technical efficiency while others have regressed in terms of technical efficiency policy implications related to the results are discussed

persistence mean reversion and non linearities in emissions evidence from the brics and g7 countries the ministerio de economia y competitividad eco2014 55236 juncal cunado gratefully acknowledges financial support from the ministerio de economia y competitividad eco2014 55496

club convergence in carbon dioxide emissions we examine convergence in carbon dioxide emissions among 128 countries for the period 1960 2003 by means of a new methodology introduced by phillips and sul econometrica 75 6 1771 1855 2007a contrary to previous studies our approach allows us to examine for evidence of club convergence i e identify groups of countries that converge to different equilibria our results suggest convergence in per capita co2 emissions among all the countries under scrutiny in the early years of our sample however there seem to be two separate convergence clubs in the recent era that converge to different steady states interestingly we also find evidence of transitioning between the two convergence clubs suggesting either a slow convergence between the two clubs or a tendency for some countries to move from one convergence club to the other

a club convergence analysis of per capita energy consumption across australian regions and sectors we examine convergence in per capita energy consumption across nine sectors and seven states and territories in australia over the period 19902016 using the phillips sul club convergence approach we find evidence of multiple convergence clubs for aggregate energy consumption per capita and for energy consumption per capita in eight of the nine sectors with full club convergence in the case of electricity the presence of multiple equilibria for most sectors reflect that states with similar features in terms of climate economic activities and population size among others tend to exhibit similar energy consumption patterns our results highlight the need to tailor policies designed to reduce energy consumption in specific sectors to the consumption convergence paths unique to particular clusters of states

testing for convergence in carbon dioxide emissions using a bayesian robust structural model we address international convergence in carbon dioxide emissions per capita and per value added derived from emission inventories based on production and consumption patterns we propose a bayesian structural model that accounts for heteroscedasticity and endogeneity between emissions and economic growth and tests for the existence of group specific convergence via shrinkage priors we find evidence for country specific conditional convergence in all emission inventories implying a half life of 2 7 3 1 years for production based emissions and 3 6 4 7 years for consumption based emissions when testing for global convergence without allowing for individual specific convergence paths the half life of hbox co 2 per capita increases to 15 26 years whereas emission intensities show a half life of 44 45 years our results highlight the current incompatibility between emission targets and economic growth and the need for faster diffusion of green technologies moreover there is no evidence for specific convergence dynamics in the european union the oecd or the countries that are subject to binding emission constraints specified in the kyoto protocol the institutional frameworks implemented in industrialized countries did not induce faster convergence among developed economies

testing for convergence in carbon dioxide emissions using a century of panel data this paper tests the convergence in per capita carbon dioxide emissions for a collection of developed and developing countries using data spanning the period 1870 2002 for this purpose three recently developed panel unit root tests that permit for dependence among the individual countries are employed the results lend strong support in favor of convergence for the panel as a whole estimates of the speed of this convergence is also provided

convergence of per capita co2 emissions across the globe insights via wavelet analysis abstract this paper examines the convergence of per capita carbon dioxide co2 emissions for 162 countries across the globe covering all income groups high income oecd high income non oecd middle income and low income countries as categorized by the world bank the incidence of stochastic convergence is analysed by making use of recently developed wavelet based unit root tests the existing studies on this subject make use of conventional unit root tests using time series and or panel data a serious drawback of these tests is that they analyse the stochastic behaviour of any series in time domain only whereas the stochastic process may behave differently across different frequencies as well thus wavelet methods are an obvious solution as they consider frequency dimension as well in addition to time dimension when analyzing the stochastic behaviour of any data series and hence these methods encompass the conventional unit root testing methodologies by providing a clear and complete picture of the stochastic process our empirical findings based on latest available time series annual data from 1960 to 2010 lend support in favor of convergence among 38 countries including 18 high income oecd countries 2 high income non oecd countries 13 middle income countries and 5 low income countries while for the rest of 124 countries the co2 emission series is found to be non stationary suggesting the divergence in these countries these findings are in contrast with the most of the existing studies which may be due to the use of wavelet based unit root tests that are of course better alternatives some policy implications evolve from the empirical findings

the effect of carbon tax on per capita co2 emissions new huadu business school 09zd050 national social science foundation of china 09zd050 08ajy022 research foundation of ministry of education of china 10jzd0018 fundamental research funds for the central universities 2010221051

implicit transaction cost management using intraday price dynamics using the exchange liquidity measure we show that implicit transaction costs exhibit intraday regularities around specific price change signals for a sample of european blue chips publicly quoted

per capita carbon dioxide emissions convergence or divergence understanding and considering the distribution of per capita carbon dioxide co2 emissions is important in designing international climate change proposals and incentives for participation i evaluate historic international emissions distributions and forecast future distributions to assess whether per capita emissions have been converging or will converge i find evidence of convergence among 23 member countries of the organisation for economic co operation and development oecd whereas emissions appear to be diverging for an 88 country global sample over 1960 2000 forecasts based on a markov chain transition matrix provide little evidence of future emissions convergence and indicate that emissions may diverge in the near term i also review the shortcomings of environmental kuznets curve regressions and structural models in characterizing future emissions distributions

testing asset fixity for u s agriculture comment whether a farmer considers an asset fixed or variable as plans are made for managing the farm depends on current opportunity costs three opportunities are particularly relevant at the time a farm management decision is made the value of an asset in use on the farm the cost of acquiring more of the asset and the benefits of disposing of some of the asset already owned by the farmer in the event that an asset can be disposed of at the same price that it can be acquired that asset is not subject to fixity and the three costs will equal one another on an optimally organized farm consider a pair of shoes acquired on a department store charge account if after taking them home the buyer finds they pinch his feet he may return them the next day and get his money back the difference between acquisition cost and salvage value at this time is negligible it is only the inconvenience of making another trip to the store suppose he discovers that the shoes pinch as he wears them at work the next day the use value is now below the acquisition cost of another pair of shoes but the salvage value of this pair has dropped precipitously his current salvage opportunities now include giving the shoes to a relative selling them to a used clothing merchant or taking an income tax deduction by giving them to charity shoes were considered a variable asset when the buyer shopped for them he expected them to be worth more to him than he paid for them they were not subject to fixity until after he wore them but that bit of history becomes irrelevant whether the shoes are a fixed or variable asset depends on whether the buyer can salvage them for more than the value he might get by tossing them in the closet with the expectation of wearing them occasionally in the event that the current salvage value of an owned asset is below the acquisition cost of an additional and comparable one the asset is subject to fixity whether it is fixed or not in a given situation depends on a comparison among opportunity costs that apply at the time the decision is made if the opportunities for using the asset on the farm exceed the cost of acquiring more of the asset the asset is variable and the profit maximizing farmer will acquire more of it if the opportunities for selling the asset in the salvage market exceed the value in use on the farm the asset is variable and the profit maximizing farmer will dispose of some or all of it when the level of use of an asset is not worth changing the farmer considers it fixed the use value is less than or equal to the acquisition cost so expansion is not profitable and the use value equals or exceeds the salvage value so it is not profitable to sell it the three relevant costs have the following relationship on an optimally organized farm acquisition cost equals or exceeds the opportunity cost of using the asset on the farm and on farm opportunity cost equals or exceeds the salvage value these ideas are readily incorporated into economic analyses of individual farms a farm manager need not decide prior to analysis what is to be fixed and what is variable the list of fixed assets is determined endogenously as part of the farm management plan the list of fixed assets varies with the initial farm organization in place at the time the planning process begins and with opportunity costs associated with buying selling and using assets subject to fixity the difficulty with fixed asset theory is in its aggregation from firm to industry problems the uniqueness of each individual farm organization is lost in the aggregation to all farms and the off farm opportunity costs which are appropriate to individual farm situations are not included in the aggregate price series used by economists to analyze the allocation of natural resources and purchased farm inputs among alternative uses the aggregation problems and data limitations make fixed asset analysis difficult at the aggregate level despite its complete simplicity at the farm level for example farm machinery is subject to fixity during a given interval the level of machinery use may increase on some farms decrease on some and remain fixed on others the net change in the aggregate whether positive negative or zero says little about the role of the fixed asset in aggregate production some degree of disaggregation is required but these difficulties do not make the consideration of fixed assets in the supply response of u s agriculture any the less important as chambers and vasavada put it asset fixity must exist at the aggregate level p 764 inasmuch as asset fixity affects the supply functions of individual farms it requires no great leap of imagination to suppose that asset fixity affects the aggregate supply function as well the difficulty arises in trying to measure and test the statistical significance of asset fixity in the aggregate supply function to illustrate for a situation of price reversal supclark edwards is an economist with the economic research service u s department of agriculture review was coordinated by peter berck associate editor

convergence in carbon dioxide emissions among industrialised countries revisited this paper examines the existence of stochastic and deterministic convergence of carbon dioxide co2 emissions in 23 countries over the period 1960 2002 for that purpose we conduct unit root testing by employing the recently developed panel stationarity test of carrion i silvestre et al carrion i silvestre j l del barrio castro t lopez bazo e 2005 breaking the panels an application to the gdp per capita econometrics journal 8 159 175 which assumes a highly flexible trend function by incorporating an unknown number of structural breaks we accommodate general forms of cross sectional dependence as well as control for finite sample bias through bootstrap methods overall our analysis provides strong evidence supporting both stochastic and deterministic convergence in co2 emissions thus confirming strazicich and list strazicich m c list j a 2003 are co2 emission levels converging among industrial countries environmental and resource economics 24 263 271 and westerlund and basher westerlund j basher s a 2007 testing for convergence in carbon dioxide emissions using a century of panel data environmental and resource economics forthcoming findings of convergence

on the stationarity of co2 emissions in oecd and brics countries a sequential testing approach abstract this study examines the non stationary properties of the per capita carbon dioxide emissions of 29 selected oecd countries plus brazil china india and south africa over the period 1960 2014 following a sequential testing procedure we analyze the historical path of the variable regarding the possible presence of abrupt ruptures and then carry out appropriate unit root tests the results show that the co2 emissions per capita are better characterised by a random walk for all the different countries furthermore the break dates and the growth rate were estimated as well for each country under study finally we decompose the carbon emissions into a secular or trend component and a cyclical component and propose a chronology of cycles in growth rates

a new approach to energy consumption per capita stationarity evidence from oecd countries abstract applying a new panel stationary test procedure to data from 32 oecd countries from 1971 to 2013 this study examines the time series properties of per capita energy consumption the results indicate that energy consumption per capita follows a mean reverting process for 16 oecd countries whereas for the remaining 16 oecd countries a mean reverting process is not the case besides energy consumption per capita exhibits some sharp and smooth structural shifts breaks in its mean and or trend levels and the endogenously identified break dates correspond to specific macroeconomic events such as oil crises gulf war asian and global financial crises these results also have important policy implications for the 16 oecd countries that have stationary energy consumption per capita series government policies intended to stabilize energy demand will have no long lasting effects and therefore governments should not adopt unnecessary policy targets for energy demand level however for the remaining 16 oecd countries such policies will have long lasting effects

convergence of per capita carbon dioxide emissions in the eu legend or reality abstract designing appropriate environmental and energy policies in order to meet the kyoto protocol s carbon dioxide co 2 reduction targets in the european union eu requires a detailed examination and thorough understanding of co 2 emission trends across the eu member states this paper investigates whether co 2 emissions have converged across 22 european countries over the 1971 to 2006 period the bayesian shrinkage estimation method is employed to do this work and the results reveal the following first the hypothesis of absolute convergence in per capita co 2 emissions is supported and a slight upward convergence is observed second the fact that countries differ considerably in both their speed of convergence and volatility in emissions makes it possible to identify different groups of countries third the results with respect to convergence do not vary much once the share of industry in gdp is accounted for in a conditional convergence analysis however a decreasing share of industry in gdp seems to contribute to a decline in per capita emissions these findings may carry important implications for both national and eu environmental policies

impact of industrialisation on co2 emissions in nigeria abstract developing countries including nigeria aim to achieve industrialisation and sustainable development however there are few empirical studies that examined the impact of industrialisation led economic transformation on carbon emissions in developing countries this is the focus of this study the paper investigates the impact of industrial value added on co2 emissions in nigeria using the kaya identity framework and augmented dickey fuller adf johansen s cointegration technique and vector error correction model vecm the data spans from 1980 to 2011 the result of the adf test indicates that continual long term policies that exert permanent shocks on the variables are required to achieve economic development industrialisation and co2 reduction the result of the analysis shows that industrial value added has an inverse and significant relationship with co2 emissions which suggests that there is no evidence that industrialisation increases carbon emissions in nigeria gdp per capita and population has positive and significant impacts on co2 emission energy intensity and carbon intensity has positive but very weak significant impact at 10 level on co2 emission the paper recommends that policy makers in nigeria should pursue pragmatic industrialisation policies coupled with modest decarbonisation and energy efficiency measures in order to ensure long term industrial economic and sustainable development

an adjustment cost rationalization of asset fixity theory this article integrates a classic concept in production economics g l johnson s asset fixity theory with the dynamic adjustment cost model until now the literature has considered these two to be incompatible by relaxing the smoothness assumption of the adjustment cost function at the origin the theory of costs of adjustment can provide a rigorous endogenization of asset fixity g l johnson and edwards results are then obtained when the linearity assumption of the adjustment cost function is imposed the work reported here also indicates that both smoothness at the origin and symmetry of adjustment cost function should be subject to empirical tests

production and consumption based convergence analyses of global co2 emissions abstract the convergent trend of co2 emissions has received wide spread attention in an attempt to meet the global reduction target but almost all of the focus has been on the production side a systematic investigation on the convergence of global co2 emissions from the production side and the consumption side is of great importance to find the pathways for the worldwide low carbon development this study distinguished production and consumption based co2 emissions of 129 economies during the period 1995 2015 based on traditional sigma gamma beta stochastic and club convergence models we identified convergence progress of co2 emission on both the production and consumption sides taking convergence speed and influential factors into account we demonstrated different convergence pathways to a reasonable climate strategy this study obtained four key results first in all cases global per capita co2 emissions on the production and consumption sides were convergent second the speed of convergence on the production side was higher than on the consumption side third population density energy intensity and the share of trade and industrialization had significant effects on the production side while per capita gdp was more important on the consumption side low carbon development due to medium and high technology manufacturing had equal impacts on consumption and production forth different convergence processes among organization for economic co operation and development oecd european union eu asia pacific economic cooperation apec and rest80 i e the other 80 developing economies indicate that mitigation policies should differ according to the industrial structure and by economic development the results of this study will extend our empirical understanding of global co2 emissions and their policy implications

stochastic convergence in per capita co2 emissions evidence from emerging economies 1921 2014 abstract we employ the recently developed lm and rals lm unit root tests that allow for endogenously determined structural breaks to study stochastic convergence in relative per capita co2 emissions over the period 1921 to 2014 for a balanced panel of emerging market economies the results provide mixed evidence of the presence of stochastic convergence in particular stochastic convergence is achieved for eleven out of the seventeen countries under investigation this implies that the energy regulatory framework in these countries needs to be revaluated in order to reduce the carbon footprint to further comprehend the factors behind the observed disparities in emission stability we analyse the determinants of the identified groups an examination of the determinants of the observed behaviour in relative per capita co2 emissions reveal that income population financial development and trade are significant drivers with trade predominantly playing a larger role in emission growth also weak evidence is found in terms of a catching up effect in the growth of relative per capita co2 emissions

have air pollutant emissions converged among u s regions evidence from unit root tests previous studies of income distribution have found evidence indicating that incomes across u s regions have converged supporting the prediction of the neoclassical growth model a potential shortcoming in these studies is that only one measure of well being is considered a measure of wealth linked to incomes or production this paper examines whether income convergence was accompanied by air pollutant emission convergence results from unit root tests provide some evidence that indicators of environmental quality have converged across u s regions during the 1929 1994 period

eco efficiency and convergence in oecd countries this paper assesses the convergence in eco efficiency of a group of 22 oecd countries over the period 1980 2008 in doing so three air pollutants representing the impact on the environment of economic activities are considered namely carbon dioxide text co 2 nitrogen oxides text no mathrm x and sulphur oxides text so mathrm x furthermore eco efficiency scores at both country and air pollutant specific level are computed using data envelopment analysis techniques then convergence is evaluated using the recent approach by phillips and sul econometrica 75 1771 1855 2007 which tests for the existence of convergence groups first we find that eco efficiency has improved over the period with the exception of text no mathrm x emissions second switzerland is the most eco efficient country followed by some scandinavian economies such as sweden iceland norway and denmark in contrast southern european countries such as portugal spain and greece in addition to hungary turkey canada and the united states are among the worst performers finally we find that both the most eco efficient countries and the worst tend to form clubs of convergence

will history repeat itself economic convergence and convergence in energy use patterns in this paper a difference in differences estimator on panel data for 30 developing and 21 industrialized countries is employed over the period 1971 2005 to examine how patterns of energy use characterized by the consumption of primary energy carriers sectoral energy use and carbon emissions are changing in the process of economic development for the average developing country in our sample the results indicate that economic catch up has been accompanied by above average growth of the use of most primary energy carriers the consumption of final energy in most sectors and total co2 emissions for industrialized countries we find that economic growth is partially decoupled from energy consumption and that above average rates of economic growth were accompanied by larger improvements in energy efficiency these results emphasize the need to identify the relevant engines of economic growth their implications for energy use and possibilities to achieve low carbon growth centered on productivity and efficiency improvements rather than on capital accumulation

an opportunity cost view of fixed asset theory and the overproduction trap comment in a 1981 ajae article johnson and pasour criticize the works of edwards and glenn johnson 1972 and earlier publications for attributing persistent excess production in agriculture to an asset fixity theory which at its crux relies on divergences between asset acquisition costs and asset salvage values johnson and pasour mjp pinpoint their critique of edwards and johnson ej when they state p 3 the conclusion of fixed asset theory that excess resources are trapped in production can be traced directly to selection of acquisition prices of resources as a benchmark for equilibrium production but there is no reason to expect the opportunity cost of a resource once acquired to equal its historical acquisition price in his 1982 ajae reply to mjp glenn johnson contends that the ej formulation does contrary to the mjp assertion allocate resources on the basis of opportunity costs including the cases where opportunity cost is equal to current not historical acquisition cost or ourrent not historical salvage value the primary purpose of this paper is to discuss briefly how mjp s article is lacking in a key respect it ignores intertemporal opportunity costs of durable resources to achieve brevity and expositional clarity other aspects of differences between mjp and ej are avoided insofar as the specifics of this paper allows conventional resource adjustment theory is reviewed by mjp their equations 1 4 pp 1 2 stress is placed on the usual hypothesis that the equilibrium use of durable resources similar to nondurables occurs when each durable s value of marginal product just equals its marginal factor cost this equilibrium relation is hypothesized for a profit maximization firm to hold for each durable resource or asset in each production or planning period t but this engine of analysis while acceptable for nondurable resources lacks crucial detail for dealing with the multiperiodicity of durable resources essentially it is a monoperiodic engine or at best it is a sequential monoperiodic engine it avoids defining the time horizon the finite or infinite span of t hence it avoids a precise definition of the relevant set of investment disinvestment and production activities to be considered by the decision maker more specifically even if t can be limited to a finite number of periods s intertemporal opportunity costs associated with each durable resource are ignored assumed by implication to not exist or assumed to equal zero to paraphrase perrin who mjp acknowledge as having reviewed their paper these are the costs of postponing the earnings which will be forthcoming from the series of replacement or new investment durable assets for the currently owned or currently considered asset moreover if the appropriate span of t is infinite it becomes even more important not to ignore intertemporal opportunity costs this point was illustrated conceptually by perrin in his figure 1 p 61 when considering optimal investment disinvestment in and use of durables multiperiod models which explicitly account for time money relationships are judged by most economic analysts to be preferable to conventional static monoperiodic models wealth maximization becomes the norm as opposed to one period profit maximization present value equations which model flows of acquisition prices ensuing quasi rents and salvage values of durables or their derived first order marginal optimizing inequalities take over the role of simple static vmp mfc equalities in what follows the resource adjustment rule hypothesized by mjp is compared with the marginal rules derived by perrin rules and logic which are presented in various earlier and subsequent texts and other publications on capital investment equation 3 in mjp p 2 summarizes their durable resource adjustment rule as follows

divergence in state level per capita carbon dioxide emissions this paper addresses the question of whether income convergence is sufficient for per capita carbon dioxide co2 emissions convergence by focusing on a set of advanced economies the u s states i undertake a variety of cross sectional and stochastic convergence tests with two novel measures of 1960 to 1999 state level co2 emissions per capita production pre electricity trade co2 and consumption post electricity trade co2 and with income per capita although incomes continue to converge i find stark divergence in production co2 per capita and no evidence of convergence for consumption co2 per capita forecasts of future distributions show little convergence in emissions

examining trends of criteria air pollutants are the effects of governmental intervention transitory despite its growth in other areas of economics time series econometric methods have not beenwidespread in the area of environmental andresource economics we illustrate one use oftime series methods by examining the time pathof us nitrogen oxide nox emission dataover the period 1900 1994 the analysishighlights that proper time series methods canaid in optimal regulatory policy as well asdeveloping empirical verification of theoriesput forth to explain economic phenomena inaddition several interesting results emerge first we find that the emissions seriescontains both a permanent and random component second if one attributed all of the emissionsreductions to regulatory policy interventionanalysis suggests that the 1970 clean air act caa did not merely have transitory effects but permanently influenced the noxemission path in terms of total regulatoryimpact an upper bound on the emissions saveddue to the 1970 caa is in the range of27 48

internalizing co2 emissions via central banks financials evidence from the world researchers and policy makers have suggested tools to mitigate co2 emissions worldwide however there appears to be uncertainty in terms of policy effectiveness the objective of this paper is to develop an innovatively effective co2 internalizing mechanism worldwide which builds on currency in circulation as its core operational tool the study is based on a large sample of countries findings show that urbanization electric power consumption and trade positively impact on co2 emissions no evidence is found in favour of the environmental kuznets curve while the use of renewable energy reduces the level of co2 emissions the paper proposes a central bank carbon dioxide emissions internalizing fund which rests on quantitative and qualitative tools to ensure a truly effective mechanism in co2 emissions abatement quantitatively this implies the use of a direct tax on currency in circulation and a conversion penalty in the fund qualitatively there is the need to establish a global institution which would ensure that funds flow to the most polluting sectors in each country in view of unleashing the strongest decline in co2 emissions

is there convergence in per capita so2 emissions in china an empirical study using city level panel data abstract as china s economy has grown rapidly in recent years china s environmental pollution has become increasingly significant among all the traditional pollutants sulfur dioxide has been monitored by the chinese government since the 1990s in this study china s city level panel data between 2002 and 2012 are utilized to investigate the existence of convergence in per capita sulfur dioxide emissions across chinese cities the conventional estimation methods for convergence suffer from an endogeneity problem and therefore produce biased results to address the endogeneity problem and allow for dynamics dynamic panel data estimators are utilized and the static estimation results are conducted as a robustness check in addition the influential factors for convergence are examined the empirical results indicate that in the chosen sample period there were absolute and conditional convergences in per capita sulfur dioxide emissions across cities within the whole nation as well as in the eastern western and central regions of china because per capita gross domestic product and the ratio of secondary industry to gross domestic product are both positively related with per capita sulfur dioxide emissions higher income per capita and greater importance of the secondary industry would cause the convergence speed to be lower therefore the most straightforward policy implication for the empirical results is that the policies for controlling sulfur dioxide emissions should be regionally differentiated for cities with high sulfur dioxide emissions per capita the regulation could be tight as the emissions would decrease faster because convergence exists however for cities with low sulfur dioxide emissions per capita the target for reducing emissions should not be excessively aggressive

are co2 emission levels converging among industrial countries time paths of carbon dioxide emissions intwenty one industrial countries are examinedfrom 1960 1997 to test for stochastic andconditional convergence both panel unit roottests and cross section regressions areperformed overall we find significantevidence that co2 emissions haveconverged

structural change and convergence of energy intensity across oecd countries 1970 2005 abstract this paper uses new and unique data derived from a consistent framework of national accounts to compute and evaluate energy intensity developments across 18 oecd countries and 50 sectors over the period 1970 2005 we find that across countries energy intensity levels tend to decrease in most manufacturing sectors in the service sector energy intensity decreases at a relatively slow rate with diverse trends across sub sectors a decomposition analysis reveals that changes in the sectoral composition of the economy explain a considerable and increasing part of aggregate energy intensity dynamics a convergence analysis reveals that only after 1995 cross country variation in aggregate energy intensity levels clearly tends to decrease driven by a strong and robust trend break in manufacturing and enhanced convergence in services moreover we find evidence for the hypothesis that across sectors lagging countries are catching up with leading countries with rates of convergence that are on average higher in services than in manufacturing aggregate convergence patterns are almost exclusively caused by convergence of within sector energy intensity levels and not by convergence of the sectoral composition of economies

carbon dioxide emissions intensity of portuguese industry and energy sectors a convergence analysis and econometric approach abstract given the relevance of energy and pollution issues for industrialised countries and the importance of industry and energy sectors to the achievement of their economic and environmental goals it is important to know if there is a common pattern of emissions intensity fuel intensity and energy intensity between industries to know if it justifies a more specific application of energy policies between sectors which sectors have the greatest potential for reducing energy use and which are the long term effects of those specific variables on the mitigation of emissions we found that although there is literature on decomposition of effects that affect emissions the study of the convergence and of the relationships between these variables does not include ratios or effects that result from the decomposition analysis thus the above questions are not answered much less for the portuguese reality the purpose of this paper is to study i the existence of convergence of some relevant ratios as carbon dioxide co 2 emissions intensity co 2 emissions by fossil fuel consumption fossil fuel intensity energy intensity and economic structure between industry and energy sectors in portugal and ii the influence that the consumption of fossil fuels the consumption of aggregate energy and gdp have on co 2 emissions and the influence that the ratios in which co 2 emissions intensity decomposes can affect that variable using an econometric approach namely panel corrected standard errors estimator we concluded that there is sigma convergence for all ratios with exception of fossil fuel intensity gamma convergence verifies for all ratios with exception of co 2 emissions by fossil fuel from the econometric approach we concluded that the considered variables have a significant importance in explaining co 2 emissions and co 2 emissions intensity

greenhouse gases emissions growth and the energy mix in europe the importance of energy on greenhouse gases ghg emissions is reflected by the fact that 65 of said emissions in the world are currently due to the use and production of energy however most empirical emission models are found within the environmental kuznetz curve ekc framework which focuses on the relationship between emissions and economic development ang s 2007 2008 papers are some of the exceptions that simultaneously study the relationship between emissions growth and energy with respect to ang s research we contribute on two important aspects first while ang uses a particular country as the study and use time series techniques we take advantage of a panel data set of 24 european countries between 1990 and 2006 and use a dynamic panel data dpd framework second the impact of energy consumption on emissions would depend on the primary energy mix and on the final use of this energy and we consider both factors in the model

structural breaks energy consumption and economic growth revisited evidence from taiwan abstract this paper studies the stability between energy consumption and gdp for taiwan during 1954 2003 we use aggregate as well as various disaggregate data of energy consumption including coal oil gas and electricity to employ the unit root tests and the cointegration tests allowing for structural breaks our main findings are first though gas consumption seems to have structural breaks in the 1960s after considering the structural breaks the series is a stationary variable when taiwan adopted its expansionary export trade policy second we find that different directions of causality exist between gdp and various kinds of energy consumption the empirical result shows unanimously in the long run that energy acts as an engine of economic growth and that energy conservation may harm economic growth third the cointegration between energy consumption and gdp is unstable and some economic events may affect the stability overall we do find the structural breakpoints and they look to match clearly with the corresponding critical economic incidents

convergence in co2 emissions a spatial economic analysis with cross country interactions abstract this research analyzes the evolution of co2 emissions per capita in a sample of 141 countries during the period 1970 2014 the study develops a spatially augmented green solow model by taking into consideration technological externalities and interdependence in the process of production which ultimately implies that co2 emissions in an economy are affected by the economic characteristics in neighboring countries the empirical model predicts convergence in co2 emissions among countries which is examined by means of modern dynamic spatial panel econometric techniques the multimodal distribution of the co2 emissions is consistent with the existence of three spatial clubs the space time dynamics of the three clubs are analyzed by means of the local directional moran scatterplot and spatial panel model with heterogeneous parameters our analysis reveals the hypothesis of spatial convergence clubs is more consistent with the data than the hypothesis of conditional convergence

structural break unit root and the causality between energy consumption and gdp in turkey abstract this paper tries to investigate a series of unit root and causality tests to detect causality between the gdp and energy consumption in turkey employing hsiao s version of granger causality method for the 1950 2000 period the conventional unit root tests indicate the series are i 1 whereas the endogenous break unit root tests proposed by zivot and andrews zivot e and andrews d w k 1992 further evidence on the great crash the oil price shock and the unit root hypothesis journal of business and economics statistics 10 251 270 and perron perron p 1997 further evidence on breaking trend functions in macroeconomic variables journal of econometrics 80 355 385 reveal that the series are trend stationary with a structural break therefore it is inappropriate to take the first difference of the data to achieve stationarity the main conclusion of this study is that there is no evidence of causality between energy consumption and gdp in turkey based on the detrended data

the causal factors of international inequality in hbox co _ 2 emissions per capita a regression based inequality decomposition analysis this paper uses the possibilities provided by the regression based inequality decomposition fields in res labor econ 22 1 38 2003 to explore the contribution of different explanatory factors to international inequality in hbox co 2 emissions per capita in contrast to previous emissions inequality decompositions which were based on identity relationships this methodology does not impose any a priori specific relationship thus it allows an assessment of the contribution to inequality of different relevant variables in short the paper appraises the relative contributions of affluence sectoral composition demographic factors and climate the analysis is applied to selected years of the period 1993 2007 the results show the important though decreasing share of the contribution of demographic factors as well as a significant contribution of affluence and sectoral composition

dynamics and drivers of per capita co2 emissions in asia abstract the aim of this paper is to document recent trends in asia s co2 emissions and explore the mechanisms that drive those emissions for fourteen countries over the period 1971 to 2017 we apply a sequential method which has a strong relationship to policy indicators first an analysis of the dynamics is undertaken to identify if convergence is occurring followed by a study of the determinants of those dynamics this approach overcomes some of the limitations of previous work analyzing emission convergence by focusing on country specific characteristics such as energy mix and energy efficiency the analysis reveals per capita co2 emissions energy intensity carbonization and per capita incomes are slowly converging over the full sample yet this behavior is not uniform there were differences in transition paths prior to and after the asian financial crisis the per capita income driver was the most important driver in explaining the dynamics and variation of emissions while carbonization and energy intensity drivers were less pronounced the analysis reveals that the energy needs of the region s extraordinary economic growth favored fossil fuels and a surprising revelation is that despite having different per capita income levels china korea and vietnam all share a common convergence path this paper provides further evidence against using carbon intensity solely as a target for climate policy

distribution dynamics of co2 emissions this paper uses nonparametric methods to examine the convergence in co2 emissions per capita on a sample of 100 countries for the period 1966 1996 industrial countries show a convergence pattern however there is little evidence of convergence for the whole sample

convergence of per capita sulphur dioxide emissions across us states this study examines the stochastic conditional convergence of sulphur dioxide so2 emissions using the residual augmented least squares lagrange multiplier rals lm unit root test with structural breaks this procedure allows the data to account for trend breaks and nonnormal errors that have been ignored or deemphasized in previous studies the study finds that per capita sulphur dioxide emissions exhibits stochastic conditional convergence across us states

are shocks to ecological balance permanent or temporary evidence from lm unit root tests abstract ecological balance can be described as the difference between ecological footprint and biocapacity it is an important indicator of sustainable and environmental development in this regard the current study aims to determine whether policies on ecological balance are effective in g7 and e7 countries covering the period of 1961 2016 to this end we use the lagrange multiplier lm unit root test lm unit root test with structural breaks and fourier lm unit root test as well as more powerful versions of these tests to investigate the stationarity of the ecological balance we also examine the effectiveness of policies regarding ecological footprint and biocapacity the empirical results obtained from both linear and non linear unit root tests show that ecological balance is stationary in germany italy japan the us china india indonesia mexico and turkey while it is non stationary in the remaining five countries however the findings based on the structural break unit root tests suggest that ecological balance is stationary in more countries finally the overall results indicate that shocks to the ecological balance in g7 countries have a more permanent effect than in e7 countries therefore g7 countries can better apply environmental protection policies than e7 countries can in the long term in brazil canada france russia and the uk environmental policies can be effectively implemented to regulate ecological balance

growth and pollution convergence theory and evidence stabilizing pollution levels in the long run is a pre requisite for sustainable growth we develop a neoclassical growth model with endogenous emission reduction predicting that along optimal sustainable paths pollution growth rates are i positively related to output growth scale effect and ii negatively related to emission levels defensive effect this dynamic law reduces to a convergence equation that is empirically tested for two major and regulated air pollutants sulfur oxides and nitrogen oxides with a panel of 25 european countries spanning the years 1980 2005 traditional parametric models are rejected by the data more flexible regression techniques confirm the existence of both the scale and the defensive effect supporting the model predictions

convergence of greenhouse gas emissions among g7 countries the convergence of air pollutants is a major concern for policymakers since all the countries pursue the goal of allocating the emissions equally internationally in the future hence the examination of the existence of convergence is important for the climate change protection of the earth in this article greenhouse gas ghg emissions convergence among the g7 countries for the period between 1990 and 2011 is examined using the pairwise testing technique proposed by that aims to analyse probabilistic convergence across a large number of cross sectional units next we proceed with multivariate tests for stability and the existence of unit roots finally the analysis is complemented by the use of the panel stationarity test accounting for structural changes as proposed by carrion i silvestre et al 2005 test overall the results do not confirm the hypothesis of convergence for the countries in question although more recently the countries have shown a small decline in their ghg emissions

investment in u s agriculture resource adjustment problems in u s agriculture are motivated against the background of the farm problem the adjustment cost hypothesis is invoked to specify and estimate consistently a system of dynamic investment demand and output supply equations by utilizing recent advances in dynamic duality theory the investment demand equations assume the form of a multivariate flexible accelerator results indicate that labor capital services and land exhibited quasi fixity while intermediate materials were a variable factor this can be construed as a form of asset fixity within aggregate u s agriculture the univariate flexible accelerator hypothesis is rejected

global convergence in per capita co2 emissions national social science foundation of china 12zd059 ministry of education 10gbj013 new huadu business school research fund

an opportunity cost view of fixed asset theory and the overproduction trap in fixed asset and exit barrier theories durable asset valuation is based upon acquisition prices yielding downwardly biased rate of return estimates and erroneous implications that excess resources become trapped in production when product price expectations fall conventional asset valuation based on opportunity cost shows that excess resource applications are incompatible with rational producer behavior market failure conclusions of overproduction trap models are shown to be unfounded a review of recently published agricultural economics texts illustrates how use of fixed asset theory in the college classroom obscures the concept of choice influencing cost and the rule of resource allocative efficiency

the overvaluation of purchasing power parity abstract recent panel studies of purchasing power parity have reported strong evidence of mean reversion in real exchange rates however these studies fail to control for cross sectional dependence in the data this failure has dramatic consequences raising the significance level of tests with a nominal size of 5 percent to as much as 50 percent it is shown in this paper that controlling for cross sectional dependence no evidence against the random walk null can be found in panels of up to 64 real exchange rates this finding cannot be attributed to low power as there is ample power in panels of this size to reject the unit root null