structural decomposition analysis of sources of decarbonizing economic development in china 1992 2006 abstract to analyze and understand decarbonizing economic development in china this paper undertakes a structural decomposition analysis of the historical change in energy related carbon intensity in china between 1992 and 2006 the results show that the energy related carbon intensity in china decreased by about three fourths between 1992 and 2006 and reduced carbon emissions by about two billion tons the decline in the energy related carbon intensity was mainly caused by changes in production pattern especially changes in energy intensity within each sector between 1992 and 2002 however the most important driving force of carbon intensity from 2002 2006 was not the energy intensity within each sector but the input mix on the other hand changes in demand pattern pushed up the carbon intensity to further decarbonize the economy in the future it is important for china to further enforce policies on shaping the production pattern such as reducing energy intensity and pay more attention to increasing the sustainability of the demand pattern at the same time

co2 emissions embodied in china s exports from 2002 to 2008 a structural decomposition analysis abstract this study examines the annual co2 emissions embodied in china s exports from 2002 to 2008 using environmental input output analysis four driving forces including emission intensity economic production structure export composition and total export volume are compared for their contributions to the increase of embodied co2 emissions using a structural decomposition analysis sda technique although offset by the decrease in emission intensity the increase of embodied co2 emissions was driven by changes of the other three factors in particular the change of the export composition was the largest driver primarily due to the increasing fraction of metal products in china s total export relevant policy implications and future research directions are discussed at the end of the paper

co2 emissions from china s power sector at the provincial level consumption versus production perspectives abstract the chinese electricity sector plays an important role in domestic co2 mitigation efforts due to its large contribution to overall emissions however primary energy resources used for electricity generation are not evenly distributed across the country such a supply and demand mismatch in reality results in large parts of electricity to be transferred from economically less developed provinces in the west to economic growth centres in the east a literature review shows that the emissions embodied in electricity transfer within china have not been explicitly studied although in fact they cause a shift of environmental pollution away from economically well off provinces to resource rich and less developed provinces therefore it is critical for policy makers to address this issue under such a circumstance a bottom up model is developed to calculate direct co2 emissions embodied in electricity export and import between chinese provinces it helps quantifying emissions from the power sector associated with both production and consumption perspectives and sheds lights on the environmental impact of regional supply and demand mismatch in china results show that the difference between consumption and production based co2 emissions from electricity sector in some provinces were higher than the total co2 emissions from electricity sector in netherlands in the case of beijing or as high as the total co2 emission from france s electricity sector in the case of guangdong based upon chinese realities policy implications and suggestions are made such as how to set up appropriate emission reduction targets for electricity sector at provincial level and the inclusion of consumption emissions in designing china s cap and trade mechanism the methodology and findings may be useful for investigation of embodied emissions throughout various regions of the world

china s balance of emissions embodied in trade approaches to measurement and allocating international responsibility international trade is characterized not only by the flow of capital and goods but also by the energy and emissions embodied in goods during their production this paper investigates the evolving role that chinese trade is playing in the response to climate change by estimating the scale of emissions embodied in china s current trade pattern and demonstrating the magnitude of the difference between the emissions it produces some of which are incurred to meet the consumption demands of the rest of the world and the emissions embodied in the goods it consumes estimating china s emissions on a consumption rather than a production basis both lowers its responsibility for carbon dioxide co2 emissions in 2006 from 5 500 to 3 840mtco2 and reduces the growth rate of emissions from an average of 12 5 per cent p a to 8 7 per cent p a between 2001 and 2006 the analysis indicates that a reliable consumption based accounting methodology is feasible and could improve our understanding of which actors and states are responsible for emissions for example recent emissions reductions by developed countries may lack credibility if production has merely been displaced to countries such as china moreover in the current institutional context production methodologies encourage leakages through trade that may do more to displace than to reduce emissions both equity and efficiency concerns therefore suggest that emissions embodied in trade should receive special attention in the distribution of post kyoto abatement burdens

examining the global environmental impact of regional consumption activities part 2 review of input output models for the assessment of environmental impacts embodied in trade this paper offers a detailed review of recently described single and multi region input output models used to assess environmental impacts of internationally traded goods and services it is the second part of a two part contribution in part 1 turner k lenzen m wiedmann t and barrett j in press examining the global environmental impact of regional consumption activities part 1 a technical note on combining input output and ecological footprint analysis ecological economics we describe how to enumerate the resource and pollution content of inter regional and inter national trade flows with the aim to illustrate an ideal accounting and modelling framework for the estimation of ecological footprints a large number of such environment economic models have been described but only in the last few years models have emerged that use a more sophisticated multi region multi sector input output framework this has been made possible through improvements in data availability and quality as well as computability we identify six major models that employ multi sector multi region input output analysis in order to calculate environmental impacts embodied in international trade results from the reviewed studies demonstrate that it is important to explicitly consider the production recipe land and energy use as well as emissions in a multi region multi sector and multi directional trade model with global coverage and detailed sector disaggregation only then reliable figures for indicators of impacts embodied in trade such as the ecological footprint can be derived

smooth trading with overconfidence and market power we describe a symmetric continuous time model of trading among relatively overconfident oligopolistic informed traders with exponential utility traders agree to disagree about the precisions of their continuous flows of gaussian private information with enough disagreement an equilibrium exists in which prices reveal the average of all traders signals immediately but traders continue to trade gradually towards target inventories the price is a linear function of a trader s inventory the derivative of a trader s inventory and the average other traders valuations prices reflect a keynesian beauty contest faster than equilibrium trading generates flash crashes jel d8 d43 d47 g02 g14

life cycle carbon emission flow analysis for electricity supply system a case study of china abstract the carbon emission embodied in trade is fundamental for allocation of responsibility between producers and consumers this paper quantitatively analyzes embodied carbon emissions along the life cycle of electricity supply based on network theory a modified carbon emission flow model is established based on life cycle assessment considering power losses there is also a case study of china s interregional electricity supply system in 2010 focusing on two carbon emission carriers electricity coal transportation and electricity transmission results show that the total carbon emission flow reached 169 355 mtco 2 eq i e 4 67 of the life cycle carbon emission of this 61 1 was carried by electricity coal transportation before power generation and transmission owing to an uneven distribution of coal resources the eastern and southern regions are the major net sinks of carbon emission flows representing 52 9 and 27 8 of the total respectively because of their enormous energy imports in contrast the sanxi region and central china are major net sources of carbon emission flow the proposed model may help allocate environmental responsibility among different regions to guarantee balanced trans regional development

the principal agent relationship with an informed principal ii common values in many circumstances a principal may have relevant private information when she proposes a contract to an agent we analyze such a principal agent relationship as a noncooperative game the principal proposes a contract which is accepted or rejected by the agent who for most of our analysis has no private information the contract is executed if accepted otherwise the reservation allocation takes effect this allocation may be determined by a pre existing contract which the principal by her proposal is attempting to renegotiate or it may simply be the no trade point in this paper we assume that the principal s information directly affects the agent s payoff before solving the game we discuss pareto efficiency with asymmetric information we define an incentive compatible allocation to be weakly interim efficient wie if there exists no alternative incentive compatible allocation that both parties prefer for all possible beliefs that the agent might have about the principal s private information type we show that any wie allocation is interim efficient ie for some beliefs the rothschild stiglitz wilson rsw allocation relative to the reservation allocation l is the allocation that maximizes the payoff of each type of principal within the class of incentive compatible allocations that guarantee the agent at least the utility he gets from a irrespective of his beliefs about the principal s type the equilibrium set of the contract proposal game consists of the allocations that weakly pareto dominate the rsw allocation thus there is a unique equilibrium outcome if and only if the latter is ie and the equilibrium outcome is the rsw allocation itself after characterizing the equilibrium allocations we study those that are renegotiation proof when either the principal or the agent leads the renegotiation we then compare our contract proposal game which is a signaling model with its screening counterpart we conclude by extending our results to the case in which the agent as well as the principal has private information under the assumption of quasi linear preferences

the impact of domestic trade on china s regional energy uses a multi regional input output modeling to systematically reveal how domestic trade impacts on china s regional energy uses an interprovincial input output modeling is carried out to address demand derived energy requirements for the regional economies in 2007 based on the recently available data both the energy uses embodied in final demand and interregional trade are investigated from the regional and sectoral insights significant net transfers of embodied energy flows are identified from the central and western areas to the eastern area via interregional trade shanxi is the largest energy producer and interregional embodied energy deficit receiver in contrast to guangdong as the largest energy user and surplus receiver by considering the impacts of interregional trade the energy uses of most eastern regions increase remarkably for instance shanghai hainan zhejiang beijing jiangsu and guangdong have their embodied energy requirements 87 49 19 97 13 64 12 60 6 46 and 6 38 times of their direct energy inputs respectively in contrast the embodied energy uses of some central and western regions such as inner mongolia shanxi xinjiang shaanxi and guizhou decrease largely the results help understand the hidden network linkages of interregional embodied energy flows and provide critical insight to amend china s current end reduction oriented energy policies by addressing the problem of regional responsibility transfer

shared producer and consumer responsibility theory and practice abstract over the past decade an increasing number of authors have been examining the nexus of producer versus consumer responsibility often dealing with the question of how to assign responsibility for internationally traded greenhouse gas emissions recently a similar problem has appeared in drafting the standards for the ecological footprint while the method traditionally assumes a full life cycle perspective with full consumer responsibility a large number of producers businesses and industry sectors have started to calculate their own footprints see www isa org usyd edu au adding any producer s footprint to other producers footprints or to population footprints which all already cover the full upstream supply chain of their operating inputs leads to double counting the sum of footprints of producers and consumers is larger than the total national footprint the committee in charge of the footprint standardisation process was hence faced with the decades old non additivity problem posing the following dilemma for the accounting of footprints or any other production factor if one disallows double counting but wishes to be able to account for producers and consumers then one cannot impose the requirement of full life cycle coverage the supply chains of actors have to be curtailed somehow in order to avoid double counting this work demonstrates and discusses a non arbitrary method of consistently delineating these supply chains into mutually exclusive and collectively exhaustive portions of responsibility to be shared by all actors in an economy

strong form efficiency with monopolistic insiders we study market efficiency in an infinite horizon model with a monopolistic insider the insider can trade with competitive market makers and noise traders and observes privately the expected growth rate of asset dividends in the absence of the insider this information would be reflected in prices only after a long series of dividend observations thus the insider s information is long lived surprisingly however the monopolistic insider chooses to reveal her information very quickly within a time converging to zero as the market approaches continuous trading although the market converges to strong form efficiency the insider s profits do not converge to zero

from production based to consumption based national emission inventories abstract under the united national framework convention of climate change unfccc countries are required to submit national emission inventories nei to benchmark reductions in greenhouse gas ghg emissions depending on the definition and system boundary of the nei the mitigation options and priorities may vary the territorial system boundary used by the unfccc has been critiqued for not including international transportation and potentially causing carbon leakage to address these issues past literature has argued in favour of using consumption based nei in climate policy this article discusses several issues in moving from the standard production based nei to consumption based nei first two distinct accounting approaches for constructing consumption based nei are presented the approaches differ in the allocation of intermediate consumption of imported products second a consistent method of weighting production based and consumption based nei is discussed this is an extension of the previous literature on shared responsibility to nei third due to increased uncertainty and a wide system boundary it may be difficult to implement consumption based nei directly into climate policy several alternative options for incorporating consumption based inventories into climate policy are discussed

optimal contracts with public ex post information abstract we are concerned with the value of public ex post information about a seller s costs to an initially uninformed buyer we derive necessary and sufficient conditions for a public ex post signal s s that is correlated with the risk neutral seller s costs to render the initial information asymmetry inconsequential to the buyer the first best outcome for the buyer is shown to be feasible if 1 the dimension of s is at least that of or 2 the conditional likelihood function of s given is for one of its realizations sj a strictly increasing function of and more concave in than is the seller s cost function

the principal agent relationship with an informed principal the case of private values we analyze the principal agent relationship when the principal has private information as a three stage noncooperative game contract proposal acceptance refusal and contract execution we assume that the information does not directly affect the agent s payoff private values equilibrium exists and is generically locally unique moreover it is pareto optimal for the different types of principal the principal generically does strictly better than when the agent knows her information equilibrium allocations are the walrasian equilibria of an economy where the traders are different types of principal and exchange the slack on the agent s individual rationality and incentive compatibility constraints

emissions embodied in chinese exports taking into account the special export structure of china abstract quantification of co 2 emissions embodied in china s trade is important for an informed debate on whom to blame for the recent rise in chinese emissions or the calculation of border carbon adjustments applying input output io techniques we calculate these emissions in 1 a standard model 2 a regionally disaggregated model taking into account that export production is concentrated in more advanced and more emission efficient provinces and 3 in a model with export processing taking into account that almost half of the chinese exports rely on a large share of imported intermediates and little domestic value and emissions added we compare year 2007 emissions embodied in chinese exports in a unified framework we also report emissions embodied in chinese imports used for intermediate production of exports by combining calculations for china with data from global io models we find that both a model with 30 provinces 1730 mt co 2 and a model accounting for export processing 1630 mt yield lower chinese emissions embodied in exports compared to the standard model 1782 mt in the regional model emissions are even lower 1522 mt if interprovincial trade is not taken into account

an analysis of the driving forces of co2 emissions embodied in japan china trade abstract by using the latest china japan input output data sets and the index decomposition analysis ida approach this article analyzes the driving forces of co2 emissions embodied in trade between the two countries during 1990 2000 we found that the growth of trade volume had a large influence on the increase of co2 emissions embodiments in bilateral trade the dramatic decline in carbon intensity of the chinese economy is a primary cause in offsetting co2 emissions exported from china to japan over 1995 2000 we argue that a better understanding of the factors affecting co2 emissions embodied in international trade will assist in seeking more effective climate policies with wider participation in the post kyoto regime

mechanism design by an informed principal private values with transferable utility we provide a solution to the informed principal problem in the independent private values setting with monetary transfers the principal s private information creates signaling considerations that may distort the implemented allocation we show that there is no distortion all principal types implement an allocation that is optimal for the principal ex ante before he she learns his her type as an application we consider settings with linear utility for bilateral exchange in which the principal is one of the traders the solution is a combination of a participation fee a buy out option for the principal and a resale stage with posted prices

who shapes china s carbon intensity and how a demand side decomposition analysis abstract as national efforts to decouple carbon emissions from economic growth intensify policymakers need more specific sub national information about the sources and reduction potentials of carbon intensity this study presents a demand side decomposition of china s carbon intensity to its regions final demand types and economic sectors based on a predefined aggregate embodied intensity aei indicator i e the ratio of embodied emissions to embodied value added we find that china s carbon intensity has been largely shaped by developed provinces capital investment demand and the construction sector however less developed provinces consumption demand and the services sector have played increasingly important roles wealthy provinces generally experienced much lower aeis and higher aei reductions compared to poor provinces from 2007 to 2012 mainly owing to the provincial differences in final demand structure and sectoral structure coastal region s emission reduction efforts at both production and demand sides were the main contributor to china s decrease in carbon intensity during the period while interior region s structural degradation in demand partially offset the decrease our results suggest that allocating national carbon intensity targets based on aei and adjusting the final demand structure of central western provinces would greatly benefit for china to achieve its ambitious carbon intensity target by 2030

a review of recent multi region input output models used for consumption based emission and resource accounting abstract the interest in consumption based emission and resource accounting has grown significantly many studies juxtapose consumer emissions carbon footprint and producer territorial emissions of greenhouse gases in order to demonstrate the effects of trade on the national emission budget to this end a respectable number of studies have been undertaken worldwide in order to estimate emissions embedded in international trade of numerous countries and world regions input output approaches and increasingly multi region input output mrio models are commonly chosen as they provide an appropriate methodological framework for complete carbon footprint estimates at the national and supra national level with increasing processing capabilities of computers and a wider availability of economic accounts environmental accounts and trade data such models are now being implemented on a wide scale after a brief overview of salient single region input output studies i provide an in depth review of the most recent multi region input output models used for the purpose of consumption based environmental accounting the main methodological features and important results are described for around twenty studies covering the years 2007 to 2009 this is followed by a detailed review of studies dealing with uncertainty in mrio analysis an area which has not received a lot of attention so far i conclude that further research is mainly needed in two areas a improvements in data availability and quality and b improvements in the accuracy of mrio modelling

will economic restructuring in china reduce trade embodied co2 emissions we acknowledge the support of the national social science foundation of china project no project no 09 zd029 and the institute for energy environment and economy at tsinghua university which is supporting tianyu qi s doctoral research as a visiting scholar at the massachusetts institute of technology we further acknowledge the support of eni s p a icf international and shell international ltd initial sponsors of the china energy and climate project in the mit joint program on the science and policy of global change at mit none of the sponsoring organizations played a role in the study design collection analysis or interpretation of the data used for this study nor did they influence our decisions to submit the article for publication and all errors are our own we also acknowledge general industrial and government sponsors of the joint program on the science and policy of global change http globalchange mit edu sponsors all

china s provincial co2 emissions embodied in international and interprovincial trade trades create a mechanism of embodied co2 emissions transfer among regions causing distortion on the total emissions as the world s second largest economy china has a large scale of trade which results in the serious problem of embodied co2 emissions transfer this paper analyzes the characteristics of china s co2 emissions embodied in international and interprovincial trade from the provincial perspective the multi regional input output model is used to clarify provincial co2 emissions from geographical and sectoral dimensions including 30 provinces and 28 sectors two calculating principles production accounting principle and consumption accounting principle munksgaard and pedersen 2001 are applied the results show that for international trade the eastern area accounts for a large proportion in china s embodied co2 emissions the sectors as net exporters and importers of embodied co2 emissions belong to labor intensive and energy intensive industries respectively for interprovincial trade the net transfer of embodied co2 emissions is from the eastern area to the central area and energy intensive industries are the main contributors with the largest amount of direct co2 emissions the eastern area plays an important role in co2 emissions reduction the central and western areas need supportive policies to avoid the transfer of industries with high emissions

those who know most insider trading in eighteenth century amsterdam this paper studies how private information is incorporated into prices using a unique setting from the eighteenth century that is closer to stylized models of price discovery than modern day markets specifically the paper looks at english securities traded in both london and amsterdam private information reached amsterdam through sailing boats that sailed only twice a week and in adverse weather could not sail at all results are consistent with a kyle model in which informed agents trade strategically most importantly the speed of information revelation in amsterdam depended on the expected time until the private signal would become public

promises and pitfalls in environmentally extended input output analysis for china a survey of the literature abstract as the world s largest developing economy china plays a key role in global climate change and other environmental impacts of international concern environmentally extended input output analysis ee ioa is an important and insightful tool seeing widespread use in studying large scale environmental impacts in china calculating and analyzing greenhouse gas emissions carbon and water footprints pollution and embodied energy this paper surveys the published articles regarding ee ioa for china in peer reviewed journals and provides a comprehensive and quantitative overview of the body of literature examining the research impact environmental issues addressed and data utilized the paper further includes a discussion of the shortcomings in official chinese data and of the potential means to move beyond its inherent limitations

an undominated mechanism for a class of informed principal problems with common values in a class of informed principal problems with common values we define iteratively a particular allocation which we call the assured allocation it is comparatively easy to calculate and straightforward to interpret it always exists is unique and continuous in the priors it is undominated i e efficient among the different types of the principal subject to the agent s interim participation constraint it is a perfect bayesian equilibrium of the three stage game in myerson 16 and maskin and tirole 14 it dominates the rsw allocation as defined in maskin and tirole 14 and coincides with it when the latter is undominated it is the unique neutral optimum as defined in myerson 16 when there are only two types when the assured allocation is separating then it is a neutral optimum with three or more types it is an equilibrium of a game of competition in a market with adverse selection

primary energy and greenhouse gases embodied in australian final consumption an input output analysis input output modeling of primary energy and greenhouse gas embodiments in goods and services is a useful technique for designing greenhouse gas abatement policies the present paper describes direct and indirect primary energy and greenhouse gas requirements for a given set of australian final consumption it considers sectoral disparities in energy prices capital formation and international trade flows and it accounts for embodiments in the gross national expenditure as well as the gross domestic product primary energy and greenhouse gas intensities in terms of mj and kg co2 e are reported as well as national balances of primary energy consumption and greenhouse gas emissions

input output analysis of co2 emissions embodied in trade and the driving forces processing and normal exports in recent years energy related co2 emissions embodied in international trade and the driving forces have been widely studied by researchers using the environmental input output framework most previous studies however do not differentiate different input structures in manufacturing processing exports and normal exports using china as an example this paper exemplifies how implications of results obtained using different export assumptions differ the study posits that the utilization of traditional i o model results in an overestimation of emissions embodied in processing exports and an underestimation in normal exports the estimate of co2 emissions embodied in china s exports drops by 32 when the extended i o model is used the choice of export assumption has more impact on the decomposition results for processing exports the study further highlights that for a country with an export structure similar to china it is meaningful to look into the impact of export assumption in embodied emission studies

sector decomposition of china s national economic carbon emissions and its policy implication for national ets development abstract uncovering the contributions of each sector s driving factors to the growth of national economic carbon emissions has great significance for china in developing its nationwide emission trading scheme ets the paper applies the index decomposition analysis ida and logarithmic mean divisia index lmdi model to discuss the underlying drivers behind china s national economic carbon emissions during the period 1996 2012 from both sector and factor decomposition perspectives and accordingly offers policy proposals for china s national ets development major conclusions include 1 six heavy industry sectors the transport storage post sector and the construction sector are the largest contributors and hence proposed for incorporation into the ets s coverage 2 the rapid expansion of economic output dominantly increases carbon emissions the design of cap on emissions should allow for a proper increment and establish a new entrant reserve to coordinate economic development 3 as the dynamics of carbon emissions vary markedly across sectors allowance allocation needs to consider the changing sectoral structure of emissions 4 the combined effects of sectoral energy intensity and structure changes largely offset carbon emissions benchmarking is suggested as an ideal allocation mechanism and the setup of sectoral carbon intensity benchmark should synthetically evaluate the potential impacts of related factors 5 manufacturer based manner and carbon offset mechanism are respectively recommended for the initial implementation of carbon trading in the transport storage post sector and the construction sector

temporal and spatial variations in consumption based carbon dioxide emissions in china china s co2 emissions have sharply increased in recent years with soaring economic development and urbanization consumption based accounting of co2 emissions could provide new insights for allocating regional mitigation responsibility and curbing the emissions a multi regional input output model is used to study the trends and disparities of consumption based emissions from chinese provinces during the period 2002 2007 results show that china s consumption based co2 emissions grew from 3549 mt in 2002 to 5403 mt in 2007 with an annual average growth rate of 8 8 the annual growth rate in the richer eastern region was over 10 because of a rapid increase in capital investment and the growth of urban consumption consumption based co2 emissions embodied in interprovincial trades contributed only 10 351 mt to the national total of such emissions in 2002 but 16 864 mt in 2007 given low per capita emissions currently china s consumption based emissions have much room to grow because of further development of urbanization and stimulation of domestic demand the government should pay greater attention to controlling co2 emissions from a consumption based perspective 2014 elsevier ltd

imperfect competition among informed traders we analyze competition among informed traders in the continuous time kyle 1985 model as foster and viswanathan 1996 do in discrete time we explicitly describe the unique linear equilibrium when signals are imperfectly correlated and confirm the conjecture of holden and subrahmanyam 1992 that there is no linear equilibrium when signals are perfectly correlated one result is that at some date and at all dates thereafter the market would have been more informationally efficient had there been a monopolist informed trader instead of competing traders the relatively large amount of private information remaining near the end of trading causes the market to approach complete illiquidity copyright the american finance association 2000

china s energy demand and its characteristics in the industrialization and urbanization process a reply zhang and qin 2013 argued that in jiang and lin 2012 the equation form and variable selection should be altered and it was problematic to use regression equation to project the future in this reply we disagree with and will refute some of the points raised in their comments the model that we established was based on the mature economic theory with the variable selections all having economic implications considering the economic development stage china s urbanization will speed up and this will have significant effect on energy consumption therefore urbanization is an indispensable variable for analyzing energy demand in china the scenario design only in terms of the gdp is sufficient for illustrating energy demand trend in china to be understood in a way by most of the people although energy forecast is not that precise it has an important implication for energy policy design especially for china which is in transition and china s energy demand will keep high growth in the mid term

correlated information and mechanism design in models of asymmetric information possession of private information leads to rents for the possessors this induces mechanism designers to distort away from efficiency the authors show that this is an artifact of the presumption that information is independently distributed rent extraction in a large class of mechanism design games is analyzed and a necessary and sufficient condition for arbitrarily small rents to private information is provided additionally the two person bargaining game is shown to have an efficient solution under first order stochastic dominance and a hazard rate condition similar conditions allow full rent extraction in milgrom weber auctions

on intraday risk premia this article presents a framework for analyzing the dynamic effects of anticipated large demand pressures on asset risk premia we show that large institutions who can time their entry into the market will trade either at the open or during periods of unusual demand pressures we show that if these institutions do enter later in the day they trade in the same direction as institutions which provide liquidity continuously institutions therefore appear to exhibit herding behavior we also explore how changing the uncertainty of demand pressures late in the day affects trading costs throughout the day most financial market investors do not continuously monitor intraday fluctuations in stock prices other activities e g outside employment often take precedence over following the stock market and there are limitations to processing information for example a reader of this page is likely to be unaware of current financial market prices in fact for many investors entry into financial markets occurs once a day or even less frequently given these institutional realities it is of interest to explore how asset markets react when it is known that a set of very large predictable demands will arrive during the afternoon does their arrival affect prices only when they arrive or throughout the day if the price impact is spread out then how do trading costs behave during the day if some traders have the flexibility to time their entry into the market when will they arrive during the day and how will their entry decisions affect asset risk premia if market participants anticipate that demands in the afternoon will be unusually volatile how does this affect the intertemporal behavior of prices and expected returns earlier in the day the primary focus of this article is the development of tractable methodologies that can address these issues

carbon dioxide mitigation target of china in 2020 and key economic sectors china proposed a co2 mitigation target in 2020 to deal with anthropogenic global climate change chinese policy makers mainly focus on three factors comprising consumption structure changes energy technology development and new energy increments in addition sectoral co2 reduction is increasingly concerned in the world thus it is significant to investigate integrated impacts of three factors to china s co2 mitigation target as well as to identify key economic sectors for achieving this target in this study energy demand and co2 emission in 2020 are predicted five scenarios are generated to illustrate the contributions of three factors in addition twelve key economic sectors for reducing energy demand and co2 emission are identified from both production and final demand perspectives under integrated impacts of three factors china s co2 intensity per unit gross domestic product in 2020 will decrease by about 43 9 in 2020 than 2005 level in the short term china s co2 mitigation will be highly dependent on energy technology development in the long term it will mainly rely on reshaped consumption structure changes and new energy development in addition china s future policies should focus on 12 identified key economic sectors

input output analysis of co2 emissions embodied in trade the effects of sector aggregation abstract energy related co2 emissions embodied in international trade have been widely studied by researchers using the environmental input output analysis framework it is well known that both sector aggregation and spatial aggregation affect the results obtained in such studies with regard to the latter past studies are often conducted at the national level irrespective of country or economy size for a large economy with the needed data studies may be conducted at different levels of spatial aggregation we examine this problem analytically by extending the work of su et al su b huang h c ang b w zhou p 2010 input output analysis of co2 emissions embodied in trade the effects of sector aggregation energy economics 32 1 166 175 on sector aggregation we present a numerical example using the data of china and by dividing the country into eight regions it is found that the results are highly dependent on spatial aggregation our study shows that for a large country like china it is meaningful to look into the effect of spatial aggregation

china s foreign trade and climate change a case study of co2 emissions abstract the globalization of trade has numerous environmental implications trade creates a mechanism for consumers to shift environmental pollution associated with their consumption to other countries carbon leakage exerts great influences on international trade and economy applying an input output approach the paper estimates the amount of carbon dioxide co2 embodied in china s foreign trade during 1997 2007 it is found that 10 03 26 54 of china s annual co2 emissions are produced during the manufacture of export goods destined for foreign consumers while the co2 emissions embodied in china s imports accounted for only 4 40 1997 and 9 05 2007 of that we also estimate that the rest of world avoided emitting 150 18 mt co2 in 1997 increasing to 593 mt in 2007 as a result of importing goods from china rather than manufacturing the same type and quantity of goods domestically during 1997 2007 the net additional global co2 emissions resulting from china s exports were 4894 mt then the paper divides the trade embodied emissions into scale composition and technical effect it was found that scale and composition effect increased the co2 emissions embodied in trade while the technical effect offset a small part of them finally its mechanism and policy implications are presented

the effect of trade between china and the uk on national and global carbon dioxide emissions we estimate the amount of carbon dioxide embodied in bi lateral trade between the uk and china in 2004 developing and applying the method of shui and harriss 2006 tile role of co2 embodiment in us china trade energy policy 34 4063 4068 the most recently available data on trade and co2 emissions have been updated and adjusted to calculate the co2 emissions embodied in the commodities traded between china and the uk it was found that through trade with china the uk reduced its co2 emissions by approximately 11 in 2004 compared with a non trade scenario in which the same type and volume of goods are produced in the uk in addition due to the greater carbon intensity and relatively less efficient production processes of chinese industry china uk trade resulted in an additional 117 mt of co2 to global co2 emissions in the same one year period compared with a non trade scenario in which the same type and volume of goods are produced in the uk this represents an additional 19 to the reported national co2 emissions of the uk 555 mt y in 2004 and 0 4 of global emissions these findings suggest that through international trade very significant environmental impacts can be shifted front one country to another and that international trade can but does not necessarily result in globally increased greenhouse gas emissions these results are additional to the environmental consequences of transporting goods which are not robustly quantified here c 2008 elsevier ltd all rights reserved

structural analysis of material flows in china based on physical and monetary input output models abstract the physical input output pio model has different product flow scopes from the monetary input output mio model using the pio and mio models to analyze the structure of material flows can identify new hotspots for policy decisions over each other however pio models are not well studied in existing studies on the structure of china s material flows this study uses both the pio and mio models to analyze consumption based material flows of chinese sectors and critical supply chain paths leading to china s material flows results show that the pio and mio models validate each other by simultaneously identifying critical sectors and important final demand categories however product prices and the treatment of services lead to different findings based on the mio and pio models compared with the pio model the mio model underestimates the contribution of the construction sector to china s material flows but overestimates that of the equipment and machinery and other services sectors the pio model reveals the higher importance of rural household consumption while the mio model identifies more critical supply chain paths associated with services the pio and mio models can complement each other in the implementation and assessment of environmental measures e g production efficiency improvement

net trade and market efficiency in grossman and stiglitz 1980 abstract in this paper we correct part b of theorem 6 of grossman and stiglitz gs 1980 we demonstrate that when the private signal tends to be perfect the market converges to strong form efficiency and thus informed and uninformed traders have almost homogeneous beliefs about the stock payoff but there is still significant net trade rather than no trade as erroneously shown by gs we further show that when the stock price becomes more informative and thus traders beliefs about the stock payoff become closer the net trade may increase

a model of competitive stock trading volume a model of competitive stock trading is developed in which investors are heterogeneous in their information and private investment opportunities and rationally trade for both informational and noninformational motives i examine the link between the nature of heterogeneity among investors and the behavior of trading volume and its relation to price dynamics it is found that volume is positively correlated with absolute changes in prices and dividends i show that informational trading and noninformational trading lead to different dynamic relations between trading volume and stock returns

china s inter regional spillover of carbon emissions and domestic supply chains in this study we apply the inter regional input output model to explain the relationship between china s inter regional spillover of co2 emissions and domestic supply chains for 2002 and 2007 based on this model we propose alternative indicators such as the trade in co2 emissions co2 emissions in trade and the regional trade balances of co2 emissions our results do not only reveal the nature and significance of inter regional environmental spillover within china s domestic regions but also demonstrate how co2 emissions are created and distributed across regions via domestic and global production networks results show that a region sc o2 emissions depend on its intra regional production technology energy use efficiency as well as its position and participation degree in domestic and global supply chains 2013 elsevier ltd all rights reserved

strategic trading in a dynamic noisy market this paper studies a dynamic model of a nancial market with a strategic trader in each period the strategic trader receives a privately observed endowment in the stock he trades with competitive market makers to share risk noise traders are present in the market after receiving a stock endowment the strategic trader is shown to reduce his risk exposure either by selling at a decreasing rate over time or by selling and then buying back some of the shares sold when the time between trades is small the strategic trader reveals the information regarding his endowment very quickly

examining the global environmental impact of regional consumption activities part 1 a technical note on combining input output and ecological footprint analysis in recent years there have been a number of attempts to develop a more comprehensive approach to the issue of measuring resource use and or pollution generation embodied in trade flows including contributions that combine input output techniques and ecological footprint analysis in this two part paper we describe how to enumerate the resource and or pollution content of inter regional and inter national trade flows part 1 and we present a literature review of recent methodological and empirical developments part 2 it is straightforward in principle to extend the basic input output approach to capture international trade flows however in practice problems of data availability and compatibility and of computability of extended input output matrices mean that simplifying assumptions are generally applied but with the implications of these assumptions often not made fully explicit what appears to be absent from previous applications is an account of the analytical method by which ecological footprints should ideally be estimated in an international input output accounting analysis this allows an explicit analysis of the problems that prevent the application of the full method and identification of the most appropriate short cut methods in a transparent way the objective of this paper is to provide such an account

foreign trade and declining pollution in sweden a decomposition analysis of long term structural and technological effects this article examines whether there exists any causal relationship between foreign trade and declining pollution in developed countries in other words do developed countries outsource their problems to less developed countries rather than solve them the case study is the swedish economy and the two environmental indicators employed are energy consumption and co2 emissions no causal relationships are found since sweden has long been a net exporter of embodied energy and co2 and continues to be so after 1970 when energy consumption stabilizes and co2 emissions decline in addition the ratios of net exported energy and co2 to total consumption remain stable which means there were no effects on the energy intensity or co2 intensity either these results suggest that internal forces like efficiency improvements changed consumption patterns and transformation of the energy system have been crucial for relative environmental improvement in sweden while foreign trade has played no role

informed principal with correlation in this paper we analyze a simple two sided adverse selection model with one principal and one agent they are both risk neutral and have private information about their type we also assume that the private information of the principal is correlated with the one of the agent the main result of the paper is that the principal can extract a larger share of the surplus from the agent than in the case where her information is public the principal can design such a contract because she exploits the fact that her type is an informative signal on the agent s one we fully characterize the equilibrium of the principal agent game in which different types of principal offer the same menu of contracts that leave the agent uninformed about the principal s type this gives more freedom to the principal when setting the transfers because the agent s constraints need to hold only at an interim stage the principal gains from a peculiarity of the correlated environment different types of agent have different beliefs about the probability distribution over the states of the world

long lived private information and imperfect competition we develop a multi period auction model in which multiple privately informed agents strategically exploit their long lived information we show that such traders compete aggressively and cause most of their common private information to be revealed very rapidly in the limit as the interval between auctions approaches zero market depth becomes infinite and all private information is revealed immediately these results are in contrast to those of kyle 1985 in which the monopolistic informed trader causes his information to be incorporated into prices gradually and when the interval between auctions is vanishingly small market depth is constant over time fama 1970 defines a strong form efficient market as one in which security prices fully reflect all available information including both publicly and privately held information in a pioneering and influential article kyle 1985 develops a model in which a single privately informed trader with long lived information optimally exploits his monopoly power over time kyle s 1985 main results are i the informed trader trades in a gradual manner so that his information is incorporated into prices at a slow almost linear rate and ii when auctions are held continuously the depth of the market is constant over time however kyle s 1985 assumption of a single informed trader is strong in the sense that in actual financial markets it is reasonable to expect that at least a few players will have access to private information and will trade in the knowledge that they will face competition with other informed agents in the market 1 we develop a multi period auction model in which multiple strategic informed traders optimally exploit their long lived informational advantage we thus explore the restrictiveness of kyle s assumption of a single informed trader and also examine

strategic trading and unobservable information acquisition abstract we allow a strategic trader to choose when to acquire information about an asset s payoff instead of endowing her with it when the trader dynamically controls the precision of a flow of information the optimal precision evolves stochastically and increases with market liquidity because the trader exploits her information gradually the equilibrium price impact and market uncertainty are unaffected by her rate of acquisition if she pays a fixed cost to acquire lumpy information at a time of her choosing the market can break down we show that no equilibria exist with endogenous information acquisition our analysis suggests caution when applying insights from standard strategic trading models to settings with information acquisition

quo vadis mrio methodological data and institutional requirements for multi region input output analysis abstract in order to understand wider sustainability impacts of consumption and to successfully promote and implement sustainable consumption and production policies there is a need to capture the whole life cycle impact of products and services across international supply chains multi region input output mrio databases are a well described and suitable foundation for global sustainability analyses addressing a wide range of policy and research questions in this paper we reflect on the reasons for the recent boom in mrio compilation summarise the current state of development and discuss future options for mrio analysis we list in detail the requirements for efficient and effective mrio research and propose systemic and institutional changes we deliberately try to go beyond existing ambitions for mrio compilation and thus intend to stimulate discussion and to lay out the options for the future of mrio research

china s regional co2 emissions characteristics inter regional transfer and emission reduction policies abstract this paper analyzes the characteristics of china s regional co 2 emissions and effects of economic growth and energy intensity using panel data from 1997 to 2009 the results show that there are remarkable regional disparities among eastern central and western areas regional elasticities of per capita gdp and energy intensity on co 2 emissions which reflect the regional differences in economic development economy structure and restraining function of energy intensity decrease on the emission energy intensity reducing is more effective to emission abatement for provinces with higher elasticity of energy intensity but may not be significant for provinces with lower elasticity the inverse distribution of energy production and consumption regional unfairness caused by institutional factors like energy price and tax system result in inter regional co 2 emission transfer embodied in the power transmission the calculation indicates that the embodied emission transfer was gradually significant after 2003 from eastern area to the central and western areas especially energy production provinces in central area which leads to distortion on the emission and emission intensity the regional emission reduction targets and supporting policies should be customized and consistent with the actual situations rather than setting the same target for all the provinces

impact of inter sectoral trade on national and global co2 emissions an empirical analysis of china and us abstract this paper attempts to discuss the co2 emissions embodied in sino us international trade using a sector approach based on an input output model established in this study we quantify the impact of sino us international trade on national and global co2 emissions our initial findings reveal that in 2005 the us reduced 190 13 mt co2 emissions through the consumption of imported goods from china while increasing global co2 emissions by about 515 25 mt similarly china reduced 178 62 mt co2 emissions through the consumption of us goods while reducing global co2 emissions by 129 93 mt sino us international trade increased global co2 emissions by 385 32 mt as a whole of which the chemical fabricated metal products non metallic mineral products and transportation equipment sectors contributed an 86 71 share therefore we suggest that accelerating the adjustment of china s trade structure and export of us advanced technologies and experience related to clean production and energy efficiency to china as the way to reduce the negative impact of sino us trade on national and global co2 emissions this behavior should take into account the processing and manufacturing industries as a priority especially the chemical fabricated metal products non metallic mineral products and transportation equipment sectors

the carbon content of japan us trade we analyze the greenhouse gas emissions embodied in trade between japan and the us extending the japanese government s linked japan us input output model to include carbon emission coefficients for each sector we estimate that in 1995 japan us trade reduced us industrial emissions by 14 6 million tons of co2 equivalent and increased emissions in japan by 6 7 million tons for a global savings of 7 9 million tons these quantities are less than one percent of each country s total emissions trade with the rest of the world reduced emissions by much larger amounts roughly four percent of each country s emissions the sectoral patterns of carbon intensity are strongly correlated between japan and the us in addition greater carbon intensity has a small but significantly positive effect on net exports policies that tax or otherwise regulate carbon emissions are needed to discourage this destructive route to competitiveness however the most important policy implication may be that us industry could cut its carbon emissions by more than half if it matched the environmental performance of industry in japan r 2007 elsevier ltd all rights reserved

embodied environmental damage in interregional trade a mrio based assessment within china abstract a new lifelong accountability system for ecological and environmental damage will be established for local officials in china however if this new production based accountability system does not consider the responsibilities of consumers it is likely to aggravate the imbalance of regional development using a multi regional input output model this paper tracked the environmental damage transfers in interprovincial trade trade related damage from four major pollutants was quantified for each province in 2007 the results show that nearly 45 of the environmental damage that occurs at home to meet consumption in other regions can be ascribed to the interprovincial trade flows in china in 2007 the north municipalities the east coast and the south coast where the share of production based environmental damage in relation to the local gdp is lower transferred environmental damage to the developing northwest and central regions to make the local gdp greener via interregional trade leading to inequality in regional development it is suggested that the importance of environmental damage from a consumer perspective should be integrated into the future implementation of the new lifelong accountability system

full extraction of the surplus in bayesian and dominant strategy auctions we consider auctions for a single indivisible object in the case where the bidders have information about each other which is not available to the seller we show that the seller can use this information to his own benefit and we completely characterize the environ ments in which a well chosen auction gives him the same expected payoff as that obtainable were he able to sell the object with full information about each bidder s willingness to pay we provide this characterization for auctions in which the bidders have dominant strate gies and for those where the relevant equilibrium concept is bayesian nash in both set ups the existence of these auctions hinges on the possibility of constructing lotteries with the correct properties we consider the situation in which an agent the seller possesses one indivisible unit of a good to which he attaches no value but the good has value to a number of potential buyers and its transfer to one of them would increase social welfare in particular the transfer to the buyer with the highest valuation maximizes social welfare in this paper we completely characterize environments in which the seller can design an auction that will enable him to capture for himself the full increase in social welfare induced by the transfer of the good to the bidder with the highest willingness to pay if the seller had full information about the reservation prices of potential buyers his optimal selling strategy would be very simple he would announce a price equal or very close to the highest reservation value the optimal strategy for the bidder with the highest evaluation would be to accept the offer note that we are treating a situation in which the seller can commit himself to a price as a result of the exchange the utility of the seller increases by the full amount of the increase in social welfare and he has been able to fully extract the surplus in many circumstances however a seller has only imperfect knowledge of the buyers willingnesses to pay in this case he must find some mechanism or auction which will enable him to maximize his benefit from the sale of the object the auction literature starts with this observation and shows how the seller can by an astute choice of auction extract the largest possible fraction of the surplus in general the literature has shown that this proportion is strictly less than one in some circumstances the bidders will have information about each other which is not available to the seller for instance in auctions for petroleum drilling rights bidders know the results of geological tests which they have

the role of co2 embodiment in us china trade abstract this study examines the influence of us china trade on national and global emissions of carbon dioxide co2 the three basic questions are as follows 1 what amount of co2 emissions is avoided in the us by importing chinese goods 2 how much are co2 emissions in china increased as a result of the production of goods for export to the us and 3 what are the impacts of us china trade on global co2 emissions our initial findings reveal that during 1997 2003 1 us co2 emissions would have increased from 3 to 6 if the goods imported from china had been produced in the us 2 about 7 14 of china s current co2 emissions were a result of producing exports for us consumers and 3 us china trade has increased global co2 emissions by an estimated 720 million metric tons we suggest that the export of us technologies and expertise related to clean production and energy efficiency to china could be a win win strategy for both countries for reducing their trade imbalance and mitigating global co2 emissions improved international accounting methodologies for assigning responsibility for co2 emissions must be designed to account for the dynamic nature of international trade

carbon dioxide emission drivers for a typical metropolis using input output structural decomposition analysis as the capital of china beijing is regarded as a major metropolis in the world study of the variation in temporal co2 emissions generated by the driving forces in beijing can provide guidance for policy decisions on co2 emissions mitigation in global metropolises based on input output structural decomposition analysis io sda we analysed the driving forces for the increment in co2 emissions in beijing from both production and final demand perspectives during 1997 2010 according to our results the co2 emission growth in beijing is driven mainly by production structure change and population growth partly offset by co2 emission intensity reduction as well as the decline in per capita final demand volume during the study period final demand structure change has a limited effect on the change in the co2 emissions in beijing from the final demand perspective urban trades urban residential consumption government consumption and fixed capital formation are mainly responsible for the booming emissions this study showed how the top down io sda methodology was implemented on a city scale policy implications from this study would be helpful for addressing co2 emissions mitigation in global capital cities and metropolises