energy quality and energy surplus in the extraction of fossil fuels in the u s abstract the goal of net energy analysis is to assess the amount of useful energy delivered by an energy system net of the energy costs of delivery the standard technique of aggregating energy inputs and outputs by their thermal equivalents diminishes the ability of energy analysis to achieve that goal because different types of energy have different abilities to do work per heat equivalent this paper describes physical and economic methods of calculating energy quality and incorporates economic estimates of quality in the analysis of the energy return on investment eroi for the extraction of coal and petroleum resources in the u s from 1954 to 1987 eroi is the ratio of energy delivered to energy used in the delivery process the quality adjusted eroi is used to answer the following questions 1 are coal and petroleum resources becoming more scarce in the u s 2 is society s capability of doing useful economic work changing and 3 is society s allocation of energy between the extraction of coal and petroleum optimal the results indicate that petroleum and coal became more scarce in the 1970s although the degree of scarcity depends on the type of quality factor used the quality adjusted eroi shed light on the coal petroleum paradox when energy inputs and outputs are measured in thermal equivalents coal extraction has a much larger eroi than petroleum the adjustment for energy quality reduces substantially the difference between the two fuels the results also suggest that when corrections are made for energy quality society s allocation of energy between coal and petroleum extraction meets the efficiency criteria described by neoclassical and biophysical economists

socially responsible investors and the microentrepreneur a canadian case socially responsible investors buy financial securities with two goals to make a market based return and to make companies act in a more socially responsible way most research on socially responsible investment deals with investing in stocks traded on major exchanges we add the case of loaning small amounts of funds to microentrepreneurs through a discussion of a particular case the case is that of calmeadow which in conjunction with the royal bank of canada set up a microlending project in rural nova scotia canada using hirschman s analysis of exit and voice we show that while socially responsible investors may make market based returns for their investments in stocks traded on major exchanges they have no effect on corporate behaviour because their action consists of exit and they are easily replaced by other investors they attain their first goal but not their second on the other hand in the calmeadow royal bank of canada case we see that those who lend money to microenterprises can more easily use voice the relative power difference between the lender and the microentrepreneur enables the lender to make the microentrepreneur act in a more socially responsible way although only marginally but because of the market imperfections existing in this case the very high transactions costs associated with administering small loans the lender concluded it could not attain a market rate of return in this case then the lender attained its second goal but not its first

the role of energy in productivity growth the objective of this paper is to analyze the role of energy in the growth of productivity the special significance of energy in economic growth was first established in the classic study energy and the american economy 1850 1975 by sam schurr and his associates 1960 at resources for the future for the period from 1920 to 1955 schurr noted that energy intensity of production had fallen while both labor and total factor productivity were rising the simultaneous decline in energy intensity and labor intensity of production ruled out the possibility of explaining the growth of productivity solely on the basis of substitution of less expensive energy for more expensive labor since the quantity of both energy and labor inputs required for a given level of output had been reduced technical change is also a critical explanatory factor an alternative explanation for growth of output with declining energy and labor intensity required an examination of the character of technical change this examination was motivated by the fact that from 1920 to 1955 the utilization of electricity had expanded by a factor of more than ten while consumption of all other forms of energy only doubled the two key features of technical change during this period were that the thermal efficiency of conversion of fuels into electricity increased by a factor of three and that the unusual characteristics of electricity had made it possible to perform tasks in altogether different ways than if the fuels had to be used directly schurr 1983 p 3 schurr 1982 has recently extended the analysis of energy and the american economy through 1981 for the period through 1969 his conclusions are as follows although the inverse relationship between total factor productivity and energy intensity virtually disappeared during the 1953 1969 period it is still noteworthy that high rates of improvement in total factor productivity were essentially not associated with increases in energy intensity 1982 p 6 schurr 1982 has analyzed the experience of the u s economy in the aftermath of the oil embargo of 1973 he points out that energy intensity of production has fallen steadily since 1973 and that the rate of decline accelerated sharply after the second oil price shock in 1979 following the iranian revolution he goes on to point out that

natural resources and the marshallian effects of input reducing technological changes abstract input reducing technologies are often cited as potential solutions to the pressure for over harvesting natural resources the underlying implicit assumption that technological change reducing the hicksian input demand also reduces the marshallian input demand neglects the impacts of input reducing technological changes on marshallian supplies this reasearch shows that marshallian supply effects generally offset the impacts of technological change on hicksian input demands and if the offset is large enough marshallian input demands could even increase as an example i statistically determine the extent increased technological efficiency in lumber production reduced the demand for sawlogs in the pacific northwest the statistical results indicate that input reducing technological changes did not reduce the overall marshallian demand for sawlogs resource conservation policies which rely solely on the implementation of input reducing technologies may be ineffective or even counterproductive

economic growth income distribution and climate change we present a model based on keynesian aggregate demand and labor productivity growth to study how climate damage affects the long run evolution of the economy climate change induced by greenhouse gas lowers profitability reducing investment and cutting output in the short and long runs short run employment falls due to deficient demand in the long run productivity growth is slower lowering potential income levels climate policy can increase incomes and employment in the short and long runs while a continuation of business as usual leads to a dystopian income distribution with affluence for few and high levels of unemployment for the rest

equilibrium in auctions with entry the authors model entry incentives in auctions with risk neutral bidders and characterize a symmetric equilibrium in which the number of entrants is stochastic the presence of too many potential bidders raises coordination costs that detract from welfare the authors show that the seller and society can benefit from policies that reduce market thickness i e the relative abundance of buyers their analysis extends well known revenue equivalence and ranking theorems but also demonstrates that variations in the auction environment affect optimal policies e g reservation prices in ways not anticipated by models that ignore entry copyright 1994 by american economic association

the law of small numbers investigating the benefits of restricted auctions for public procurement abstracta commonly accepted view in the academic literature is that dispensing with competition may only be beneficial when tendering complex contracts however restricted auctions are frequently used among eu member states to procure small contracts in this article we investigate this paradox using an original data set of 180 contracts used by a local public buyer of social housing between 2006 and 2009 we show that limiting competition may enable economies to be made on transaction costs while the most efficient bidders still come forward and that abuses such as corruption or favouritism do not result to our knowledge this article is the first to shed light on the advantages of using restricted auctions when tendering small simple contracts

renegotiation of concession contracts in latin america evidence from the water and transport sectors abstract high rates of contract renegotiation have raised serious questions about the viability of the concession model to attract private participation in infrastructure in developing countries after extending in reduced form a standard regulation model in which renegotiation occurs due to the imperfect enforcement of concession contracts we use a unique data set of 307 concessions awarded in latin america from 1989 to 2000 covering the sectors of transport and water to analyze the determinants of this high incidence of renegotiations of infrastructure contracts we look in details at the impact on the probability of renegotiation of a concession of regulatory institutions institutional features economic shocks and of the characteristics of the concession contracts themselves we then derive some policy implications of our work

micro equity for sustainable development selection monitoring and exit strategies of micro angels abstract sustainable development requires balancing environmental social and financial concerns this requires investors to select and monitor entrepreneurs who would balance these triple concerns at the same time there has been considerable attention to small is beautiful and micro investors have stepped in to look for such eco entrepreneurs to the classical institutional logic of economic returns they add the logic of social returns as well as the logic of environmental and local safeguards this study looks at investment clubs in france which have been coping with this balance of people planet and profitability for the last three decades we study their preferences in the selection process for investment projects in the entrepreneurs monitoring process as well as their exit strategies using principal components analysis we find that a large number of selection criteria can be regrouped into underlying factors that take into account two out of the three major dimensions of sustainable development at a time we find that four factors lie beneath the criteria used by the micro angels in the monitoring process we have also been able to establish a one to one correspondence between four of the six major exit strategies and four selection factors suggesting a prior relationship between selection process criteria and preferred exit strategies

energy consumption real income and temporal causality results from a multi country study based on cointegration and error correction modelling techniques abstract unlike previous studies on the causal relationship between energy consumption and economic growth this paper illustrates how the finding of cointegration i e long term equilibrium relationship between these variables may be used in testing granger causality based on the most recent johansen s multivariate cointegration tests preceded by various unit root or non stationarity tests we test for cointegration between total energy consumption and real income of six asian economies india pakistan malaysia singapore indonesia and the philippines non rejection of cointegration between variables rules out granger non causality and imples at least one way of granger causality either unidirectional or bidirectionial secondly by using a dynamic vector error correction model we then analyse the direction of granger causation and hence the within sample granger exogeneity or endogeneity of each of the variables thirdly the relative strength of the causality is gauged through the dynamic variance decomposition technique by decomposing the total impact of an unanticipated shock to each of the variables beyond the sample period into proportions attributable to shocks in the other variables including its own in the bivariate system results based on these tools of methodology indicate that while all pair wise relationships shared common univariate integrational properties only relationships for three countries india pakistan and indonesia were cointegrated for these countries temporal causality results were mixed with unidirectional causality from energy to income for india exactly the reverse for indonesia and mutual causality for pakistan the vdcs were not inconsistent with these results and provided us with an additional insight as to the relatively more dominant direction of causation in pakistan simple bivariate vector autoregressive models for the three non cointegrated systems did not indicate any direction of causality significantly in either direction

asset specificity and economic organization abstract this paper examines the optimization problem of firm and market organization in which both production cost and transaction cost differences are expressed as a function of asset specificity in general markets enjoy advantages by aggregating the demands of many buyers thereby realizing economies of scale or scope such production cost savings need to be assessed in relation to the transaction cost advantages that internal organization sometimes enjoys over markets in adapting to changed circumstances as it turns out both production cost economies and the transaction cost differences between firm and market organization vary systematically with the characteristics of the investments this paper employs a unified framework to assess the choice of organization form the condition of asset specificity is featured

a biophysical analysis of the energy real gdp ratio implications for substitution and technical change abstract this paper quantifies the factors that caused the energy real gdp ratio to change during the post war period in france the federal republic of germany japan and the united kingdom econometric results indicate that changes in the types of fuel used changes in the energy consumed by the household sector changes in the types of goods and services produced and changes in energy prices account for most of the variation in this ratio price elasticities estimated from these results are lower than those estimated by neoclassical economists and indicate that the system boundaries used by neoclassical economists overestimate the amount of energy saved by substitution analysis of the error term from the regression results indicates that energy saving technical change has had little effect on the amount of energy used to support economic activity

lag length selection and tests of granger causality between money and income one of the most widely accepred relationships in macroeconomics is the positive relationship between the rate of growth of the money supply and the rate of growth of income a diversity of opinion arises however with the attempt to identify a causal relationship between these variables while friedman and schwartz 1963 initiated the empirical investigation of money income causality sims 1972 made the most significant contribution to this literature with a practical application of the criterion developed by granger 1969 for identifying a causal relationship since the appearance of sims s approach and an alternative one advanced by sargent 1976 many researchers have applied these techniques to the investigation of the causal relationship between money and income l with two exceptions hsiao 1981 and mcmillin and fackler 1984 these researchers have arbitrarily chosen the lengths of their distributed lags the purpose of this paper is to test for granger causality between money and income this paper differs from previous work in that considerably more attention is focused on the effect of the lag specification on the test results in particular we investigate the extent to which rules of thumb arbitrary lag specifications and

financial services for microenterprises principles and institutions abstract this article argues for the use of a financial systems approach in the provision of financial services to the poor the experience of the last decade has produced a successful technology for credit delivery that utilizes sound financial principles as its basis that is understanding the needs of the client increasing efficiency by cutting administrative costs and using various techniques to motivate repayment savings receives equal emphasis as a financial service and several principles for its provision are discussed the institutional dimensions behind this approach focus on the need to achieve self sufficiency which the article frames as a four stage process finally the article outlines various factors related to creating financial institutions that reach the poor and the policy implications that these suggest

the relation between marginal product and price in us energy markets implications for climate change policy abstract this paper reports an empirical test of the axioms that describe the relationship between the marginal product and price of factor inputs in us energy markets to do so i estimate a reduced form of a production function that represents the amounts of various energy types that are required to produce a given level of output the partial derivative of this production function is used to calculate the change in output that is generated by a marginal change in the use of coal oil natural gas or electricity a partial adjustment model is used to estimate the relation between the marginal product and price of coal oil natural gas and electricity the results indicate that rational agents manipulate their use of coal oil natural gas and electricity so that the marginal product of these energies adjust to changes in the relative prices of these energies because the marginal products of oil and natural gas are greater than coal less than one heat unit of oil or natural gas is needed to substitute for one unit of coal and this increases the quantity of carbon emissions that can be abated by interfuel substitution the time required to achieve these reductions may be longer than thought previously because of the slow rate at which the relative marginal product adjusts to relative price

eroi and the icelandic society abstract in this paper the societal energy return on investment eroi soc is estimated for iceland between 1960 and the present the results indicate that the overall eroi soc was around 27 1 in the early 1960s and was volatile for a period of time before stabilizing at around 45 1 in 1974 after establishing a strong mix of renewable energy these findings further show that icelanders have generally had access to energy sources with higher eroi than if they had relied on fossil fuels except for the period between 1963 and 1967 if they had relied on fossil fuels alone icelanders would now have access to combined resources with an eroi of around 16 1 likely too low for prosperity and an even lower eroi for long periods of time regarding policies this paper shows that relying on an energy grid mix with an eroi higher than 20 30 1 especially for island nations has the potential to raise the standard of living greatly for policymakers in island nations attention should be given to this relationship between high eroi energy sources with low price volatility and the standard of living

winner s curse in toll road concessions we empirically assess the effect of the winner s curse in auctions for toll road concessions taking into account to our knowledge for the first time problems of commitment and enforcement using a unique dataset of 49 worldwide road concessions

the effect of information on the bidding and survival of entrants in procurement auctions in government procurement auctions of construction contracts entrants are typically less informed and bid more aggressively than incumbent rms this bidding behavior makes them more sus ceptible to losses aecting their prospect of survival in april of 2000 the oklahoma department of transportation started releasing the internal cost estimates to complete highway construction projects using newly developed quantile regression approaches this paper examines the impact of the policy change on aggressive entrants first we nd that the information release eliminates the bidding dierential between entrants and incumbents attributed to informational asymmetries second we argue that the policy change aects the prospects of survival of entrants in the market we nd that those who used to exit the market relatively soon are now staying 37 percent longer while at the median level bidding duration increased by roughly 68 percent the policy has the potential to encourage entry in government procurement auctions and thus increase competition

relational contracts and the theory of the firm relational contracts informal agreements sustained by the value of future relationships are prevalent within and between firms we develop repeated game models showing why and how relational contracts within firms vertical integration differ from those between nonintegration we show that integration affects the parties temptations to renege on a given relational contract and hence affects the best relational contract the parties can sustain in this sense the integration decision can be an instrument in the service of the parties relationship our approach also has implications for joint ventures alliances and networks and for the role of management within and between firms

evaluating energy embodied in national products through input output analysis theoretical definition and practical application of international trades treatment methods abstract production activities of modern economies are ultimately sustained by depletion of non renewable fossil fuels in the perspective of non renewables displacement an accurate evaluation of energy embodied in goods and services is crucial in order to select among alternative products or policies economic based input output models are widely used for this purpose however due to the increasing amount of international trades of products definition of appropriate methods to account for the energy embodied in trades is nowadays crucial in this paper international trades treatment methods in input output analysis are comprehensively formalized and applied to a case study based on the world input output database wiod energy embodied in final demand and in detailed products of key national energy sectors have been evaluated for the wiod countries according to single region and multi regional models it is found that an inappropriate use of international trades treatment models may produce very inaccurate estimations of numerical values of embodied energy three country groups has been identified characterized by different ranges of fractions of imported exported primary fossil fuels single region method a returns best results for countries of group 1 with high values of fossil exports and low values of fossil imports multi regional method c is to be preferred for countries of group 2 with high values of fossil imports and low values of fossil exports finally single region method b returns lower deviations compared to other methods for countries of group 3 with low values of fossil imports and exports this paper aims at supporting researchers in the field of life cycle assessment in the application of environmentally extended input output analysis finding the best trade off between the efforts due to data collection and the accuracy of results

the effect of green investment on corporate behavior this paper explores the effect of exclusionary ethical investing on corporate behavior in a risk averse equilibrium setting while arguments exist that ethical investing can influence a firm s cost of capital and so affect investment no equilibrium model has been presented to do so we show that exclusionary ethical investing leads to polluting firms being held by fewer investors since green investors eschew polluting firms stock this lack of risk sharing among non green investors leads to lower stock prices for polluting firms thus raising their cost of capital if the higher cost of capital more than overcomes a cost of reforming i e a polluting firm cleaning up its activities then polluting firms will become socially responsible because of exclusionary ethical investing a key determinant of the incentive for polluting firms to reform is the fraction of funds controlled by green investors in our model empirically reasonable parameter estimates indicate that more than 20 green investors are required to induce any polluting firmss to reform existing empirical evidence indicates that at most 10 of funds are invested by green investors

firm size effects on transaction costs associated with effects of scale scope experience and learning there are effects of firm size on transaction costs in the stages of contact contract and control these effects are due to threshold costs in setting up contacts contracts and governance schemes and to differences with respect to the factors that cause transaction costs bounded rationality opportunism uncertainty and transaction specificity of assets implications are considered for firm strategy and public policy

steady state of energy feedbacks and leverages for promoting or preventing sustainable energy system development abstract while energy demand has been growing over the last few decades and is projected to keep expanding the current energy system is pushing biophysical source and sink limits at the same time growing demand for energy globally is associated with an expansion of welfare to avoid undesired environmental and social implications of energy developments in the long run a systemic understanding of the dynamics promoting or preventing sustainable energy development is needed departing from daly s steady state economics theory this study conceptualizes a sustainable energy system using a systems thinking approach efficiency increase the central element of daly s theory defined as the service throughput ratio is put in the center of a conceptual analysis of a sustainable energy system and is carefully scrutinized meadows leverage points concept is used to facilitate an analysis of different policies that aim at promoting sustainable energy system development this study concludes that energy policies always need to be explored as part of the broader causality structure into which they are embedded otherwise their impacts on other variables in the system may be overlooked such as in the case of efficiency increase which is shown to have undesired side effects for the development of a sustainable energy system

aggregation and the role of energy in the economy methods for investigating the role of energy in the economy involve aggregating different energy flows a variety of methods have been proposed but none has received universal acceptance this paper shows that the method of aggregation has crucial effects on the results of the analysis we review the principal assumptions and methods for aggregating energy flows the basic heat equivalents approach economic approaches using prices or marginal product for aggregation emergy analysis and thermodynamic approaches such as exergy we argue that economic approaches such as the index or marginal product method are superior because they account for differences in quality among fuels we apply various economic approaches in three case studies in the us economy in the first we account for energy quality to assess changes in the energy surplus delivered by the extraction of fossil fuels from 1954 to 1992 the second and third case studies examine the importance of energy quality in evaluating the relation between energy use and gdp first a quality adjusted index of energy consumption is used in an econometric analysis of the causal relation between energy use and gdp from 1947 to 1996 second we account for energy quality in an econometric analysis of the factors that determine changes in the energy gdp ratio from 1947 to 1996 without adjusting for energy quality the results imply that the energy surplus from petroleum extraction is increasing that changes in gdp drive changes in energy use and that gdp has been decoupled from between aggregate energy use all of these conclusions are reversed when we account for changes in energy quality 2000 elsevier science b v all rights reserved

energy returns and the long run growth of global industrial society abstract the extreme interconnectedness of energy and economic systems will tend to confound any attempt to estimate the energy return on investment at anything other than the global scale here i apply a very simple model of global energy use to specify the dynamic characteristics of global scale energy returns on investment eroig this suggests that the observed long run relative growth rate of 2 5 yr 1 in global primary energy use is associated with an equilibrium return from infrastructure investments of 2 1 with returns accruing with a time constant of 40 years the analysis also attempts to show how growth leads to reductions in the supply efficiency of energy and how this decline is offset by increases in the efficiency with which industrial society can extract useful work from primary energy flows this observed preservation of the overall energy efficiency of the global energy system implicates variations in the decay decommissioning rate of infrastructure in observed long wave like variations in the relative growth rate of global primary energy use and hence eroig

oil and the macroeconomy since world war ii all but one of the u s recessions since world war ii have been preceded typically with a lag of around three fourths of a year by a dramatic increase in the price of crude petroleum this does not mean that oil shocks caused these recessions evidence is presented however that even over the period 1948 72 this correlation is statistically significant and nonspurious supporting the proposition that oil shocks were a contributing factor in at least some of the u s recessions prior to 1972 by extension energy price increases may account for much of post opec macroeconomic performance

the existence of self enforcing implicit contracts implicit contracts are nontrivial nash equilibria to the post hiring trading game between a worker and the employer these are supported by intrafirm rather than labor market reputations the existence of an implicit contract that supports efficient trade is proved in a simple model

active and passive waste in government spending evidence from a policy experiment we propose a distinction between active and passive waste as determinants of the cost of public services active waste entails utility for the public decision maker whereas passive waste does not we analyze purchases of standardized goods by italian public bodies and exploit a policy experiment associated with a national procurement agency we find that i some public bodies pay systematically more than others for equivalent goods ii differences are correlated with governance structure iii the variation in prices is principally due to variation in passive rather than active waste and iv passive waste accounts for 83 percent of total estimated waste

the stability of joint ventures reciprocity and competitive rivalry the focus of the following empirical analysis is the influence of reciprocity and long term relationships on the stability of joint ventures these cooperative incentives are offset by industry structural conditions which may promote competitive rivalry among the partners to separate these effects on joint venture survival the hypothesized relationships are proxied by variables drawn from industry and questionnaire data and estimated under a hazard model specification a theoretical implication of the findings is to suggest a shift of attention from the transaction to the economic relationship as the unit of analysis copyright 1989 by blackwell publishing ltd

bidding for incomplete contracts an empirical analysis of adaptation costs abstract procurement contracts are often renegotiated because of changes that are required after their execution using highway paving contracts we show that renegotiation imposes significant adaptation costs reduced form regressions suggest that bidders respond strategically to contractual incompleteness and that adaptation costs are an important determinant of their bids a structural empirical model compares adaptation costs to bidder markups and shows that adaptation costs account for 7 5 14 percent of the winning bid markups from private information and market power the focus of much of the auctions literature are much smaller by comparison implications for government procurement are discussed jel d44 d82 d86 h57 l13 l74 r42

exploring the relationship between energy use and economic growth with bivariate models new evidence from g 7 countries abstract there is a rapidly growing literature on the interaction between energy use and economic development with many analysts drawing policy conclusions on the basis of granger causality tests that involve only an energy and an economic variable this paper attempts to demonstrate empirically that such studies although useful for certain applications may be of limited use for policy purposes after outlining theoretical and methodological issues associated with such approaches i apply bivariate energy economy causality tests for canada france germany italy japan the united kingdom and the united states using aggregate and sectoral data and three different modern econometric methods the results which are often contradictory or economically implausible illustrate explicitly that one should be cautious when drawing policy implications with the aid of bivariate causality tests on small samples i therefore underline the importance of utilizing as large sample sizes as possible and using multivariate models which are closer to economic theory accommodate several mechanisms and causality channels and provide a better representation of real world interactions between energy use and economic growth

why ecological economics needs to return to its roots the biophysical foundation of socio economic systems abstract ecological economics was formally established in 1989 with the ambitious vision of developing a new economic paradigm embedding the social and economic systems in the biophysical world ecological economics had its roots in the biophysical understanding of economics that pioneers of the field georgescu roegen 1971 odum 1971 daly 1977 jansson 1984 martinez alier 1987 and others developed while studying the thermodynamic bedrocks shared by natural and social systems subsequently however ecological economics has explicitly but controversially adopted a big umbrella approach to methodological pluralism focusing more on topics such as valuing nature and its functions rather than attempting to understand and quantify the biophysical roots of economic activities biophysical economics was established in response to these concerns focusing more on developing analyses and models of the transformations of nature to generate wealth and approached mostly from an energy and material flows perspective the present paper argues that to achieve its original vision ecological economics must return to its biophysical roots collaboration between the two fields will help the next generation of thinkers to address the socio ecological challenges of the 21st century requiring an energy transformation called for by aspirations such as the green new deal and the un sustainable development goals

energy and economic growth in the usa a multivariate approach abstract this paper examines the causal relationship between gdp and energy use for the period 1947 90 in the usa the relationship between energy use and economic growth has been examined by both biophysical and neoclassical economists in particular several studies have tested for the presence of a causal relationship in the granger sense between energy use and economic growth however these tests do not allow a direct test of the relative explanatory powers of the neoclassical and biophysical models a multivariate adaptation of the test vector autoregression var does allow such a test a var of gdp energy use capital stock and employment is estimated and granger tests for causal relationships between the variables are carried out although there is no evidence that gross energy use granger causes gdp a measure of final energy use adjusted for changing fuel composition does granger cause gdp

evolution of erois of electricity until 2050 estimation and implications on prices abstract the eroi for energy returned on invested of an energy technology measures its ability to provide energy efficiently previous studies draw a link between the affluence of a society and the eroi of its energy system and show that erois of renewables are lower than those of fossil fuels logically concerns have been expressed that system wide eroi may decrease during a renewable energy transition first i explain theoretically that the erois of renewables themselves could then decrease as energy efficient fossil fuels would be replaced by less energy efficient renewables in the supply chain then using the multi regional input output model themis i estimate the evolution of erois and prices of electric technologies from 2010 to 2050 for different scenarios global eroi of electricity is predicted to go from 12 in 2010 to 11 in 2050 in a business as usual scenario but down to 6 in a 100 renewable one finally i study the economic implication of a declining eroi an inverse relation between eroi and price is suggested empirically even though theory shows that both quantities may move in the same direction

from ecological macroeconomics to a theory of endogenous money for a finite planet abstract this paper takes stock of the achievements and gaps of the emerging field of ecological macroeconomics which has brought insights from specific schools of macroeconomics most notably post keynesian to ecological economics with a strong emphasis on the endogeneity of money ecological macroeconomics has proposed fiscal monetary and prudential reforms to boost green investments and developed new modeling frameworks to explore the interactions between the financial macroeconomic and biophysical spheres while these proposals open a broader range of possibilities to engage in a socio ecological transition than those offered by the current paradigm of a financialized global economy they paradoxically suffer from similar limitations by placing much faith in green investments they impose a vision of the transition that presents strong technical and institutional limitations the field also fails to revisit its own understanding of macroeconomics and of specific phenomena e g financial instability through a biophysical lens in spite of increasing transdisciplinary evidence supporting this approach we suggest overcoming these limitations through institutionalist perspectives that understand money as a language through which value is created and legitimized those perspectives seem essential to re embed the governance of money within a worldview that acknowledges the finiteness and incommensurable values of earth s life support systems

the relationship between energy and gnp further results this paper reexamines the casuality between gnp and energy consumption by using updated us data for the period 1947 1979 as a secondary contribution we investigate the causal relationship between energy consumption and employment applying sims technique we find no causal relationship between gnp and energy consumption we find further that there is a slight unidirectional flow running from employment to energy consumption economic interpretations of the empirical results are also presented

global energy modelling a biophysical approach gemba part 2 methodology abstract economists investors and policy makers need to understand the changing climate of energy systems and the potential for investment in both alternative energy supply and demand side efficiency and management technologies biophysical economics has contributed to conventional economics by incorporating thermodynamic and ecological principles and emphasising the importance of natural resources to the economic process this paper is presented in two parts part 1 gives a historic review of biophysical economics and discusses some previous models of the energy economy system built around the principles of biophysical economics part 2 presents the gemba model a new modelling methodology in the biophysical economics tradition the methodology proposes a new and important contribution to the field of biophysical economics a lifetime evolving function for the dynamics of the energy return on investment eroi in the development stage of a new resource eroi increases due to technological learning market growth and capital investment eroi then reaches a peak as diminishing returns are experienced on further technological innovation and capital investment in the later stage eroi declines over time as the most accessible resources are developed first resources become depleted or scarcity develops for materials needed to extract process or convert the energy for the market eroi can also diminish over time as environmental restoration or emission reduction becomes required by the society the dynamic eroi function was incorporated into a global energy model using a biophysical approach gemba and implemented in vensim the gemba model is calibrated using historical energy production data i e training to historical data then running the trained model to 2100 under a series of varying assumptions regarding availability of energy resources and corresponding erois the main finding of the model is that growth of the renewable energy sector may impact investment in other areas of the economy and thereby stymie economic growth

environmental respect ethics or simply business a study in the small and medium enterprise sme context in recent years there have been ever growing concerns regarding environmental decline causing some companies to focus on the implementation of environmentally friendly supply production and distribution systems such concern may stem either from the set of beliefs and values of the company s management or from certain pressure exerted by the market consumers and institutions in the belief that an environmentally respectful management policy will contribute to the transmission of a positive image of the company and its products sometimes however ethics and market rules are not enough to deal with this situation and specific laws must be considered this is the case when companies base their activity on the ethics of self interest concentrating their efforts on projecting an adequate image e g environmental respect rather than fundamentally behaving in environmentally respectful ways this article taking as reference the sme context discusses the reasons for implementing environmentally friendly systems both ethics and business seem to be relevant and therefore a certain balance between market and interventionism seems to be necessary

economic dynamics and technology diffusion in indian power sector abstract there is a growing concern among policy makers about how electricity is generated and consumed in the context of energy security and global climate change in such a scenario renewable energy sources especially solar and wind energy are likely to play a significant role in providing reliable and sustainable electricity to consumers as they are locally available and their carbon foot print is small the future share of power by renewables will greatly depend on the expected generation cost and the government s support to investments in the sector using levelised cost approach capital cost operating and fuel costs of major electricity generation technologies are compared then a forecast is made for electricity generation in india using non linear bass diffusion model over 15 year horizon until 2030 for all major energy technologies viz coal natural gas hydro solar wind and biomass the results show how present trends and future forecasts of electricity generating technologies change the electricity generation mix and how solar and wind power may increase their share in the total generation however fossil fuels will continue to remain competitive relative to renewables due to their cost advantage the main issue considered here is whether each energy technology has reached its maximum penetration level this helps set out a path for renewable energy technology diffusion in the indian power sector

more caution is needed when using life cycle assessment to determine energy return on investment eroi abstract cumulative energy demand ced estimates from life cycle assessments lcas are increasingly used to determine energy return on investment eroi but the difference in indicators can lead to a misclassification of energy flows in the assessment the core idea of eroi is to measure the relation of energy diverted from society to make energy available to society ced on the other hand includes forms of energy that are not appropriated by society such as fugitive methane emissions from oil wells as well as losses of heating value of coal during transport and storage such energy forms should be excluded from eroi failure to do so leads to results that are inconsistent with the intention of eroi and potentially misleading we demonstrate how this problem is at least partially rectifiable by adopting consistent energy accounting but also note that among the energy flows not appropriated by society occurring in ced not all flows can easily be removed further we point to inconsistencies in heating value assumptions in a widely used database that have misled analysts finally we argue that the differential weighting of primary energy forms in published ced based eroi work is unsubstantiated and should be reconsidered

analysis of resource potential for china s unconventional gas and forecast for its long term production growth abstract china is vigorously promoting the development of its unconventional gas resources because natural gas is viewed as a lower carbon energy source and because china has relatively little conventional natural gas supply in this paper we first evaluate how much unconventional gas might be available based on an analysis of technically recoverable resources for three types of unconventional gas resources shale gas coalbed methane and tight gas we then develop three alternative scenarios of how this extraction might proceed using the geologic resources supply demand model based on our analysis the medium scenario which we would consider to be our best estimate shows a resource peak of 176 1 billion cubic meters bcm in 2068 depending on economic conditions and advance in extraction techniques production could vary greatly from this if economic conditions are adverse unconventional natural gas production could perhaps be as low as 70 1 bcm peaking in 2021 under the extremely optimistic assumption that all of the resources that appear to be technologically available can actually be recovered unconventional production could amount to as much as 469 7 bcm with peak production in 2069 even if this high scenario is achieved china s total gas production will only be sufficient to meet china s lowest demand forecast if production instead matches our best estimate significant amounts of natural gas imports are likely to be needed

a multivariate cointegration analysis of the role of energy in the us macroeconomy abstract this paper extends my previous analysis of the causal relationship of gdp and energy use in the usa in the post war period a majority of the relevant variables are integrated justifying a cointegration analysis the results show that cointegration does occur and that energy input cannot be excluded from the cointegration space the results are plausible in terms of macroeconomic dynamics the results are similar to my previous granger causality results and contradict claims in the literature based on bivariate models that there is no cointegration between energy and output

some pervasive challenges to sustainability by design of electronic products a conceptual discussion sustainability should encompass responsibility for unintended environmental consequences of modern developments this study examined some pervasive challenges to sustainability by design of electronic products namely i product and consumption redundancies i embodied environmental and social impacts occurring distant in time and space from the point of consumption and iii production and consumption dynamics this analysis identified essential developments in certain areas that can assist design practice in preventing unintended environmental consequences these were 1 complementing life cycle assessment studies with analyses of unintended environmental consequences and 2 exploiting the vital role of product design in fostering a circular economy indicators that provide information about a the increasing spatial and decreasing temporal separation of production consumption and waste management b constraints in raw materials supply and c marginal changes in money and time spent should be available to product designers and consumers furthermore information technology namely computer aided design cad tools should be refined to assist product designers in designing for effective circularity and end of waste and limiting hibernation of resources in the use phase

causal relationship between energy consumption and gdp growth revisited a dynamic panel data approach abstract this paper uses the panel data of energy consumption and gdp for 82 countries from 1972 to 2002 based on the income levels defined by the world bank the data are divided into four categories low income group lower middle income group upper middle income group and high income group we employ the gmm sys approach for the estimation of the panel var model in each of the four groups afterwards the causal relationship between energy consumption and economic growth is tested and ascertained we discover a in the low income group there exists no causal relationship between energy consumption and economic growth b in the middle income groups lower and upper middle income groups economic growth leads energy consumption positively c in the high income group countries economic growth leads energy consumption negatively after further in depth analysis of energy related data the results indicate that in the high income group there is a great environmental improvement as a result of more efficient energy use and reduction in the release of co2 however in the upper middle income group countries after the energy crisis the energy efficiency declines and the release of co2 rises since there is no evidence indicating that energy consumption leads economic growth in any of the four income groups a stronger energy conservation policy should be pursued in all countries

bid preference programs and participation in highway procurement auctions we use data from highway procurement auctions subject to california s small business preference program to study the effect of bid preferences on auction outcomes our analysis is based on an estimated model of firms bidding and participation decisions which allows us to evaluate the effects of current and alternative policy designs we show that incorporating participation responses significantly alters the assessment of preferential treatment policies

ecosystem maintenance energy and the need for a green eroi abstract a number of official energy forecasts including those compatible with the aspirational 1 5 c paris accord global temperature rise limit see both global primary and net energy use continuing to rise even out to 2100 various technologies including greatly increased use of renewable and nuclear energy negative emission technologies such as direct air capture and geoengineering are proposed as approaches for meeting the 1 5 c target in contrast we argue that meeting this target and avoiding significant increases in extreme weather events will require marked reductions in future energy demand we argue that the combined fossil fuel and renewable net green energy production will fall in the coming decades after subtraction of various energy costs essential for ecosystems maintenance including those needed to stabilise climate at best nuclear energy will only fractionally increase its global energy share because of its high capital costs and political opposition arising from accident risks waste disposal and proliferation concerns geoengineering will not solve fossil fuel depletion and has serious known and perhaps unknown risks we conclude that global net energy produced in an ecologically sustainable manner will start falling in a decade or so and suggest the need to account for this at a policy level by introduction of a green eroi eroig

the post growth challenge secular stagnation inequality and the limits to growth abstract critics have long questioned the feasibility and desirability of exponential growth on a finite planet more recently mainstream economists have begun to suggest some secular limits to growth declining growth rates have in their turn been identified as instrumental in increased inequality and the rise of political populism this paper explores these emerging arguments paying a particular attention to the dynamics of secular stagnation it examines the underlying phenomenon of declining labour productivity growth and unpacks the close relationships between productivity growth the wage rate and social inequality it also points to the historical congruence and potential causal links between declining productivity growth and resource bottlenecks contrary to some mainstream views this paper finds no inevitability in the rising inequality that has haunted advanced economies in recent decades suggesting instead that it lies in the pursuit of growth at all costs even in the face of challenging fundamentals this strategy has hindered technological innovation reinforced inequality and exacerbated financial instability at the very least this paper argues it is now time for policy to consider seriously the possibility that low growth rates might be the new normal and to address carefully the post growth challenge this poses

the energy emissions trap abstract the requirement to reduce emissions to avoid potentially dangerous climate change implies a dilemma for societies heavily dependent on fossil fuels reducing emissions will necessitate the transition from relatively high eroi dispatchable fossil fuels to a combination of relatively low eroi intermittent renewables and geographically limited non intermittent renewables as renewable capacity requires energy to construct there is an initial fossil fuel cost to creating new renewable capacity an insufficiently rapid transition to renewables will imply a scenario in which it is impossible to avoid either transgressing emissions ceilings or facing energy shortages we term this the energy emissions trap in this paper we construct a mathematical model termed eetrap that builds the eroi metric and the energy characteristics of renewable generation into a macroeconomic framework eetrap is used for simulation analysis to test how differing assumptions about the eroi of intermittent renewables will affect the time path of renewable investment necessary to escape the energy emissions trap for all runs of the model the renewable investment rate by 2050 is significantly larger than the current energy investment rate for declining intermittent renewable eroi the renewable investment rate crowds out other forms of investment leading to a declining economic growth rate

are we entering the age of involuntary degrowth promethean technologies and declining returns of innovation any reflections on an eventual transition towards a degrowth society have to take into account the current crisis in the dominant system and question whether the latter will be able to grow again or not in order for the latter to happen the role played by technological innovation is crucial this paper starts by reconsidering georgescu roegen s definition of promethean techniques and tainter s principle of declining marginal returns with the aim of providing within the common framework of the theory of complex systems a sound theoretical basis for the analysis of the rise and fall of complex societies the main purpose is to verify whether after the last promethean revolution a great wave emerged or not the second part of the paper presents an initial investigation into this hypothesis using total factor productivity growth as an indicator of marginal returns on innovation 1750 2015 despite the limitations implicit in the use of this indicator data show three cycles of innovation corresponding to the first second and third industrial revolutions but of different magnitude and duration in particular the whole cycle that began with the first industrial revolution in england around 1750 reached a peak in the u s in the nineteen thirties and later declined following a trend that basically confirms the great wave hypothesis even recent innovations resulting from the ict revolution however considerable do not seem capable of counteracting this long term trend data on returns on innovation seem therefore to be coherent with evidence provided by research in other fields energy mineral resources agriculture health education and scientific research showing that advanced capitalist societies have entered a phase of declining marginal returns or involuntary degrowth with possible major effects on the system s capacity to maintain its present institutional framework

economics for the future beyond the superorganism abstract our environment and economy are at a crossroads this paper attempts a cohesive narrative on how human evolved behavior money energy economy and the environment fit together humans strive for the same emotional state of our successful ancestors in a resource rich environment we coordinate in groups corporations and nations to maximize financial surplus tethered to energy tethered to carbon at global scales the emergent result of this combination is a mindless energy hungry co2 emitting superorganism under this dynamic we are now behaviorally growth constrained and will use any means possible to avoid facing this reality the farther we kick the can the larger the disconnect between our financial and physical reality becomes the moment of this recalibration will be a watershed time for our culture but could also be the birth of a new systems economics and resultant different ways of living the next 30 years are the time to apply all we ve learned during the past 30 years we ve arrived at a species level conversation

energy expenditure economic growth and the minimum eroi of society we estimate energy expenditure for the us and world economies from 1850 to 2012 periods of high energy expenditure relative to gdp from 1850 to 1945 or spikes 1973 74 and 1978 79 are associated with low economic growth rates and periods of low or falling energy expenditure are associated with high and rising economic growth rates e g 1945 1973 over the period 1960 2010 for which we have continuous year to year data for control variables capital formation population and unemployment rate we estimate that statistically in order to enjoy positive growth the us economy cannot afford to spend more than 11 of its gdp on energy given the current energy intensity of the us economy this translates in a minimum societal eroi of approximately 11 1 or a maximum tolerable average price of energy of twice the current level granger tests consistently reveal a one way causality running from the level of energy expenditure as a fraction of gdp to economic growth in the us between 1960 and 2010 a coherent economic policy should be founded on improving net energy efficiency this would yield a double dividend increased societal eroi through decreased energy intensity of capital investment and decreased sensitivity to energy price volatility

energy eroi and quality of life abstract the near and long term societal effects of declining eroi are uncertain but probably adverse a major obstacle to examining social implications of declining eroi is that we do not have adequate empirical understanding of how eroi is linked directly or indirectly to an average citizen s ability to achieve well being to evaluate the possible linkages between societal well being and net energy availability we compare these preliminary estimates of energy availability 1 eroi at a societal level 2 energy use per capita 3 multiple regression analyses and 4 a new composite energy index lambert energy index to select indicators of quality of life hdi percent children under weight health expenditures gender inequality index literacy rate and access to improved water our results suggest that energy indices are highly correlated with a higher standard of living we also find a saturation point at which increases in per capita energy availability greater than 150 gj or eroi above 20 1 are not associated with further improvement to society

the maturing of socially responsible investment a review of the developing link with corporate social responsibility this paper reviews the development of socially responsible investment sri over recent years and highlights the prospects for an increasingly strong connection with the practice of corporate social responsibility the paper argues that not only has sri grown significantly it has also matured in particular it has become an investment philosophy adopted by a growing proportion of large investment institutions this shift in sri from margin to mainstream and the position in which institutional investors find themselves is leading to a new form of sri shareholder pressure although this bears some resemblance to lobbying campaigns which might take advantage of shareholder rights we seek to distinguish it as an important phenomenon in its own right one to which corporate executives are likely to be paying increasing attention in the years to come we further argue that this approach potentially meets some of the earlier ethical criticisms of certain forms of sri but ironically probably owes its existence to those pioneering approaches we conclude with some suggestions for further research to inform discussion of the issues highlighted in the paper

competitive procurement with corruption we study competitive procurement administered by a corrupt agent who is willing to manipulate his evaluation of contract proposals in exchange for bribes with complete information and no corruption the efficient firm will win the contract for sure if the agent is corrupt and has large manipulation power however bribery makes it costly for the efficient firm to secure a sure win so in equilibrium the efficient firm loses the contract with positive probability the optimal scoring rule for the buyer deemphasizes quality relative to price and does not fully handicap and may even favor the efficient firm

auctions and bidding a primer maybe the contractor was right to think bid jobs are different but it is more likely that he suffered from too simple a view of what is involved in preparing a competitive bid our analysis will show that even an experienced estimator working in familiar terrain can lose money if he doesn t understand the subtleties of competitive bidding the phenomenon experienced by the painting contractor known as the winner s curse is just one of the surprising and puzzling conclusions that have been turned up by modern research into auctions another is the theoretical proposition supported also by some experimental evidence that for example a sealed bid treasury bill auction in which each buyer pays a price equal to the highest rejected bid would yield more revenue to the treasury than the current procedure in which the winning bidder pays the seemingly higher amount equal to his own bid there are also subtle results that demonstrate the equivalence of such apparently different institutions as the standard sealed bid auction in which the auctioneer seller sells the goods to the highest bidder for a price equal to his bid and the dutch auction in which the auctioneer seller begins by asking a high price and gradually lowers the price until

limits to growth redux a system dynamics model for assessing energy and climate change constraints to global growth abstract this study investigates the notion of limits to socioeconomic growth with a specific focus on the role of climate change and the declining quality of fossil fuel reserves a new system dynamics model has been created the world energy model wem is based on the world3 model the limits to growth meadows et al 2004 with climate change and energy production replacing generic pollution and resources factors wem also tracks global population food production and industrial output out to the year 2100 this paper presents a series of wem s projections each of which represent broad sweeps of what the future may bring all scenarios project that global industrial output will continue growing until 2100 scenarios based on current energy trends lead to a 50 increase in the average cost of energy production and 2 4 2 7 c of global warming by 2100 wem projects that limiting global warming to 2 c will reduce the industrial output growth rate by 0 1 0 2 however wem also plots industrial decline by 2150 for cases of uncontrolled climate change or increased population growth the general behaviour of wem is far more stable than world3 but its results still support the call for a managed decline in society s ecological footprint

forecasting the development of china s coal to liquid industry under security economic and environmental constraints abstract coal to liquid ctl technology has attracted attention in china as an alternative way to alleviate oil shortages however due to low profits and environmental problems chinese ctl policy is cautious and unstable rendering the future development of ctl technology uncertain considering security economic and environmental constraints this study uses system dynamics models to predict the long term development of the ctl industry in china the results show that ctl production will steadily increase over the next few years and a greater increase will occur after 2021 if the government will not provide support policies for ctl industry we forecast ctl production will be 29 3 million tons by 2030 once government actively supports ctl its production is projected to reach 51 8 million tons which is 45 times greater than that in 2015 when environmental issues are also considered the production is expected to 47 3 million tons the sensitivity analysis shows that under different refined oil prices ctl production ranges from 29 3 to 56 3 million tons at present china s ctl only accounts for 0 2 of its oil consumption and the eroi value of ctl is approximately 0 9 1 the low eroi implies little importance for ctl from a net energy perspective based on these research findings this research offers some relevant policy suggestions

the ethical context of entrepreneurship proposing and testing a developmental framework the aim of this study is to increase our understanding of the ethical climate of entrepreneurial firms as they grow and develop a developmental framework is introduced to describe the formal and informal ethical structures that emerge in entrepreneurial firms over time factors influencing where firms are within the developmental framework are posited including the entrepreneur s psychological profile lifecycle stage of the business and descriptive characteristics of the venture it is also proposed that the implementation of ethical structures will impact perceptions of the clarity and adequacy of the ethical standards of the firm and the firm s preparedness to deal with ethical challenges as they arise results are reported of a cross sectional survey of small firms at different stages of development the findings indicate the existence of four distinct clusters of firms based on their formal and informal ethical structures superlatives core proponents pain and gain and deficients evidence is also provided of statistically significant relationships between the proposed antecedent and outcome variables implications are drawn from the results and priorities are established for future research

eroi of different fuels and the implications for society abstract all forms of economic production and exchange involve the use of energy directly and in the transformation of materials until recently cheap and seemingly limitless fossil energy has allowed most of society to ignore the importance of contributions to the economic process from the biophysical world as well as the potential limits to growth this paper centers on assessing the energy costs of modern day society and its relation to gdp our most important focus is the characteristics of our major energy sources including each fuel s energy return on investment eroi the eroi of our most important fuels is declining and most renewable and non conventional energy alternatives have substantially lower eroi values than traditional conventional fossil fuels at the societal level declining eroi means that an increasing proportion of energy output and economic activity must be diverted to attaining the energy needed to run an economy leaving less discretionary funds available for non essential purchases which often drive growth the declining eroi of traditional fossil fuel energy sources and the effect of that on the world economy are likely to result in a myriad of consequences most of which will not be perceived as good

can renewable energy power the future fossil fuels face resource depletion supply security and climate change problems renewable energy re may offer the best prospects for their long term replacement however re sources differ in many important ways from fossil fuels particularly in that they are energy flows rather than stocks the most important re sources wind and solar energy are also intermittent necessitating major energy storage as these sources increase their share of total energy supply we show that estimates for the technical potential of re vary by two orders of magnitude and argue that values at the lower end of the range must be seriously considered both because their energy return on energy invested falls and environmental costs rise with cumulative output finally most future re output will be electric necessitating radical reconfiguration of existing grids to function with intermittent re

increasing competition and the winner s curse evidence from procurement we assess empirically the effects of the winner s curse which in common value auctions counsels more conservative bidding as the number of competitors increases first we construct an econometric model of an auction in which bidders preferences have both common and private value components and propose a new monotone quantile approach which facilitates estimation of this model second we estimate the model using bids from procurement auctions held by the state of new jersey for a large subset of these auctions we find that median procurement costs rise as competition intensifies in this setting then asymmetric information overturns the common economic wisdom that more competition is always desirable

optimal procurement mechanisms we analyze optimal mechanisms in environments where sellers are privately informed about quality a methodology is provided for deriving conditions that are necessary and sufficient to determine when two simple trading environments maximize either social or private surplus the commonly used auction mechanism is frequently inefficient in procurement environments often the optimal mechanism is simply to order potential suppliers and to tender take it or leave it offers to each sequentially we completely characterize the environments in which either mechanism is optimal in doing so we develop a general methodology that determines when and if a given trading institution is optimal

differences in co2 emissions of solar pv production among technologies and regions application to china eu and usa abstract a widespread implicit assumption is that renewable energy options are approximately low carbon however production and life cycles of such technologies tend to produce co2 emissions to minimize life cycle emissions one should account for such emissions and implement adequate policies to encourage innovation and adoption of well performing technologies in this respect we develop a framework to analyse this issue grounded in the concepts of energy return on energy invested eroi and net energy return on carbon invested eroc applying these to the main pv technologies and production regions namely china eu and usa displays considerable discrepancies we conditionally predict the development of average eroi and eroc over time under business as usual and low carbon electricity generation scenarios a main policy lesson is that without a systemic policy instrument such as carbon pricing incentives for low carbon production of renewable energy options are too weak which likely will delay a complete transition to a low carbon economy

multi dimensional pinch analysis for sustainable power generation sector planning in china emerging economies account for a fast growing share of the global energy market in particular energy use in china has become significant from both economic and environmental standpoints this trend makes it necessary to balance the need for affordable reliable electricity supply with the need to ensure that the power infrastructure is environmentally sustainable as such this paper presents a multi dimensional pinch analysis mdpa of the power generation sector in china the analysis considers five key indices carbon footprint energy return on investment eroi water footprint land footprint and risk to humans by simultaneously quantifying five different indices under a common methodological framework we are able to coherently assess the impact on five different environmental concerns this approach provides a more complete picture of the true environmental impact of china s power sector this information can thus help policymakers avoid the problem of shifting environmental impacts to other domains which can occur when the analytic procedure used focuses on a single environmental dimension

the vermont common assets trust an institution for sustainable just and efficient resource allocation both private and public sectors have failed to adequately provide critical ecosystem goods and services or an equitable distribution of wealth and income to address this problem the vermont legislature is considering the creation of a vermont common assets trust vcat that would make the state s atmosphere aquifers and other resources created by nature or by society as a whole the common property of all vermonters present and future under the trust a board of trustees would have the legal obligation to manage these assets for the benefit of all vermonters including future generations this paper first explains why certain resources are likely to be managed more sustainably fairly and efficiently as common property than as private property it then discusses mechanisms for integrating assets into the trust estimates of potential revenue from a vcat suggest that it could eliminate the state budget deficit contribute to a better distribution of wealth and resources and help address critical ecological problems survey results suggest that a vcat is politically feasible the vcat promises to be an important pilot project that could later be scaled up to a national or global level

do microfinance institutions fulfil their promise evidence from cross country data abstractthe concept of microfinance promises poverty reduction and economic growth we empirically challenge this economic and social promise in an attempt to prove its fulfilment our multivariate regressions of economic development variables such as per capita gross national income based on ppp converted to international dollars gni per capita ppp gdp growth as well as gross capital formation and labour participation rate against specific microfinance institutions mfi variables show that the success and performance of mfis significantly influence economic development microfinance directly influences economic growth through the value that mfi performance adds to purchasing power an indirect impact comes from an improvement in capital accumulation and employment rates these insights are valuable as the interdependencies between microfinance and economic development that this article verifies offer new and progressive insights into purposeful action that can be taken to stimulate economic develop

implications of trends in energy return on energy invested eroi for transitioning to renewable electricity abstract recent papers argue that the energy return on energy invested eroi for renewable electricity technologies and systems may be so low that the transition from fossil fuelled to renewable electricity may displace investment in other important economic sectors for the case of large scale electricity supply we draw upon insights from net energy analysis and renewable energy engineering to examine critically some assumptions data and arguments in these papers focussing on regions in which wind and solar can provide the majority of electricity we show that the above claim is based on outdated data on erois on failing to consider the energy efficiency advantages of transitioning away from fuel combustion and on overestimates of storage requirements erois of wind and solar photovoltaics which can provide the vast majority of electricity and indeed of all energy in the future are generally high 10 and increasing the impact of storage on eroi depends on the quantities and types of storage adopted and their operational strategies in the regions considered in this paper the quantity of storage required to maintain generation reliability is relatively small

the ethical foundations of responsible investment in the area of investment responsibility may be expressed via four types of ethical concern value based ethics resulting in the exclusion of so called vicious companies from the investment portfolio fructification oriented ethics with a view to long term investment consequence based ethics aimed at initiating a behavioural change in the investment target and ethics envisaged as a discriminating criterion in the search of the best financial performance no single formula of responsible investment is available and the responsible approach necessarily implies the active involvement of a free acting subject striving to tackle fundamental ethical issues the practice of responsible investment cannot be reduced to simply applying a particular legal rule or mathematical formula

multi scale integrated assessment of second generation bioethanol for transport sector in the campania region abstract current narrative on biofuels is backed up by a large number of studies published in the scientific literature that address second generation bioethanol only through a single topic approach nonetheless in the vast majority of cases transition to this energy carrier is evaluated as a generally promising technology this paper presents a first attempt in proposing an integrated evaluation of the actual benefits expected from bioethanol in the transport sector by applying the multi scale integrated analysis of societal and ecosystem metabolism musiasem to the prospective realization of a local system of bio refinery in campania region southern italy musiasem is a multi criteria analysis enabling to deal with the complexity of a territorial energy system since the unavoidable intrinsic uncertainty the study does not focus on predictions but adopts a strategy of quantitative story telling about some relevant results underlying the limits and critical issues about the energy converter fabric the economic profitability environmental constraints and the questionable concept of marginal land the findings suggest concluding toward falsification of key points in the current narrative i the system is not an efficient solar energy converter ii it fails to realize many of the expectations for a renewable energy carrier producer iii the contribution to decarbonization strategies is not as high as desired and other environmental impacts could not be neglected iv the very large land requirement is hardly compatible with conversion of truly marginal land in campania region v compared to alternate land uses it does not seem an actually promising strategy to regain value from rural economy

auctions versus negotiations which is the more profitable way to sell a company an auction with no reserve price or an optimally structured negotiation with one less bidder we show under reasonable assumptions that the auction is always preferable when bidders signals are independent for affiliated signals the result holds under certain restrictions on the seller s choice of negotiating mechanism the result suggests that the value of negotiating skill is small relative to the value of additional competition the paper also shows how the analogies between monopoly theory and auction theory can help derive new results in auction theory jel d44 g34 there are close analogies between standard price theory and the theory of auctions in an absolute english auction in which the price rises continuously until only one bidder remains and the seller is required to accept the final bid the sale price equals the lowest competitive price at which supply equals demand in the theory of optimal auctions the seller is treated as a monopolist who can choose any

are bid preferences benign the effect of small business subsidies in highway procurement auctions abstract bid preferences in procurement auctions allow firms from an identifiable group an advantage in bidding against unfavored firms while economic efficiency is expected to fall as a result of bid preferences government procurement costs may either increase or decrease depending on the competitive response of favored and unfavored firms this paper uses data from california auctions for road construction contracts where small businesses receive a 5 percent bid preference in auctions for projects using only state funds and no preferential treatment on projects using federal aid i show that while firms bidding behavior matches theoretical predictions procurement costs are 3 8 percent higher on auctions using preferences the higher procurement cost in preference auctions is attributed to reduced participation by lower cost large firms structural estimates of latent firm costs are then used to evaluate how efficiency and the division of surplus between firms and the government are impacted by bid preferences firm profits are 3 1 percent lower under bid preferences however this is overwhelmed by the efficiency loss due to reduced large firm participation the efficiency loss conditional on firm participation is estimated to represent around 0 1 percent of overall procurement costs including the adverse effect of preferences on the participation of large firms increases the estimated efficiency loss to 3 6 percent which represents 27 cents for each additional dollar awarded to small businesses through the program counterfactual simulations indicate that if participation were instead inelastic to bid preferences the 5 percent bid preference would be close to the optimal level

are causal relationships sensitive to causality tests 1987 are causal relationships sensitive to causality tests applied economics vol 19 no 4 pp 459 465

connecting net energy with the price of energy and other goods and services net energy is intuitively compelling and useful in calculating total impacts e g primary energy greenhouse gases land use and water requirements of delivering useful energy to the larger economy however it has little policy impact unless connected quantitatively to the price of energy and other goods and services i present an input output io based method to do this the method is illustrated by a two sector model fitted to u s io economic data in an io characterized system the energy returned on energy invested eroi and the energy intensity of energy are directly related however eroi and prices are not uniquely related because they depend differently on four independent io coefficients representing internal structure of and the relationship between the energy sector and the rest of the economy if only one of these coefficients varies then eroi does uniquely determine prices uncertainties in the io coefficients as well as persistent issues of choosing system boundary and aggregating diverse energy types further complicate the eroi price connection in this context i review two recent empirical comparisons of u s oil and gas prices and eroi for 1954 2007