asymmetric bidding in second price common value auctions abstract two comparative static characterizations for common value auctions under second price rules are extended to heterogeneous bidders the willingness to pay of the two highest bidders is enhanced on average by the release of public information and best responses are less aggressive when facing more rival bidders

balancing the carbon budget for oil the distributive effects of alternative policies keeping temperature change below 2 c will require leaving large reserves of fossil fuels unextracted we assess alternative policies to achieve this goal in a world divided into two regions one regulated with emissions pricing and one unregulated supplied by multiple resource pools with different extraction costs and a carbon free backstop whose costs decline over time global emissions can be reduced by combinations of three policies 1 increasing the size of the regulated coalition 2 raising the tax or tightening the cap within the regulated coalition and 3 accelerating cost reductions of the clean technology we ask how combinations achieving the same cumulative co2 emissions the carbon budget affect the discounted surplus of regulated and unregulated consumers and the wealth of the extractors we first evaluate these policy alternatives in a two pool theoretical model with high and low cost extractors and once tradeoffs are illuminated in a calibrated oil market model a global co2 tax is both cost effective and the best policy for regulated consumers extractors and unregulated consumers however prefer a technology only policy when the regulating coalition is subglobal support for the clean substitute is desired and often required but the preferred policy portfolio of the coalition involves a tighter cap and less technology policy than is globally optimal leaving room for bargaining over who pays for clean innovation

multimarket contact imperfect monitoring and implicit collusion abstract this paper presents a theoretical foundation to the possibility that multimarket contact enhances firms ability to sustain implicit collusion when firms operate in a single market and cannot perfectly monitor their opponents choices it is impossible to achieve efficiency even if these firms have a long term strategic relationship we show that when firms encounter each other in a number of distinct markets and the extent of this market contact is large efficiency can be approximately sustained by a perfect equilibrium this efficiency with imperfect monitoring holds under almost the same condition on the discount factor as with perfect monitoring journal of economic literature classification numbers c70 c72 c73 d43 l11 l22 l41

market structure and resource depletion a contribution to the theory of intertemporal monopolistic competition a the theory of resource extraction in the model we present there exists a produced substitute to the natural resource the primary question with which we are concerned is the interaction of the resource and its substitute the model we present can thus be thought as providing a link between rent and production based price theories one of the general results in the earlier literature on resource extraction is that deposits with lower extraction costs will be exploited first the analysis

an oligopoly fringe non renewable resource game in the presence of a renewable substitute abstract in accordance with recent empirical evidence we model the oil market as an oligopoly facing a fringe as well as competition from renewable resources within this framework we fully characterize i e for all vectors of initial resource stocks the equilibrium extraction paths of the fringe and the oligopolists we show that i the sequence of extraction in equilibrium crucially depends on the oligopolists market power ii there always exists a phase of simultaneous supply of the oligopolists and the fringe iii the oligopolists pursue a limit pricing strategy near the end of the extraction horizon and iv an increase in the reserves of the fringe may lead to a decrease in their initial supply

limit pricing and the in effectiveness of the carbon tax we present a theory of limit pricing monopoly in non renewable resource production facing a very inelastic demand an oil monopoly seeks to induce the highest price that does not destroy its demand unlike the conventional hotellian analysis the monopoly tolerates some ordinary substitutes to its oil but deters high potential ones with limit pricing policy induced extraction changes do not obey the usual logic for example oil taxes have no effect on current oil production extraction increases when high potential substitutes are promoted but can be effectively reduced by supporting ordinary substitutes the carbon tax not only applies to oil it also penalizes its ordinary carbon substitutes whose market shares are taken over by the monopoly thus the carbon tax ambiguously affects current and long term oil production and carbon emissions

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

monopoly extraction of a nonrenewable resource facing capacity constrained renewable competition abstract this paper studies monopoly extraction of a nonrenewable resource with the presence of a competitively supplied capacity constrained renewable substitute the monopolist staves off the renewable supply when the latter becomes competitive and then lets the resource price jump up

conceptualising environmental responsibility abstract downstream responsibility is rarely addressed in the academic literature and in corporate sustainability reporting we conceptualise downstream responsibility for the example of carbon emissions by establishing a terminology as well as a framework for quantifying downstream carbon footprints by extracting emissions intensive sales chains for a number of australian industry sectors and comparing these to emissions intensive supply chains we demonstrated the ability of input output analysis to quantify emissions responsibility in both directions we extend the definition of downstream responsibility beyond the product use and disposal phases to include what we call enabled emissions this term implies that whatever is sold downstream enables our customers to operate and emit irrespective of whether it is our product that is combusted or that directly combusts fuels or not our structural path analyses and threshold capture relationships reveal stark differences between industries with regard to the data collection efforts necessary to achieve a reasonably complete footprint assessment industries appear to have their own specific carbon footprint profiles and one cannot design generic relevance tests that tell which data to collect moreover we conclude that current completeness standards in carbon reporting cannot be satisfied using relevance thresholds input output analysis and structural path analysis are excellent tools that can help companies undertake screening exercises which in turn help prioritising and streamlining the collection of data needed to establish a corporate downstream carbon footprint compared to conventional manual approaches hybrid life cycle assessments assisted by input output analysis and structural path analysis achieve more complete results with substantially less staff money and time

private monitoring games and decisions under uncertainty abstract we investigate the value of delaying the punishment in private monitoring repeated games with almost public information when players use a grim trigger strategy if the effects of uncertainty and irreversibility are considered the equilibrium set would change

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

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

a new consumption based accounting model for greenhouse gases from 1948 to 2012 abstract greenhouse gas emissions embodied in international trade have grown rapidly as globalization has progressed and potentially threaten the efficacy of unilateral climate treaties such as the kyoto protocol consumption based methods have been put forward as a way of overcoming this issue and help design future climate policies we improve the long term consumption based accounting lcba model with transfer carbon data from 1948 to 2012 by introducing country specific import intensities and detailed bilateral trade data from uncomtrade comparisons of our new lcba2 model with existing 4 studies show similar consumption based emission patterns both in trend and magnitude and significant emission changes in many european countries the results independently confirm previous findings on the efficacy of the kyoto protocol the results indicate transferred emissions have contributed an historic 36 gt co 2 of cumulative emissions have grown rapidly during the past 30 years up to 8 of total emissions and are likely to become increasingly influential in the near future as the global economy recovers we also use the improved model to study other gases ch 4 n 2 o and so 2 embodied in trade and results indicate similar transfer patterns as co 2 with comparable or even moderately larger magnitudes across method result differences between lcba2 with 3 other models are analyzed based on using common input datasets large emitters show moderate biases within 10 and about 75 of countries have differences within 25 independent of input dataset the lcba2 model provides useful estimates of transferred emissions in both across country and long term historical contexts

supply side structural effect on carbon emissions in china abstract this paper carries out a structural decomposition analysis sda of production related carbon emissions in china from 1992 to 2005 by adopting the ghosh input output model it finds that the supply side structure measured by sectoral shares in value added increased production related carbon emissions in 1992 2002 mainly due to the rapid growth of manufacturing sectors but reduced them in 2002 2005 thanks to the decreased shares of carbon intensive sectors whatever the supply side structure forward carbon multipliers of each sector or changes in supply side sectoral shares and related emissions effects calculated by adopting the ghosh input output model were different from their demand side counterparts estimated by adopting the leontief input output model the results suggest optimizing the supply side structure and lowering the forward carbon multipliers to control carbon emissions in the future

constructing long term 1948 2011 consumption based emissions inventories accompanying the boom in the global economy co2 emissions have soared over the past several decades with the developing world exhibiting higher emission growth rates than the developed world emissions transfers between regions which represent a significant fraction of total emissions are assumed to be a primary factor contributing to this difference it is important to understand these transfer figures and the resulting consumption based emissions in order to evaluate the emissions drivers and establish climate policies existing studies however have merely estimated figures over a 20 years span post 1990 using a traditional input output analysis ioa framework to broaden the data coverage to pre 1990 of these transfer figures and to further analyze their impacts on total emissions in the long term a new model called the long term consumption based accounting model lcba which is directly based on statistics is developed to span the period from 1948 to 2011 the results are consistent with the magnitudes and trends of existing studies over the validation post 1990 period we use monte carlo methods to calculate upper and lower bounds on the lcba for each country and year and find that 3 existing time series are almost fully included within these boundaries from 1990 furthermore the lcba model is succinct enough to be easily expanded for future ghg estimations or to analyze other ecological footprints related to the flow of materials it can be assumed that the soaring emissions transfers will seriously jeopardize the current climate policies such as kyoto protocol the durban platform for enhanced action adp under which all parties are legally bound will require a consumption based accounting method together with the territorial one in order to achieve an equitable agreement however more researches are still needed to facilitate the use of these figures to better support decision making

carbon taxation opec and the end of oil abstract i develop a differential game between an oil cartel and an importer investing in research and development r d to reduce the cost of a green substitute to oil in equilibrium the cartel is forced to deter the substitute which thus imposes a price ceiling falling over time credible carbon taxes are below the pigovian level implying the importer cannot internalise the full pollution externality much less capture resource rents without carbon pricing the importer curtails long run pollution using a costly r d programme normatively climate policy will be more expensive if relying on green r d programmes only

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

market structure and resource extraction under uncertainty this paper compares the rate of extraction of a natural resource under alternative market structures when there is uncertainty about the date of discovery of a substitute or about the date of discovery of a new deposit the analysis shows that imperfectly competitive market structures are excessively conservationist for any value of the initial stock of the natural resource the price is higher than in competitive equilibrium and therefore higher than the socially optimal level but markets with limited competition may have a higher price than markets with pure monopoly the same monopolist controlling the natural resource and its substitute in particular we find that the highest prices are associated with nash quantity setting duopolists the next highest prices occur in markets in which the monopolist controls the resource but the substitute is competitively produced the pure monopolist sets his price lower than this while the market in which a monopolist controls the substitute but the resource is competitvely owned is still lower

the responsibility for carbon emissions and carbon efficiency at the sectoral level evidence from china this work reviews benefit based principles to measuring responsibility for carbon emissions at the sectoral level using environmental input output analysis several new emissions multipliers are proposed to measure sectoral carbon efficiency these principles are used in an empirical analysis of carbon emissions in china and differences between the principles are compared the results indicate that all principles considered can prevent double counting of emissions but that different principles may lead to significantly different attributions of responsibility for carbon emissions and to different multiplier values for particular sectors electricity and heat supply is found to be the sector with the highest emissions responsibility under all but the consumer responsibility principle as well as the highest carbon multiplier under all principles however this sector s responsibility under producer responsibility principles is greater than that under other principles basic metals and transportation and post and telecommunication are among the top five sectors with the greatest responsibilities under all but the consumer responsibility principle whereas construction has the highest consumer responsibility among all sectors the pros and cons and policy implications of each principle are also discussed

extraction of a resource with a substitute for some of its uses important resources e g oil may be used for several purposes there may exist good substitutes for such a resource in some of its uses but no substitute in other uses the price and extraction paths for the resource are analysed for several market structures some of these paths differ substantially from the corresponding paths for the case of no substitute and for the case of a substitute for all the resource s uses in particular a jump in the resource price may occur l extraction d une ressource quand il existe un substitut pour certains des usages qu on peut en faire certaines ressources importantes comme 1 huile par exemple peuvent etre utilisees a plusieurs fins dans certains cas il se peut qu il existe des substituts pour certains usages qu on peut en faire alors que dans d autres cas il n existe pas de substituts l auteur examine la tarification et les diverse strategies d extraction dans des structure de marches differentes certaines de ces strategies d extraction different substantiellement de celles qui auraient ete utilisees soit dans le cas oiu aucun substitut n existe soit dans le cas ou substitut existe pour tous les usages qu on peut faire de la ressource en particulier on peut observer un saut dans le prix de la ressource

double limit pricing abstract we study oil extraction by a monopolist who faces demand from a climate aware and a climate ignorant region a renewable perfect substitute for oil is available at constant unit cost the climate aware region uses a carbon tax and a renewables subsidy as policy instruments due to heterogeneity in climate policies between regions the oil price path possibly contains two limit pricing phases we specify conditions under which a tightening of climate policies results in lower initial carbon emissions a renewables subsidy and a carbon tax effectively force the monopolist to sell more oil to the climate ignorant region during the stage when demand from the climate aware region has already vanished we calibrate the model and numerically investigate climate damage and welfare effects of the policies of the climate aware region we find that both the carbon tax and a renewables subsidy lower climate damage even though cumulative emissions are fixed

monopoly unilateral climate policies and limit pricing abstract we examine the behavior of a fossil fuel monopolist who faces demand from two regions a climate club and the rest of the world row each region is able to produce a perfect substitute for fossil energy at constant marginal costs the climate club uses a carbon tax and a renewables subsidy as policy instruments the row is policy inactive we fully characterize the market equilibrium and show that due to differences in climate policies between the climate club and the row the monopolistic fossil fuel supplier may choose for two limit pricing phases to postpone entry of renewables producers first in the climate club and later in the row as soon as energy demand from the climate club shifts from fossil fuels to renewables the monopolist abruptly increases the fossil price for the row

communication in repeated games with imperfect private monitoring this paper examines repeated games in which each player observes a private and imperfect signal on the actions played and in which players are allowed to communicate using public messages providing incentives for players to reveal their observations generates revelation constraints that combined with signal imperfections may be a source of inefficiencies however by delaying the revelation of their observations players may economize on the cost of deterring deviations and thereby avoid these inefficiencies because a player would not want to trigger a sanction that would penalize him too revelation constraints also tend to make sanctions difficult to enforce however with at least three players detecting deviations may not require that all the players reveal their observations in that case we obtain a nash threat version of the folk theorem with two players we do not obtain a similar result nevertheless we show that an efficient outcome can almost always be approximated

consumer and producer environmental responsibility comparing two approaches abstract two different indicators of environmental responsibility were independently proposed by rodrigues et al rodrigues j domingos t giljum s schneider f 2006 designing an indicator of environmental responsibility ecological economics 59 3 256 266 and lenzen et al lenzen m murray j sack f wiedmann t 2007 shared producer and consumer responsibility theory and practice ecological economics 61 27 42 these indicators are both supposed to reflect the indirect effects of consumer and producer behavior in the generation of environmental pressure in this paper we compare their mathematical properties and interpretation we conclude that they have different implications for environmental policy

brown backstops versus the green paradox abstract anticipated climate policies are ineffective when fossil fuel owners respond by shifting supply intertemporally the green paradox this mechanism relies crucially on the exhaustibility of fossil fuels we analyze the effect of anticipated climate policies on emissions in a simple model with two fossil fuels one scarce and dirty e g oil the other abundant and dirtier e g coal we derive conditions for a green orthodox anticipated climate policies may reduce current emissions the model can also be used to analyze spatial carbon leakage calibrations suggest that intertemporal carbon leakage from 0 to 8 is a relatively minor concern

a consumption based approach to carbon emission accounting sectoral differences and environmental benefits in recent years there has been growing concern about the emission trade balances of countries this is due to the fact that countries with an open economy are active players in international trade trade is not only a major factor in forging a country s economic structure but contributes to the movement of embodied emissions beyond country borders this issue is especially relevant from the carbon accounting policy and domestic production perspective as it is known that the production based principle is employed in the kyoto agreement the research described herein was designed to reveal the interdependence of countries on international trade and the corresponding embodied emissions both on national and on sectoral level and to illustrate the significance of the consumption based emission accounting it is presented here to what extent a consumption based accounting would change the present system based on production based accounting and allocation the relationship of co2 emission embodied in exports and embodied in imports is analysed here international trade can blur the responsibility for the ecological effects of production and consumption and it can lengthen the link between consumption and its consequences input output models are used in the methodology as they provide an appropriate framework for climate change accounting the analysis comprises an international comparative study of four european countries germany the united kingdom the netherlands and hungary with extended trading activities and carbon emissions moving from a production based approach in climate policy to a consumption based principle and allocation approach would help to increase the efficiency of emission reductions and would force countries to rethink their trading activities in order to decrease the environmental load of production activities the results of this study show that it is important to distinguish between the two emission accounting approaches both on the global and the local level

international trade and the geographical separation between income and enabled carbon emissions abstract in this paper we study how international trade allows the geographical separation between the place where carbon emissions occur and the place where income from those emissions is derived we do so by studying the carbon emissions enabled by the primary inputs of products downstream along the production chain we find that 18 of global carbon emissions are enabled abroad and that developed economies fossil fuel exporters and asia account for 80 of the downstream emissions enabled by international trade both developed economies and fossil fuel exporters exhibit a positive trade balance of enabled emissions while for asia the opposite is true developed economies and fossil fuel exporters enable emissions mainly through the export of manufactured products 690 mt and fossil fuels 684 mt respectively while asia exhibits an outflow of enabled emissions through the import of fossil fuels 209 mt the measurement of enabled emissions allows the understanding of how a region s income is derived from carbon emissions occurring abroad

on the theory of repeated games with private information part ii revelation through communication abstract we consider repeated games with private information discounting and communication similarly to abreu et al 1986 1987 we characterize supergame equilibrium allocations with truthful revelation in the two player case efficiency cannot be attained with supergame equilibria with truthful revelation

are renewable energy policies climate friendly the role of capacity constraints and market power abstract this paper studies the impacts of renewable energy support policies on energy prices fossil fuel supply and thus carbon emissions from fossil fuels such supports are climate friendly if the renewables are already competitive against fossil fuels but if the renewables are not yet competitive the climate change impacts are often ambiguous and are sensitive to capacity constraints of renewables production and to the fossil fuel market structure if the renewables do not have capacity constraints then the subsidies are subject to the green paradox under perfect competition but might be climate friendly under monopoly supports for capacity constrained renewables under perfect competition lead to more current fossil fuel supply but delay fossil fuel exhaustion time and these effects are reversed under monopoly our results highlight the importance of considering the long term effects on fossil fuel supply as well as capacity constraints and market power in designing renewable energy policies and evaluating their carbon footprints

climate change policy market structure and carbon leakage abstract the 1997 kyoto protocol on climate change obliges the industrialized countries to initiate the international effort of abating anthropogenic greenhouse gas ghg emissions if such an initiative is to be taken the associated competitive effects may lead to significant relocation of developed countries energy intensive production this paper examines this issue i adopt an oligopolistic structure combined with increasing returns to scale production technologies to represent the strategic interaction among the firms producing energy intensive products this representation is then embedded within a multi regional computable general equilibrium model which in turn is used for quantifying these relocational effects the results suggest that significant relocation of energy intensive industries away from the oecd may occur depending on the type of market structure with leakage rates as high as 130 in which case ghg control policies in the industrialized countries actually lead to higher global emissions

opec vs us shale analyzing the shift to a market share strategy abstract in november 2014 opec announced a new strategy geared towards improving its market share oil market analysts interpreted this as an attempt to squeeze higher cost producers notably us shale oil out of the market over the next year crude oil prices crashed with large repercussions for the global economy we present a simple equilibrium model that explains the fundamental market factors that can rationalize such a regime switch by opec i the growth of us shale oil production ii the slowdown of global oil demand iii reduced cohesiveness of the opec cartel and iv production ramp ups in other non opec countries while v reductions in us shale costs act against these factors we show that these qualitative predictions are broadly consistent with oil market developments during 2014 2015 the model is calibrated to oil market data it predicts accommodation up to 2014 and a market share strategy thereafter and explains large oil price swings as well as realistically high levels of opec output

import adjusted fatality rates for individual organization for economic cooperation and development oecd countries caused by accidents in the oil energy chain abstract oil and its derivatives are crucial components of economic growth and prosperity globally the economic and social gains from producing trading and consuming oil are readily estimated and observed however during each of the phases of oil production and trade beginning with exploration and extraction physical damages injuries and fatalities and economic losses are frequently incurred from accidents such as pipeline explosions specifically organization for economic cooperation and development oecd countries consume the majority of the oil produced annually yet most accidents occur in non oecd countries drawing from the input output analysis literature this paper uses a one dimensional accounting method based on trade data to determine the crude oil consumption fatality rates of the oecd countries annually between 1978 and 2008 this analysis results in meaningful changes to production based fatality calculations in particular oecd countries import the majority of their annual fatality rates from non oecd countries based on 5 patterns that emerge the authors postulate that historical trade relationships differential policies and regulations as well as levels of technology adoption may influence these outcomes this fundamental analysis applies the now popular consumption based accounting method taken from multi regional input output and life cycle assessment to a risk assessment setting the authors introduce the method in this setting such that as in the case of embodied emissions it can act as a basis for further econometric analyses develop more awareness and a greater sense of shared international responsibility as well as instruct policy changes for best practices in the field of energy

optimal cartel equilibria with imperfect monitoring abstract there exist optimal symmetric equilibria in the green porter model 4 8 having an elementary intertemporal structure such an equilibrium is described entirely by two subsets of price space and two quantities the only production levels used by firms in any contingency the central technique employed in the analysis is the reduction of the repeated game to a family of static games

carbon leakage the green paradox and perfect future markets policies of lowering carbon demand may aggravate instead of alleviate climate change green paradox in a two period three country general equilibrium model with finite endowment of fossil fuel one country enforces an emissions cap in the first or second periods when that cap is tightened the extent of carbon leakage depends on the interaction of various parameters and elasticities conditions for the green paradox are specified all determinants of carbon leakage resulting from tightening the first period cap work in the opposite direction when the second period cap is tightened tightening the second period cap does not necessarily lead to the green paradox

carbon emissions embodied in value added chains in china abstract the literature on carbon leakage and embodied carbon in regional trade is extensive however many studies are primarily concerned with emissions embodied in demand supply chains and ignore the issue of carbon transfer behind the value added chains we promote a model to calculate value based emissions vbes and carbon emissions embodied in the value added chain using the multi regional input output model mrio taking china as an example vbes and carbon emissions embodied in value added chains at the sub national level based on mrio tables for 1997 and 2007 in china were analyzed transferred carbon emissions embodied in regional value added chains in china showed rapid growth between 1997 and 2007 however the absolute values of inter regional net transferred carbon emissions embodied in value added chains were small and showed a declining trend therefore the regional inequality between economic growth and carbon emissions pollution reduced between 1997 and 2007 although the amount of emissions embodied in regional value added chains increased as of the inter regional economic link in china gained close proximity

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

a three perspective view of greenhouse gas emission responsibilities in new zealand abstract while responsibility for the environmental impacts of production has been commonly assigned to producers production is driven by consumer demand and it is valid to question whether impacts should instead be assigned to consumers however in each of these approaches producers and consumers either bear the full burden of responsibility or none at all an example of this is the kyoto protocol where all greenhouse gas emissions are assigned to the producer and no consideration is given to where goods are finally consumed rather than taking the conventional producer or consumer responsibility approach a third perspective is possible in which responsibility is shared we use input output analysis to apply all three of these responsibility perspectives to new zealand s domestic greenhouse gas emissions our main findings from the shared responsibility approach are that new zealand producers are responsible for 44 of domestic emissions new zealand consumers take 28 and 27 are exported a shared responsibility approach appears to distribute the burden of responsibility and associated liability between parties more fairly and is likely to be more widely acceptable than pure producer or consumer perspectives

repeated games with private monitoring two players we investigate two player infinitely repeated games where the discount factor is less than but close to unity monitoring is private and players cannot communicate we require no condition concerning the accuracy of players monitoring technology we show the folk theorem for the prisoners dilemma with conditional independence we also investigate more general games where players private signals are correlated only through an unobservable macro shock we show that efficiency is sustainable for generic private signal structures when the size of the set of private signals is sufficiently large finally we show that cartel collusion is sustainable in price setting duopoly

an example of a repeated partnership game with discounting and with uniformly inefficient equilibria in this note we present an example of a repeated partnership game with imperfect monitoring in which all supergame equilibria with positive discount rates are bounded away from full efficiency uniformly in the discount rate provided the latter is strictly positive on the other hand if the players do not discount the future then every efficient one period payoff vector that dominates the one period equilibrium payoff vector can be attained by an equilibrium of the repeated game thus the correspondence that maps the players discount rate into the corresponding set of repeated game equilibrium payoff vectors is discontinuous at the point at which the discount rate is zero

when additional resource stocks reduce welfare in the dominant firm model we show that an increase of the fringe s reserves of a nonrenewable resource may lead to a decrease in aggregate discounted social welfare this happens when the difference between the fringe s extraction cost and the dominant firm s is positive and large enough we also show that welfare might decrease if the fringe s marginal extraction cost decreases

collusion in dynamic bertrand oligopoly with correlated private signals and communication abstract this paper studies collusion in repeated bertrand oligopoly when stochastic demand levels for the product of each firm are their private information and are positively correlated it derives general sufficient conditions for efficient collusion through communication and a simple grim trigger strategy this analysis is then applied to a model where the demand signal has multiple random components which respond differently to price deviations in this model it is shown that the above sufficient conditions hold if idiosyncratic noise terms are sufficiently small journal of economic literature classification numbers c72 d82

carbon emissions embodied in demand supply chains in china abstract using the multi regional input output model mrio the paper distinguishes the carbon emissions embodied in commodities for domestic final consumption cbes consumption based emissions and those for export ebes export based emissions and then calculates carbon emissions embodied in the demand supply chains for consumption and export based on technical coefficients matrix of the mrio for one country taking china as an example we provide a dynamic analysis of cbes ebes and carbon emissions embodied in consumption and export demand supply chains at the sub national level based on the mrio tables for 1997 and 2007 the results show that in china the transferred carbon emissions embodied in demand supply chains driven by consumption and export both showed rapid growth during 1997 2007 and the net transferred carbon emissions embodied in the demand supply chains showed an increasing trend as well less developed regions with abundant fossil fuels tend to net flow out carbon emissions

unilateral climate policies incentives and effects we analyze the effect of climate policies using a two region partial equilibrium model of resource extraction the regions are heterogeneous in various aspects such as in their climate policies and resource extraction costs we obtain analytical and numerical conditions for a green paradox to occur as a consequence of a unilateral increase in carbon taxation and backstop subsidy in order to assess the welfare and climate consequences of unilateral policy changes we calibrate the model to real world parameter values we find that forming a climate coalition and introducing carbon taxation even in the absence of real climate concerns is the best course of action for the largest fossil fuel using regions

on nonrenewable resource oligopolies the asymmetric case we give a full characterization of the open loop nash equilibrium of a nonrenewable resource game between two types of firms differing in extraction costs we show that i there almost always exists a phase where both types of firms supply simultaneously ii when the high cost mines are exploited by a number of firms that goes to infinity the equilibrium approaches the cartel versus fringe equilibrium with the fringe firms acting as price takers and iii the cheaper resource may not be exhausted first a violation of the herfindahl rule that may be detrimental to social welfare

income based environmental responsibility abstract a strong mitigation effort is underway to reduce the levels of anthropogenic greenhouse gas emissions an allocation of the mitigation effort among multiple agents requires understanding which agent is responsible for what emissions according to a defined measure of carbon responsibility the metric adopted by current international climate policy is production based or territorial responsibility however other types of responsibility have been discussed in the literature namely consumption based or upstream responsibility and downstream responsibility in this paper we study the latter which is little explored in the literature we clarify the term through a novel nomenclature income based responsibility and present a case study with the quantification of income based responsibility for 112 world regions and the comparison of the results with production and consumption based responsibilities

the folk theorem for repeated games with observation costs abstract the folk theorem literature has been relaxing the assumption on how much players know about each other s past action here we consider a general model where players can buy precise information every period each player decides whether to pay a cost to accurately observe the actions chosen by other players in the previous period when a player does not pay the cost he obtains only imperfect private signals observational decisions are unobservable to others known strategies such as trigger strategies do not work since they fail to motivate players to pay for information this paper shows that the folk theorem holds for any level of observation costs unlike existing folk theorems with private monitoring ours imposes virtually no restriction on the nature of costless imperfect signals the theorem does not use explicit or costless communication thereby having implications on antitrust laws that rely on evidence of explicit communication the main message is that accurate observation alone however costly enables efficient cooperation in general repeated games