armington elasticities for energy policy modeling evidence from four european countries elasticities of substitution among imports and competing domestic production armington elasticities play an important role in computable general equilibrium cge assessments of energy and climate policy this paper provides estimates of armington elasticities for 15 commodity groups in four european countries since armington elasticities are found to be rather low on average researchers may want to reconsider the device of using high values of armington elasticities in cge models to avoid unrealistic competitiveness effects or emission leakage rates associated with energy or carbon taxes or other forms of energy related regulation estimated elasticities tend to be higher in the case of machinery and other investment goods than in the case of primary products ores and chemicals as well as consumer goods

closing the regional equity capital gap the role of informal venture capital there is evidence from a number of countries that small firms encounter a shortage of long term investment finance particularly at start up and initial growth expansion of the institutional venture capital industry has done little to fill this equity gap on account of its preference for making large investments in established companies and management leveraged buyouts moreover the supply of venture capital exhibits a high level of spatial concentration initiatives by state provincial and local governments most notably in economically lagging regions to increase the supply of risk capital for start ups and early stage businesses have at best provided a very partial and often costly solution a more appropriate approach to increasing the supply of start up and early stage finance is to facilitate the more efficient operation of theinformal venture capital market informal investors or business angels are private investors who provide risk capital directly to new and growing businesses in which they have no family connection most business angels are unable to find sufficient investment opportunities and so have substantial uncommitted funds available there is also considerable scope for expanding the population of business angels the most cost effective means of closing the equity gap is therefore for the public sector to underwrite the operating costs of business introduction services whose objective is to overcome the two main sources of inefficiency in the informal venture capital market namely the invisibility of business angels and the high search costs of angels seeking investment opportunities and entrepreneurs seeking investors by the provision of a channel of communication between informal investors and entrepreneurs seeking finance

attitudes and behaviors of informal investors toward early stage investments technology based ventures and coinvestors abstract seed capital financing for new firms is important to the commercialization of business innovations yet few entrepreneurs have the personal resources necessary to finance very early stage ventures and they often find themselves relying on external sources of seed capital their personal financial capabilities can easily become exhausted and the venture capital industry represents only a partial source of needed capital for start up and infant firms in recent years researchers have discovered the individual of financial means who invests a portion of his assets in early stage risk ventures this individual is variously termed an informal investor or an angel following an initial study by seymour and wetzel in 1981 researchers have expanded the knowledge about the backgrounds investment interests and behavioral patterns of informal investors the fact that informal investors generally invest within 50 miles of their homes or offices makes their participation in the entrepreneurial process particularly important for local economies our understanding of the general role of informal investors in risk venture financing has been greatly enhanced by prior studies however additional work is needed to identify characteristics of persons committed to start up firms or to technology based ventures two especially important types of business activity in the regional competition for economic development fifty five informal investors participated in a mail questionnaire modeled after prior studies sponsored by the small business administration respondents differentiated themselves on a scale of very early stage start up versus later stage risk venture investments and on a scale of technology oriented versus nontechnology oriented investments informal investors in this sample also differed on the average number of coinvestors including institutions per investment implications arise from the study for individuals interested in regional economic development and for entrepreneurs seeking seed capital first persons more committed to start up investing are more likely to have been or to be currently entrepreneurs themselves also these individuals may not be the most visible community members in terms of past entrepreneurial success and acquired wealth in fact persons committed to start up investing tend to have a lower annual income and lower net worth than persons investing in later stage risk ventures individuals playing this important financing role are particularly hard to identify a valuable key to their identification may lie in the fact that they tend to have worked or currently work in ventures similar to those in which they invest individuals committed to investments in technology oriented risk ventures give very little information about their personal characteristics however they do indicate a considerable amount about their investment patterns these investors play a higher risk higher return investment game than do persons less committed to technology based firms technology oriented investors also report a number of actions that appear to help them manage the risks inherent in their investment behaviors contrary to conventional wisdom about informal investors in general technology oriented investors use friends as referral sources less frequently people more interested in technology based ventures in the future look more to business service professionals investment business brokers and accounting law persons as referral sources finally a person s pattern of coinvesting indicates that individual s orientation toward risk a greater number of individual coinvestors in a typical deal is associated with a willingness to invest further from home for example and with a lower return expectation also persons investing with a fewer number of different types of coinvestors individuals and institutions tend to have more personal entrepreneurial experience to invest more in very early stage ventures and to be more interested in financing inventors this study is relevant to community leaders and entrepreneurs in several ways first the project begins to ask pertinent research questions about types of informal investors who play particularly important roles in local economic development second a more differentiated view of the role of the informal investor is suggested because special characteristics of start up investors and technology based investors can be distinguished third some initial clues about identifying these key individuals emerge the study demonstrates a productive line of thinking for community leaders and entrepreneurs in the risk venture financing process

what explains the short term dynamics of the prices of co2 emissions using the vector auto regression var and the vector error correction models vecm this paper analyzes the short term dynamics of the prices of co2 emissions in response to changes in the prices of oil coal natural gas electricity and carbon emission allowances the results show that i a positive shock to the crude oil prices has a negative effect on the co2 allowance prices ii an unexpected increase in the natural gas prices raises the price of co2 emissions iii a positive shock to the prices of the fuel of choice coal has virtually no significant impact on the co2 prices iv there is a clear positive effect of the coal prices on the co2 allowance prices when the electricity prices are excluded from the var system and v a positive shock to the electricity prices reduces the price of the co2 allowances we also find that the energy price shocks have a persistent impact on the co2 allowance prices with the largest effect occurring six months after a shock strikes the effect is particularly strong in the case of the natural gas price shocks additionally we estimate that it takes between 7 3 and 9 6 months to halve the gap between the actual and the equilibrium prices of the co2 allowances i e to erase any price over or undervaluations after a shock strikes finally the empirical findings suggest an important degree of substitution between the three primary sources of energy i e crude oil natural gas and coal particularly when electricity prices are excluded from the var system

benchmarking in the european union emissions trading system abatement incentives abstract this paper investigates abatement incentives for allowance allocation based on output and sector specific benchmarks here called output based allocation or benchmarking special attention is given to updated allocation and we assume that allowances can be traded with other sectors open cap we confirm earlier studies that output based allocation based on ex ante data provide the same abatement incentives as auction or grandfathering and also confirm that output based allocation with updated output and ex ante benchmarks provides as high abatement incentives as auction but constitutes a production subsidy however we also find that benchmarking with updated output and updated benchmarks reduces abatement incentives somewhat but less so than updated grandfathering an allocation rule where the sector cap is prescribed ex ante for instance based on historic emissions and distributed to installations in proportion to their updated production preserves full abatement incentives and avoids some of the costs associated with the determination of benchmarks however this rule also constitutes a production subsidy which decreases with industry concentration if a sector is split into smaller groups each with one benchmark per sub sector benchmarking evolves toward grandfathering since benchmarking is conditioned on production this allocation method protects production from leakage i e migrating to areas where firms face no emissions cost this may actually be the most compelling reason for choosing benchmarking

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cost pass through of the eu emissions allowances examining the european petroleum markets this paper explores the ability of european refineries to pass through costs associated with the introduction of the eu emissions trading scheme eu ets we estimated a sequence of vector error correction models vecm within a multi national setting which covers 14 eu member states using weekly data at the country level this paper finds a significant influence of prices for european union allowances euas on unleaded petrol retail prices during the trial phase of the eu ets from 2005 to 2007 petrol prices are found to be elastic with respect to crude oil prices and exchange rates but rather inelastic with respect to carbon costs the long run elasticity of petrol prices with respect to the eua prices typically ranges between 0 01 and 0 09 furthermore by computing the variance decomposition our analysis shows that a significant fraction of petrol price changes in austria germany france and spain can be explained by changes in allowances prices between 10 and 20

can a poverty index be both relative and absolute beginning with the work of a k sen 1976 poverty research has made extensive use of axioms to construct and evaluate distribution sensitive poverty measures an index is distribution sensitive if it satisfies sen s 1976 weak transfer axiom poverty decreases when income is transferred from a high income poor person to a low income poor person a distribution sensitive measure is appealing because it reflects the extent of deprivation among the poor and incorporates aspects of poverty that are ignored by standard measures such as the headcount ratio and poverty gap ratio in addition to the weak transfer axiom a number of other axioms that have considerable intuitive appeal when considered in isolation have been identified however several researchers e g thon 1979 kundu and smith 1983 and donaldson and weymark 1986 have shown that in some cases it is impossible to devise a poverty index that is consistent with the joint implications of otherwise reasonable axioms foster 1984 p 233 interprets the difficulties caused by the combined effects of two or more axioms as a warning not to measure too many aspects of poverty at the same time as a consequence it is now generally recognized that poverty axioms can have joint effects and it is important to explore the implications of such influences in a comprehensive investigation of subgroup consistent poverty measures foster and shorrocks 1991 examine the interaction between the scale invariance and translation invariance axioms 2 the first axiom requires a poverty index to be unaffected by the doubling of all incomes and the poverty line the second axiom requires a poverty index to be unaffected by equal increments to each income and to the poverty line 3 poverty indices that satisfy the first axiom are considered to be relative poverty indices while those satisfying the second are absolute poverty indices if a distribution sensitive index satisfying both axioms could be found it would provide a single measure of relative and absolute poverty and have considerable intuitive appeal in poverty measurement but one implication of foster and shorrocks 1991 work proposition 6 is that for the class of poverty measures they consider a distribution sensitive poverty index that is both relative and absolute cannot exist this note follows foster and shorrocks 1991 but concentrates on the implications of the joint effects of scale and translation invariance we drop the assumption of subgroup consistency and derive a proposition that has several important implications first for all poverty indices only those relying upon simple headcounts of the poor satisfy both the scale and translation invariance axioms this result clearly illustrates the strong restrictions imposed by combining scale and translation invariance with other standard axioms there can be no distribution sensitive poverty index that is relative and absolute second the result provides a simple characterization of the entire class of the headcount related poverty indices defined below third the result leads to a direct proof of the result

carbon leakage grandfathering as an incentive device to avert firm relocation emission allowances are sometimes distributed for free in an early phase of a cap and trade scheme to reduce adverse effects on the profitability of firms this paper investigates whether grandfathering can also be used to avert the relocation of firms to countries with lower carbon prices we show that under certain conditions relocation can be averted in the long run even if the grandfathering scheme is phased out over time and immediate relocation is profitable in its absence this requires that the permit price triggers sufficient investments into low carbon technologies or abatement capital that create a lock in effect which makes relocation unprofitable

windfall profits under pollution permits and output based allocation this paper analyzes the implementation of pollution permits it focuses on the distributional impacts linked with the stringency of output based allocation when two sectors are covered by the market for permits and the total cap is held constant a new type of profit increase in sectors that are not exposed to international competition when energy intensive trade exposed eite sectors are granted output based allocations is demonstrated theoretically the paper also illustrates a profit increase in the electricity sector in a possible fourth phase of the european union emission trading scheme in which output based allocation will be granted to eite sectors compared with the case in which all permits are auctioned

border carbon adjustments addressing emissions embodied in trade approximately one fourth of global emissions are embodied in international trade and a significant portion flows from non carbon priced to carbon priced economies border carbon adjustments bcas figure prominently as instruments to address concerns arising from unilateral climate policy estimating the volume of emissions that could be potentially taxed under a bca scheme has received little attention until now this paper examines how a number of issues involved in the implementation of bcas can affect their ability to cover emissions embodied in trade and thus address carbon leakage these issues range from ensuring compliance with trade provisions and assumptions on the carbon intensity of imports to determining which countries are included and whether intermediate and final demand are considered here we show that the volume of co2 captured by a scheme that involved all annex b countries could be significantly reduced due to these issues particularly by trade provisions such as the principle of best available technology bat as a consequence the tariff burdens faced by non annex b parties could dwindle considerably these findings have important policy implications as they question the effectiveness and practicalities of bcas to reduce carbon leakage and alleviate competitiveness concerns adding further arguments against their implementation

social criteria for evaluating population change abstract many applications of economic analysis require social evaluations of alternatives involving different numbers of people in this paper we use the tools of social choice theory to provide an axiomatic formulation of this problem it yields a class of social criteria called critical level generalized utilitarianism this class and its implications are compared with other criteria and are found to yield intuitively appealing results

output based allocations in pollution markets with uncertainty and self selection we study pollution permit markets in which a fraction of permits are allocated to firms based on their output output based allocations which are receiving increasing attention in the design of carbon markets around the world e g europe california new zealand are shown to be optimal under demand and supply volatility despite the output distortions they may create in a market that covers multiple sectors the optimal design combines auctioned permits with output based allocations that are specific to each sector and increasing in its volatility when firms are better informed about the latter or must self select the regulator resort to some free i e lump sum allocations to sort firms out numerical exercises illustrate the policy relevance of our results the gains from considering output based allocations can be substantial

does emission permit allocation affect co2 cost pass through a theoretical analysis abstract carbon emissions trading may result in co 2 cost pass through and its rate is influenced by a number of factors this paper theoretically investigates how emission permit allocation affects co 2 cost pass through rate by developing a nash cournot oligopolistic market equilibrium model we find that the derived co 2 cost pass through rates are consistent when grandfathering and auctioning rules are used for permit allocation which are higher than that for benchmarking rule it has also been found that the magnitude of co 2 cost pass through rate is relevant to the type of definition product market structure and average carbon intensity of the industry we suggest that policy makers first use benchmarking rule to attract firms to participate at the early stage of emissions trading system ets and then take auctioning rule when ets is well developed

economic effects of vat reforms in germany in the tax policy debate differentiation of value added taxes is often justified by distributional concerns our quantitative analysis for germany indicates that such concerns are misplaced we find that the abolition of vat differentiation has only negligible redistributive effects instead reduced vat are found to act as industry specific subsidies whereas the overall welfare effects of pure vat reforms are very small a revenue neutral introduction of a harmonised vat combined with reductions in the marginal income tax rates or social security contributions turns out to produce substantial welfare gains for all households

incentives and prices in an emissions trading scheme with updating abstract emissions trading schemes where allocations are based on updated baseline emissions give firms less incentive to reduce emissions for a given quota or allowance price nevertheless according to bohringer and lange on the design of optimal grandfathering schemes for emission allowances europ econ rev 49 2005 2041 2055 such allocation schemes are cost effective if the system is closed and allocation rules are identical across firms in this paper we show that the cost effective solution may be infeasible if marginal abatement costs grow too fast moreover if a price cap or banking borrowing is introduced the abatement profile is no longer the same as in the case with an auction or lump sum allocation in addition we show that with allocation based on updated emissions the quota price will always exceed marginal abatement costs possibly misguiding policy makers and investors about abatement costs numerical simulations indicate that the quota price most likely will be several times higher than marginal abatement costs unless a significant share of allowances is auctioned

modeling the price dynamics of co2 emission allowances abstract in this paper we analyze the short term spot price behavior of carbon dioxide co 2 emission allowances of the new eu wide co 2 emissions trading system eu ets after reviewing the stylized facts of this new class of assets we investigate several approaches for modeling the returns of emission allowances due to different phases of price and volatility behavior in the returns we suggest the use of markov switching and ar garch models for stochastic modeling we examine the approaches by conducting an in sample and out of sample forecasting analysis and by comparing the results to alternative approaches our findings strongly support the adequacy of the models capturing characteristics like skewness excess kurtosis and in particular different phases of volatility behavior in the returns

the size of the informal venture capital market in the united kingdom despite its undoubted importance to the financing of entrepreneurial ventures there are few reliable measures of the size of the informal venture capital market this paper reviews three methods used to generate such estimates market based approaches firm based approaches and the capture recapture approach and develops an alternative approach that is based on scaling up from the visible segment of this market represented by business angel networks this methodology is applied to provide the first formal estimate of the size of the informal venture capital market in the united kingdom informal venture capital investment is shown to broadly equate to the amount of institutional venture capital provided to start up and early stage ventures reflecting the smaller average size of investments in the informal venture capital market however eight times as many businesses raise finance from business angels than from institutional venture capital funds

economic and environmental impacts of the kyoto protocol in 2003 the kyoto protocol which imposes legally binding greenhouse gas emission constraints on industrialized countries is likely to enter into force the protocol has been celebrated as a milestone in climate protection but standard economic theory casts doubt that it will go beyond symbolic policy in this paper we show that the final concretion of the kyoto protocol is consistent with the theoretical prediction kyoto more or less boils down to business as usual without significant compliance costs to ratifying parties jel classification d58 q43 q58 consequences economiques et environnementales du protocole de kyoto en 2003 le protocole de kyoto qui impose aux pays industrialises l obligation de reduire leurs emissions de gaz a effet de serre entrera probablement en vigueur si le protocole a ete accueilli comme un grand pas en avant dans le combat pour proteger l environnement la theorie economique jette un regard sceptique sur la portee reelle d un tel accord et le considere comme un geste symbolique dans ce memoire on montre que la concretisation finale de l accord de kyoto s arrime aux predictions theoriques kyoto n est rien de plus que business as usual et n impliquera pas de couts significatifs pour les parties qui ont signe le protocole

capital income taxation and risk taking in a small open economy abstract how do capital income taxes affect household portfolio choice and growth we approach this question within the context of a stochastic model of a small open economy in which taxes on income from domestic capital equity and foreign bonds affect household portfolio choice welfare and the growth rate of the economy the theoretical and numerical analysis demonstrates the important role that risk plays in determining the mean and variability of growth as well as the conditions under which a higher tax rate can be welfare improving to shed more light on the complex theoretical interaction between taxes and risk taking we estimate a reduced form multinomial probit model of household portfolio choice using the method of simulated moments the empirical evidence is in stark contrast to the conventional wisdom we find that higher taxes make it less likely that the household will hold risky assets

when can carbon abatement policies increase welfare the fundamental role of distorted factor markets abstract this paper employs analytical and numerical models to assess the welfare effects of a revenue neutral carbon tax and nonauctioned carbon emissions permits taking into account preexisting tax distortions in factor markets the presence of preexisting taxes significantly raises the general equilibrium costs of both policies this cost increase is much greater under emissions permits since this policy does not generate revenues to reduce distortionary taxes under our central estimates emissions permits cannot increase welfare unless environmental damages exceed about 18 per ton of carbon in contrast an appropriately scaled carbon tax is welfare improving so long as environmental damages are positive

what drives micro angel investments despite of the significant role of informal venture capital in the financing of new entrepreneurial ventures there is little research explaining the factors determining the propensity of individuals to make microangel investments building on two theoretical frameworks a social psychological theory of planned behavior and an economic theory on the determinants of demand for risky assets in household portfolios we develop a set of hypotheses predicting the propensity of individuals to make informal investments in new businesses owned by others in our analysis we test whether the determinants of micro angel investments are similar when investing in a business owned by a close family member versus more distant business the hypotheses are tested using data from 6007 interviews of finnish adults carried out in the global entrepreneurship monitor program in 2000 2002 the findings show that the theoretical frameworks have more power in explaining investments in firms not owned by close family members the study provides new understanding of the differences in the drivers of different types of micro angel investments

an aspect of variable population poverty comparisons abstract this paper demonstrates that the property of replication invariance generally considered to be an innocuous requirement for the extension of fixed population poverty comparisons to variable population contexts is incompatible with other plausible variable and fixed population axioms this fact raises questions about what constitutes an appropriate headcount assessment of poverty in terms of whether one should focus on the proportion or the absolute numbers of the population in poverty this observation in turn has important implications for tracking poverty and setting targets for its reduction or elimination

economic implications of alternative allocation schemes for emission allowances political feasibility of emission trading systems may crucially depend on the free initial allocation of emission allowances to energy intensive industries in order to ameliorate adverse production and employment effects we investigate the potential trade off between such compensation and economic efficiency for alternative allocation rules where emission allowances are based on either emissions or output based on analytical partial equilibrium and numerical general equilibrium analysis we show that in open trading systems the trade off becomes the more severe the higher the international permit price is whenever the permit price can be considered exogenous to firms or industries the output based allocation rule is distinctly less costly than the emission based rule to preserve output and employment in energy intensive sectors the reason is that emission based allocation of allowances not only provides an implicit output subsidy but also lowers the effective price of emission inputs to regulated firms emissionbased allocation is particularly expensive towards higher international permit prices where the implicit subsidies to emission use in energy intensive sectors produce drastic efficiency losses since they imply high expenditures for carbon permit imports rather than high net revenues from efficient carbon permit exports

downstream regulation of co2 emissions in california s electricity sector this paper examines the implications of alternative forms of cap and trade regulations on the california electricity market specific focus is given to the implementation of a downstream form of regulation known as the first deliverer policy under this policy importers i e first deliverers of electricity into california are responsible for the emissions associated with the power plants from which the power originated even if those plants are physically located outside of california we find that absent strict non economic barriers to changing import patterns such policies are extremely vulnerable to reshuffling of import resources the net impact implies that the first deliverer policies will be only marginally more effective than a conventional source based regulation

what does europe pay for clean energy review of macroeconomic simulation studies this paper analyses the macroeconomic costs of environmental regulation in european energy markets on the basis of existing macroeconomic simulation studies the analysis comprises the european emssion trading scheme energy taxes measures in the transport sector and the promotion of renewable energy sources we find that these instruments affect the european economy in particular the energy intensive industries and the industries that produce internationally tradeable goods from a macroeconomic point of view however the costs of environmental regulation appear to be modest the underlying environmental targets and the efficient design of regulation are key determinants for the cost burden

output based rebating of carbon taxes in a neighbour s backyard competitiveness leakage and welfare we investigate how in an open economy carbon taxes combined with output based rebating obr perform in interaction with the carbon policies of a large neighbouring trading partner analytical results suggest that whether the purpose of the obr policy is to compensate firms for carbon tax burdens or to maximize welfare accounting for global emission reductions the obr rate should be positive in policy relevant cases numerical simulations for canada with the us as the neighbouring trading partner indicate that the impact of us policies on the obr rate will depend crucially on the purpose of the canadian obr policies if for a given us carbon policy canada s aim is to restore the competitiveness of domestic emission intensive and trade exposed eite firms to the same level as before the introduction of its own carbon taxation we find that the necessary domestic obr rates will be insensitive to the foreign carbon policies however if not only the canadian carbon tax but also an equally high us tax is introduced compensatory canadian obr rates will be up to 50 lower depending on the sector and on us obr policy if the policy objective is to increase economy wide allocative efficiency welfare of canadian policies by accounting for carbon leakage the us policies will have only a minor downward pressure on desirable obr rates in canada practical choices of obr rates hardly affect overall domestic economic performance thus output based rebating qualifies as an instrument for compensating eite industries without a large sacrifice in terms of economy wide allocative efficiency

angels and non angels are there differences abstract the market for informal venture capital is an elusive and nearly invisible source of financing for entrepreneurial ventures this market consists of a diverse set of high net worth individuals business angels who invest a portion of their assets in high risk high return entrepreneurial ventures the emerging consensus of the characteristics of the individual investor is that of a well educated middle aged individual with considerable business experience and a substantial net worth these informal investors appear to prefer investing in the early start up stage of the venture and if given a choice prefer that their investments be located close to home one consequence of this consensus is the tendency to assume that the traits of these business angels are as tightly clustered around the norm as are the traits of venture capital funds they are not in terms of their competence in the many areas of venture investing these individual investors range from the successful cashed out entrepreneur on the one hand to individuals with little or no experience with venture investing on the other at the same time little is known about the characteristics of high net worth individuals who never ventured where angels dare to tread or about these non angels propensity to join the fold thus this study seeks to fill the void by examining the characteristics of high net worth individuals regardless of their investment history or their interest in venture investing an analysis of the data reveals three groups of high net worth individuals business angels with experience investing in entrepreneurial ventures interested potential investors with no venture investment history but who express a desire to enter the venture investment market and uninterested potential investors who under no circumstances would consider investing in entrepreneurial ventures as part of their investment strategy business angels and potential investors both the interested and non interested segment share similar views about the economic significance of the entrepreneur and the difficulty in securing the equity capital for development of the venture as the issues move from the general to the specific divergence in investment attitudes takes place among the two groups but this divergence is in terms of magnitude or intensity rather than in contrasting or opposing views of the process the potential investor tends to view investing in entrepreneurial ventures on a smaller scale than the active investor especially in terms of the dollar amount committed to any one investment while the business angel is more interested than the potential investor across all stages of financing the interest for both groups increases as the type of financing progresses from the seed stage to expansion financing in contrast the potential investor is more likely to seek diversification as a motivation for venture investing than their angel counterparts the potential investor pool is segmented into those potential investors who appear willing to take on the role of business angels and those individuals who have no desire to participate in the venture market for the interested group to increase their interest in providing venture capital these potential investors want assistance in monitoring the performance of the venture investment followed by assistance in pricing and structuring both of these resources relate more to the technical aspects of venture investing and indicate that these are the areas where the potential investor is least likely to have expertise other resources such as finding and evaluating the investment opportunity appear to represent less of a stimulus for the potential investor in many respects interested potential investors act like business angels across several dimensions both consider the later stages of the development of the venture as the preferred stage to invest the business angel and interested potential investor prefer investments to be located relatively close to their primary residence and share similar views on the amount of the investment portfolio to allocate to venture investing where the interested potential investor and business angel clearly differ is on the scale of the commitment and the motivation for investing the potential investor will commit a smaller dollar amount to any one venture is more inclined to participate with other investors and is more apt to see venture investing as a diversification strategy than is the seasoned business angel

allocation of co2 emissions permits a general equilibrium analysis of policy instruments what are the effects of different ways of allocating co2 emissions permits under a tradable permit scheme numerical simulations show that using the permit revenue to lower existing taxes implies by far the lowest welfare cost but also a large reduction in employment in energy intensive sectors and substantial stranded costs grandfathering the permits compensates owners for losses on stranded investments but comes at a welfare cost and does not mitigate the adjustment imposed on the economy finally distributing the permits according to market shares reduces the degree of sectoral adjustment but also comes at a high welfare cost

business angel networks and the development of the informal venture capital market in the u k is there still a role for the public sector business angel networks bans provide a channel of communication between private venture capital investors business angels and entrepreneurs seeking risk capital most operate locally on a not for profit basis with their costs underwritten by the public sector however the recent establishment of bans by private sector organisations in the u k has led to a questioning of the government s continuing role in the financing of bans this paper demonstrates that there are significant differences between public sector and other not for profit bans and private sector commercially oriented bans in terms of the investments that they facilitate private sector bans are primarily involved with larger later stage deals whereas investments made through not for profit bans are generally smaller involve start ups and other early stage businesses and are local the emergence of private sector bans has therefore not eliminated the need for public sector support for locally oriented networks