an evaluation of technical progress and energy rebound effects in china s iron steel industry abstract as a pillar industry in china the iron steel sector have under through rapid growth and technical progress for decades however energy polices aiming at energy savings may not be as good as expected due to the existence of rebound effects the motivation of the paper is to analysis the nexus between technical progress and energy rebound effects based on a three input trans log cost function model we first estimate the share equation and the corresponding price elasticity for each input factor then the rebound effect in china s iron steel industry over 1985 2015 is evaluated through decomposing the energy prices empirical results show that 1 the price elasticities of input factors are negative 2 energy capital and energy labor show substitute relationships 3 the average energy rebound effect in the isi is as high as 73 88 4 the energy rebound effect shows a downward trend before the 11th five year period and then an upward trend after that therefore policies proposals of lowering the rebound effect should be placed not only on technical progress but also on energy price reform by reducing energy subsidies and thus accelerating energy price marketization so as to promote energy substitution reduce energy rebound effect and produce further economic and environmental benefits

china s regional rebound effect based on modelling multi regional cge improving energy efficiency has been regarded as an important measure to reduce energy consumption yet the rebound effect has greatly shrunken the energy saving consequences of this measure to in

defining the rebound effect abstract this paper gives rigorous definitions of the rebound effect not only in the well described single commodity case khazzoom 1980 the energy journal 1 4 21 40 but also for a multiple commodity case it is shown that the familiar laws for the single case do not hold for the multiple case the paper describes the state of the art of empirical estimation of the rebound effect with special focus on the estimates done for the netherlands we conclude that according to every definition empirical evidence shows that the re is probably small between 0 and 15

money barter and the optimality of legal restrictions we examine a decentralized monetary economy in which households can use a means of exchange barter or gold other than fiat money the alternative means of exchange may drive out money even if monetary exchange pareto dominates legal restrictions prohibiting other means of exchange may therefore be necessary with stochastic preferences households may use barter to supplement monetary purchases when they have an unexpectedly high demand however this may drive down the value of money in all states so low that households are again better off with fiat money alone the paper provides both stochastic and nonstochastic examples in which eliminating markets for goods or assets that compete with fiat money improves welfare

evidence of direct and indirect rebound effect in households in eu 27 countries abstract this research estimates the direct and indirect rebound effect of energy efficiency in households for the eu 27 countries the first twenty seven member states of the european union a hybrid methodology that combines econometric estimates environmental extended input output analysis and re spending models has been developed although most of the economies present values below 100 there are seven countries situated above this critical threshold by weighting individual estimates by gdp an average value for the overall eu 27 economy has been found between 73 62 and 81 16 these results suggest that the energy policy at the european level should be rethought if efficiency measures pursue reducing energy consumption and tackling climate change

economic and environmental gains of china s fossil energy subsidies reform a rebound effect case study with eimo model abstract energy consumption and efficiency emerged as the hottest topic in the context of china s sustainable development energy subsidies and rebound effect were closely related to this topic while few combinative studies on them with a focus on china this paper employed a co thinking approach focusing on how the energy subsidies reform could mitigate the rebound effect in china and how to achieve an economic and environmental gains that reduced pecuniary spending improved the distorted energy market and reduced energy consumption simultaneously firstly with price gap approach we calculated the total energy subsidies scale of china in 2007 which amounted to582 0 billion cny then we detected and identified rebound effect of china energy consumption with the features furthermore based on china 2007 monetary input output table and energy flow analysis we compiled a hybrid physical energy input and monetary output model eimo to simulate the mitigation effect of subsidies reform results showed that removing energy subsidies would decrease ultimate demand of different economy sectors and reduce the accumulatively physical consumption of coal oil natural gas and electricity by 17 74 13 47 3 64 and 15 82 million tce respectively finally we discussed relevant policy issues on china s energy subsidies reform in depth

money and credit as means of payment a new monetarist approach abstract we study the choice of payment instruments in a model with money and credit where sellers must invest in a record keeping technology to accept credit and buyers have limited commitment our model captures the two sided market interaction between consumers and retailers that can generate multiple equilibria limited commitment yields an endogenous debt limit that depends on monetary policy money and credit coexist for a range of parameters and bargaining related hold up problems can lead to inefficiencies in the adoption of monitoring technologies changes in monetary policy generate multiplier effects in the credit market due to complementarities between consumer borrowing and the adoption of credit by merchants

the effects of piracy on competition evidence from subscription tv abstract competition studies that focus on antitrust issues e g market definition market power are typically conducted in markets where all firms are assumed to operate legally competitors are tax abiding entities pay for all inputs used in their production process have paid the proper government licenses to do so etc we investigate competition issues in a market characterized by widespread piracy subscription tv in peru estimates suggest that 50 of subscription tv users in peru 30 in latin america use an illegal provider we make use of a unique dataset in which households provided crucial information regarding the il legality of their paid tv supplier using quantitative antitrust tools based on demand estimation techniques we study the impact that the presence of the informal sector has on competition our estimates suggest that the illegal operators constitute a close substitute for and henceforth significantly constrain the pricing power of legal operators this finding can have important antitrust implications the failure to account for piracy could lead to erroneous conclusions regarding market power measurement and the delineation of the relevant antitrust market this may be particularly important in several industries especially in the developing world where the leading operator may be cataloged as dominant only in the absence of illegal providers

global warming and energy demand list of tables list of figures list of contributors preface 1 global warming and energy elasticities terry barker paul ekins and nick johnstonepart 1 estimating long term energy elasticities 2 alternative approaches to estimating long run energy demand elasticities an application to asian developing countries ron smith and m hashem pesaran 3 a survey of international energy elasticities neil manning and jago atkinson 4 long run demand elasticities for gasoline thomas sterner and mikael franzen 5 responses of energy demand in uk manufacturing to the energy price increases of 1973 and 1979 80 alan ingham 6 elasticities for oecd aggregate final energy demand lakis vouyoukas 7 modelling uk energy demand derek hodgson and keith millerpart ii energy the economy and greenhouse gas abatement 8 endogenous technological progress in fossil fuel demand laurence boone stephen hall david kemball cook and clare smith 9 uk energy price elasticities and their implications for long term co2 abatement terry barker 10 price elasticity and market structure overcoming obstacles to ensure energy efficiency tim jackson 11 rethinking the use of energy elasticities stefan p schleicher 12 revisiting the costs of co2 abatement paul ekins 13 asymmetrical price elasticities of energy demand michael grubb14 conclusions terry barker paul ekins and nick johnstone bibliography index

money credit and banking in monetary models where agents are subject to trading shocks there is typically an ex post inefficiency since some agents are holding idle balances while others are cash constrained this problem creates a role for financial intermediaries such as banks who accept nominal deposits and make nominal loans in general financial intermediation improves the allocation the gains in welfare come from the payment of interest on deposits and not from relaxing borrowers liquidity constraints we also demonstrate that when credit rationing occurs increasing the rate of inflation can be welfare improving

a search theoretic approach to monetary economics the essential function of money is its role as a medium of exchange the authors formalize this idea using a search theoretic equilibrium model of the exchange process that captures the double coincidence of wants problem with pure barter one advantage of the framework described here is that it is very tractable the authors also show that the model can be used to addre ss some substantive issues in monetary economics including the potenti al welfare enhancing role of money the interaction between specializat ion and monetary exchange and the possibility of equilibria with multip le fiat currencies copyright 1993 by american economic association

optimal monetary policy in a model of money and credit we investigate the extent to which monetary policy can enhance the functioning of the private credit system specifically we characterize the optimal return on money in the presence of credit arrangements there is a dual role for credit it allows buyers to trade without fiat money and also permits them to borrow against future income however not all traders have access to credit as a result there is a social role for fiat money because it allows agents to self insure against the risk of not being able to use credit in some transactions we consider a nonlinear monetary mechanism that is designed to enhance the credit system an active monetary policy is sufficient for relaxing credit constraints finally we characterize the optimal monetary policy and show that it necessarily entails a positive inflation rate

economy wide estimates of energy rebound effect evidence from china s provinces abstract the ongoing debate on the magnitude of china s economy wide energy rebound effect re entails further investigations not only with more details but also with more credible methods in this study a modified two stage approach which could avoid methodological issues regarding re estimation is applied to estimate macroeconomic re with a data panel of 30 provinces in china during the period 1997 2015 in particular in order to comprehensively measure energy efficiency we construct a dynamic energy efficiency indicator which considers not only the static efficiency of energy use but also the technical change regarding energy usage using dynamic panel data models we estimate the elasticity of energy consumption with respect to energy efficiency which directly links to the measurement of re the short run and long run estimates of re are reported and the 95 confidence interval was computed for each sample based on the nonparametric bootstrap method to further analyze the macroeconomic re of different regions results indicate that the average re of all provinces is 88 55 in the short run and the average long run re is 77 50 the re in the developed eastern region continuously decreased while re in the western region increased to be the largest during the research period

estimating the effects of global patent protection in pharmaceuticals a case study of quinolones in india under the trips agreement wto members are required to enforce product patents for pharmaceuticals the debate about the merits of this requirement has been extremely contentious many low income economies claim that patent protection for pharmaceuticals will result in substantially higher prices for medicines with adverse consequences for the health and well being of their citizens on the other hand research based global pharmaceutical companies argue that prices are unlikely to rise significantly because most patented products have therapeutic substitutes in this paper we empirically investigate the basis of these claims central to the ongoing debate is the structure of demand for pharmaceuticals in poor economies where because health insurance coverage is so rare almost all medical expense are met out of pocket using a detailed product level data set from india we estimate key price and expenditure elasticities and supply side parameters for the fluoroquinolones sub segment of the systemic anti bacterials i e antibiotics segment of the indian pharmaceuticals market we then use these estimates to carry out counterfactual simulations of what prices profits and consumer welfare would have been had the fluoroquinolone molecules we study been under patent in india as they were in the u s at the time our results suggest that concerns about the potential adverse welfare effects of trips may have some basis we estimate that in the absence of any price regulation or compulsory licensing the total annual welfare losses to the indian economy from the withdrawal of the four domestic product groups in the fluoroquinolone sub segment would be on the order of u s 450 million or about 73 of the sales of the entire systemic anti bacterials segment in 2000 of this amount foregone profits of domestic producers constitute roughly 50 million or 11 the overwhelming portion of the total welfare loss therefore derives from the loss of consumer welfare in contrast the profit gains to foreign producers in the absence of any price regulation are estimated to be only around 53 million per year

the competitive effects of a new product introduction a case study this paper analyzes the competitive effect of a new product introduction we break the overall competitive effect into two parts the effect on the prices of existing products due to increased competition and the effect of having additional product variety using data from both before and after the introduction we directly estimate the price effects and the additional variety effect then using only the estimated post introduction demand structure along with an assumed model of competition we estimate the price effects indirectly by comparing the indirect and direct estimates we assess the validity of alternative models of competition for the industry

an empirical study of direct rebound effect for passenger transport in urban china transport sector accounts for about 8 of total energy consumption in china and this share will likely increase in the visible future improving energy efficiency has been considered as a major way for reducing transport energy use whereas its effectiveness might be affected by the rebound effect this paper estimates the direct rebound effect for passenger transport in urban china by using the linear approximation of the almost ideal demand system model and simulation analysis our empirical results reveal the existence of direct rebound effect for passenger transport in urban china a majority of the expected reduction in transport energy consumption from efficiency improvement could be offset due to the existence of rebound effect we have further investigated the relationship between the magnitude of direct rebound effect and households expenditure it was found that the direct rebound effect for passenger transport tends to decline with the increase of per capita household consumption expenditure

search bargaining money and prices the goal of this paper is to extend existing search theoretic models of fiat money which until now have assumed that the price level is exogenous by explicitly incorporating bilateral bargaining this allows us to determine the price level endogenously and leads to additional insights concerning the role of money for example we find that monetary equilibria are generally inefficient in the sense that output and prices differ from the solution to a social planner s problem although the difference can become small as the discount rate or search friction vanishes we also find that there exist nonstationary inflationary equilibria

money and collateral this paper presents a model in which money and collateral are both essential and complement each other as media of exchange the model has implications for asset prices output in ation and monetary policy both in steady state and

coexistence of money and interest bearing securities abstract a random matching model with money is used to study the nominal yield on small denomination bearer safe discount securities issued by the government there is always one steady state with matured securities circulating at par and for some parameters another with them circulating at a discount in the former a necessary and sufficient condition for a positive nominal yield on not yet matured securities is exogenous discriminatory treatment of them by the government in the latter the post maturity discount on securities induces a deeper pre maturity discount even without such discriminatory treatment

equilibrium in a market with sequential bargaining this paper considers a market where pairs of agents who are interested in carrying out a transaction are brought together by a stochastic process and upon meeting initiate a bargaining process over the terms of the transaction the basic bargaining problem is treated with the strategic approach the paper derives the steady state equilibrium agreements analyzes their dependence on market conditions such as the relative numbers of agents of different types and discusses their relations with the competitive equilibrium outcome and other results in the search equilibrium literature this paper considers a market that operates in the following way pairs of agents who have mutual interest in carrying out a transaction are brought together by a stochastic process when two agents meet they initiate a bargaining process over the terms of the transaction if two agents reach an agreement a transaction takes place and they leave the market of course the bargaining positions and hence the agreement reached in any particular meeting will be affected by the conditions prevailing in the market these will include the chances that each of the negotiating parties have of meeting other partners in the event that the agreement in the current negotiations is delayed also the expected length of time required to achieve an alternative transaction and the expected behavior of alternative partners the study of such a market mechanism is of interest for two reasons firstly it captures some realistic aspects of the trade in certain specific markets e g asset markets such as housing and some labor markets secondly it contributes to an understanding of the micro mechanisms of price formation and their role in shaping market outcomes in both cases the features studied are largely neglected in the traditional market equilibrium analyses the related literature includes the articles by diamond 4 5 diamond and maskin 6 mortensen 8 9 and zusman and bell 13 these articles consider markets of the type described above in which transactions are concluded at pairwise meetings of agents the major difference between our work and these articles is in the approach to the basic bargaining problem in the cited articles it is assumed that a meeting is concluded with an instantaneous agreement which divides the associated surplus in an arbitrary predetermined way when the surplus is assumed to be divided equally the division rule is in fact nash s axiomatic bargaining solution in contrast the present paper treats the basic bargaining problem with the strategic approach see rubinstein 19 which constitutes an attempt to look into the bargaining black box this approach explicitly models the time dimension of the bargaining process describes in detail the bargaining procedure and justifies the agreement as a perfect equilibrium in

money and credit as means of payment abstract a stochastic economic environment is presented in which the mix of cash and resource costly credit used as means of payment is endogenous for reasonable values of the credit cost parameter velocity can be quite variable and sensitive to the nominal interest rate those parameter values also generate larger welfare costs of inflation than have been found previously and a sizable impact of inflation on real interest rates

exploring the rebound effect from the perspective of household an analysis of china s provincial level abstract the existence of the energy rebound effect may partially even totally offset the expected energy savings in order to explore the status of the household rebound effect in china we manually compiled the provincial energy input output table of china then combining econometric methods input output analysis and the re spending model we conduct a detailed analysis of both the direct and indirect energy rebound effect from the household perspective in china under a unified research framework the results show there are significant differences in risk vulnerability regarding energy rebound effect among different regions qinghai is the most vulnerable province as 69 23 of its economic sectors could lead to a backfire effect two economic sectors have the potential to cause a backfire effect in thirteen provinces in addition the chinese government and its provincial government should take full account of the regional differences when formulating energy policies to alleviate the pressure on energy conservation and carbon emission reduction

characteristics of demand for pharmaceutical products an examination of four cephalosporins we model demand for four cephalosporins and compute own and cross price elasticities between branded and generic versions of the four drugs we model demand as a multistage budgeting problem and we argue that such a model is appropriate to the multistage nature of the purchase of pharmaceutical products in particular the prescribing and dispensing stages we find quite high elasticities between generic substitutes and also significant elasticities between some therapeutic substitutes

another example of a credit system that co exists with money we study an economy in which exchange occurs pairwise there is no commitment and anonymous agents choose between random monetary trade or deterministic credit trade to accomplish the latter agents can exploit a costly technology that allows limited record keeping and enforcement an equilibrium with money and credit is shown to exist if the cost of using the technology is sufficiently small anonymity record keeping and enforcement limitations also permit some incidence of default in equilibrium

a model of money and credit with application to the credit card debt puzzle many individuals simultaneously have significant credit card debt and money in the bank the credit card debt puzzle is given high interest rates on credit cards and low rates on bank accounts why not pay down the debt while economists have gone to elaborate lengths to explain this observation we argue it is a special case of the rate of return dominance puzzle from monetary economics we analyze the issue by extending standard monetary theory to incorporate consumer debt this seems interesting in its own right since developing models where money and credit coexist is a long standing challenge and it helps put into context recent discussions of consumer debt

measuring market power in the ready to eat cereal industry the ready to eat cereal industry is characterized by high concentration high price cost margins large advertising to sales ratios and numerous introductions of new products previous researchers have concluded that the ready to eat cereal industry is a classic example of an industry with nearly collusive pricing behavior and intense nonprice competition this paper empirically examines this conclusion in particular i estimate price cost margins but more importantly i am able empirically to separate these margins into three sources i that which is due to product differentiation ii that which is due to multi product firm pricing and iii that due to potential price collusion the results suggest that given the demand for different brands of cereal the first two effects explain most of the observed price cost margins i conclude that prices in the industry are consistent with noncollusive pricing behavior despite the high price cost margins leading firms are able to maintain a portfolio of differentiated products and influence the perceived product quality it is these two factors that lead to high price cost margins

viewpoint a microfoundation of monetary economics in this lecture i explain what the microfoundations of money are about and why they are necessary for monetary economics then i review recent developments of a particular microfoundation of money commonly known as the search theory of money finally i outline some unresolved issues dans cette presentation l auteur explique ce que sont les microfondations de la monnaie et pourquoi elles sont necessaires a l economie monetaire ensuite il passe en revue certains developpements recents d une microfondation particuliere de la monnaie connue sous le nom de theorie de la recherche de la monnaie enfin l auteur fait le tour d un ensemble de problemes qui restent sans solution pour le moment

inventories and money holdings in a search economy the authors analyze a continuous time model with a walrasian labor market and a random search retail market with prices set on a take it or leave it basis the equilibrium distribution of money holdings is the asymptotic steady state of this stochastic process there is a unique uniform price steady state equilibrium the faster the search process the higher the absolute price wage and real wage the instantaneous effect of an equal per capita infusion of money is to raise the price wage real wage and transactions rate the immediate post infusion price and wage can overshoot their new asymptotic values copyright 1990 by the econometric society

shadow economies size causes and consequences using various methods the size of the shadow economy in 76 developing transition and oecd countries is estimated average size varies from 12 percent of gdp for oecd countries to 23 percent for transition countries and 39 percent for developing countries increasing taxation and social security contributions combined with rising state regulations are driving forces for the increase of the shadow economy especially in oecd countries according to some findings corruption has a positive impact on the size of the shadow economy and a growing shadow economy has a negative effect on official gdp growth

search for a monetary propagation mechanism abstract this paper examines a monetary propagation mechanism in an economy where exchanges in goods and labor markets involve costly search it is shown that an increase in the money growth rate increases steady state employment and output when the money growth rate is low but reduces steady state employment and output when the money growth rate is already high the model produces persistent hump shaped responses in employment and output to money growth shocks even when the shocks have no persistence the model also generates desirable features in job vacancy sales inventory and the velocity of money all these features emerge here in an economy with perfectly flexible prices and wages journal of economic literatureclassification numbers e40 e30

pairwise credit in search equilibrium pairwise extension of credit is introduced into the barter search economy previously analyzed by the author the penalty for failure to repay a debt is modeled as the end of trading opportunities since credit availability makes access to trade more valuable there may be multiple equilibrium credit limits since the credit limit affects the implicit interest rate and the stock of inventories it is necessary to check the net impact of the credit limit on the incentive to repay in a calculated example with lumpy credit availability multiple equilibria are very common with a greater credit limit associated with a lower implicit interest rate with smooth credit availability no multiple equilibria were found surprisingly credit can break the no production equilibrium

monetary growth in a turnpike environment abstract a general equilibrium model of monetary growth in a turnpike economy is constructed it is shown that money lifts the economy up to a pareto superior growth path by eliminating the investment in projects with low returns the growth rate of the monetary economy is larger than that of the nonmonetary economy and mckinnon s complementarity hypothesis holds provided that the agents degree of relative risk aversion is not too large the main theorem states a sufficient condition for the existence of a monetary equilibrium with a constant rate of return on money

banks private money and government regulation abstract we study competition between inside and outside money in economies with trading frictions and financial intermediation claims on banks circulate if the redemption rate is low when the quantity of fiat money is scarce coexistence of inside and outside money dominates equilibria with a unique medium of exchange if outside money is ample banks choose to redeem claims in outside money which increases welfare under binding reserve requirements tightening monetary policy leads to credit rationing our results support recent trends toward lower reserve requirements however we also identify situations where restrictions on note issue are beneficial

collateral secured loans in a monetary economy abstract this paper presents a microfounded model of money where durable assets serve as a guarantee to repay consumption loans we study a steady state equilibrium where money and credit coexist in such an equilibrium a larger investment in durable capital relaxes the borrowing constraint faced by consumers we show that the occurrence of over investment and the behavior of capital accumulation depend on the rate of inflation the relative risk aversion of agents and the marginal productivity of the capital goods

energy consumption for space heating a discrete continuous approach energy demand for space heating is estimated using a discrete continuous choice model which focuses on the relationship between the choice of heating equipment and energy consumption the model is estimated on norwegian micro data and the two stages of the model are estimated simultaneously the capital cost and the operating cost of the heating systems are both found to have a significant impact on the choice of heating system furthermore the results show that household characteristics are important variables in residential energy models energy price elasticities and income elasticities are also estimated

liquidity and asset prices a new monetarist approach abstract when lenders cannot force borrowers to repay debts assets are often pledged to secure loans in this paper borrowers lose collateral once they renege on debts and exclusion of defaulters occurs probabilistically with a higher probability implying better enforcement increased efficiency in enforcement reduces asset prices while raising loan to value ratios if the rise in loan to value ratios is the dominant effect aggregate liquidity and output increase with the advance in enforcement inflation raises the repayment cost by increasing the loan rate while raising the default cost through exclusion consequently inflation raises loan to value ratios and output only when enforcement is sufficiently efficient

on money as a medium of exchange we analyze economies in which individuals specialize in consumption and production and meet randomly over time in a way that implies that trade must be bilateral and quid pro quo nash equilibria in trading strategies are characterized certain goods emerge endogenously as media of exchange or commodity money depending both on their intrinsic properties and on extrinsic beliefs there are also equilibria with genuine fiat currency circulating as the general medium of exchange we find that equilibria are not generally pareto optimal and that introducing fiat currency into a commodity money economy may unambiguously improve welfare velocity acceptability and liquidity are discussed

the rebound effect microeconomic definitions limitations and extensions abstract the rebound effect results in part from an increased consumption of energy services following an improvement in the technical efficiency of delivering those services this increased consumption offsets the energy savings that may otherwise be achieved if the rebound effect is sufficiently large it may undermine the rationale for policy measures to encourage energy efficiency the nature and magnitude of the rebound effect is the focus of long running dispute with energy economics this paper brings together previous theoretical work to provide a rigorous definition of the rebound effect to clarify key conceptual issues and to highlight the potential consequences of various assumptions for empirical estimates of the effect the focus is on the direct rebound effect for a single energy service indirect and economy wide rebound effects are not discussed beginning with khazzoom s original definition of the rebound effect we expose the limitations of three simplifying assumptions on which this definition is based first we argue that capital costs form an important part of the total cost of providing energy services and that empirical studies that estimate rebound effects from variations in energy prices are prone to bias second we argue that energy efficiency should be treated as an endogenous variable and that empirical estimates of the rebound effect may need to apply a simultaneous equation model to capture the joint determination of key variables third we explore the implications of the opportunity costs of time in the production of energy services and highlight the consequences for energy use of improved time efficiency the influence of time costs on the rebound effect and the existence of a parallel rebound effect with respect to time each of these considerations serves to highlight the difficulties in obtaining reliable estimates of the rebound effect and the different factors that need to be controlled for we discuss the implications of these findings for econometric studies and argue that several existing studies may overestimate the magnitude of the effect

the ict electronics question structural change and the rebound effect abstract ict and related electronic appliances consumed 4 of global electrical energy in 2007 growing to 4 7 in 2012 with projections of continued increase in coming decades this is despite an average annual increase in energy efficiency of about 30 in ict electronics throughout the last 5 decades mainstream studies of energy related rebound effects have yet to produce a conceptual framework that adequately encapsulates a unique feature of ict electronics its tendency to induce changes in social practice and socio technical structures this study attempts to fill this gap surveying rebound effect literature it builds on studies which explore transformational change caused by energy efficiency increases it identifies structural changes in business education the military and households caused by energy efficiency increases in ict electronics which lead to a proliferation of ict electronic devices and consequently increased energy consumption it shows the cause and effect logic between energy efficiency and energy consumption in ict electronics and tentatively estimates rebound effects ranging between 115 and 161 in eight diverse empirical examples the history of ict electronics shows that energy efficiency increases inevitably lead to increases in energy consumption hence firm controls on co 2 e emission allowances may offer the best hope of curbing energy consumption and co 2 e emissions in this sector

nominal bonds and interest rates in this article i integrate the microfoundation of monetary theory with the model of limited participation to analyze the competition between nominal bonds and money the market for government nominal bonds is centralized and walrasian whereas the goods market is modeled as random matches the government imposes a legal restriction that requires all government goods to be purchased with money but not with bonds by contrast private agents can exchange between themselves with both money and bonds i show that an arbitrarily small legal restriction is sufficient to prevent matured bonds from being a medium of exchange i also analyze the effects of monetary policy with and without the legal restriction some of those effects differ significantly from traditional monetary models

cut throat fringe competition in an emerging country market tax evasion or the absence of market power brazil s established soft drink firms recently lost ground to multiple low price entrants with small scale operations and minimal advertising while incumbents attributed such undercutting to entrants lower costs from non compliance with the law generics counterargued that incumbents high prices stemmed from unilateral market power rather than cost heterogeneity by estimating a structural model i can single handedly explain established brands high prices through low equilibrium price elasticities of demand tax evasion in the fringe while plausible appears to be offset by higher procurement costs or less efficient scale more generally a competitive informal sector can alleviate the allocative distortions in certain concentrated industries

a dynamic model of unsecured credit abstract we study the terms of credit in a competitive market in which sellers lenders are willing to repeatedly finance the purchases of buyers borrowers by engaging in a credit relationship the key frictions are i the lender cannot observe the borrower s ability to repay a loan ii the borrower cannot commit to any long term contract iii it is costly for the lender to contact a borrower and to walk away from a contract and iv transactions within each credit relationship are not publicly observable the lender s optimal contract has two key properties delayed settlement and debt forgiveness finally we study the impact of changes in the initial cost of lending on the contract terms

technological progress and sustainable development what about the rebound effect abstract sustainability concepts that rest on the idea of resource or energy efficiency improvements due to technological progress tend to overestimate the potential saving effects because they frequently ignore the behavioral responses evoked by technological improvements efficiency improvements also affect the demand for resources and energy and often an increase in efficiency by 1 will cause a reduction in resource use that is far below 1 or sometimes it can even cause an increase in resource use this phenomenon is commonly labeled the rebound effect which is well known among energy economists but never attracted much attention in ecological economics the paper starts with the traditional neoclassical analysis of the rebound effect in a partial equilibrium framework that concentrates on the demand of one particular energy service such as mobility or room temperature it also provides an overview of some of the main empirical studies based on this model that mostly confirm the existence of the rebound effect but are controversial about its actual importance however we have to go beyond the neoclassical single service model in order to take care of the variety of possible feedback affecting energy use the paper presents two important expansions of the single service model in order to show the potential relevance of the rebound effect to ecological economics first it is shown that in a multi services model it proves to be difficult to make general statements about the relevance of the rebound effect in this case the overall effect of an increase in energy efficiency on total energy use depends on the on the assumptions about the substitutability between the services considered and the direction of the income effect second the paper also tries to take care of the fact that changes in resource use or energy use are frequently just side effects of other forms of technological progress especially technological change of a time saving nature can have a large influence on energy use as many time saving devices for example faster modes of transport require an increase in energy consumption that is frequently reinforced by a rebound effect with respect to time this effect will be especially strong when wages are high and at the same time energy prices are low as is currently the case in most industrialized countries consequently the paper also provides a strong argument for the introduction of energy taxes

empirical evidence of direct rebound effect in catalonia this paper reviews the empirical literature concerning the direct rebound effect in households it briefly analyzes the main theoretical and methodological aspects and finally estimates the magnitude of direct rebound effect for all energy services using electricity in households of catalonia spain using econometric techniques the main results show an estimated direct rebound effect of 35 in the short term and 49 in the long term the existence of a rebound effect reduces the effectiveness of energy efficiency policies

estimating multiple discrete choice models an application to computerization returns buyers in many markets face multiple discrete choices they can purchase multiple units as well as multiple brands at the same time this paper presents a multiple discrete choice model for the analysis of differentiated products demand users maximize profits by choosing the number of units of each brand they purchase i estimate the model using micro level data on the demand for personal computers i use the estimated demand structure to assess the welfare gains from computerization and technological innovation in peripherals the estimated return on investment in personal computers is 92 moreover a 10 increase in the performance to price ratio of microprocessors leads to a 2 2 gain in the estimated user surplus the personal computer pc market is of interest to industrial organization economists because of its size the continual technological change and above all because of the farreaching implications of pcs on the economy as a whole several distinct features make pc demand difficult to model pcs are a differentiated durable good in constant technological evolution moreover buyers make multiple discrete choices firms according to our data spread their purchases of pcs over different brands at the same time they buy pcs in blocks several units of each brand that they have chosen the aim of the paper is to present a model that captures these features and to use this model to estimate the welfare gains from computerization classical discrete choice models allow one choice among mutually exclusive alternatives in contrast the proposed framework allows users to demand multiple units and multiple brands the model can be applied to other cases of multiple discrete choices e g the composition of airline fleets car holdings per household the fields of the faculty in economics departments household cereals consumption or any other good consumed in more than one variety during a relevant time period although pervasive multiple discrete choice problems have received little attention because of their complexity a central issue regarding the pc market is the current controversy in the economics literature about the computerization puzzle this puzzle stems from the empirical finding that computerization has had no effect on firm productivity griliches and siegel 1991 and morrison and berndt 1990 contrary to those results hendel 1994 and lichtenberg 1995 using more disaggregate data than most previous studies report excess returns to computerization this indicates that data aggregation may have created the computerization puzzle in this paper i present a model consistent with the basic

durable goods and residential demand for energy and water evidence from a field trial this article describes a household production model in which energy efficient durable goods cost less to operate so households may use them more the model is estimated using household level data from a field trial in which participants received high efficiency clothes washers free of charge the estimation strategy exploits this quasi random replacement of washers to derive precise estimates of the household production technology and a demand function for clothes washing during the field trial households increased clothes washing on average by 5 6 after receiving a high efficiency washer implying a price elasticity of 06 the complete model is used to evaluate the cost effectiveness of recent changes in minimum efficiency standards for clothes washers

price effects of energy efficient technologies a study of residential demand for heating and cooling energy efficient appliances reduce the marginal price of the services they deliver this article shows empirically that such price reductions result in energy savings that are smaller than those engineering techniques generally project using econometric techniques with data from a unique utility experiment and a detailed engineering thermal load model we find that actual conservation is as much as 13 below engineering estimates for cooling and 8 12 below for heating customers who conserve electricity are also persistent their houses are comparatively warmer in summer and cooler in winter

social impacts of community renewable energy projects findings from a woodfuel case study there is much current interest in the potential of community based renewable energy projects to contribute to transition towards low carbon energy systems as well as displacing fossil fuel consumption by increasing renewable energy generation projects are expected to have a range of social impacts which may result in additional positive sustainability outcomes these include potential to increase acceptance of renewable energy developments awareness of renewable and sustainable energy technologies and issues uptake of low carbon technologies and sustainable pro environmental behaviours to date however there has been little investigation of whether and how these impacts occur this paper presents results from qualitative research investigating the social impacts of a community woodfuel project as experienced by project participants and other local stakeholders findings show projects can raise awareness of renewable energy technologies and increase uptake of renewables overall the case study project successfully changed the local social context for development of woodfuel heating reducing risk for all involved in the future development of this sector particularly in the immediate locality there was some evidence of increased engagement with wider sustainability issues but this was limited to direct participants suggesting local projects need to be supported by wider systemic change to maximise impacts

a note on third degree price discrimination with interdependent demands by incorporating symmetric interdependency into linear demands this note shows that monopolistic third degree price discrimination can improve social welfare even if total output remains the same a result that counters one of the main results presented in layson this journal 1998 it is also shown that this positive change in social welfare benefits the monopoly side but that consumers surplus decreases as a whole

on the complementarity of money and credit i propose a model where agents choose to conduct their business using two payment instruments money and bilateral credit a friction in the timing of transactions rationalizes the use of both instruments and makes it optimal for agents to use money as a means of settlement for credit money and credit complement each other with anticipated inflation complementarity implies that the credit to money ratio decreases with inflation

reform of refined oil product pricing mechanism and energy rebound effect for passenger transportation in china new huadu business school research fund china sustainable energy program of the energy foundation g 1203 15828 national social science foundation of china 12zd059 ministry of education 10gbj013

the welfare effect of access to credit i present a model in which credit and outside money can be used as means of payment in order to analyze how access to credit aects welfare when credit markets feature limited participation allowing more agents to use credit has an ambiguous eect on welfare because it may make consumption risk sharing more ine cient i calibrate the model using u s data on credit card transactions and show that the increase in access to credit from 1990 to the near present has had a slightly negative impact on welfare

a contribution to the pure theory of money abstract this article analyzes a general equilibrium model with search frictions and differentiated commodities because of the many differentiated commodities barter is difficult in that it requires a double coincidence of wants and this provides a medium of exchange role for fiat currency we prove the existence of equilibrium with valued fiat money and show it is robust to certain changes in the environment rate of return dominance liquidity and the welfare implications of fiat money are discussed

estimating monopoly behavior with competitive recycling an application to alcoa this article develops a structural model of the aluminum industry during the period between world war i and world war ii it takes into account both the intertemporal nature of alcoa s cost minimization problem and the competitive recycling sector the model enables estimation of alcoa s degree of market power while allowing for the effect of competition from recycled aluminum previous work has emphasized alcoa s control over the size of the secondary sector in the long run as a source of market power for alcoa the results here indicate that alcoa could exert little influence in this regard but nonetheless had substantial market power

the two money theorem in this article i consider environments in which all shocks have finite support and any transfer of resources is ex post voluntary consider an allocation that is achievable when potential trading partners know each others histories the one money theorem says that the allocation is achievable using only one money if that money is divisible and money holdings are observable the two money theorem says that the allocation is achievable using two divisible monies even if money holdings are concealable copyright economics department of the university of pennsylvania and the osaka university institute of social and economic research association

self selection bias in the evaluation of voluntary energy conservation programs while voluntary energy conservation programs have been extensively promoted by electric utilities and public utility commissions their effectiveness has been insufficiently critiqued this paper contributes to the growing evaluation of such programs by measuring the net energy savings directly attributable to an actual set of programs the analysis explicitly corrects for the self selection bias that can arise in program evaluation the correction is found to be important traditional evaluation methods are subject to considerable bias correcting for this bias the amount of program induced energy savings is found to be considerably less than traditionally believed copyright 1988 by mit press

credit and money in a search model with divisible commodities this paper examines the competition between money and credit in a search model with divisible commodities it is shown that fiat money can be valuable even though it yields a lower rate of return than the coexisting credit the competition between money and credit increases efficiency the monetary equilibrium with credit pareto dominates the monetary equilibrium without credit whenever the two coexist when a credit is repaid with money the competition also bounds the purchasing power of money from below by that of credit and so eliminates the weak inefficient monetary equilibrium found in previous search models with numerical examples three different monetary equilibria are ranked and the properties of the interest rate are examined

liquidity a new monetarist perspective this essay surveys the new monetarist approach to liquidity work in this literature strives for empirical and policy relevance plus rigorous foundations questions include what is liquidity is money essential in achieving desirable outcomes which objects can or should serve in this capacity when can asset prices differ from fundamentals what are the functions of commitment and collateral in credit markets how does money interact with credit and intermediation what can and should monetary policy do the research summarized emphasizes the micro structure of frictional transactions and studies how institutions like monetary exchange credit arrangements or intermediation facilitate the exchange process

product differentiation and oligopoly in international markets the case of the u s automobile industry this paper develops and estimates a model of the u s automobile industry on the demand side a discrete choice model is adopted that is estimated using micro data from the consumer expenditure survey the estimation results are used in conjunction with population weights to derive aggregate demand on the supply side the automobile industry is modelled as an oligopoly with product differentiation equilibrium is characterized by the first order conditions of the profit maximizing firms the estimation results are used in counterfactual simulations to investigate two trade policy issues the effects of the ver and exchange rate pass through

limited commitment money and credit abstract this paper studies limited commitment and adverse selection in an economy in which private liabilities inside money can be used as instruments of intertemporal trade the results suggest that in conjunction with adverse selection the limited commitment problem may affect the behavior of intrinsically higher quality debtors more severely than lower quality ones nonetheless a credit economy may function better when both problems are present than under limited commitment alone adding a fixed amount of money eases frictions associated with the credit market journal of economic literature classification numbers d8 e0 e5

the rebound effect for space heating empirical evidence from austria abstract the major focus of this paper is to investigate the magnitude of the rebound effect for space heating in austria different approaches are applied and compared the most important result of this investigation is that despite the fact that all approaches applied have their weaknesses and some results were not highly significant the final outcomes of the different approaches show quite good coincidence they provide evidence of a rebound effect between 20 and 30 the most important conclusions for energy policy makers are i standards with respect to building codes are very important tools to increase the thermal quality of new buildings ii due to prevailing low energy prices a triggering tool which may be rebates or loans has to be implemented to increase the efficiency of the building stock