interactions between renewable energy policy and renewable energy industrial policy a critical analysis of china s policy approach to renewable energies this paper analyzes china s policy approach to renewable energies and assesses how effectively china has met the ideal of appropriate interactions between renewable energy policy and renewable energy industrial policy first we briefly discuss the interactions between these two policies then we outline china s key renewable energy and renewable industrial policies and find that china s government has well recognized the need for this policy interaction after that we study the achievements and problems in china s wind and solar pv sector during 2005 2012 and argue that china s policy approach to renewable energies has placed priority first on developing a renewable energy manufacturing industry and only second on renewable energy itself and it has not effectively met the ideal of appropriate interactions between renewable energy policy and renewable energy industrial policy lastly we make an in depth analysis of the three ideas underlying this policy approach that is the green development idea the low carbon leadership idea and indigenous innovation idea we conclude that chinas policy approach to renewable energies needs to enhance the interactions between renewable energy policy and renewable energy industrial policy the paper contributes to a deeper understanding of china s policy strategy toward renewable energies

assessing the performance of renewable electricity support instruments abstract the performance of feed in tariffs and tradable certificates is assessed on criteria of efficacy efficiency equity and institutional feasibility in the early stage of transition to an energy system based entirely on renewable energy supplies renewable electricity can only thrive if support takes into account the specific technical economic and political problems which result from embedding this electricity in conventional power systems whose technology organizational structure environmental responsibility and general mission differ profoundly from the emerging renewable based system support schemes need to capture the diversity of power supplies the variable nature of some renewable supplies and their different attributes for the purposes of public policy they must take into account the variety of generators including small decentralized generation emerging in a renewable based system and the new relationships between generators and customers renewable energy policies need a clear point of reference because the incumbent power systems are not sustainable they must adapt to the requirements of the renewable ones not the other way round incumbent systems carry the responsibility of paying the transition something that corresponds best with the polluter pays principle

the brazilian experience of rural electrification in the amazon with decentralized generation the need to change the paradigm from electrification to development abstract there are at least 607 thousand households in the brazilian amazon that need to be attended with some form of regular electricity service these households are not attended by the electricity sector through its electricity distribution companies and most of them have some form of precarious decentralized electricity generation that is not registered or regulated in the institutional framework diverse initiatives were taken by brazilian government to attend these household through alternatives that relied on locally available renewable energy this paper accesses this initiatives of rural electrification in the brazilian amazon first an overview of the problems of rural electricity are discussed and its specificities in the brazilian amazon then the brazilian institutional framework that organizes the decentralized electricity generation is described with its various limitations the diverse initiatives undertaken to attend the rural communities in the amazon since the 1990s are described as well as how these initiatives are linked to the policies for rural electrification the results shows that it can be inferred that sole market mechanisms are not sufficient to guarantee economic sustainability of these projects this can be one of the reasons why traditional electricity distribution companies showed the lack of interest in promoting rural electrification with other means than grid extension the most successful projects had financed efforts to integrate the generation of electricity into local development initiatives in order to guarantee sustainability and used substantial part of funding for local mobilization and organization it needs a paradigm chance by treating these initiatives as local development initiatives and promoting alternative ways for its implementation through partnership between local new actors in the electricity sector and government and implementing policy on a local municipal level

a three gap model of foreign transfers and the gdp growth rate in developing countries abstract a simplified macroeconomic framework is developed for the fiscal gap which is considered to be an important stumbling block for adjustment with growth in highly indebted developing countries distinctive characteristics of a fiscally constrained economy are compared with those of economies constrained either by the availability of savings or foreign exchange tentative implications for external conditionality accompanying debt relief measures are derived

new microfoundations for the aggregate matching function empirical studies of the aggregate labor market matching function have favored a cobb douglas functional form for which there are no microfoundations in the existing literature i present a new model for the matching process based on a telephone line poisson queuing process which unlike other microeconomic approaches can be integrated directly into standard theoretical search models this implies a ces matching function approximately cobb douglas when search costs are approximately linear the model allows empirical estimates of matching function parameters to be interpreted in terms of the costs and benefits of search

job destruction and propagation of shocks this paper considers propagation of aggregate shocks in a dynamic general equilibrium model with labor market matching and endogenous job destruction cyclical fluctuations in the job destruction rate magnify the output effects of shocks as well as making them much more persistent interactions between capital adjustment and the job destruction rate play an important role in generating persistence propagation effects are shown to be quantitatively substantial when the model is calibrated using job flow data incorporating costly capital adjustment leads to significantly greater propagation

search theoretic models of the labor market a survey we survey the literature on search theoretic models of the labor market we show how this approach addresses many issues including the following why do workers sometimes choose to remain unemployed what determines the lengths of employment and unemployment spells how can there simultaneously exist unemployed workers and unfilled vacancies what determines aggregate unemployment and vacancies how can homogeneous workers earn different wages what are the tradeoffs firms face from different wages how do wages and turnover interact what determines efficient turnover we discuss various modeling choices concerning wage determination and the meeting process including recent models of directed search

distribution network prices and solar pv resolving rate instability and wealth transfers through demand tariffs 1 in 4 detached households in southeast queensland have installed rooftop solar pv amongst the highest take up rates in the world electricity distribution network capacity is primarily driven by periodic demand and household load generally peaks in the early evening whereas solar pv production peaks during the middle of the day and thus a mismatch exists compounding matters is the fact that the structure of the regulated two part network tariff is dominated by a flat rate variable charge in this article interval meter data at the customer switchboard circuit level confirms that solar households use only slightly less peak capacity than non solar households and that non trivial cross subsidies are rapidly emerging a tariff model demonstrates that a peak capacity based demand tariff is a more efficient cost reflective and equitable pricing structure that improves the stability of tariffs given a rate of return regulatory constraint

competing for order flow in otc markets we develop a model of a two sided asset market in which trades are intermediated by dealers and are bilateral dealers compete to attract order flow by posting the terms at which they execute trades which can include prices quantities and execution times and investors direct their orders toward dealers that offer the most attractive terms of trade equilibrium outcomes have the following properties first investors face a trade off between trading costs and speeds of execution second the asset market is endogenously segmented in the sense that investors with different asset valuations and different asset holdings will trade at different speeds and different costs for example under a leontief technology to match investors and dealers per unit trading costs decrease with the size of the trade in accordance with the evidence from the market for corporate bonds third dealers implicit bargaining powers are endogenous and typically vary across sub markets finally we obtain a rich set of comparative statics both analytically by studying a limiting economy where trading frictions are small and numerically for instance we find that the relationship between trading costs and dealers bargaining power can be hump shaped

regional distribution of photovoltaic deployment in the uk and its determinants a spatial econometric approach abstract photovoltaic pv panels offer significant potential for contributing to the uk s energy policy goals relating to decarbonisation of the energy system security of supply and affordability the substantive drop in the cost of panels since 2007 coupled with the introduction of the feed in tariff fit scheme in 2010 has resulted in a rapid increase in installation of pv panels in the uk from 26 5mwp in 2009 to over 5gw by the end of 2014 yet there has been no comprehensive analysis of the determinants of pv deployment in the uk this paper addresses this gap by employing spatial econometrics methods to a recently available data set at a fine geographical detail following a traditional regression analysis a general to specific approach has been adopted where spatial variations in the relationships have been examined utilising the spatial durbin model using the cross sectional data relating to the uk nuts level 3 data empirical results indicate that demand for electricity population density pollution levels education level of households and housing types are among the factors that affect pv uptake in a region moreover lagrange multiplier test results indicate that the spatial durbin model may be properly applied to describe the pv uptake relationship in the uk as there are significant regional spillover effects

mortgage debt consumption and illiquid housing markets in the great recession using a model with housing search endogenous credit constraints and mortgage default this paper accounts for the housing crash from 2006 to 2011 and its implications for aggregate and cross sectional consumption during the great recession left tail shocks to labor market uncertainty and tighter down payment requirements emerge as the key drivers an endogenous decline in housing liquidity amplifies the recession by increasing foreclosures contracting credit and depressing consumption balance sheets act as a transmission mechanism from housing to consumption that depends on gross portfolio positions and the leverage distribution low interest rate policies accelerate the recovery in housing and consumption

turnover externalities with marketplace trading this article considers equilibrium decentralized trade when there is a marketplace where buyers and sellers meet costlessly since buyers have idiosyncratic match payoffs for each seller s good some buyers rather than trade with the current stock of sellers wait for new sellers to enter the marketplace to obtain a good they like a turnover externality exists where all traders are better off with higher entry rates of new traders furthermore this turnover externality supports multiple pareto rankable equilibria this provides new insights into similar results obtained in the random matching literature

marketplaces and matching this paper models equilibrium trading patterns when marketplaces exist and goods are differentiated when first visiting the market a buyer samples a stock of goods if fortunate the buyer matches with and purchases one of these goods and then exits the market if an initial match does not exist the buyer can now only match with the flow of new goods for sale the previous stock has been sampled and rejected in a steady state the current stock of unmatched traders on one side of the market is trying to match with the flow of new traders on the other side it is shown that this market behaviour describes matching patterns between unemployed job seekers and vacancies in uk job centres

bertrand equilibrium with capacity constraints and restricted mobility this paper considers price competition among firms when there are capacity constraints and buyers have limited ability to visit firms a natural method of allocating buyers among firms arises in the equilibrium of the buyers search game sufficient conditions are given under which the buyers equilibrium varies continuously with the prices charged by firms capacity constraints are used to guarantee that this ensures existence of mixed strategy equilibria for the pricing game played by sellers we show that natural pure strategy equilibria arise when the game is made large in appropriate ways since bertrand s criticism of cournot it has been known that models where sellers compete with prices may have undesirable properties when the commodities traded are homogenous in the simplest models with constant marginal costs price may be driven down to the competitive level even when there are only two firms more problematic if sellers are subject to capacity constraints nash in prices equilibrium may not exist at all these problems all arise because of a discontinuity in firms profit functions that arises when the prices of two or more firms are equal there have been many attempts to resolve this problem the simplest is to constrain sellers prices to be equal and to force them to compete in quantities this is the basis of most of the literature on monopolistic competi

household saving in developing countries first cross country evidence although most studies have relied on domestic or private sector saving data this article uses household data available from the u n system of national accounts for a sample of 10 countries household saving functions are estimated using combined time series and cross country observations in order to test households responses to income and growth rates of return monetary wealth foreign saving and demographic variables the results show that income and wealth variables affect saving strongly and in ways consistent with standard theories inflation and the interest rate do not show clear effects on saving which is also consistent with their theoretical ambiguity foreign saving and monetary assets have strong negative effects on household saving which suggests the importance of liquidity constraints and monetary wealth in developing countries

why did the price of solar pv si feedstock fluctuate so wildly in 2004 2009 abstract great attention has been paid to the origin of observed wild price fluctuations of solar pv si feedstock in both contract and spot markets during 2004 2009 this paper sheds light on this issue and tries to resolve it by addressing the following questions what kind of structural shock is underlying the price fluctuations of pv si feedstock how can we quantify the magnitude timing and relative importance of these shocks what are their dynamic effects on the real price of pv si feedstock by carefully studying development conditions the structural decomposition of the real price of pv si feedstock is proposed exchange rate shocks production cost shocks aggregate demand shocks and demand shocks specific to feedstock markets with a structural vector autoregression model the paper quantifies and verifies the impact of structural shocks on pv si feedstock real price changes based on national data an analysis is further taken to confirm the essential role of demand shocks specific to feedstock markets in determining sharper price fluctuations during 2004 2009 the results of this study have important implications for national solar pv development which can be better promoted and administrated if structural shocks in feedstock markets can be carefully evaluated and understood

retail electricity tariff and mechanism design to incentivize distributed renewable generation abstract this paper examines the question of how to incentivize the adoption and use of renewable energy resources with particular attention on distributed renewable energy dre prior experience suggests that price and quantity based programs such as feed in tariffs provide more efficient renewable adoption and use and lower program costs than programs that set quantity targets only we also examine some cost allocation issues raised by the use of dre systems and fixed time invariant retail pricing this combination can result in customers with dre systems paying a disproportionately small portion of system capacity costs we suggest two retail pricing schemes real time pricing and a two part tariff with demand charges to address these issues

holdups and efficiency with search frictions a natural holdup problem arises in a market with search frictions firms have to make a range of investments before finding their employees and larger investments translate into higher wages in particular when wages are determined by ex post bargaining the equilibrium is always inefficient recognizing that capital intensive production relations have to pay higher wages firms reduce their investments this can only be prevented by removing all the bargaining power from the workers but this in turn depresses wages below their social product and creates excessive entry of firms in contrast to this benchmark we show that efficiency is achieved when firms post wages and workers can direct their search toward more attractive offers this efficiency result generalizes to an environment with imperfect information where workers only observe a few of the equilibrium wage offers we show that the underlying reason for efficiency is not wage posting per se but the ability of workers to direct their search toward more capital intensive jobs

frictional unemployment on labor flow networks abstract we develop an alternative theory to the aggregate matching function in which workers search for jobs through a network of firms the labor flow network the lack of an edge between two companies indicates the impossibility of labor flows between them due to high frictions in equilibrium firms hiring behavior correlates through the network generating highly disaggregated local unemployment hence aggregation depends on the topology of the network in non trivial ways this theory provides new micro foundations for the beveridge curve wage dispersion and the employer size premium we apply our model to employer employee matched records and find that network topologies with pareto distributed connections cause disproportionately large changes on aggregate unemployment under high labor supply elasticity

financing instruments and channels for the increasing production and consumption of renewable energy lithuanian case the growing demand for energy commitments taken to reduce greenhouse gas emissions fossil fuel depletion and other issues enforced to accept the decision to analyze financing issues of renewable energy sector worldwide this paper addresses two financing issues financing channels and instruments and their impact on energy cost the analysis revealed that the governmental support in the form of tax reductions and subsidies and international funds are important renewable energy sector financing channels in developing countries availability of private resources increases under the established public private partnership agreements economically advanced countries use a greater variety of financing channels and instruments because of high growth of renewable energy sector some new financing channels are available the experience of lithuania revealed that governmental policy encourages investment into the renewable energy sector banks found attractive renewable energy technologies after feed in tariffs increased eu structural funds and tax incentives are available especially in subsidizing combined cycle electricity and heat generation innovative financing instruments provided under the jessica and jeremie initiatives as well as investment subsidies are favorable to develop solar energy sector in lithuania seeking to expedite solar sector development in lithuania it is essential to review a feed in tariff which currently is too low and impedes implementation of solar pv technologies solar collectors could compete in the district heating sector even without a support

network charging and residential tariffs a case of household photovoltaics in the united kingdom abstract currently about one million households in the united kingdom uk have installed solar photovoltaic pv panels with about two thirds of them are using the panels for self generating power according to the uk department of energy climate change solar pv deployment in the uk measured in megawatt has grown considerably from 95 mw in 2010 when the feed in tariff was introduced to 11 429 mw in 2016 the popularity of the solar pv among the uk households made the government to introduce major changes to the scheme our paper focuses on the two major questions could it be that the system already favours richer consumers or certain types of network user who do not bear either the efficient or fair share of the total system distribution and transmission costs does the apportionment of charges between fixed per kw peak and per kwh use of system charges need to be changed to be more cost reflective we employ the data from the smart meters readings provided by the customer led network revolution monitoring trial conducted with the 199 households in the northern england that provides the data for the household electricity use and tariff behaviour between october 2012 and july 2014 our analysis demonstrates that similar to other studies conducted around the world the increase in the solar pv resulted in a transfer of wealth and costs between customer groups due to their own production uk solar pv consumers yield a lower share of the per kwh costs of the distribution system which leads to the increase of per unit charges as well as the changes in the distribution of their payment between different types of households

why has house price dispersion gone up we calibrate a dynamic general equilibrium island model to investigate the 30 year increase in the level of house prices and their dispersion across u s metropolitan areas the model is based on two main assumptions households o w in and out metropolitan areas in response to local productivity shocks and the housing supply cannot adjust instantly because of technological and regulatory constraints the calibration reveals that the observed tightening of housing supply regulation cannot quantitatively account for the rise in the level and dispersion of house prices in equilibrium workers o w out of tightly regulated towards less regulated metropolitan areas undoing most of the price impact of local supply restrictions in contrast the observed increase in wage dispersion across metropolitan areas does create the observed increase in the level and dispersion of house prices workers o w towards exceptionally productive metropolitan areas and drive house prices up the calibration also suggests that the welfare eects of housing supply regulation are large when wages become more dispersed

savings in chile what went right abstract in the last 10 years chile s overall economic performance has been remarkable in many respects including a significant and sustained increase in domestic savings to figures around 26 of gdp this paper empirically assesses the reasons behind such notable behavior of savings by applying co integration models to check for long run relationships and error correction models to verify short run adjustments the emphasis is on annual private savings data span from 1960 to 1995 which as it turns out depend more than proportionally on an adjusted measure of gdp and less than proportionally on foreign savings and public savings private savings are also positively affected by economic growth and a dummy reflecting the effect of pension funds most of the adjustment between short run and long run is completed in less than 3 years where the variable representing income bears the bulk of such adjustment in comparing two episodes of good economic performance in the last 20 years 1976 1981 and 1986 till present it is found that three basic differences arise concerning private savings sustainability of growth different access to foreign savings during the recovery from recession and different scenarios with respect to the development of long run capital markets in particular a relevant role played the move to a fully funded social security system in the early 1980s

trading frictions and house price dynamics we model liquidity in housing markets the model provides a simple characterization for the joint process of prices sales and inventory we compare the implications of the model to certain properties of housing markets the model can generate the large price changes and the positive correlation between prices and sales that we see in the data unlike the data prices are negatively autocorrelated and high inventory predicts price appreciation we investigate several amendments to the model informational frictions show promise

segmented housing search we study housing markets with multiple segments searched by heterogeneous clienteles in the san francisco bay area search activity and inventory covary negatively across cities but positively across market segments within cities a quantitative search model shows how the endogenous flow of broad searchers to high inventory segments within their search ranges induces a positive relationship between inventory and search activity across segments with a large common clientele the prevalence of broad searchers shapes the response of housing markets to localized supply and demand shocks broad searchers help spread shocks across many segments and reduce their effect on local market activity

pricing and matching with frictions suppose that n buyers each want one unit and m sellers each have one or more units of a good sellers post prices and then buyers choose sellers in symmetric equilibrium similar sellers all post one price and buyers randomize hence more or fewer buyers may arrive than a seller can accommodate we call this frictions we solve for prices and the endogenous matching function for finite n and m and consider the limit as n and m grow the matching function displays decreasing returns but converges to constant returns we argue that the standard matching function in the literature is misspecified and discuss implications for the beveridge curve

ranking unemployment duration and wages it explores the implication of one central assumption when firms receive multiple acceptable applications they hire the worker who has been unemployed for the least amount of time this assumption ranking is contrasted with the assumption of random hiring no ranking by embodying this assumption in a model of the labour market with job creation destruction and matching the joint behaviour of unemployment the distribution of unemployment durations and wages are characterized the implication that the re employment prospects of employed workers were they to become unemployed are better than those of the currently unemployed appears to have been an important feature of european unemployment experience in the 1980 s this paper examines the effects of the composition of unemployment on wage determination it explores one central assumption when firms receive multiple acceptable applications they hire the worker who has been unemployed for the least amount of time we refer to this assumption as ranking and contrast it throughout to the assumption of random hiring or no ranking by embodying this assumption in a model of the labour market with job creation destruction and matching we characterize the joint behaviour of unemployment the distribution of unemployment durations and wages ranking has a number of important implications first in addition to the obvious result that the exit rate from unemployment is a decreasing function of duration we show that the effect of duration is stronger the higher the rate of unemployment second with the wage depending on the distributions of prospective unemployment durations the presence of long term unemployed per se has little effect on wages third looking at the relation between the wage and the aggregate level of unemployment and comparing ranking to the case of no ranking the wage moves less with the level of unemployment but more with the change in unemployment put simply ranking and no ranking models show exactly the same aggregate unemployment slightly different long run responses of wages to unemployment and sharply different wage dynamics the paper is organized as follows section i characterizes the matching process and derives a matching function based on an urn ball process with vacancies as urns and applications by unemployed workers as balls thus the distribution of applications per vacancy depends on aggregate unemployment and vacancies vacancies with at least one acceptable application are filled when a vacancy receives more than one acceptable application firms use a rule to choose among applicants thus the rule determines who is hired but does not affect the number of hires section ii uses this matching function in a model of the labour market with continual job creation and destruction and characterizes the equilibrium values of unemployment vacancies and hires

revisiting the causal nexus between savings and economic growth in india an empirical analysis abstract this paper attempts to analyze the long run association between savings and growth and investigates the causality issue in indian context for the period 1950 51 to 2011 12 firstly the study identifies the structural break in the year 1980 by employing bi perron test with unknown time further it examines the association and the direction of causality between savings and real economic activity the empirical evidence of the study suggests that savings boost the real activity both in the pre and post break period in the long run while economic growth causes saving in the short run in the pre break period thus the present study brings evidence in favour of the neoclassical exogenous and the post neoclassical endogenous growth models and suggest that both the incentive based measures and the productivity based measures would be useful to generate higher savings and reinforce the acceleration of income and growth

endogenous business cycles with frictional labour markets we present a neoclassical model of capital accumulation with frictional labour markets under standard parameter values the equilibrium of the model is indeterminate and consequently displays expectations driven business cycles so called endogenous business cycles we study the properties of such cycles and find that the model predicts the high autocorrelation in output growth and the hump shaped impulse response of output found in us data important features that existing endogenous real business cycle models fail to explain the indeterminacy of the equilibrium stems from job search externalities and does not rely on increasing returns to scale as in most models