barriers to energy efficiency a comparison across the german commercial and services sector abstract based on a large sample for the german commercial and services sector this paper econometrically assesses the relevance of various types of barriers to energy efficiency at the sectoral level and across fifteen sub sectors the results at the level of entire sectors suggest that the lack of information about energy consumption patterns and about energy efficiency measures lack of staff time priority setting within organizations and in particular the investor user dilemma are all relevant barriers allowing for sector specific differences in the relevance of these individual barriers yields a more heterogeneous picture the numbers and types of relevant barriers vary across sub sectors and the majority of sub sectors are subject to relatively few barriers the statistically most significant barriers are found for the sub sector of public administrations these findings are robust independent of whether the definition of an organization s energy efficiency performance includes only measures that have actually been realized or also those that are being planned for planned projects however organizations appear to underestimate internal priority setting as a barrier to energy efficiency

structural change in factor substitution in finnish manufacturing the possibility of structural change in finnish factor substitution relations between energy and nonenergy factors is analyzed the standard generalized leontief klemf cost function is modified so that the substitution parameters related to electricity and fuel factors may shift to new levels over time the initial point of transition is 1974 during which the first energy crises took place likelihood ratio tests confirm that there has indeed been a statistically significant change in energy versus nonenergy substitution our estimates imply stronger substitutability for most input pairs after the energy crisis

wind power development in sweden global policies and local obstacles abstract recently the swedish government adopted a national planning goal of a yearly wind power generation of 10 twh by 2015 implying a substantial increase from the current 0 6 twh level in this paper we provide an economic assessment of the potential for future wind power investments in sweden in close conjunction with an analysis of the legal attitudinal and policy related uncertainties that face a wind mill investor it is shown that the economics of swedish wind power is negatively affected by a the lack of policy stability b public criticism at the local level and in particular c the legal provisions governing the assessment of the environmental impacts of wind mills and the planning procedures for mill location while national and global energy policies as well as the general public point out wind power as particularly environmentally friendly most of the objections to its expansion at the local level tend to have environmental origins the interests of those who object to wind mill installations gain strong legal protection and the municipal territorial planning monopoly in sweden implies that it is hard to make national energy policy goals heard at the local implementation stage compared to its competitors wind power is the technology that tends to have the most to loose from the risk and uncertainties created by this investment environment the paper identifies and discusses a number of ways in which the national policy interests could be strengthened at the local level we discuss the role of citizen participation as well as solutions within the realms of the legal system moreover since the diffusion of wind power encounters the most strident legal and attitudinal obstacles where it interferes with competing land uses a move offshore appears to be an efficient strategy from the perspective of a wind mill investor a stronger political commitment to wind power expansion in legal provisions as well as in the form of long run stability in policy instrument implementation will probably be necessary to attain the 2015 policy goal

can a carbon trading system promote the transformation of a low carbon economy under the framework of the porter hypothesis empirical analysis based on the psm did method abstract global warming is one of the issues of great concern in the world the large scale use of fossil fuels has led to the continuous increase in carbon emissions resulting in global energy shortages and environmental pollution reasonable and strict environmental regulation promotes technological innovation by enterprises to achieve a win win situation between the economy and environment which is the core idea of the porter hypothesis the choice of china as the world s largest energy consumer and carbon emitter is not only related to the country s own mode of economic growth but also determines the development of the world s low carbon economy we used the panel data from 2000 to 2016 of 30 provincial level administrative regions in china and adopted the propensity score matching difference in differences method to test the impact of china s carbon trading pilot system on the transformation of a low carbon economy the empirical results show that under the constraints of the established resources and environment there is a positive relationship to some extent between china s carbon trading system and low carbon economic transformation this relationship can realize the win win situation of environmental and economic benefits as advocated by the porter hypothesis and further verify the applicability of the porter hypothesis

integrating replenishment decisions with advance demand information there is a growing consensus that a portfolio of customers with different demand lead times can lead to higher more regular revenues and better capacity utilization customers with positive demand lead times place orders in advance of their needs resulting inadvance demand information this gives rise to the problem of finding effective inventory control policies under advance demand information we show that state dependent s s and base stock policies are optimal for stochastic inventory systems with and without fixed costs the state of the system reflects our knowledge of advance demand information we also determine conditions under which advance demand information has no operational value a numerical study allows us to obtain additional insights and to evaluate strategies to induce advance demand information

the direction of developing country trade empirical evidence of differences between south south and south north trade abstract declining market opportunities in northern markets led to views that greater south south trading might provide an alternative growth stimulus this paper analyses the characteristics of south south trade in manufactures and recent changes in the level of such trade to help clarify the potential of greater self reliance within the south south south trade is found to be more intensive in the use of both physical and human capital hence less rational from the static comparative advantage viewpoint than south north trade there is indirect but strong evidence that exporting countries with greatest orientation towards the south are those with greater distortions less rapid movements up the ladder of comparative advantage and weaker export performance finally it is observed that the recent boom in south south trade is largely explained by simple market size effects very rapid growth of rich oil exporters and the faster gnp growth of developing compared to developed countries the paper concludes that while south south trade of about the present magnitude one of greater developing country exports is certainly rational there is little evidence to support views that greater south south trade should be especially promoted arguments of dynamic comparative advantage may favor south south trade but so far these have been more speculative and not yet well researched empirically

determinants of the structure of u s foreign trade 1958 1976 abstract the heckscher ohlin model with three direct factor inputs is borne out for u s net exports of manufactures in annual cross section regressions for 1958 1976 the coefficient on unskilled labor became significantly more negative over the period and there is evidence that the negative sign on physical capital may reflect the inclusion of natural resource industries further analysis based upon 1960 and 1970 census years suggests the importance as well of skill and technological variables calculations of the total factor requirements of u s trade uphold the leontief paradox for 1958 but not for 1972

economic analysis of paper recycling vis a vis wood as raw material abstract concerns for the environment has forced many firms define policies that protect the environment within which they operate this paper presents a linear optimization model for paper industry to compare total system cost of wood as a raw material with recycling of waste paper objective of the proposed model is to minimize the cost of paper in the supply chain costs included in the objective functions are costs for collection of raw material transportation inventory manufacturing segregation and disposal during recycling the model also includes the economic implications of using these alternative material sources on environment as well as quality of final product to gain further insights into system behavior sensitivity analysis shortage analysis and indifference curve analysis have been performed the analysis clearly reveals that the paper recycling is an economical option compared to wood as a raw material the paper analysis highlights various strategies that could be followed under different market conditions

customer order information leadtimes and inventories we have an inventory to manage the scenario is standard in all respects save one instead of arriving unannounced customers provide advance warning of their demands how should we use this information and what is its effect on system performance the answers turn out to be strikingly simple there are very simple policies which perform effectively in some cases optimally also such demand leadtimes improve performance in precisely the same way that replenishment leadtimes degrade it

sources of changes in factor intensity of trade the factor proportions hypothesis of trade theory has been the subject of a large number of empirical tests but few of them have analyzed the changes in the factor content of trade in a country over time or across countries this study analyzes the changes in factor intensity of trade in mexico japan korea taiwan and israel during the 1960s it traces back the changes in capital labor ratios in the production of exports and import substitutes to variations in the sectoral composition of trade changes in factor output ratios and changes in input output coefficients

asset price shocks financial constraints and investment evidence from japan this paper examines investment spending of japanese firms around the asset price bubble in the late 1980s and makes three contributions to our understanding of how stock valuations affect investment first corporate investment responds significantly to nonfundamental components of stock valuations during asset price shocks fundamentals matter less clearly the stock market is not a sideshow second the time series variation in the sensitivity of investment to cash flow is affected more by changes in monetary policy than by shifts in collateral values finally asset price shocks primarily affect firms that rely more on bank financing and not necessarily those that use equity markets for financing only the investment of bank dependent firms responds to nonfundamental valuations in addition the cash flow sensitivity of bank dependent firms with large collateral assets decreases when asset prices become inflated but increases dramatically when asset prices collapse and monetary policy tightens

industrial sector fuel price elasticities following the first and second major oil price shocks abstract estimated fuel price elasticities are consistent with reactions following the second major oil shock having been significantly different from reactions to its predecessor in turn elasticities for both sub periods are not well represented by those estimated for 1960 1982 as a whole

energy crises and change of technology a production model is formulated for the finnish metal product and machinery industry for studying energy crises related structural changes two models are estimated a partial static equilibrium model where capital is treated as a fixed input in the short run and a dynamic model where adjustment costs of the capital input are taken into account alternative hypotheses of structural change are formulated as gradual parameter shifts the results show that some of the energy related parameters have changed over time also the contributions of parameter changes and variations in the average values of the variables on the changes in the energy demand elasticities are studied the most important effect is the strengthening of the energy saving bias in technical change

is there persistence in the growth of manufactured exports evidence from newly industrializing countries abstract applying cointegration techniques in a panel data setting we document persistent growth of manufactured exports from certain developing countries to complement the investigation of persistence measured by the country fixed effects we analyze asymmetries in income elasticities for all developing countries the decline in exports with world income contraction is sharper than is the rise on the upswing the decline is however especially pronounced for countries with low or negative persistence the results are consistent with long term buyer supplier relationships that create insiders and outsiders in manufactured goods trading exports are also influenced by the transactional infrastructure proxied by telecommunications penetration

voluntary agreements on energy efficiency in industry not a golden key but another contribution to improve climate policy mixes abstract the paper summarises the findings and the work carried out within the voluntary agreements implementation and efficiency project and examines five agreement schemes in the field of industrial energy efficiency in the netherlands denmark germany france and sweden it provides a brief characterisation of the different approaches and discusses the related implementation effort and transaction costs an assessment of performance and environmental effectiveness is given followed by a discussion of the transferability of voluntary agreements among countries and to the european level

markets technology and environmental regulation price ambivalence of waste paper in germany abstract we examine the price ambivalence of low quality waste paper grades 1 02 and 1 04 on the german market since 1990 the price of these grades is at times positive and at times negative the underlying reason is the combination of three institutional and technical characteristics of the market i as a result of waste management legislation the supply of waste paper is mostly independent of its price and its demand supply is bounded from below by collection and utilization quotas fixed by the regulation on packaging waste enacted in 1991 ii the only alternative to costly disposal of waste paper by dumping or incineration is its use as a secondary resource in the production of new paper as only the paper industry is capable of using waste paper in a productive manner in significant amount iii yet its use as a substitute for primary inputs is technically limited in this article we describe the technical and institutional conditions leading to price ambivalence and discuss the consequences for supply demand and trade of waste paper

a test of the factor endowments model of trade in a rapidly industrializing country the case of the authors perform a fully specified test of the heckscher ohlin vanek hov multifactor content theorem of international trade in the context of a rapidly industrializing economy the republic of korea in 1970 and 1980 the test involves a comparison of independent measures of relative factor endowments with endowment rankings revealed by korea s international trade and total factor intensities interest arises in this effort because korea s industrialization presents a new set of circumstances in which to test the heckscher ohlin vanek theorem the results strongly suggest that the revealed factor endowments departed significantly from actual factor supplies the authors discuss potential reasons for this divergence copyright 1993 by mit press

the demand for capital labor and energy in european manufacturing industry before and after the oil price shocks the price and substitution elasticities for factor inputs capital labor fuels and electricity are estimated for total manufacturing industry on the basis of a pooled crosscountry time series analysis for nine west european countries the impact of the economic disturbances in the 1970s on the price sensitivity of demand is analyzed by estimating a translog cost function for two separate periods 1960 72 and 1973 80 hicks neutral technical change is rejected for both periods the results indicate some quite significant changes in the elasticities over the two periods

testing the heckscher ohlin vanek theory with a natural experiment i use the historical episode of near elimination of commuting from the west bank into israel to test three key predictions of the heckscherohlinvanek model of trade and find strong support for them on the production side i use variation between districts and find that wage changes were not correlated with the size of the shock to the labour force factor price insensitivity and that districts that received larger influx of returning commuters shifted production more towards labour intensive industries rybczynski effect on the consumption side data are consistent with identical homothetic preferences which combined with the production results supports the heckscherohlinvanek theorem on the factor content of trade

a note on international trade and market structure as exports become an increasing part of industry sales the determinants of a firm s international position become increasingly important tests have supported single factors such as product life cycle lutz and green 1983 as well as multi factor models to explain the determinants of industry imports and exports stern and maskus 1981 harkness and kyle 1975 baldwin 1971 this study also presents a multi factor analysis of the determinants of u s trade patterns this study utilized the spi strategic planning institute data set which allows research at the business unit product line level results indicate that productivity and product development are the principal characteristics of high export percentage business units these findings are especially true for nonconsumer industries thus to the degree that business are concerned over the short term costs of product development direct or indirect for example insurance government aid may be required to promote u s export industries

swedish industry and kyoto an assessment of the effects of the european co2 emission trading system we assess the effects on swedish industry input demands and output of different climate policy scenarios connected to energy policy induced by the kyoto protocol we use a unique dataset containing

determinants of manufactured export performance in low income africa kenya and tanzania abstract this paper applies empirical trade theory to explaining the revealed comparative advantage in manufactured exports of kenya and tanzania exports are treated as a whole and also distinguished by destination developed countries developing countries and africa the undeveloped industrial and trade structures of these countries lead to low explanatory power of the equations but the results for individual variables are generally expected and of interest

value of information in capacitated supply chains we incorporate information flow between a supplier and a retailer in a two echelon model that captures the capacitated setting of a typical supply chain we consider three situations 1 a traditional model where there is no information to the supplier prior to a demand to him except for past data 2 the supplier knows the s s policy used by the retailer as well as the end item demand distribution and 3 the supplier has full information about the state of the retailer order up to policies continue to be optimal for models with information flow for the finite horizon the infinite horizon discounted and the infinite horizon average cost cases study of these three models enables us to understand the relationships between capacity inventory and information at the supplier level as well as how they are affected by the retailer s s s values and end item demand distribution we estimate the savings at the supplier due to information flow and study when information is most beneficial

changes in the international distribution of resources and their impact on u s comparative advantage t he heckscher ohlin h o theory suggests international trade is determined by relative resource supplies among countries prior empirical research such as work on the determinants of u s comparative advantage in a single year has concentrated on the static predictions of h o theory however h o theory also suggests changes over time in resource supplies will alter trade structure the present paper investigates this aspect of h o theory particular emphasis is given to the role of world resource changes as an explanation of changes in u s trade and of the increased international competition in manufactured goods faced by the united states some recent studies have examined the relationship between changes in resource endowments and trade heller 1976 examined changes in the factor content of japan s trade between 1958 and 1968 and found the observed patterns consistent with changes in japan s physical and human capital endowments stern and maskus 1981 investigated changing factor input determinants of u s trade by estimating annual cross section regressions over 1958 77 they suggested u s net exports made less direct use of unskilled labor over time further analysis of the factor content of u s trade suggested increased u s abundance in physical capital relative to human capital between 1958 and 1971 balassa 1979 using a 1970 crosssection of countries concluded that physical and human capital accumulation largely explained changing patterns of comparative advantage in manufactures although these studies made important contributions a number of issues remain concerning the relationship between resources and trade stern and maskus in listing directions for further research cite first an examination of how and why endowments of physical capital human capital and labor have changed within the u s and our major trading partners this paper reports a substantial data effort which addresses this topic another important consideration is that the direct effect of resource endowment variation on trade has yet to be determined previously inferences about the effect of resource endowments on trade have been based primarily on results from industry cross section regressions authors of such work indirectly infer the effect of resource variation on trade by assuming the coefficients from such regressions reflect resource abundance however leamer and bowen 1981 recently demonstrated that signs of coefficients from such regressions need not reflect a country s true resource abundance thus the usual negative coefficient for the capital labor ratio in an analysis of u s trade cannot be used to infer the scarcity of capital and thus cannot be used to infer the effect of an increase in capital endowment on u s trade similarly balassa s procedure of first regressing for each of a sample of countries industry trade on input intensity and then using the estimated coefficients as the dependent variable in a cross country regression on resources is an inappropriate method for inferring the effect of resources on trade this paper advances consideration of these issues by investigating aspects of the relationship between resources and trade section ii examines changing patterns of resource supply among thirty four countries over 1963 75 section iii investigates whether these resource changes are associated with altered comparative advantage in manufactured goods section iv uses cross country regressions to estimate the resource endowment as opposed to factor input determinants of u s manufacturing trade and thereby the direct effect of resource variation on u s trade the received for publication april 23 1981 revision accepted for publication november 30 1982 new york university this paper is an outgrowth of research in bowen 1980a and of further work conducted at ucla under a ford foundation grant directed by edward e leamer an earlier version was presented at the 1980 southern economic association meetings in washington d c comments by c michael aho robert baldwin edward leamer joseph pelzman leo sveikauskas and an anonymous referee are gratefully acknowledged the author remains responsible for errors

does international harmonization of environmental policy instruments make economic sense harmonization of the instruments used in environmental policy has beenconsidered necessary to guarantee fair competition in internationalmarkets we examine the economic costs of harmonizing paper recyclingstandards in countries where the urgency of the waste disposal problemsdiffer using data of seven european countries we estimate thetechnologically feasible input combinations of pulp and waste paper forpaper production short term effects of two environmental policy measures minimum content requirement and utilization rate target are analyzed bytranslating the two administrative instruments into taxes and subsidies weshow that the shadow costs of the harmonization vary considerably betweencountries the difference in the domestic availability of waste may explainthe variation and a modification of the policy measures to incorporate thisaspect is suggested

on the tradeoff between optimal order base stock levels and demand lead times abstract we investigate the tradeoff between finished goods inventory and advance demand information for a model of a single stage make to stock supplier who uses an order base stock replenishment policy to meet customer orders that arrive a fixed demand lead time in advance of their due dates we show that if the replenishment orders arrive in the order that they are placed then the tradeoff between the optimal order base stock level and the demand lead time is exhaustive in the sense that the optimal order base stock level drops all the way to zero if the demand lead time is sufficiently long we then provide a sufficient condition under which this tradeoff is linear we verify that this condition is satisfied for the case where the supply process is modeled as an m m 1 queue we also show that the tradeoff between the optimal order base stock level and the demand lead time is linear for the case where the supply process is modeled as an m d 1 queue more specifically for this case we show that the optimal order base stock level decreases by one unit if the demand lead time increases by an amount equal to the supplier s constant processing time finally we show that the tradeoff between the optimal order base stock level and the demand lead time is exhaustive but not linear in the case where the supply process is modeled as an m d queue we illustrate these results with a numerical example

modelling oecd industrial energy demand asymmetric price responses and energy saving technical change abstract the industrial sector embodies a multifaceted production process consequently modelling the derived demand for energy is a complex issue made all the more difficult by the need to capture the effect of technical progress of the capital stock this paper is an exercise in econometric modelling of industrial energy demand using panel data for 15 oecd countries over the period 1962 2003 exploring the issue of energy saving technical change and asymmetric price responses although difficult to determine precisely it is tentatively concluded that the preferred specification for oecd industrial energy demand incorporates asymmetric price responses but not exogenous energy saving technical change

industrial policy and u s japanese trade abstract we find that while the depreciation subsidy and special treatment from the miti has significantly promoted the japanese trade advantage legalized cartelization status in japan has not had any apparent effect on bilateral trade with the u s

export performance in china s regional economies china enjoyed unprecedented economic growth in the 1980s and 1990s associated with this growth was the rapid expansion of exports from the chinese regions this study aims to provide an empirical assessment of export performance in the chinese regions during 1992 2001 it has shown that on an average china s regional economies have only achieved 70 of their export potential leaving substantial scope for improvement there is also considerable variation in export performance among the chinese regions with the noncoastal areas lagging behind in addition this article also shows that several region specific factors e g foreign direct investment government spending infrastructure development and the nonstate sector have affected regional export performance positively furthermore it is found that the development of china s western regions has boosted and will continue to improve the export sectors in these regions

measurement of the factor content of foreign trade with traded intermediate goods abstract in a recent article helpman 1984 develops readily testable bilateral restrictions in a model of international trade which preserves the spirit of heckscher ohlin trade theory important in any empirical exploration of the heckscher ohlin model is the decision of whether to employ direct or direct plus indirect calculations in determining the factor content of trade this paper extends helpman s analysis to a world of freely traded intermediate goods and shows that direct factor content calculations are the theoretically appropriate measure for use in evaluating these empirical implications of the heckscher ohlin model

the real time price elasticity of electricity the real time price elasticity of electricity contains important information on the demand response of consumers to the volatility of peak prices despite the importance empirical estimates of the real time elasticity are hardly available this paper provides a quantification of the real time relationship between total peak demand and spot market prices we find a low value for the real time price elasticity which may partly be explained from the fact that not all users observe the spot market price if we correct for this phenomenon we find the elasticity to be fairly low for consumers currently active in the spot market if this conclusion applies to all users this would imply a limited scope for government intervention in supply security issues

new energy strategies in the swedish pulp and paper industry the role of national and eu climate and energy policies the swedish pulp and paper industry has gone through a strategic change in its approach to electricity production and consumption over the past decade this paper documents this reorientation which includes increased on site electricity production investments and investment plans for wind power and new partnerships concerning investments in electricity production assets we also assess the extent to which these changes can be attributed to key energy and climate policies our analysis shows that this strategic reorientation has been driven by changes in the underlying economic conditions for the pulp and paper industry in particular increases in the price of electricity following the swedish energy market reform in 1996 and the introduction of the eu ets the scheme for tradable renewable electricity certificates on the other hand has provided a new source of income while these market based signals and responses are the most dominant drivers of strategic change cognitive changes in the pulp and paper industry have also played a role in the strategic reorientation the cognitive changes concerning the functioning of the electricity market i e the pricing of electricity and influence of the eu ets have been particularly important in this regard

a specification test of the heckscher ohlin theory abstract under strong assumptions the heckscher ohlin model predicts not only that factor endowment differences alone determine trade patterns but that they do so in a particularly simple way the factor content of trade should be a linear function of national and world factor endowments the evident empirical shortcomings of this simple relationship need not however imply the more general empirical failure of endowment based trade theories this paper provides empirical evidence consistent with a more general endowment based model by showing that the strong heckscher ohlin relationship excludes important additional channels through which factor endowments affect the pattern of trade

comparative advantage in manufactured goods a re appraisal japanese input coefficients are used to investigate the pattern of comparative advantage in the exportation of manufactured products in a cross country framework estimates are made for the imports of manufactured products as well as for net exports also alternative techniques of estimation are utilized and an attempt to explain the residuals in the regression equations and to indicate the predictive power of these equations is made the paper shows that patterns of comparative advantage in manufactured goods can be explained by reference to commodity characteristics and country characteristics in turn intercountry differences in the extent of trade orientation the concentration of exports and foreign direct investment explain part of the residuals of the cross country regression equations finally it has been found that the method applied permits projecting the factor intensity of trade for individual countries

the effect of foreknowledge of demand in case of a restricted capacity the single stage single product case abstract one of the important aspects of supply chain management is the possibility to realize advance demand information deeper in the chain foreknowledge of demand is useful in the control of a production inventory system knowing the customer orders in advance makes it possible to anticipate properly it is an important condition to produce and deliver the right quantity of the right product just in time it reduces the need of safety stock and spare capacity and it helps to reduce the bullwhip effect through the chain but the question of the effectiveness of foreknowledge is not an easy one having foreknowledge of the customer orders does not remove the demand uncertainty completely and the effect of the advance demand information may be hampered by the restricted flexibility of the resources the subject of this paper is the influence of a restricted production capacity on the effect of advance demand information the single stage single product case is considered here the lost sales version as well as the backlogging version the main result is that for high utilization rates and small forecast horizon the inventory reduction due to foreknowledge is equal to 1 h r with h the forecast horizon and r the production speed connected with that is the result that for small forecast horizon it is allowed to aggregate the demand information over the forecast horizon this leads to a heuristic that appears to be close to optimal for the case with a larger forecast horizon

evidence on shifts in the determinants of the structure of u s manufacturing foreign trade 1958 76 this paper extends the analysis performed by stern and maskus s m 1981 of changes in the determinants of the structure of u s foreign trade over the period 1958 76 that paper s major purpose was to compare annual regressions of the factor content version of the heckscher ohlin model over a cross section of manufacturing industries thereby presenting systematic evidence on the structural determinants of u s trade at different points in time however by not pooling the cross sectional data over time s m failed to exploit a great deal of statistical information which could have been brought to bear on the questions under consideration the present paper corrects this deficiency by performing a pooled cross section and time series analysis of time related changes in both the factor content and technological content of u s manufacturing net exports over the period 1958 76 the paper is organized as follows in section ii some theoretical points are discussed with regard to model specification and the interpretation of time series regression coefficients which reflect the factor content of trade section iii presents a methodology for analyzing the existence of changes over time in the vector of regression coefficients which are estimated from a pooled data set and reviews the results of applying the methodology in section iv more specific claims about the pattern of these coefficient changes are made based upon statistical comparisons of the coefficients between pooled subperiods section v concludes with comments on factors which may underlie the observed changes ii notes on the specification of the models

energy transition carbon dioxide reduction and output growth in the swedish pulp and paper industry 1973 2006 this study examines the historical relation between carbon dioxide emission and output growth in the swedish pulp and paper industry from 1973 to 2006 we find that the industry achieved an 80 perc

the relationship between waste paper and other inputs in the swedish paper industry a number of life cycle assessment studies havecompared the environmental impacts of materialrecycling and incineration of waste paper theyhave shown that in most cases a recyclingscenario results in lower total energy use butgreater use of fossil fuels if waste paper andfossil fuels are complements parts of theenvironmental argument for recycling isabolished this paper estimates a cost functionfor the swedish paper industry if the costshares are co integrated an error correctionmodel will be used to model the dynamics short and long run elasticities are thencalculated to address the relationship betweenwaste paper and the other inputs capital labor purchased pulp fiber fossil fuels andelectricity contrary to the life cycleassessment studies the results show that wastepaper and fossil fuels are substitutes andthat waste paper and electricity arecomplements

exports and innovation a simultaneous model abstract this study analyses the role of r d expenditures in determining export composition and contrasts it with the role of skilled labour it proposes the hypothesis that there is a simultaneous relation between exports and innovation a simultaneous model is set up to estimate the effects of technology and skill on uk export composition both the technology level and the technology gap are found to have positive effects on exports as is manual skilled labour concentration has a negative effect the simultaneity hypothesis is supported

interrelated factor demands for manufacturing a dynamic translog cost function approach abstract in this paper we report the results of estimating a joint model for labour capital and energy using the transcendental logarithmic cost function of christensen jorgenson and lau 1973 this allows us to determine both the own price and cross elasticities of substitution between labour capital and energy we combine a model of factor shares with a dynamic adjustment process for each factor we also impose on the cross equation restrictions necessary to provide additivity homogeneity and symmetry since the covariance matrix in systems of share relationships is singular we follow the suggestions of anderson and blundell 1982 and employ a mullivariate error corrrection model the results suggest that additivity symmetry and homogeneity restrictions do hold and that there are short run increasing returns to scale

cyclical dumping and correlated business cycles in imperfect markets empirical applications to the canadian pulp and paper industry this paper deals with theoretical and empirical aspects of firm behaviour under imperfect competition and uncertainty it contains an analysis of the behaviour of a firm facing a stochastic demand

the impact of r d on innovation for wind energy in denmark germany and the united kingdom this paper examines the impact of public research and development r d support on cost reducing innovation for wind turbine farms in denmark germany and the united kingdom uk first we survey the literature in this field the literature indicates that in denmark r d policy has been more successful than in germany or the uk in promoting innovation of wind turbines furthermore such studies point out that subsidy induced capacity expansions were more effective in the uk and denmark in promoting cost reducing innovation than in germany the second part of the paper describes the quantitative analysis of the impact of r d and capacity expansion on innovation this is calculated using the two factor learning curve 2flc model in which investment cost reductions are explained by cumulative capacity and the r d based knowledge stock time series data were collected for the three countries and organized as a panel data set the parameters of the 2flc model were estimated focusing on the homogeneity and heterogeneity of the parameters across countries we arrived at robust estimations of a learning by doing rate of 5 4 and a learning by searching rate of 12 6 the analysis underlines the homogeneity of the learning parameters enhancing the validity of the 2flc formulation

induced innovation and energy prices this paper uses u s patent data from 1970 to 1994 to study the impact of energy prices on energy efficient innovations theories of technological change have focused both on demand side factors which spur innovative activity by increasing the value of new innovations and supply side factors such as scientific advancements that make new innovations possible data on demand side factors are easily obtained but data on supply side factors that influence innovation are not readily available this paper uses patent citations as a measure of the usefulness of the existing base of scientific knowledge citations to previous patents are used to construct productivity estimates which measure the usefulness of the existing stock of knowledge to inventors in a given energy field for any given year these estimates are then combined with data on demand side factors to estimate a model of induced innovation in energy technologies the results indicate that both energy prices and the supply of knowledge have strongly significant positive effects on innovation the paper concludes with a discussion of the implication of this work for environmental policy

the interpretation of cross section regression tests of the heckscher ohlin theorem with many goods and factors abstract numerous authors have used cross section regression methods to explain interindustry variations in net exports by means of factor use ratios as one of the tests of the heckscher ohlin theorem this paper shows via an algebraic proof that the regression procedures used by these authors may be inappropriate tests of the heckscher ohlin theorem specifically the paper shows that in a framework of many goods and factors inferences about the relative abundance of a particular factor cannot be made by looking at the signs of the regression coefficients unless very stringent requirements are met

trade reform uncertainty and export promotion mexico 1982 88 abstract this paper uses a simple portfolio optimization framework to analyze both the direct impact of liberalization measures and the impact of reduced relative riskiness of exporting vs producing for the domestic market arising from a commitment to an outward orientation we allow for uncertainty in both the domestic and foreign markets and examine the very counterintuitive implications of the covariance for export behavior we use firm level export data in a dynamic panel context bi variate garch techniques and the levin and lin tests for unit root stationarity in panel data to examine the mexican liberalization from 1983 88

spatial concentration location and competitiveness the case of switzerland maggi r and haeni p k 1986 spatial concentration location and competitiveness the case of switzerland ireg studies 20 141 149 this paper considers the relation between location and competitiveness of thirty nine swiss export industries using a factor endowment approach we found that spatial concentration in intermediate areas is important for performance and conclude that spatial proximity offers a significant comparative advantage for swiss industries further findings in the case of switzerland are that scale economies are unimportant and that high technical skill constitutes a comparative advantage while manual skill does not the chosen approach proves to be useful but additional information might be found by analysing companies rather than industries

r d effort and us exports and foreign affiliate production of manufactures abstract this paper examines the relationship between us r d expenditures and the pattern of us manufacturing exports and foreign affiliate sales across industries and regions for the years 1966 and 1976 while differences in relative research capability between the united states and the rest of the world have narrowed over this period research effort still significantly explains the pattern of us sales in foreign markets for any region the export and foreign affiliate sales performance of research intensive industries exceeds that of non research intensive industries the relative performance of the formed is greater in regions with larger market size and high per capita income the analysis also reveals that over the time period studied the ratio of us exports to foreign affiliate sales has generally fallen for all industries and foreign markets these observations accord with a broad interpretation of the product cycle theory while the united states has lost its uniqueness as a location of innovation the ability to develop and market new products through r d expenditures is still a strong force behind its exports and sale abroad the decrease in exports relative to foreign affiliate sales may reflect a more rapid shift in comparative advantage in the production of such products to foreign locations hence the positive effect on us exports of development of any given new product may be becoming more short lived

the role of innovation in bilateral oecd trade performance this paper tests an empirical model of the determinants of bilateral oecd trade with particular emphasis on the role of innovation variation in the relationship across countries and sectors is analysed two innovation proxies and actual data on innovations are used a positive relationship is found between relative innovation and bilateral trade performance at an aggregate level and for a number of manufacturing sectors sectors are also categorized as either net users or producers of innovations differences in innovation appear to have more of an impact on trade performance for the net producers of innovations than the net users of innovations

examining the leontief paradox in u s agricultural trade abstract factor intensity of united states agricultural trade is examined in the context of leontief s classic paradox using leontief s method as well as methods developed recently by leamer and others findings indicate that factor endowments are important determinants of u s agriculture s comparative advantage in trade as suggested by the heckscher ohlin theory

an empirical estimate of the effects of labormarket distortions on the factor content of u s trade abstract this study deals with the effects of labor market distortions on the estimates of human capital used in studying u s trade flows the initial concern was that the levels of human capital attributed to highly concentrated and unionized industries might be erroneously high this could alter regression estimates not only of the effect of human capital on net exports but also of other coefficients in the equation the results of the analysis suggested however that when the possibility of distortions is taken into consideration the signs of the coefficients are unaltered although some change is evident in their magnitude

testing two trade models in latin american agriculture abstract the heckscher ohlin and markusen models state that countries export the goods intensive in the use of their relatively abundant factor latin american agricultural trade is consistent with both models the paper then shows that latin american agricultural trade is primarily explained by country differences in relative factor abundance between countries rather than differences in technology this findings does not reject the heckscher ohlin model but rejects one of markusen s models

labor demand effects of rising electricity prices evidence for germany abstract germany continues to play a pioneering role in replacing conventional power plants with renewable energy sources while this might be beneficial with respect to environmental quality it also implies increasing electricity prices the extent to which this is associated with negative impacts on employment depends on the interrelationship between labor and electricity as input factors in the production process in this paper we estimate cross price elasticities between electricity and heterogeneous labor for the german manufacturing sector we use administrative linked employer employee micro data combined with information on sector level electricity prices and usage over the period 2003 2007 we find positive but small conditional cross price elasticities of labor demand with respect to electricity prices which means that electricity as an input factor can be replaced by labor to a limited extent when the production level is held constant in the case of adjustable output we find negative unconditional cross price elasticities implying that higher electricity prices lead to output reductions and to lower labor demand with low and high skilled workers being affected more than medium skilled resulting adverse distributional effects and potential overall job losses may pose challenges for policy makers in securing public support for the german energy turnaround

resource supplies and changing world agricultural comparative advantage abstract this paper advances consideration of the heckscher ohlin h o theory of comparative advantage to agriculture in a dynamic setting the dynamic relationship among trade flows resource supplies and factor contents is studied the view that special circumstances in the agricultural sector render the h o theory inapplicable as a guide to agricultural trade is challenged consistent with the h o theory the results suggest that changing world patterns of resource abundance are an important explanation of the evolving structure of world trade in agriculture commodities

a test of the heckscher ohlin vanek theorem the leontief commonplace abstract this paper provides a logically complete empirical test of the hov theorem for the united states by comparing measures of factor intensities trade and factor endowments under the appropriate computations of the factor contents of trade and production u s data are shown to diverge often from their values as predicted by hov as a result it appears that paradoxical outcomes may be common in empirical applications of the theorem

an interpretation of the factor content of trade abstract this paper shows that the factor content of trade can be used to indicate effects of trade on relative factor prices factor prices in two trading equilibria can be compared by comparing instead their two equivalent autarky equilibria constructed by changing factor endowments by the factor content of trade using relationships between autarky factor prices and factor endowments several relationships are derived between factor prices with trade and its factor content the most general result is a positive correlation between relative changes in the factor content of trade appropriately normalized and proportional changes in factor prices

when outcomes are the reflection of the analysis criteria a review of the tradable green certificate assessments abstract the tradable green certificates tgc framework is a prevalent policy support scheme enacted to stimulate investments in electricity from renewable energy sources res e in several countries including sweden and norway the tgc framework is currently under reevaluation in this process academic literature plays a crucial role in reflecting the outcomes of this policy framework the outcomes however are often limited by the analysis criteria which reflect what has been accounted for or disregarded when assessing the performance of the tgc framework the analysis criteria also stress what is considered as a successful outcome given the importance of such criteria this paper presents an extensive and systemic literature review of academic publications assessing the performance of the tgc framework the findings are to provide an overview of the publications analysis criteria and outline their outcomes we also provide descriptive statistics for the publications and examine the average citation record of the publications that use various analysis criteria in order to explore their relative impact on later studies these findings can help policymakers put the assessments into perspective when reevaluating a country s tgc system they also suggest several intriguing directions for future studies in this field

research and development human capital and trade performance in technology intensive manufactures a cross country analysis abstract this paper comprises an extensive examination of the relationship between commonly utilized policy indicators of national technological capability and observed trade success in technology intensive manufactures across 52 countries in the 1980s a central focus is the relative performance of policy indicators which directly measure innovative activity such as patent output and expenditure and employed scientists and engineers in r d versus those measuring general efforts at increasing national levels of human capital the study design is guided by the inter country intrasectoral approach outlined by dosi et al 19 it emphasizes differences in trade performance based on the notion of international competitiveness but also compares results for conventional revealed comparative advantage indices the large number of countries included and the nature of the policy objectives adopted have necessitated a highly aggregated approach using nation wide attributes and trade in one broad technologyintensive sector as the measure of demonstrated international competitiveness simple correlation and multiple regression techniques are used to assess the association of four main sets of national attributes indicators of direct innovative activity general human capital development physical capital formation and natural resource endowment with technology intensive trade performance the empirical findings provide further support for the importance of national differences in technological capability as a determinant of structural and international competitiveness within the technology intensive sector of production they suggest that policy indicators measuring actual innovative activity and physical capital formation have a much closer link to technology intensive trade than the general educational effort or output indicators demand side measures which proxy the actual employment and application of resources for r d purposes demonstrate the strength of association required for reliable policy evaluation of real national differences in technological capability the poor performance of the general human capital supply variables highlights the need for a careful consideration of the optimality of the allocation of substantial levels of scarce national resources to broad based educational output a number of other significant results concerning the link between technology indicators technology intensive trade and economic performance are discussed

r d rivalry industrial policy and u s japanese trade the authors examine how the strategic aspect of japanese research and development expenditures and industrial policies affected u s japanese bilateral trade during the late 1970s and investigate which component of r d expenditures on process innovation product quality improvements new products and new technology or technology transfer proved to be most effective they find that while japanese r d expenditures have generally promoted japan s trade advantage certain components of r d have proved more effective than other the depreciation subsidy and special status with the ministry of international trade and industry is positively related to the japanese trade performance while legal cartelization status has not had any apparent effect copyright 1988 by mit press

industrial electricity demand and energy efficiency policy the role of price changes and private r d in the swedish pulp and paper industry abstract the objective of this paper is to analyze electricity demand behaviour in the swedish pulp and paper industry in the context of the increased interest in so called voluntary energy efficiency programs in these programs tax exemptions are granted if the participating firms carry out energy efficiency measures following an energy audit we employ a panel data set of 19 pulp and paper firms and estimate both the own and cross price elasticities of electricity demand as well as the impact of knowledge accumulation following private r d on electricity use the empirical results show that electricity use in the swedish pulp and paper industry is relatively own price insensitive and the self reported electricity savings following the voluntary so called pfe program support the notion of important information asymmetries at the company level however the results display that already in a baseline setting pulp and paper firms tend to invest in private r d that have electricity saving impacts and our model simulations suggest that up to about one third of the industry sector s self reported electricity savings in pfe could be attributable to pure baseline effects future evaluations of voluntary energy efficiency programs must increasingly recognize the already existing incentives to reduce energy use in energy intensive industries

the determinants of trade performance influence of r d on export flows a theoretical model is presented in which supply side differences between countries determine international trade flows this model is empirically tested at a sectoral level for a group of eu countries within a framework that focuses on changes through time and differences between countries the results show that the validity of the theoretical model is limited at sectoral level however as expected we find that the variable representing technological differences is significant and correctly signed for high technology sectors the evidence points to the existence of different production functions across countries and to the importance of supply side factors in determining the direction and the terms of trade

a gradual switching regression model with autocorrelated errors abstract in this note we set up the gradual switching regression model with autocorrelated errors and show the maximum likelihood estimation procedure as an empirical example we examine structural change in the energy demand in japan at the first oil crisis

a review of optimal energy policy instruments on industrial energy efficiency programs rebound effects and government policies abstract industrial energy efficiency programs ieeps are defined as one of the most popular government policies that aim to reduce energy consumption in industrial energy intensive sectors in this paper we review and classify the most important academic studies that have addressed the environmental and economic aspects of ieeps using a systematic review the classification of energy policy instruments has been developed based on an analytical approach we discuss also the outputs benefits and barriers of ieeps besides a comprehensive argument about the restrictive policies on the rebound effects made after the implementation of these programs the results disclose that china usa and sweden are the most addressed countries on ieeps and their applications in this regard incentive energy policies e g voluntary agreements and subsidies have been applied more than others in the last decade furthermore most of the reviewed studies emphasize energy price reform as an effective practical policy while a few analytical methods can be seen to help policy makers determine the optimal levels of decision variables finally according to the state of the art analysis the authors provide some novel recommendations to improve the performance of ieeps using some restrictive policies on the negative impacts of rebound effects

determinants of the structure of swedish foreign trade in manufactures 1968 1979 swedish net exports of manufactured goods are analyzed empirically for the years 1968 1970 1977 and 1979 in a neo heckscher ohlin framework where technological effects are taken into account the analysis is repeated for bilateral exchange with other industrial countries lessdeveloped countries and socialist countries there is some evidence that swedish net exports of manufactures to a growing extent embody direct services of human capital especially vis avis the ldcs and socialist countries a positive relationship between direct inputs of physical capital and net trade such as was found for 1957 is no longer evident i introduction the direct factor content of swedish foreign trade in manufactures is analyzed in this paper using a modified neo heckscher ohlin model in combination with some technological factors assumed to influence the structure of foreign trade the presumption that human capital is an important determinant of sweden s comparative advantage is confronted with data previous results dating back to 1957 concerning the role of physical capital are also followed up during the last decade the change in the driving forces of international trade as evidenced by restructuring problems in many industrialized countries sweden is no exception has attracted a great deal of attention at the same time a number of studies have appeared in which the export performance of notably the u s and west germany has been analyzed

dynamic translog and linear logit models a factor demand analysis of interfuel substitution in us industrial energy demand abstract we compare and contrast two popular dynamic flexible functional forms for cost functions the translog and the logit j bus econ stat 8 1990 347 353 using data on us industrial energy demand from 1960 to 1992 which has been analysed by previous studies energy econ 11 1989 89 94 appl econ 21 1989 931 945 j bus econ stat 13 1995 459 465 we show the crucial role played by different dynamic formulations of the translog in this analysis of factor demands with respect to rates of dynamic adjustment and substitution possibilities we conclude that the poor performance of the dynamic translog relative to the dynamic logit cannot be explained solely by dynamic model mis specification or the inclusion of price unresponsive non energy fuel use data our most robust empirical result is that coal and oil are substitutes

industrial companies demand for electricity evidence from a micropanel abstract the paper presents a micro econometric analysis of industrial companies demand for electricity previous studies on electricity consumption in the industrial sector have relied on aggregate data or cross section observations here we present an econometric study on electricity demand based on a panel of 2949 danish companies followed from 1983 to 1996 it is found that estimators of electricity demand that take account of the panel structure fixed effect models yield considerably lower price and production elasticities compared to estimators that do not like cross section models it is also investigated how various company characteristics like size type of industrial sub sector and electricity intensity in production influence price and production elasticities it appears that companies with a high electricity intensity also have a high own price elasticity

the energy efficiency gap what does it mean abstract as renewed attention has been given by policy makers to energy conservation issues it has frequently been asserted that an energy efficiency gap exists between actual and optimal energy use the critical questions is how to define the optimal level of energy efficiency this paper seeks to disentangle some confusing strands of argument that are frequently brought to bear on this question by identifying the major conceptual issues that determine the set of feasible answers we identify five separate and distinct notions of optimality the economists economic potential the technologists economic potential hypothetical potential the narrow social optimum and the true social optimum each of these has associated with it a corresponding definition of the energy efficiency gap our analysis demonstrates that necessary preconditions for identifying the right measure of the energy efficiency gap include understanding and disentangling market failure and non market failure explanations for the gradual diffusion of energy efficient technologies

product and process innovation in the product life cycle estimates for u s manufacturing industries many theoretical analyses of international trade focus on the effects and endogenous determination of product innovation technology transfer and product obsolescence despite these theoretical innovations few direct tests of the empirical power of product cycle models have been conducted although a number of studies have examined general relationships between trade and innovation usually measured by expenditures on research and development rd and then estimate these predictions using data for eleven two digit manufacturing industries in the united states during the period from 1974 to 1988 the distinction between productand process oriented technological change is important because it yields predictions that aid in assessing the power of the product cycle models most empirical studies aggregate productand process oriented technological change with the notable exceptions of the studies of productivity growth by link 22 and terlecky 31

asymmetric substitutability between energy and capital evidence from the manufacturing sectors in 10 oecd countries abstract this paper investigates the substitutability between energy and capital in the manufacturing sectors of ten oecd countries since 1980 by applying a cost function approach that has been widely used to analyze industrial energy demand first we attempt to determine the source of the disagreement in the literature on the substitutability between energy and capital and reach a conclusion regarding the substitutability between energy and capital dividing energy and capital into sub inputs we analyze their substitutability the empirical results indicate that fuel tends to complement capital in most countries whereas electricity and capital are substitutes thus this study confirms that heterogeneity in energy sources is a primary component of the systematic variation in the substitutability between energy and capital second we examine asymmetric substitutability between energy and capital by estimating the morishima elasticity of substitution the estimates of the morishima elasticity of substitution demonstrate that the substitution of energy for capital has dominated the substitution of capital for energy this asymmetric substitutability is natural from the producer perspective because capital costs are much greater than energy costs in most countries these results imply that the adoption of energy saving technologies has not been induced in response to increased energy prices

trade liberalization comparative advantage and scale economies stock market evidence from canada abstract the canada united states free trade agreement fta provides an excellent opportunity to analyze the impact of a comprehensive trade liberalization in this paper a stock market event study is employed to capture investors expectations about the consequences of this agreement for manufacturing firms in canada the primary question addressed is whether abnormal stock market returns corresponding to news about the fta are consistent with hypotheses based on comparative advantage and economies of scale the results indicate that both comparative advantage and scale economies played a role in determining investors perceptions of the impact of the fta

estimating and decomposing the rate of technical change in the swedish pulp and paper industry a general index approach abstract the purpose of this paper is to analyse the rate and the impacts of technical change in the swedish pulp and paper industry in contrast to earlier research on this industry we replace the standard time trend with time specific dummy variables enabling the estimation and decomposing of a general index of technical change the analysis is made within a translog cost function model which is estimated using a panel data set with observations across individual paper and board mills over the time period 1974 1994 our results indicate that the highest rates of technical change have generally occurred during the latter part of this period pure technical change is the primary component that has directed technical change over the entire time period we also find evidence of non neutral technical change energy use has been stimulated by technical improvements while labour use has been discouraged also technical change has had wastepaper and woodpulp using impacts however the magnitudes of these latter impacts are relatively small implying that the increase in wastepaper use during the last decades has mainly been stimulated by relative price changes

the payback method of investment appraisal a review and synthesis abstract the payback pb method of investment appraisal has been the subject of considerable comment and criticism in the literature this paper draws together some of those important literature contributions and the results from published uk and usa survey reports over the past twenty five years while many of the surveys have reported an increasing use of the discounted cash flow financial appraisal methods this has not totally been at the expense of the pb which continues to be a popular method used in industry pb has been shown to be a traditional popular primary and important method in both the uk and usa the use of pb has been shown to be positively related to capital budget size however the importance of pb was seen to be inversely related to capital budget size the use of pb has been shown by some researchers to be positively related to firm size while other researchers have reported that its use is inversely related to firm size however it has also been concluded that the use of pb was not significantly influenced by firm size pb has been shown to be less used for strategically important projects than routine replacement projects in moderately sized usa firms while on the other hand it has been shown to be an important method used in the appraisal of advanced manufacturing technology amt projects in both the uk and usa this paper reviews the pb method of investment appraisal as used in industry first as a technique identifying two of its main disadvantages and then commenting on the discounted payback method evidence showing that the pb acts in a supportive role to the sophisticted dcf methods is presented and the following topics are discussed in detail pb and owner manager conflict as a constraint in its communication role as a reciprocal of the internal rate of return as a proxy for a projects duration and pb and amt projects following the conclusions recommendations for further research are proposed

unit root tests on real wage panel data for the g7 abstract using a unit root test for panel data we find that real wage innovations in most g7 economies are temporary rapidly mean reverting and have no permanent component results are sensitive to an identical cross equation restriction on all series