pathways to a low carbon economy estimations on macroeconomic costs and potential of carbon emission abatement in beijing abstract developing reliable frameworks to estimate the potential of co2 emission abatement and its associated costs merits urgent attention this study aims to estimate the potential as well as macroeconomic costs of co2 emission abatement in beijing using the industrial economy as the basis multiobjective programming and genetic algorithm are integrated into the input output analysis several important findings have been gathered in the study 1 the abatement cost varies between 259 97 and 535 46 per ton at different rates of economic growth 2 a reinforced emission abatement target can induce higher macroeconomic costs 3 an inverse u shaped relationship between co2 reduction cost and gdp growth rate was found when gdp growth rate is above the threshold value of 7 marginal abatement costs decrease rapidly in parallel with gdp growth when the gdp growth rate is below 7 the marginal abatement cost increases significantly with economic growth 4 industries that have the highest and least potential of abatement have been identified for effectively reducing co2 emissions beijing needs to promote economic restructuring to maximize the potential of emission abatement and also fulfil the emission abatement target in a cost effective way this paper provides a quantitative approach to rationalize the policy design process of enacting emission targets and recommends cost effective abatement strategies

impacts of biodiesel production on croatian economy the aim of this paper is to assess the direct and indirect impacts on a national economy from biodiesel rapeseed methyl ester rme production using input output i o analysis biodiesel development in croatia is used as a case study for croatia as for many other countries in europe biodiesel is a new activity not included in the existing i o sectoral accounts for this reason the i o table has to be modified accordingly before being able to quantify the effect of an exogenous demand for biodiesel impacts in terms of output income and employment lead to the conclusion that biodiesel production could have significant positive net impact on the croatian economy despite the high level of subsidies for rapeseed growing

does financial development have a non linear impact on energy consumption evidence from 30 provinces in china abstract this paper uses a sample of 30 provinces in china for the period 1997 2017 to examine the relationship between financial development and energy consumption based on the traditional convergence hypothesis this paper constructs a functional convergence model and explores the dynamic convergence of energy consumption the results show that there is a significant threshold effect between financial development and energy consumption there is an inverse u shaped relationship between foreign investment ratio financial efficiency and energy consumption besides financial interrelations ratio and insurance depth increase energy consumption the trend of china s energy consumption tends to be consistent in the eastern region the growth rate of energy consumption is negatively correlated with the initial level there is only a convergence effect on energy consumption in the central region however the difference in energy consumption in the western region is continually expanding

economic impacts of biofuels deployment in andalusia this paper aims to estimate the economic impacts of increasing the production capacity of the installed biofuel plants in andalusia southern spain a computable general equilibrium cge approach is used to calculate the changes in the economic sectors activity in employment as well as in gdp and other macroeconomic variables relevant to biofuel plants in andalusia under two distinct scenarios i based on an operating biodiesel plant with 90 ktoe year of installed capacity ii upgrading to 2174 ktoe by 2013 in compliance with the regional plan andaluz de sostenibilidad energetica pasener 2007 2013 results show that compliance with the pasener goal would increase the activity level of the economic sectors considered by 3 04 the total induced employment generated would reach 167 975 equivalent full time jobs lasting one year and the gdp would increase by 9 82

micro economic modelling of biofuel system in france to determine tax exemption policy under uncertainty abstract liquid biofuel support program launched in 1993 in france is implemented through tax exemptions to biofuels produced by agro industrial chains activity levels are fixed by decree and allocated by the government to the different chains based on earmarked budget increase voted in the parliament total quantity of biofuels will be increased by 50 in the horizon 2002 2003 a micro economic biofuel activity model containing a detailed agricultural sector component that is represented by 700 farms is used to estimate costs and surpluses generated by the activity at the national level as well as tax exemption levels furthermore monte carlo simulation has been used to search for efficient tax exemptions policies in an uncertain environment where biofuel profitability is significantly affected by petroleum price and soja cake prices results suggest that for the most efficient units both at the industry level large size biomass conversion units and at the agricultural sector level most productive farms unitary tax exemptions could be decreased by 10 20 for both biofuels ethyl ether and methyl ester with no risk for the viability of any existing chain

effort observability and worker productivity towards an explanation of economic dualism this paper suggests an explanation of the wage and productivity differentials between formal and informal sectors in developing countries this explanation is based on differences in the observability of effort that arise from technological differences such as size of operation the authors argue that observability of effort is lower in the formal sector and then show that under reasonable conditions this leads to higher wages and higher effort productivity this is because with lower observability the marginal cost of effort is lower when existing employees are induced to work harder than when more workers are hired explanations for intersectoral differences in factor intensities and sector specific unemployment rates also follow from the authors basic assumptions copyright 1989 by royal economic society

the effect of fdi on environmental emissions evidence from a meta analysis one important and frequently raised issue about foreign direct investment fdi is the potentially negative consequences for the environment the potential environmental cost due to increased emissions may undermine the economic gains associated with increases in fdi inflow although the literature is dominated with this adverse view of fdi on the environment there is also a possibility that fdi can contribute to a cleaner environment especially if fdi comes with green technologies and this creates spillovers for domestic industries theoretically the effect of fdi on the environment can be negative or positive to deal with the theoretical ambiguity about the fdi environment nexus many empirical studies have been conducted but their results only reinforce the controversy as they produce contrasting results we conduct a meta analysis of the effect of fdi on environmental emissions using 65 primary studies that produce 1006 elasticities our results show that the underlying effect of fdi on environmental emissions is close to zero however after accounting for heterogeneity in the studies we find that fdi significantly reduces environmental emissions results remain robust after disaggregating the effect for countries at different levels of development as well as for different pollutants

energy consumption financial development and economic growth in india new evidence from a nonlinear and asymmetric analysis this paper investigates the asymmetric relationship between energy consumption and economic growth by incorporating financial development capital and labour into a production function covering the indian economy from 1960q1 2015q4 the nonlinear autoregressive distributed lag bounds testing approach is applied to examine the asymmetric cointegration between the variables an asymmetric causality test is also employed to examine the causal association between the considered variables the results indicate cointegration between the variables in the presence of asymmetries the asymmetric causality results show that only negative shocks in energy consumption have impacts on economic growth in the same vein only negative shocks in financial development have impacts on economic growth by contrast symmetrically capital formation causes economic growth finally over the study period a neutral effect exists between the labour force and economic growth in india the implications of these results for growth policies in india are also discussed

bumping layoffs and worksharing this paper deals with an interesting but often neglected labor practice prevalent in large north american firms with well developed internal labor markets large north american firms typically respond to a decline in demand for their products by first reducing the number of hours worked or worksharing as the demand continues to fall however they begin to make skilled workers bump onto unskilled jobs displacing unskilled workers skilled workers are laid off only after a considerable number have bumped i develop an implicit contract model and explain the practice

self enforcing contracts shirking and life cycle incentives he labor market is a rich and complicated place when a worker takes a job he expects to earn a wage but will also care about rates of wage growth fringe benefits levels of risk retirement practices pensions promotion and layoff rules seniority rights and grievance procedures in return the worker must give up some time but he is also asked to upgrade his skills train other workers provide effort and ideas and defer to authority in questions of how his time is spent great changes are occurring in the way labor market institutions such as these are modelled central to the new approach is the concept of a self enforcing implicit contract this is the latest in a series of variations on the ideas of azariadis 1975 baily 1974 and gordon 1974 and is one of the more exciting new developments in the theory of labor markets this essay will outline this approach and evaluate some of its accomplishments the ideas will be presented in the context of an incentive model that is of some independent interest the model was introduced by becker and stigler 1974 and was extended by lazear 1979 to account for wage growth and mandatory retirement in these papers the workers retire at a fixed age lending the name life cycle incentives to the approach more recently shapiro and stiglitz 1984 have used a version without a fixed retirement date to account for unemployment this version is often called the shirking model these models have generated some controversy but much of it can be resolved when the models are presented in the framework of self enforcing contracts in fact this simple incentive model can do even more it can provide a rationale for competitive hierarchies where firms place their workers in competition with

local regional and national level of the socioeconomic impacts of a bio oil production system a case in lieksa finland abstract the aim of this paper is to assess the direct and indirect socioeconomic impacts on a local regional and national economy from forest biomass based bio oil production using input output i o analysis we also analysed the importance of a bio oil factory on the development of the local economy and determined the type of impacts bio oil production has on population and employment development and on the public municipal economy our study area is located in a resource periphery far from growing regions and suffers from development problems and stagnating development trends in terms of employment and income bio oil production could have a significant positive net impact on the local economy despite leakages to regional and national economies the impacts of bio oil production could enhance the future development prospects for the resource periphery according to positive changes in the net migration and by slowing population losses

effects of a carbon price in the u s on economic sectors resource use and emissions an input output approach abstract despite differences in their implementation most carbon policies aim to have similar outcomes effectively raising the price of carbon intensive products relative to non carbon intensive products while it is possible to predict the simple broad scale economic impacts of raising the price of carbon intensive products the demand for non carbon intensive products will increase understanding the economic and environmental impacts of carbon policies throughout the life cycle of both types of products is more difficult using the example of a carbon tax this study proposes a methodology that integrates short term policy induced consumer demand changes into the input output framework to analyze the environmental and economic repercussions of a policy environmental repercussions include the direct and the indirect impacts on emissions materials flow in the economy and the reliance on various ecosystem goods and services the approach combines economic data with data about physical flow of fossil fuels between sectors consumption of natural resources and emissions from each sector it applies several input output modeling equations sequentially and uses various levels of aggregation disaggregation it is illustrated with the data for the 2002 u s economy and physical flows the framework provides insight into the short term complex interactions between carbon price and its economic and environmental effects

impact of reform and privatization on consumers a case study of power sector reform in orissa india abstract orissa is the first state in india to have undergone reform in the power sector with the government withdrawing its control the model of this reform is known as the wb orissa model the goal of this paper is to examine the impact of this reform on consumers of electricity which has been measured using multiple regression models the variables represent the parameters that consumers are most interested in and the regression coefficients represent the weights of the corresponding variables the data were collected using a survey methodology the impact of reform was found to be mixed some groups of consumers saw benefits while others felt a negative impact a focus group study was conducted to identify the variables of interest to consumers of electricity the model was used to estimate consumer benefit and was validated using primary data and structural equation modeling the study revealed beneficial aspects of reform and areas with no benefits

do economic financial and institutional developments matter for environmental degradation evidence from transitional economies abstract several studies have examined the relationship between environmental degradation and economic growth however most of them did not take into account financial developments and institutional quality moreover stern stern d 2004 the rise and fall of the environmental kuznets curve world development 32 8 1419 1439 noted that there are important econometric weaknesses in the earlier studies such as endogeneity heteroscedasticity omitted variables etc the purpose of this paper is to fill this gap in the literature by investigating the linkage between not only economic development and environmental quality but also financial development and institutional quality we employ the standard reduced form modelling approach to control for country specific unobserved heterogeneity and gmm estimation to control for endogeneity our study considers 24 transition economies and panel data for 1993 2004 our results support the ekc hypothesis while confirming the importance of both institutional quality and financial development for environmental performance we also found that financial liberalization may be harmful for environmental quality if it is not accomplished in a strong institutional framework

mandatory retirement as a clause in an employment insurance contract this paper postulates the existence of an employment insurance contract in which firms insure the employment of workers at a predetermined wage against potential age related declines in productivity to limit its liability the firm establishes an age limit to its promise the mandatory retirement age it is demonstrated that pareto efficient contracts exist which involve mandatory retirement at a specific age the existence of these contracts including mandatory retirement increases workers life time utility and encourages the accumulation of human capital empirical results are consistent with the predictions of the model

does financial development mitigate carbon emissions evidence from heterogeneous financial economies abstract in this paper we investigate the impact of financial market development on carbon emission intensity taking into account the various stages of financial development among countries utilising the instrumental variable generalised method of moment approach and a comprehensive panel dataset of a total of 83 countries over the period 1980 2015 we show that the overall financial market development and its sub measures such as financial market depth and efficiency reduce carbon emission intensity in the developed and emerging financial economies however an opposing effect is found in the frontier financial economies for standalone financial economies the results show that the overall financial market development and its sub indicators have no direct impact on carbon emission intensity finally the non linear and the moderating effects of financial market development on carbon emission intensity differ across countries at different stages of financial development the policy implications are also discussed

wage smoothing as a signal of quality we provide an explanation for firms smoothing wages over the business cycle that is based on asymmetric information about the quality of a firm s management team and does not depend upon the workers being risk averse when firms pay their workers the full information profit maximizing wage higher quality firms will attract more workers and earn greater profits than lower quality firms this provides a rationale for wage smoothing when quality is not observable to workers lower quality firms will resist cutting wages to the full information level in an economic downturn in an attempt to convince workers that they are of higher quality

co2 emissions and financial development in an emerging economy an augmented var approach abstract this paper explores the influence of economic and financial development on carbon emissions in a small emerging economy the study employs ardl approach to investigate the long run relationship between carbon emissions and a set of economic and financial variables an error correction model ecm to capture the short run dynamics granger causality in an augmented var framework to check the causality direction and variance decomposition based on an estimated vector error correction model vecm to determine the relative contributions of economic and financial variables to the evolution of per capita carbon emissions the periods considered were the full sample 1971 2011 and a reduced sample sub period 1988 2011 that corresponded to greater liberalization and financial sector development the financial variables played a role in emission mitigation only in the latter period where greater degree of liberalization and financial sector development occurred even then the relative magnitude of emissions mitigation attributable to financial variables was much smaller compared to the emissions raising impact of rising per capita incomes this underscores the need for adopting other mitigation policies for reducing carbon footprints in those emerging economies where a sufficient degree of financial deepening and financial sector development has not yet taken place

the regional economic impacts of biofuels a review of multisectoral modelling techniques and evaluation of applications allan g j the regional economic impacts of biofuels a review of multisectoral modelling techniques and evaluation of applications regional studies the regional economic impact of biofuel production depends upon a number of interrelated factors the specific biofuels feedstock and production technology employed the sector s embeddedness in the rest of the economy through its demand for local resources and the extent to which new activity is created these issues can be analysed using multisectoral economic models some studies use input output io and social accounting matrix sam modelling frameworks whilst a nascent computable general equilibrium cge literature has begun to examine the regional impact of biofuel development this paper reviews compares and evaluates these approaches for modelling the regional economic impacts of biofuels

co2 emissions energy consumption and economic growth in turkey abstract this paper examines the long run and causal relationship issues between economic growth carbon emissions energy consumption and employment ratio in turkey by using autoregressive distributed lag bounds testing approach of cointegration empirical results for turkey over the period 1968 2005 suggest an evidence of a long run relationship between the variables at 5 significance level in turkey the estimated income elasticity of carbon emissions per capita is 0 606 and the income elasticity of energy consumption per capita is 1 375 results for the existence and direction of granger causality show that neither carbon emissions per capita nor energy consumption per capita cause real gdp per capita but employment ratio causes real gdp per capita in the short run in addition ekc hypothesis at causal framework by using a linear logarithmic model is not valid in turkish case the overall results indicates that energy conservation policies such as rationing energy consumption and controlling carbon dioxide emissions are likely to have no adverse effect on the real output growth of turkey

investigation of the environmental kuznets curve for carbon emissions in malaysia do foreign direct investment and trade matter abstract environmental degradation has become a central issue of discussion among the economists and environmentalists in view of malaysia s position as one of the main contributors to co2 emissions in asia and its status as a fast growing economy it is vital therefore to conduct a study to identify the relationship between economic growth and co2 emissions for malaysia this study attempts to examine empirically the environmental kuznets curve hypothesis for malaysia in the presence of foreign direct investment and trade openness both in the short and long run for the period 1970 to 2008 the bounds testing approach and granger causality methodology are applied to test the interrelationships of the variables the results of our study indicate that the inverted u shaped relationship does exist between economic growth and co2 emission in both the short and long run for malaysia after controlling for two additional explanatory variables namely fdi and trade importantly the results of the study also provide some crucial policy recommendations to the policy makers

imperfectly enforceable labour contracts this paper presents a model where firms offer workers azariadian type labour contracts most workers abide by these contracts but some who have very small moving or retraining costs violate contractual agreements whenever higher wages are available on labour spot markets it is shown that the wilson equilibrium for this model can be pareto dominated by an outcome where mobility is restricted appropriately we give a simple classification for the set of economies where wilson equilibria are constrained pareto optima a propos de contrats de travail dont on ne peut faire appliquer les termes qu imparfaitement ce memoire presente un modele oui les entreprises offrent aux travailleurs des contrats de travail du type azariadis la plupart des travailleurs honorent ces contrats mais certains travailleurs pour qui les couts de deplacement et de recyclage sont faibles ne vont pas honorer leurs engagements quand le niveau de salaire est plus eleve sur le marche ferme que dans le contrat on montre que l equilibre de wilson dans un tel modele peut etre inf6rieur au sens de pareto a une solution impliquant certaines restrictions appropriees a la mobilite on propose une classification simple s appliquant a 1 ensemble des economies pour lesquelles les equilibres de wilson sont des optima paretiens sous contraintes

efficient labor contracts with employment risk this article analyzes efficient employment agreements where the demand for consumption insurance can be satisfied by noncontractual means we assume that workers can save and that consumption is determined by a strong form of the permanent income hypothesis under conditions of asymmetric information about exogenous shocks to labor demand we derive a unique compensation schedule that efficiently guides decisions by both workers and employers efficient employment outcomes are generated without a need for third party enforcement or monitoring and workers choose a consumption policy that leaves them indifferent among realizations of labor demand within this solution it is both costless and efficient for workers to delegate employment decisions to the firm within the context of the model we analyze implications for the equilibrium distribution of wages and for empirical studies of labor supply

the impact of growth energy and financial development on the environment in china a cointegration analysis this article aims to investigate the impact of financial development economic growth and energy consumption on environmental pollution in china from 1953 to 2006 using the autoregressive distributed lag ardl bounds testing procedure the main objective is to examine the long run equilibrium relationship between financial development and environmental pollution the results of the analysis reveal a negative sign for the coefficient of financial development suggesting that financial development in china has not taken place at the expense of environmental pollution on the contrary it is found that financial development has led to a decrease in environmental pollution it is concluded that carbon emissions are mainly determined by income energy consumption and trade openness in the long run moreover the findings confirm the existence of an environmental kuznets curve in the case of china

does financial agglomeration promote the green development in china a spatial spillover perspective abstract the role of financial agglomeration in china s green development has generated many fascinating debates for scholarly research but few studies have considered environmental effects of financial agglomeration from the spatial spillover perspective taking both natural and socio economic factors into accounts this paper explores the interaction between financial agglomeration and green development using the panel data of 285 prefecture level chinese cities from 2003 to 2015 the results show that both financial agglomeration and green development have demonstrated a trend of spatial convergence secondly financial agglomeration can promote the green development of both focal and surrounding cities thirdly financial agglomeration is conducive to enhance regional green development level in western china while only eastern and central china witness significant spatial spillover effects fourthly the direct effect of financial agglomeration on green development at the city level exists whereas megacities and large cities witness a significantly adverse spatial spillover effect this paper also presents policy recommendations

age discrimination laws and labor market efficiency in lazear s model of long term incentive contracts age discrimina tion laws barring age based involuntary terminations preclude such contracts reducing efficiency alternatively such laws may serve as precommitment devices for these contracts without pre venting firms from offering strong financial incentives to induce retirement at specific ages in this case age discrimination laws may encourage lazear contracts hence increasing efficiency we assess evidence on these alternative interpretations using variation in state and federal age discrimination laws the evidence indicates that age discrimination laws steepen age earnings profiles for co horts entering the labor market suggesting that these laws encour age the use of lazear contracts

job assignments signalling and efficiency this article analyzes a model in which information about a worker s ability is only directly revealed to the firm employing the worker other firms however use the worker s job assignment as a signal of ability three results recur throughout the analysis first wage rates tend to be more closely associated with jobs than with ability levels second there is frequently an inefficient assignment of workers to jobs i e even when a firm has complete information about a worker s output third the severity of this inefficiency tends to be negatively correlated with the level of firm specific human capital in the economy

employment insurance and competitive equilibrium labor contracts it is now recognized that risk trading between risk neutral firms and riskaverse workers the central theme of implicit contract theory azariadis 1975 baily 1974 and gordon 1974 is sufficient but not necessary to rationalize wage rigidity but is absolutely inconsequential in explaining layoffs rather it is solely the existence of non trivial value of leisure and or outside unemployment compensation that causes workers to prefer the layoff contract over the full employment alternative e g akerlof and miyazaki 1980 pissarides 1981 thus while risk trading per se leads to a contractual labour market the added assumption of differential risk attitudes between riskneutral firms and risk averse workers plays a negligible role in rationalizing the joint phenomena of wage rigidity and layoffs in this paper it is argued that the strong assumption that all firms are risk neutral should be abandoned2 for the following reasons first it can be shown to be neither necessary nor even sufficient for the existence and efficiency of the fixed wage variable employment i e wage rigidity cumlayoff contract second short of perfect negative correlation between profits of different firms which rules out macroeconomic risks shareholders generally cannot diversify away all risks third the presence of transactions costs or inherent differences in information between economic agents suggests that shareholders would differ in their ability to diversify away their risks finally it is not even clear whether shareholders preferences should be of concern the property rights definition of the firm e g fama 1980 indicates that shareholder ownership should be separated from management control thus making managerial preferences the focus of attention for all these reasons we find it necessary in this paper to extend the implicit contract model to accommodate firms with varying degrees of risk aversion in particular we shall demonstrate the properties of the equilibrium contract structure when risk neutral and risk averse firms coexist furthermore we also analyse the interesting question of how increasing uncertainty will affect the various equilibrium contracts the interest of this exercise is due to the fact that existing works that do consider risk averse firms e g akerlof and miyazaki 1980 and grossman and hart 1981 have not proceeded further than the well known observation that replacing risk neutral firms with risk averse firms simply implies that in equilibrium a variable wage across states of nature contract would replace the fixed wage contract but at the same time coexistence of both classes of contracts is commonly observed in any economy hence it is essential to consider a model capable of explaining such a phenomenon

foreign direct investment and decoupling between energy and gross domestic product in developing countries on a sample of 20 developing countries we noticed a clear decline in the energy intensity as foreign direct investment increases the reason for that probably is the use of modern technologies that came with foreign direct investment i e a leapfrogging over the old fashioned traditional technologies in use in these countries

monitoring workers as a screening device this paper presents a model of trade off between employee moral hazard and adverse selection when productivity is unobservable and heterogeneous a firm can use the information extracted from shirking moral hazard to alleviate the problem of adverse selection and improve its pool of workers this generates equilibrium shirking and monitoring even if any shirking can be eliminated using employee bonds the point is demonstrated in a model in which performance bonds serve as an incentive device and in another model in which efficiency wages serve this purpose

economic growth energy consumption financial development international trade and co2 emissions in indonesia this study examines the linkages among economic growth energy consumption financial development trade openness and co2 emissions over the period of 1975q1 2011q4 in the case of indonesia the stationary analysis is performed by using zivot andrews structural break unit root test and the ardl bounds testing approach for a long run relationship between the series in the presence of structural breaks the causal relation between the concerned variable is examined by the vecm granger causality technique and robustness of causal analysis is tested by innovative accounting approach iaa our results confirm that the variables are cointegrated it means that the long run relationship exists in the presence of structural break stemming in the series the empirical findings indicate that economic growth and energy consumption increases co2 emissions while financial development and trade openness compact it the vecm causality analysis has shown the feedback hypothesis between energy consumption and co2 emissions economic growth and co2 emissions are also interrelated i e bidirectional causality financial development granger causes co2 emissions the study opens up a new policy insights to control the environment from degradation by using energy efficient technologies financial development and trade openness can also play their role in improving the environmental quality

cointegration how short is the long run abstract when testing for cointegration and faced with short sample periods it is common for researchers to turn to more frequently sampled observations that is to move from annual to quarterly or monthly data in order to increase the number of observations we argue that such a gain in the degrees of freedom is more apparent than real essentially cointegration is a long run concept and hence requires long spans of data to give tests for cointegration much power rather than merely large numbers of observations using monte carlo simulations we demonstrate this for four popular tests for cointegration

dynamic linkages between globalization financial development and carbon emissions evidence from asia pacific economic cooperation countries abstract this study determines the dynamic linkages between globalization financial development and carbon emissions in asia pacific economic cooperation apec countries in the presence of energy intensity and economic growth under the framework of environment kuznets curve ekc this study employs the panel data from 1990 to 2016 westerlund cointegration technique to find long run cointegration and continuously updated bias corrected cup bc and continuously updated fully modified cup fm methods to check the long run elasticities between the variables empirical results indicate that globalization and financial development significantly reduce carbon emissions but economic growth and energy intensity increase them these results support the ekc hypothesis for apec countries the dumitrescu and hurlin causality analysis shows that globalization granger causes co2 emissions globalization also causes financial development and energy intensity a feedback effect exists between financial development and co2 emissions furthermore financial development causes economic growth but similar is not true from opposite side in granger sense finally this study presents important policy implications with respect to apec countries

does the private sector help or hurt the environment evidence from carbon dioxide pollution in developing countries abstract how does the nature of enterprise ownership affect the environment in an economy conventional wisdom and theoretical conjectures are split on this important question in this paper we estimate a reduced form random effects model using data from 44 developing countries over nine years 1987 95 to study for any systematic empirical relationship between the relative level of private sector involvement in an economy and the environmental performance of the economy in terms of its emission of industrial carbon dioxide we control for both observed and unobserved crosscountry heterogeneity along various institutional and structural dimensions such as the scope of financial market industrial sector composition and level of foreign direct investment the regression results indicate that the higher the degree of private sector involvement in a developing economy the lower is its environmental degradation in addition its environmental degradation is likely to be further reduced in presence of a well functioning domestic capital market and through increased participation by developed economies in its private sector development

micro foundations for wage flexibility wage insurance at the firm level to what extent do firms insulate their workers wages from fluctuations in product markets which firm and worker attributes are associated with wage flexibility at the micro level we first rely on guiso pistaferri and schivardi 2005 to estimate dynamic models of sales and wages finding that in portugal workers wages respond to permanent shocks on firm performance as opposed to transitory shocks we then explore the factors associated with wage flexibility finding that collective bargaining and minimum wages are associated with higher wage insurance by the firm while the threat of firm bankruptcy reduces it managers receive less protection against permanent shocks than other workers

a theory of wage dynamics a dynamic equilibrium model of long term implicit labour contracts under incomplete but symmetric information is developed workers are assumed to be risk averse and of unknown ability or productivity risk neutral firms learn as do workers about each worker s productivity by observing the worker s output over time it is shown that equilibrium contracts provide for wages which never decline with age and increase only when the worker s market value increases above his current wage in addition to characterizing the equilibrium wage contract we also derive some of its implications for the behaviour of aggregate wages across various groups of workers these implications explain some findings in the recent empirical literature on ageearnings profiles in particular our model can explain why earnings may be positively related to experience even after controlling for productivity as some empirical studies have indicated

industrial ownership and environmental performance evidence from china the authors explore the differences in pollution control performance of industries with different types of ownership in china state owned soe collectively or community owned coe privately owned poe companies with foreign direct investment fdi and joint ventures about 1 000 industrial firms in three provinces of china were surveyed and detailed 1999 firm level information was obtained the authors analyzed the differences between firms in receiving and reacting to environmental regulatory enforcement community pressure environmental services as well as in the firm s internal environmental management among the different types of ownership the authors also conducted econometric analyses on the determinants of pollution discharge performance the results show that foreign direct investment and collectively owned enterprises have better environmental performances in terms of water pollution discharge intensity while state owned enterprises and privately owned enterprises in china are the worst performers the results also suggest that collectively owned enterprises in china do internalize environmental externalities

modeling the evolutionary nexus between carbon dioxide emissions and economic growth abstract given the fast paced world economy increasing carbon dioxide co2 emissions have caused serious concern regarding global warming many studies have examined the nexus between co2 emissions and economic growth and inconsistent results are provided limited evidence suggests that different time periods under investigation could be a source of inconsistency but there lacks of a thorough analysis this paper systematically focuses on the evolutionary characteristics of the nexus to explore the influence of time periods the panel data are reorganized by considering different time periods in various countries and an intelligent data driven approach symbolic regression is applied to discover models for each period without predefined structure and parameters three issues does the time period matter what are the trends in different time periods what are the applicable scopes of the models have been addressed in this paper the results reveal the evolutionary nature of the nexus and it is verified that an intrinsic time period distinction does generate extrinsic inconsistency the detailed dynamics of models indicate that the optimal models tend to be more complex as the time periods are extended for countries with different locations and income levels the applicable scopes of the four superior models monotonically increasing inverted u shaped inverted n shaped and m shaped vary in different time periods the findings highlight that the effect of time periods cannot be ignored and the models should not be applied unconditionally when conducting empirical research finally several policy implications are provided which are critical for the balance of economic growth and co2 emissions particularly in some developing countries

general human capital as a shared investment under asymmetric information the paper examines the firm s optimal wage and layoff policies in situations where only general training is provided and the firm providing training has an advantage in information over other firms the asymmetric information among firms creates adverse selection which seriously impairs the mobility of labour and consequently affects the firn s optimal policies general human capital is shown to have the same layoff and cost sharing implications as firm specific human capital furthermore the contracts prespecifying rigid wages are proven to be optimal le capital humain general en tant qu investissement conjoint quand l information est asyme trique ce m6moire examine les politiques optimales de salaires et de mises a pied d une firme quand seulement une formation generale est foumie et quand la firme qui donne la formation a un avantage informationnel sur les autres firmes l information asym6trique entre firmnes cree une selection adverse qui reduit serieusement la mobilite des travailleurs et en consequence affecte les politiques optimales de la firmne le capital humain a vocation generale a les meme implications que le capital humain a vocation specifique pour ce qui est des mises a pied et du partage des coufts de plus les contrats qui prespecifient des salaires rigides s averent optimaux

does rising productivity explain seniority rules for layoffs seniority rules for layoffs are a widespread feature of the union and nonunion workplace many explanations have been offered for their existence some emphasize the role of unions but others argue that seniority rules can promote economic efficiency in this context the rules are simple easy to implement and widely regarded as fair they may help control turnover and conserve valuable investments in specific capital they may also be a response to the higher reliability of more experienced workers or they may reflect the higher value young workers place on their time at home or at search in this company a new explanation is hardly needed and this note will not provide one rather i will show that one of the most commonly accepted explanations is based on an assumption that is quite unrealistic one of the most plausible explanations for seniority rules seems to follow directly from human capital theory 2 senior workers having had more time to invest in on the job training are likely to be more productive the seniority rule may therefore be a convenient rule of thumb which ensures that on average it is the less productive workers who are let go while the more productive ones are hoarded until business picks up this argument has been given added weight by some results from implicit contract theory when workers differ in skill levels but share the same value of time at home efficient contracts will always lay off the unskilled workers before the skilled ones the natural corollary again seems to be that where senior workers are more skilled they should be last to go 3 i show in this paper however that when skill grows with experience as human capital models predict this corollary is false in fact human capital growth by itself predicts that it is the most senior workers who should be laid off first previous writers have missed this result because they have implicitly and unrealistically assumed that workers continue to gain productive skills while sitting at home on layoff my analysis will also shed light on some aspects of collective bargaining contracts and on the phenomenon of early retirement the results are first derived in the context of an implicit contract model which is stripped of all but the barest essentials subsequently the robustness of the conclusions is examined in a series of extensions finally some implications of the analysis are discussed

nexus between green finance non fossil energy use and carbon intensity empirical evidence from china based on a vector error correction model abstract previous studies have considered the effect of financial development on carbon emissions however few studies have explored the role of green finance in carbon mitigation to bridge this gap the current study constructs a green finance development index based on four indicators green credit green securities green insurance and green investment a vector error correction model is used to analyze relationships between the development level of green finance non fossil energy consumption and carbon intensity using data from 2000 to 2018 we find that china s green finance industry developed rapidly and improvements in the green finance development index as well as the increasing use of non fossil energy contributed to a reduction in carbon intensity simultaneously an increase in carbon intensity inhibited the expansion of non fossil energy use impeded the investment flow to green projects and ultimately led to a deterioration of green finance development in addition non fossil energy consumption in china was primarily influenced by green finance and carbon intensity with clear policy driven effects however the impacts of green finance policies continually fell short and lacked continuity this study proposes ways in which to improve the effect of green finance policy implementation expand the consumption of non fossil energy and develop a carbon trading market

implicit contracts with heterogeneous labor the formation of implicit contracts in labor markets with heterogeneous employees is studied if layoffs occur the firm finds it optimal to offer differing contracts to differing employees with employees who place a higher priority on leisure accepting contracts with higher layoff probabilities the firm can do so without violating the constraint that employees voluntarily sort themselves into these contracts under plausible assumptions the contracts match the empirical observation that relatively low wage rates and high unemployment probabilities tend to be correlated finally an average or composite wage rate varies over states of nature calling into question the ability of implicit contracts models to account for the constant representative wage rate often found in macroeconomic models

environmental degradation in france the effects of fdi financial development and energy innovations abstract this paper explores the determinants of carbon emissions in france by accounting for the significant role played by foreign direct investment fdi financial development economic growth energy consumption and energy research innovations in influencing co 2 emissions function in this endeavour we employ the novel sor shahbaz et al 2017 unit root test on french time series data over the period 1955 2016 to examine the order of integration in the presence of sharp and smooth structural breaks in the variables we also apply the bootstrapping bounds testing approach recently developed by mcnown et al 2018 to investigate the presence of cointegration and the empirical findings underscore the presence of cointegration among the time series moreover we find that fdi has a positive impact while energy research innovations have a negative impact on french carbon emissions financial development lowers carbon emissions thereby improving the french environmental quality fdi degrades the environment and thus supports the pollution haven hypothesis in france similarly financial development suggests that financial stability is a required condition for improving environmental quality so are energy research innovations contrarily energy consumption is positively linked with carbon emissions however the relationship between economic growth and co 2 emissions is an inverted u which is a validation of the environmental kuznets curve ekc

cluster analysis of the relationship between carbon dioxide emissions and economic growth abstract as global warming continues to worsen the balance between carbon dioxide emissions and economic growth has received increasing attention and carbon reduction comes to be an urgent task in many countries in literature various regression models have been developed to investigate the relationship between carbon dioxide emissions and economic growth such as the inverted u shaped ekc model inverted n shaped model etc which play critical roles in analyzing the relationships existing studies suggest that some countries follow similar models to describe the relationships while others employ different ones regarding the interplay between carbon dioxide emissions and economic growth there lacks a cluster analysis to systematically uncover the similarity of countries that employ models more similar to each other than to the countries in other clusters in this paper a novel clustering approach is proposed to identify clusters of 67 countries from the spatial temporal and descriptive dimensions unlike the traditional clustering technique in which clusters are determined by geometric distances the clusters in this research are obtained based on the differences between the fitting models of the countries in each cluster the first step of the approach is to find clusters of countries sharing similar models in a given year based on the symbolic regression method and the second step is to determine the countries that frequently cooccur in the same cluster by the apriori algorithm the results present two high order clusters with different dynamic features during the period between 1971 and 2010 one high order cluster mainly consists of countries in higher level of income while the other contains lower income level countries and the carbon intensities of the two high order clusters have distinct differences the findings suggest that the countries within the same cluster could learn more lessons from each other while countries belonging to different clusters should not be examined together indiscriminately several policy implications are provided which may inform decision making for policymakers when choosing proper learning objects and help researchers with designing optimal models for specific countries

monopsony and the lifetime relation between wages and productivity we consider the relation between wages and productivity by means of a model based on the following assumptions workers live for 2 periods firms live forever senior workers differ nontrivially from junior seniority enhances workers expected second period earnings both firms and workers recognize the prospect of promotion and the senior junior wage differential at the time of hiring and firms have monopsony power in hiring junior workers we show that senior wages are equal to the senior marginal product but junior wages are set below the junior marginal product by an amount that depends on the elasticity of the firm s labor supply

the impact of financial development on energy consumption in emerging economies abstract financial development is often cited as a very important driver of economic growth in emerging economies and it is thus likely that financial development affects energy demand this study uses generalized method of moments estimation techniques to examine the impact of financial development on energy consumption in a sample of emerging countries several different measures of financial development are examined using a panel data set on 22 emerging countries covering the period 1990 2006 the empirical results show a positive and statistically significant relationship between financial development and energy consumption when financial development is measured using stock market variables like stock market capitalization to gdp stock market value traded to gdp and stock market turnover the implications of these results for energy policy are discussed

theoretical foundations for sticky wages abstract the paper compares three different types of theoretical explanation of sticky wages they are implicit contracts efficiency wage models and insider outsider models it then reconsiders keynes rationale for sticky wages which focuses on relative wage issues finally the paper considers possible directions for future research

does higher economic and financial development lead to environmental degradation evidence from bric countries abstract a vast number of studies addressed the environmental degradation and economic development but not financial development moreover as argued by stern 2004 the rise and fall of the environmental kuznets curve world development 32 1419 1439 they present important econometric weaknesses using standard reduced form modeling approach and controlling for country specific unobserved heterogeneity we investigate the linkage between not only economic development and environmental quality but also the financial development panel data over period 1992 2004 is used we find that both economic and financial development are determinants of the environmental quality in bric economies we show that higher degree of economic and financial development decreases the environmental degradation our analysis suggests that financial liberalization and openness are essential factors for the co 2 reduction the adoption of policies directed to financial openness and liberalization to attract higher levels of r d related foreign direct investment might reduce the environmental degradation in countries under consideration in addition the robustness check trough the inclusion of us and japan does not alter our main findings

incentive compatible long term contracts and job rationing this article presents a model in which markets for long term contractual employment coexist with spot markets for labor assuming the absence of third party enforcement wage contracts are required to be incentive compatible as a consequence contract wages yield higher expected utility to the worker than spot market wages so that in equilibrium contractual long term jobs are rationed

financial development and environmental quality the way forward the present paper re examines the asymmetric impact of financial development on environmental quality in pakistan for the period 1985q1 to 2014q4 a comprehensive index of financial development is generated using bank and stock market based financial development indicators the results show that inefficient use of energy adversely affects the environmental quality this suggests adoption of energy efficient technology at both production and consumption levels these technologies would be helpful to improve environmental quality enhance the productivity in long run and save energy bank based financial development also impedes the environment the government should encourage lenders to ease the funding for energy sector and allocate financial resources for environment friendly businesses rather than wasting them in consumer financing

the effects of financial development economic growth coal consumption and trade openness on co2 emissions in south africa abstract this paper explores the effects of financial development economic growth coal consumption and trade openness on environmental performance using time series data over the period 1965 2008 in case of south africa the ardl bounds testing approach to cointegration has been used to test the long run relationship among the variables while short run dynamics have been investigated by applying error correction method ecm the unit root properties of the variables are examined by applying saikkonen and lutkepohl 2002 econometric theory 18 313 348 structural break unit root test our findings confirmed long run relationship among the variables results showed that a rise in economic growth increases energy emissions while financial development reduces it coal consumption has significant contribution to deteriorate environment in south african economy trade openness improves environmental quality by reducing the growth of energy pollutants our empirical results also verified the existence of environmental kuznets curve this paper opens up new insights for south african economy to sustain economic growth by controlling environment from degrdation through efficient use of energy

the impacts of the german biofuel quota on sectoral domestic production and imports of the german economy abstract this study analyses the impacts of the german biofuel quota on sectoral domestic production and imports of the german economy the effects are calculated as net effects i e accounting for the direct and indirect effects of both the additional demand for biofuels and the reduced demand for fossil fuels the analysis uses an input output model and information on quantities production processes import quotas etc to calculate the impacts for the agricultural sector which is obviously of high relevance for biofuel production two cases are differentiated first and in line with classical input output assumptions we propose that agricultural production is not constrained by the availability of agricultural land thus biofuel production is basically added to other agricultural outputs in the second case agricultural land is considered a limiting factor for production as a consequence biofuel production substitutes other agricultural outputs the results indicate a clear increase of domestic production and a decline of net imports in the first case in the second case gains in domestic production are smaller and net imports are in contrast to the first case increasing

layoffs recruitment and interfirm mobility contract and search theories are integrated to provide a consistent explanation of contract formation the intertemporal structure of labor markets the absence of ex post market clearing and thus of unemployment in a contractual setting self fulfilling equilibria are described in which low productivity firms lay off some workers while high productivity firms recruitment search intensity and the resulting degree of interfirm mobility are endogenous the effects of severance pay on layoffs and mobility are identified finally the market economy is shown to generate too few layoffs whenever high productivity firms recruit new hires without recruitment laidoff workers are immobile and equilibrium is constrained efficient

implicit contracts incentive compatibility and involuntary unemployment this paper considers the enforceability of employment contracts when employees performance cannot be verified in court so that piece rate contracts are not legally enforceable part i shows that there exists a variety of self enforcing implicit contracts modelled as perfect equilibria in a repeated game and characterizes all the wage and performance outcomes that can be implemented implementation requires a strictly positive surplus from employment the form of the contract depending on how this surplus is divided between firm and employee piece rate contracts and contracts with an informally agreed bonus can be made self enforcing but the use of severance pay and bonding does not extend the set of implementable allocations the resulting contracts resemble actual labor contracts more than do the contracts in standard principal agent models part ii analyses market equilibrium with these contracts also modelled as perfect equilibria in a repeated game and shows that many such equilibria exist unfilled vacancies and unemployed workers can co exist despite the existence of contracts that are potentially mutually beneficial for those jobs that are filled any division of the potential surplus is possible so that the market can have at the same time involuntary unemployment and vacancies that are unfilled despite filled jobs earning positive profits as a criterion for selecting equilibria a notion of renegotiation proofness is applied then either all workers are employed or all jobs filled but any division of the potential surplus is still possible the paper explores what further restrictions on beliefs give rise to a walrasian outcome in which all the potential surplus goes to the short side of the market and to an efficiency wage type outcome in which the potential surplus goes to the long side

endogenous unemployment insurance in a monopoly union model when job search matters abstract the aim of the paper is to derive an optimal unemployment insurance policy for a utilitarian trade union when job search matters it is shown that the well known result from the theory of insurance concerning the optimal risk sharing between risk averse agents changes essentially if the search behavior is allowed to affect the performance of the labor market we assume that labor market mismatch decreases with search effort which in turn decreases with the benefit the resulting equilibrium benefit is shown to be a decreasing function of the trade union s share of the costs of the insurance fund the model is also extended to the case where the benefit is made conditional on monitored search effort

the impact of financial development on carbon emissions an empirical analysis in china given the complexity between china s financial development and carbon emissions this paper uses some econometric techniques including cointegration theory granger causality test variance decomposition etc to explore the influence of financial development on carbon emissions results indicate that first china s financial development acts as an important driver for carbon emissions increase which should be taken into account when carbon emissions demand is projected second the influence of financial intermediation scale on carbon emissions outweighs that of other financial development indicators but its efficiency s influence appears by far weaker although it may cause the change of carbon emissions statistically third china s stock market scale has relatively larger influence on carbon emissions but the influence of its efficiency is very limited this to some extent reflects the relatively lower liquidity in china s stock markets finally among financial development indicators china s fdi exerts the least influence on the change of carbon emissions due to its relatively smaller volume compared with gdp but it is mainly utilized in carbon intensive sectors now therefore with the increase of china s fdi in the future many efforts should be made to adapt its utilizing directions and play its positive role in promoting low carbon development