estimating dynamic games of oligopolistic competition an experimental investigation we evaluate standard assumptions in the estimation of dynamic oligopoly models with laboratory data using an entry exit game we estimate structural parameters under the assumption that the data are generated by a markov perfect equilibrium and subsequently predict counterfactual behavior if behavior was collusive however the assumption would be violated and one would mispredict counterfactuals the laboratory allows us to compare predicted behavior to true counterfactuals implemented as treatments our main finding is that prediction errors due to collusion are modest in size we also document a different deviation from equilibrium behavior inertia that can lead to large prediction errors

how to improve the performance of carbon tax in china abstract the chinese government committed to controlling carbon dioxide co 2 emissions and promoting development of non fossil fuels thus it becomes a top priority for the government to develop effective climate policies against such background this paper develops a new multi country computable general equilibrium cge model with detailed energy disaggregation this study evaluates the impact of single policy instrument carbon tax and combined policy mixes in order to investigate driving factors affecting the policy performance the main findings are as follows firstly the driving factors can be classified into two types the first type of factors affects cost effectiveness significantly while the second type generates considerable effect on emission performance secondly cross border externalities function as important barriers to the co 2 emission reduction since they imply extra competitiveness loss and result in considerable carbon leakage finally this paper considers two integrated policy mixes wherein carbon tax revenue is recycled to reduce capital tax or support clean energy subsidy these policy mixes can improve both cost effectiveness and emission performance and thus perform better than carbon tax alone in this way carbon tax revenue can be used to improve the performance looking ahead complicated policy mixes are preferred to improve the performance of china s carbon tax

china s balance of emissions embodied in trade approaches to measurement and allocating international responsibility international trade is characterized not only by the flow of capital and goods but also by the energy and emissions embodied in goods during their production this paper investigates the evolving role that chinese trade is playing in the response to climate change by estimating the scale of emissions embodied in china s current trade pattern and demonstrating the magnitude of the difference between the emissions it produces some of which are incurred to meet the consumption demands of the rest of the world and the emissions embodied in the goods it consumes estimating china s emissions on a consumption rather than a production basis both lowers its responsibility for carbon dioxide co2 emissions in 2006 from 5 500 to 3 840mtco2 and reduces the growth rate of emissions from an average of 12 5 per cent p a to 8 7 per cent p a between 2001 and 2006 the analysis indicates that a reliable consumption based accounting methodology is feasible and could improve our understanding of which actors and states are responsible for emissions for example recent emissions reductions by developed countries may lack credibility if production has merely been displaced to countries such as china moreover in the current institutional context production methodologies encourage leakages through trade that may do more to displace than to reduce emissions both equity and efficiency concerns therefore suggest that emissions embodied in trade should receive special attention in the distribution of post kyoto abatement burdens

examining the global environmental impact of regional consumption activities part 2 review of input output models for the assessment of environmental impacts embodied in trade this paper offers a detailed review of recently described single and multi region input output models used to assess environmental impacts of internationally traded goods and services it is the second part of a two part contribution in part 1 turner k lenzen m wiedmann t and barrett j in press examining the global environmental impact of regional consumption activities part 1 a technical note on combining input output and ecological footprint analysis ecological economics we describe how to enumerate the resource and pollution content of inter regional and inter national trade flows with the aim to illustrate an ideal accounting and modelling framework for the estimation of ecological footprints a large number of such environment economic models have been described but only in the last few years models have emerged that use a more sophisticated multi region multi sector input output framework this has been made possible through improvements in data availability and quality as well as computability we identify six major models that employ multi sector multi region input output analysis in order to calculate environmental impacts embodied in international trade results from the reviewed studies demonstrate that it is important to explicitly consider the production recipe land and energy use as well as emissions in a multi region multi sector and multi directional trade model with global coverage and detailed sector disaggregation only then reliable figures for indicators of impacts embodied in trade such as the ecological footprint can be derived

entry into auctions an experimental analysis this paper investigates entry decisions into rst and second price auctions using an experimental design to extract information on willingness to pay to enter wte we nd that subjects tend to overpay to enter both auction formats in particular if the subjects believe they will be bidding against bidders following the risk neutral nash strategy their wte is greater than the optimal risk neutral amount 97 of the time for rst price auctions fpa and 90 for second price auctions spa if they believe that they are bidding against subjects who bid as do the other subjects they submit a wte that is too high 92 of the time for fpa and 69 of the time for spa we also nd in line with previous studies signicant overbidding in both the fpa and spa we then investigate whether introducing risk aversion ra or joy of winning joy can explain the joint observation of over entry and overbidding in particular using bid data alone we structurally estimate three models one allowing ra only one allowing for joy only and one allowing for both ra and joy while a model with joy alone overestimates wte we nd that ra alone can explain 38 of wte but a model with both ra and joy where ra is estimated using fpa bids and joy is estimated using spa bids can explain 65 of wte moreover joy appears to explain nearly all of the of the male wte but only 44 of the female wte

the increase in brazilian household income and its impact on co2 emissions evidence for 2003 and 2009 from input output tables abstract in recent years brazil has experienced economic growth and a recovery of income that has had a positive impact on the consumption of goods in this paper we evaluate the impact of brazilian household consumption on the co2 emissions for 2003 and 2009 using input output tables from the world input output database we used a semi closed model with eight household groups in order to apply the hypothetical extraction method in the consumption structure of each group further we use the result from the hypothetical extraction to evaluate the impacts of the structure consumption of each household group in terms of co2 emissions we find that there is a trade off between the households greater satisfaction from consumption and the increasing setback in emissions from the restructuring and modification of the consumption basket thus this study contributes to the research on emissions by mapping the recent behavior of the brazilian economy in terms of increased income changes in the consumption structure and their impacts on emissions the paper s aggregated results by income and consumption structure based on the intensity of the emissions and their systemic effects add to the discussions on less polluting production processes more conscious consumption of goods and more rational uses of energy and transportation

fossil resource trade balances emerging trends for the uk abstract the aim of this paper is to examine the extent to which the uk can be classified as a net importer of fossil resources and a creator of pollution havens abroad between 1968 and 2000 using input output techniques and a derived resource flow classification system both the physical trade balance ptb and pollution trade balance utb associated with fossil resource use are computed the ptb shows that between 1968 and the early 1980 s the uk is presented as a net importer of direct fossil resource flows between 1984 and 2000 the uk is identified as a net exporter of direct fossil resources these trends are primarily explained by the uk s discovery and commercial production of north sea oil and gas fields in the late 1970s on the other hand the utb shows that over the whole period the indirect used flows attributable to the uk s exports are higher than those attributable to its imports these findings suggest that the uk did not create pollution havens abroad from the use of fossil resources between 1968 and 2000 however it is noticeable in both cases that from 1995 the uk s position as a net exporter has been decreasing considerably maturing north sea oil and gas fields set against increasing demands for fossil fuels and imported goods is signalling a return to the uk s pre 1984 dependence on direct imported fossil resources and the possible creation of pollution havens abroad knowledge of these trends contributes to the evidence base for the uk s changing import and export structure and the potential environmental repercussions at home and abroad

the impact of domestic trade on china s regional energy uses a multi regional input output modeling to systematically reveal how domestic trade impacts on china s regional energy uses an interprovincial input output modeling is carried out to address demand derived energy requirements for the regional economies in 2007 based on the recently available data both the energy uses embodied in final demand and interregional trade are investigated from the regional and sectoral insights significant net transfers of embodied energy flows are identified from the central and western areas to the eastern area via interregional trade shanxi is the largest energy producer and interregional embodied energy deficit receiver in contrast to guangdong as the largest energy user and surplus receiver by considering the impacts of interregional trade the energy uses of most eastern regions increase remarkably for instance shanghai hainan zhejiang beijing jiangsu and guangdong have their embodied energy requirements 87 49 19 97 13 64 12 60 6 46 and 6 38 times of their direct energy inputs respectively in contrast the embodied energy uses of some central and western regions such as inner mongolia shanxi xinjiang shaanxi and guizhou decrease largely the results help understand the hidden network linkages of interregional embodied energy flows and provide critical insight to amend china s current end reduction oriented energy policies by addressing the problem of regional responsibility transfer

shared producer and consumer responsibility theory and practice abstract over the past decade an increasing number of authors have been examining the nexus of producer versus consumer responsibility often dealing with the question of how to assign responsibility for internationally traded greenhouse gas emissions recently a similar problem has appeared in drafting the standards for the ecological footprint while the method traditionally assumes a full life cycle perspective with full consumer responsibility a large number of producers businesses and industry sectors have started to calculate their own footprints see www isa org usyd edu au adding any producer s footprint to other producers footprints or to population footprints which all already cover the full upstream supply chain of their operating inputs leads to double counting the sum of footprints of producers and consumers is larger than the total national footprint the committee in charge of the footprint standardisation process was hence faced with the decades old non additivity problem posing the following dilemma for the accounting of footprints or any other production factor if one disallows double counting but wishes to be able to account for producers and consumers then one cannot impose the requirement of full life cycle coverage the supply chains of actors have to be curtailed somehow in order to avoid double counting this work demonstrates and discusses a non arbitrary method of consistently delineating these supply chains into mutually exclusive and collectively exhaustive portions of responsibility to be shared by all actors in an economy

international trade and environmental quality a survey abstract international trade has been incorporating various aspects of environmental issues since 1970 the extent to which environmental problems might affect many facets of trade or vice versa has been the subject of considerable debate over these years in this article we have attempted to establish some of the links between international trade and environmental quality by performing a comprehensive literature review we discuss issues such as establishing direct and indirect effects of international trade on environmental quality effects of trade on economic development environmental quality and energy and their relation with each other and finally the role of governments and international organizations in this context studies have so far revealed some linkages between trade and environment through conventional trade theory however interactions between international trade and types of pollution their sink and assimilative capacity need to be analyzed using a general equilibrium approach currently very little knowledge and agreement on the nature of interactions between trade theories development process and environmental quality exist existing studies have shown that the structure of environmental regulations should be modified to reflect the existence of trade under imperfect competition therefore further research on the interaction between new trade theory and environmental regulation is needed also theoretical and quantitative analysis regarding the effects of environmental regulations on competitiveness and location decision is needed the intensity and type of environmental measures vary across issues and countries therefore harmonizing environmental measures creates an inefficient atmosphere and to assume that trade restrictions will either improve or reverse the environmental damages is a serious mistake given the dynamic and intricate nature of the problem trade and environment debate continues despite vast research and poses a challenge for researchers and policy makers in the foreseeable future

from production based to consumption based national emission inventories abstract under the united national framework convention of climate change unfccc countries are required to submit national emission inventories nei to benchmark reductions in greenhouse gas ghg emissions depending on the definition and system boundary of the nei the mitigation options and priorities may vary the territorial system boundary used by the unfccc has been critiqued for not including international transportation and potentially causing carbon leakage to address these issues past literature has argued in favour of using consumption based nei in climate policy this article discusses several issues in moving from the standard production based nei to consumption based nei first two distinct accounting approaches for constructing consumption based nei are presented the approaches differ in the allocation of intermediate consumption of imported products second a consistent method of weighting production based and consumption based nei is discussed this is an extension of the previous literature on shared responsibility to nei third due to increased uncertainty and a wide system boundary it may be difficult to implement consumption based nei directly into climate policy several alternative options for incorporating consumption based inventories into climate policy are discussed

analysis of co2 emissions embodied in china s bilateral trade a non competitive import input output approach co2 emissions embodied in international trade are critical to the national carbon mitigation strategy studies estimating embodied co2 emissions in china often overestimate actual values this work calculates china s co2 emissions embodied in bilateral trade with the usa european union japan and other countries using a modified non competitive import input output method and latest data the results show that net co2 emissions embodied in china s trade in 2007 were only 400 million tons much lower than previous estimations accordingly china s co2 emission on the consumption side in 2007 dropped to 5 628 billion tons with the transfer part accounting for 6 6 of total co2 emissions calculated for the production side it is concluded that because co2 emissions embodied in trade are not as great as previously estimated china should place more emphases on energy saving and emission reduction on its own side instead of emission transfer to substantially mitigate co2 emissions

the effects of carbon taxation in china an analysis based on energy input output model in hybrid units abstract this paper evaluates the economy wide effects of carbon taxation in china to this end we build a price model based on an energy input output table in hybrid units that ensures the consistency of the analysis the results indicate that carbon taxation has small negative impact on gdp there are however relatively substantial emissions reductions to explore whether the impacts are spatially blind in the sense of having similar impacts on urban and rural residents the results of the distributional effects show that the impacts of carbon taxation on different urban household groups reveal small differences and are slightly regressive yet for rural residents carbon taxation may be significantly regressive in addition rural residents are found to be affected much more than urban residents furthermore the paper explores a policy intervention to investigate the effects of redistributing the carbon tax paid by households the main results reveal that reallocating the carbon tax to the groups with low income levels can offset the negative distributional effects significantly moreover the results of miyazawa style interrelational income multiplier analysis indicate that the household groups with high income would benefit significantly from the income increases in those with low income levels but not vice versa

keeping it fresh strategic product redesigns and welfare abstract product redesigns happen across virtually all types of products yet there is little evidence on the market and welfare effects of redesigns we develop a model of redesign decisions in a dynamic oligopoly model and use it to analyze redesign activity in the u s automobile market we find automobile model redesigns are frequent despite an estimated average cost around 1 billion our estimates also suggest that redesigns lead to large increases in profits and welfare due to the strong preferences consumers have for redesigns we show that welfare would be improved if redesign competition were reduced allowing redesign activity to be more responsive to the planned obsolescence channel the net effect of these changes would reduce total redesigns by roughly 10 increasing total welfare by roughly 3 the high valuation that consumers put on newly designed models drives frequent redesigns and gives automobile manufacturers fairly substantial market power with a 2 to 1 ratio of firm profits to consumer surplus

input output analysis of carbon emissions embodied in china japan trade abstractenergy related co2 emissions embodied in international trade have been widely studied by researchers all over the world by using the bilateral trade input output btio approach this study investigates the co2 emissions embodied in china japan trade during 1995 2009 and attempts to identify the driving forces for the change in co2 emissions embodied in china s exports to japan during that period by using structural decomposition analysis sda result shows that co2 emissions embodied in china s exports increased by about 100 from 1995 to 2009 whereas those embodied in china s imports increased by about 500 during the same period result of this research also reveals that the scale effect had a large influence on the increase in co2 emissions embodied in china japan trade the technical effect greatly decreased co2 emissions embodied in china s exports to japan but obviously increased those embodied in imports the influence of the structural effect was relatively small and insignificant in

entry in monopoly market this paper develops new empirical models of market concentration from game theoretic models of entry we construct our models from inequality conditions that describe entrants equilibrium strategies in simultaneous move and sequential move games and use them to study the effects of entry in isolated monopoly markets for new automobiles from estimates of the market size necessary to support one and two dealers we conclude that monopoly dealers do not block the entry of a second dealer we also find that entry does not cause price cost margins to fall by much

austria s co2 responsibility and the carbon content of its international trade abstract seeking to limit global warming to 2 c puts narrow restrictions on the remaining carbon budget while the prevalent accounting framework for carbon emissions is production based production based principle pbp we here quantify the co2 emissions on the basis of the consumption based principle cbp for austria at a methodological level a multi regional input output model with full linkages is used to account for austria s co2 responsibility on a global scale estimates are carried out for the years 1997 and 2004 results show that during 1997 co2 responsibility based on cbp were 36 larger than those based on pbp this relation has increased through time the cbp indicator of 2004 was 44 larger than the pbp in terms of carbon emission location for each euro spent on austrian final demand in 2004 it is estimated that two thirds of the co2 emissions occur outside austrian borders regarding the origin of the emissions embodied in imports it is estimated that about one fourth originated in non annex i countries in 1997 this proportion increased to one third by 2004 due to this divergence between cbp and pbp indicators there is a need to re think current accounting bases in order to properly assign co2 responsibilities

international trade and the sustainability footprint a practical criterion for its assessment a simple and minimal criterion for sustainability is that the value of natural capital plus manufactured capital be not decreasing on the basis of any individual country or region the above simple comparison may be misleading as it does not take account of the production of goods for consumption in other countries regions via international trade in other terms the full environmental footprint of a country may not be properly assessed a method of calculating a weak sustainability criterion has been established for both a closed economy approach and an open economy approach there are significant differences between the open and closed economies measures for several regions particularly the middle east overall global sustainability on this criterion has been positive and increasing using a difference equation approach a further analysis has been made of the average proportional rate of change of global sustainability between 1980 and 1990 and its various regional and structural components have been determined these indicate that most of global sustainability growth can be attributed to western europe other asia and japan particularly through high savings ratios the usa on the other hand has made a very small net contribution to the growth in global sustainability

trade off analysis between embodied energy exports and employment creation in china moving towards sustainable consumption in china must factor in the drivers of production china s domestic energy demand is affected not only by domestic demand but also by foreign trade the accounting of energy embodied in china s international trade has attracted much attention in recent years in fact embodied energy imports exports are a part of the normal pattern of economic phenomena occurring through international trade with exports of embodied energy contributing significantly to china s economic development this research suggest that china s net embodied energy exports remained relatively stable before 2002 and then increased dramatically from 73 mtoe in 2002 to 502 mtoe by 2007 with an average annual growth rate of 47 2 over that period the total employment creation reliant on these exports is 191 3 million people including direct employment of 44 1 million people and indirect employment of 147 2 million people in 2007 and the total employment creation increased quickly between 2002 and 2007 with an average annual growth rate of 9 1 the share of employment created by exports in china s total employment increased from 16 5 in 1997 to 18 6 in 2002 and a more dramatic increase can be observed in 2007 of 28 1 the exports oriented sectors in china are energy intensive from the perspective of embodied energy consumption and the energy intensive exports are located in nearly the same sectors as the labor intensive exports china will find it difficult to sustain the trade off in costs due to unemployment if it wishes to reduce embodied energy exports china needs to exercise patience and long term reform to change the current development model because of its large economy and population base

primary energy and greenhouse gases embodied in australian final consumption an input output analysis input output modeling of primary energy and greenhouse gas embodiments in goods and services is a useful technique for designing greenhouse gas abatement policies the present paper describes direct and indirect primary energy and greenhouse gas requirements for a given set of australian final consumption it considers sectoral disparities in energy prices capital formation and international trade flows and it accounts for embodiments in the gross national expenditure as well as the gross domestic product primary energy and greenhouse gas intensities in terms of mj and kg co2 e are reported as well as national balances of primary energy consumption and greenhouse gas emissions

demand fluctuations in the ready mix concrete industry i investigate the role of demand shocks in the ready mix concrete industry using census data on more than 15 000 plants i estimate a model of investment and entry in oligopolistic markets these estimates are used to simulate the effect of eliminating short term local demand changes a policy of smoothing the volatility of demand has a market expansion effect the model predicts a 39 increase in the number of plants in the industry since bigger markets have both more plants and larger plants a demand smoothing fiscal policy would increase the share of large plants by 20 finally the policy of smoothing demand reduces entry and exit by 25 but has no effect on the rate at which firms change their size

an experimental test of an optimal growth model this paper describes the design and behavior of an experimental economy with the structure of the ramsey cass koopmans model of optimal growth the experiment includes three different implementations of the model a decentralized implementation with multiple agents and a market for capital a treatment where individual subjects are placed in the role of social planners and a treatment where the social planner consists of five agents making a joint decision the findings highlight the role of market institutions in facilitating convergence to the optimal steady state jel c91 c92 o40

applying physical input output analysis to estimate land appropriation ecological footprints of international trade activities in the last few years some studies have been presented which link land use accounting and input output analysis based on monetary input output tables miots for the calculation of direct and indirect land appropriation of production and consumption activities the compilation of the first comprehensive physical input output tables piots for some western european countries in the 1990s opened new possibilities for linking physical accounting and input output analysis using a physical multiplier for this kind of calculation is more appropriate as the most land intensive sectors are also the sectors with the highest amounts of material flows physical input output analysis illustrates land appropriation in relation to material flows of each of the sectors which is more appropriate from the point of view of environmental pressures than land appropriation in relation to monetary flows of a miot physical input output analysis has so far not been applied for any land related studies based on a physical input output model of the eu 15 physical input output analysis is applied in this paper in order to calculate direct and indirect land requirements for the production of exports from eu 15 to the rest of the world

food miles carbon footprint and global value chains for spanish agriculture assessing the impact of a carbon border tax abstract we develop a multiregional input output model to evaluate the importance of international trade of agricultural products as well as their food miles emissions on the proposed extended carbon footprint ecf measure of spanish agriculture in 2000 2008 this measure of ecf incorporates the virtual carbon embodied domestic imported and international transport in the consumption of spanish products of agriculture plus the direct emissions or producer responsibility of the spanish agriculture sector our results show that spanish agriculture ecf in 2008 is 18 5 mt co 2 more than doubles the usual measure of carbon footprint the importance of these emissions leads us to calculate the effect of levying a carbon border tax on both embodied emissions and international freight transport in agriculture products on the price of agriculture products consumed by spanish households and bought by different spanish industries our results do not appear to impose too great a burden on the economy as a whole 3 7 over the value of imported agriculture products and 0 02 over total spanish domestic final demand however there might be a significant impact from taxing embodied carbon and transport emissions on some sectors and in terms of a potential change in the origin of imports with chinese and east asian exports into spain being the most affected

participation in gvcs and co2 emissions abstract this paper attempts to explore the determinants of co2 emissions in the context of international trade while there exist studies that examine the roles of horizontal specialization and inter industry trade transactions little previous research attention has been paid to the roles of vertical specialization and intra industry trade transactions in affecting co2 emissions to fill the knowledge gap this study uses the panel data of 62 countries and regions for the period of 1995 2011 to estimate the effect of participation in global value chains gvcs on per capita co2 emissions major findings include 1 the relationship between participation degrees in gvcs and per capita co2 emissions is found to be inversely u shaped at the aggregate economy level and for most individual industries 2 per capita gdp shows an n shaped relationship with per capita co2 emissions and 3 benign drivers of co2 emissions include r d energy conservation and population control it can be concluded that countries with low gdp or gvc participation degrees are expected to experience worsening co2 emissions in the short or even medium run this trend however can be moderated or even reversed with more r d investments

cartel price announcements the vitamins industry abstract the primary manufacturers of vitamins admitted to participating in international market share agreement cartels for several years during the 1990s their announced price increases appeared in leading trade journals we show that price announcements during the cartel period and the lead times before these prices took effect were fundamentally different in character from price announcements when explicit collusion was less likely these differences are consistent with our model of price announcements where we account for the importance to the cartel of buyer acceptance of or resistance to a price increase acceptance avoids costly market share reallocations among members of an explicit cartel logit estimates show that after 1985 the likelihood of a price announcement is largely driven by the length of time between announcements rather than cost or demand factors suggesting that the price announcements after 1985 stem from cartel meetings

prioritizing towards a green export portfolio for india an environmental input output approach abstract proponents of free trade have often hailed international trade as an engine of economic growth however the foreign trade sector like many other sectors in developing countries frequently involves these countries walking a tightrope between their developmental objectives and environmental goals in this regard prioritizing for developing a green yet internationally competitive export portfolio provides a quintessential win win solution to the problem this study factors in both environmental benignity indicated by total co2 emission intensity as well as trade competitiveness indicated by revealed comparative advantage index in identifying the ideal indian export portfolio the analysis calculates the level of direct and indirect emissions from the foreign trade sector exports and imports using the environmental input output eio matrix for 2003 04 for india that has been jointly developed by researchers from keio university japan and the energy and resources institute teri new delhi the derived basket is compared to the current portfolio to estimate the potential saving from compositional changes and to suggest directions for policymaking to emphasize or de emphasize the export of certain categories of exports

economic growth trade and energy implications for the environmental kuznets curve abstract the environmental kuznets curve ekc hypothesis asserts that pollution follows an inverted u path with respect to economic growth the ekc has been explained in terms of structural changes in the composition of economic output and increased environmental regulation at higher income levels while some authors have incorporated the impact of trade policy orientation on the ekc the impact of the actual movement between countries of goods that embody pollution has not been considered this paper attempts to econometrically quantify the effect using pooled cross country and time series data the ekc hypothesis is examined with respect to commercial energy consumption the source of many serious environmental problems it was found that while both industrializing and industrialized countries have added to their energy requirements by exporting manufactured goods the growth has been substantially higher in the former at the same time industrialized countries have been able to reduce their energy requirements by importing manufactured goods exports of manufactured goods by industrialized countries has thus been an important factor in generating the upward sloping portion of the ekc and imports by industrialized countries have contributed to the downward slope

structural decompositions of energy consumption between 1995 and 2009 evidence from wiod abstract energy is key to achieving sustainable development this paper explicitly distinguishes between the supply side of energy consumption and demand side of energy consumption and investigates the factors that affect the energy consumption across economies using data from the world input output database wiod this paper decomposes the relative changes of energy consumption into intensity effect production structure structural change in final demand total final demand effect and household consumption then it further decomposes production structure into inter industry structural effect and trade effect in intermediate inputs overall energy consumption growth is mainly driven by total final demand 55 04 increase at the world level but can be significantly reduced by intensity effect due to technological change 21 02 decrease at the world level there is heterogeneity of structure related effects across economies and within the same economy in both aspects of energy consumption in addition the trade effect and household effect are relatively small this paper provides an empirical framework for analyzing energy consumption in a globalizing world and suggests tailored and integrated energy policies

private monitoring and communication in cartels explaining recent collusive practices motivated by recent cartel practices a stable collusive agreement is characterized when firms prices and quantities are private information conditions are derived whereby an equilibrium exists in which firms truthfully report their sales and then make transfers within the cartel based on these reports the properties of this equilibrium fit well with the cartel agreements used in a number of markets including citric acid lysine and vitamins

impact of electrical intertie capacity on carbon policy effectiveness this study investigates the potential cost and emissions reductions that result from an increase in electricity transmission capacity between canada s two westernmost provinces alberta a fossil fuel dominated jurisdiction and british columbia a predominantly hydroelectric jurisdiction a bottom up model is used to find the least cost electricity generation mix in alberta and british columbia under different carbon policies the long term evolution of the electricity system is determined by minimizing net present cost of electricity generation for the time span of 2010 2060 different levels of intertie capacity expansion are considered together with a variety of carbon tax and carbon cap scenarios results indicate that increased intertie capacity reduces the cost of electricity and emissions under carbon pricing policies however the expandable intertie does not encourage greater adoption of variable renewable generation instead it is used to move low cost energy from the united states to alberta the optimal intertie capacity and cost reduction of increased interconnectivity increases with more restrictive carbon policies

input output analysis of co2 emissions embodied in trade the effects of sector aggregation abstract energy related co2 emissions embodied in international trade have been widely studied by researchers using the environmental input output analysis framework it is well known that both sector aggregation and spatial aggregation affect the results obtained in such studies with regard to the latter past studies are often conducted at the national level irrespective of country or economy size for a large economy with the needed data studies may be conducted at different levels of spatial aggregation we examine this problem analytically by extending the work of su et al su b huang h c ang b w zhou p 2010 input output analysis of co2 emissions embodied in trade the effects of sector aggregation energy economics 32 1 166 175 on sector aggregation we present a numerical example using the data of china and by dividing the country into eight regions it is found that the results are highly dependent on spatial aggregation our study shows that for a large country like china it is meaningful to look into the effect of spatial aggregation

china s foreign trade and climate change a case study of co2 emissions abstract the globalization of trade has numerous environmental implications trade creates a mechanism for consumers to shift environmental pollution associated with their consumption to other countries carbon leakage exerts great influences on international trade and economy applying an input output approach the paper estimates the amount of carbon dioxide co2 embodied in china s foreign trade during 1997 2007 it is found that 10 03 26 54 of china s annual co2 emissions are produced during the manufacture of export goods destined for foreign consumers while the co2 emissions embodied in china s imports accounted for only 4 40 1997 and 9 05 2007 of that we also estimate that the rest of world avoided emitting 150 18 mt co2 in 1997 increasing to 593 mt in 2007 as a result of importing goods from china rather than manufacturing the same type and quantity of goods domestically during 1997 2007 the net additional global co2 emissions resulting from china s exports were 4894 mt then the paper divides the trade embodied emissions into scale composition and technical effect it was found that scale and composition effect increased the co2 emissions embodied in trade while the technical effect offset a small part of them finally its mechanism and policy implications are presented

unilateral co2 reductions and carbon leakage the consequences of international trade in oil and basic materials a recursively dynamic general equilibrium model featuring six world regions with trade in energy and non energy goods is used to simulate the period from 1990 through 2100 in 10 year intervals the simulations explore the effect of unilateral action by the oecd to curb global co2 emissions unilateral cuts create incentives for free riding by non participating regions so that global emissions are reduced by less than the amount that the oecd cuts back its regional emissions carbon leakage occurs through two channels first basic materials production increases in unconstrained regions resulting in increased carbon intensity of gdp second reductions in oecd oil imports cause the world oil price to fall leading to an increased energy intensity in the non participant regions in this paper we use a general equilibrium model to assess the extent to which these two mechanisms reduce the effectiveness of oecd reductions in curbing global co2 concentrations

international trade and shared environmental responsibility by sector an application to the spanish economy abstract the aim of this paper is to define a shared responsibility criterion for analysing the impact of international trade on co 2 emissions applied to sectors with the approach proposed it is possible for sectors in a country to account for only a part of the emissions associated with exported and imported goods the agents considered as responsible for pollution are sectors two fold as producers and suppliers of intermediate inputs and final demand accounting for direct emissions linked to production and as consumers of intermediate inputs required for production accounting for direct and indirect emissions linked to consumption of inputs and the countries and foreign sectors that trade with these industries the responsibility of emissions is shared by all the participants along the global product chain depending on the value added of each step the criterion is applied to the spanish economy for the period 2000 to 2005 and proves useful for determining what economic policies may be suitable for mitigating anthropogenic impact on the environment and for including all the agents of the supply chain in the development of sustainable supply chain management

has energy conservation been an effective policy for thailand an input output structural decomposition analysis from 1995 to 2010 abstract thailand has depended heavily on imported fossil fuels since the 1990s which hindered the nation s economic development because it created uncertainty in the nation s fuel supply an energy conservation policy was implemented in 1995 to require industries to reduce their energy intensity ei and consumption immediately this study investigates the effectiveness of the policy between 1995 and 2010 using the hybrid input output approach surprisingly ei improvement was observed in only a few sectors such as transportation non metallic paper and textile an embodied energy decomposition analysis revealed that while households were the largest energy consumer in 1995 energy consumption in exports exceeded that of households in 2000 2005 and 2010 in addition structural decomposition analysis revealed the final demand effect was the strongest factor in determining the efficacy of energy conservation whereas the energy efficiency effect was not an effective factor as expected for decreasing energy consumption policy barriers and conflicting economic plans were factors that affected the outcome of these energy policies

dynamic product positioning in differentiated product markets the effect of fees for musical performance rights on the commercial radio industry this article predicts how radio station formats would change if as was recently proposed music stations were made to pay fees for musical performance rights it does so by estimating and solving using parametric approximations to firms value functions a dynamic model that captures important features of the industry such as vertical and horizontal product differentiation demographic variation in programming tastes and multi station ownership the estimated model predicts that high fees would cause the number of music stations to fall significantly and quite quickly for example a fee equal to 10 of revenues would cause a 4 6 drop in the number of music stations within 2 1 2 years and a 9 4 drop in the long run the size of the change is limited however by the fact that many listeners particularly in demographics that are valued by advertisers have strong preferences for music programming publication abstract

energy and carbon embodied in the international trade of brazil an input output approach abstract all goods and services produced in an economy are directly and or indirectly associated with energy use and according to the type of fuel utilized with co2 emissions as well international trade is an important factor in shaping the industrial structure of a country and consequently in affecting a country s energy use and co2 emissions this study applies input output techniques to the brazilian economy to evaluate the total impacts of international trade on its energy use and co2 emissions a commodity by industry io model in hybrid units energy commodities in physical units and non energy commodities in monetary units is applied to the brazilian economy in 1995 results show that total energy embodied in the exports of non energy goods of brazil equals 831 pj while total carbon embodied is 13 5 mtc these amounts are larger than the relevant amounts embodied in the imports of non energy goods respectively 679 pj and 9 9 mtc these figures are better understood by contrasting them with the total energy use and the corresponding total carbon emissions of the brazilian economy in 1995 estimated by this work 6781 pj and 99 4 mtc respectively this means that international inflows and outflows of energy embodied in non energy goods are in the order of 10 and 12 of the total energy use while inflows and outflows of carbon embodied in non energy goods are approximately 10 and 14 of the corresponding total carbon emissions of the brazilian economy in 1995 the general picture is that brazil is not only a net exporter of energy 153 pj and of carbon 3 6 mtc embodied in the non energy goods internationally traded by the country in 1995 but also that each dollar earned with exports embodied 40 more energy and 56 more carbon than each dollar spent on imports these findings suggest that brazilian policy makers should be concerned about the extra impacts international trade policy may have on energy use and carbon emissions of the country

recalculating co2 emissions from the perspective of value added trade an input output analysis of china s trade data abstract using traditional trade statistics to calculate co 2 emissions embodied in international trade results in significant miscalculations and a deeper divide between countries the aim of this research is to provide a reasonable estimate of carbon emissions to help policymakers in each country address their actual share of responsibility this study employs the world input output database and the gross export decomposition methodology to recount the co 2 emissions embodied in china s international trade from the perspective of value added trade the result shows that reliance on traditional statistics caused a significant overestimation of china s imports and exports us 398 77 billion and us 504 46 billion for china s imports and exports respectively our findings suggest that 177 24 million tons of carbon emissions embodied in imports and 907 636 million tons of carbon emission embodied in exports were over calculated the result obtained with traditional calculation methods has artificially increased the responsibility share of china in the global emissions reduction we also compare the co 2 emission coefficients of china with those of other countries our findings suggest that the high emission coefficients of most chinese industrial sectors determine the carbon emissions embodied in china s exports to be higher than in its imports

identification and estimation of dynamic games when players beliefs are not in equilibrium this article deals with the identification and estimation of dynamic games when players beliefs about other players actions are biased that is beliefs do not represent the probability distribution of the actual behaviour of other players conditional on the information available first we show that an exclusion restriction typically used to identify empirical games provides testable non parametric restrictions of the null hypothesis of equilibrium beliefs in dynamic games with either finite or infinite horizon we use this result to construct a simple likelihood ratio test of equilibrium beliefs second we prove that this exclusion restriction together with consistent estimates of beliefs at two points in the support of the variable involved in the exclusion restriction is sufficient for non parametric point identification of players belief functions as well as useful functions of payoffs third we propose a simple two step estimation method we illustrate our model and methods using both monte carlo experiments and an empirical application of a dynamic game of store location by retail chains the key conditions for the identification of beliefs and payoffs in our application are the following 1 the previous year s network of stores of the competitor does not have a direct effect on the profit of a firm but the firm s own network of stores at previous year does affect its profit because the existence of sunk entry costs and economies of density in these costs and 2 firms beliefs are unbiased in those markets that are close in a geographic sense to the opponent s network of stores though beliefs are unrestricted and potentially biased for unexplored markets which are farther away from the competitors network our estimates show significant evidence of biased beliefs furthermore imposing the restriction of unbiased beliefs generates a substantial attenuation bias in the estimate of competition effects

sharing responsibility for carbon dioxide emissions a perspective on border tax adjustments concerns about the equity and efficiency of current allocation principles related to responsibility for carbon dioxide co2 emissions have been presented in the recent literature the objective of this paper is to design a calculation framework for shared responsibility from the perspective of border tax adjustments the advantage of this framework is that it makes the shared responsibility principle and border carbon taxation complementary to each other these are important policies for reducing global co2 emissions but they are individually supported by developing and developed countries as an illustration the proposed framework is applied to data from china in 2007 the empirical results show that for the chinese economy as a whole changing from the production based criterion to the shared responsibility approach would lead to an 11 decrease in its responsibility for co2 emissions moreover the differences observed between the production based criterion and the shared responsibility approach are considerable in several sectors for example changing from the production based criterion to the shared principle would lead to a 60 decrease in the responsibility of the textile sector

behavioral identification in coalitional bargaining an experimental analysis of demand bargaining and alternating offers alternating offer and demand bargaining models of legislative bargaining make very different predictions in terms of both ex ante and ex post distribution of payoffs as well as in the role of the order of play the experiment shows that actual bargaining behavior is not as sensitive to the different bargaining rules as the theoretical point predictions whereas the comparative statics are in line with both models we compare our results to studies that attempt to distinguish between these two approaches using field data finding strong similarities between the laboratory and field data regardless of the underlying bargaining process

energy use and structural changes factors behind the fall in sweden s energy output ratio abstract this paper examines the causes behind the fall in sweden s use of energy in relation to real gdp after the energy crisis 1973 1974 the author uses historical and statistical data as well as economic theory especially input output analysis to analyse effects on the energy output ratio of the changes in sectoral energy use and of variations in the composition of final demand the results obtained are used to assess the energy implications of alternative strategies for economic policy actually discussed in sweden for the early 1980s

paying for procurement analysis of landman compensation surveys abstractutilizing a unique time series of cross sectional surveys we analyse the labour market for professional landman services to establish the factors affecting compensation during a recent per

environmental pollution and world trade abstract in this paper we present a model that highlights the relationship between international trade and environmental pollution it includes a small open economy that produces a domestic composite good and imports another composite good and energy products the pollution is created by local production global production and transportation given this model we demonstrate that free trade within the current political and economic context may produce a suboptimal level of welfare the rationale is based upon the argument that transportation is energy intensive and that therefore trade itself is a source of pollution consequently under certain global conditions the introduction of an energy tariff in a small open economy raises social welfare and is superior to free trade a consumption tariff adopted by a single nation will not have similar consequences because it has no impact upon local usage however when a consumption tariff is globally adopted there is the opportunity for a net benefit finally we argue that a global tariff that raises both the price of energy and the price of the imported composite good may generate the greatest increase in welfare by reducing both energy intensive production and energy intensive trade

transactions costs and the efficient organization of production a study of timber harvesting contracts a transaction costs framework is developed to explain the choice between lump sum and per unit payment provisions in private timber harvesting contracts predictions about which contract type minimizes the transaction costs of presale measurement and contract enforcement and monitoring are derived and tested using private timber sales contracts from north carolina the empirical results provide strong support for the transaction costs approach and also reject several predictions from a risk based model the transaction costs framework also provides insights into the choice between negotiated and competitive sales procedures

co2 emissions embodied in china us trade input output analysis based on the emergy dollar ratio to gain insight into changes in co2 emissions embodied in china us trade an input output analysis based on the emergy dollar ratio edr is used to estimate embodied co2 emissions a structural decomposition analysis sda is employed to analyze the driving factors for changes in co2 emissions embodied in china s exports to the us during 2002 2007 the results of the input output analysis show that net export of co2 emissions increased quickly from 2002 to 2005 but decreased from 2005 to 2007 these trends are due to a reduction in total co2 emission intensity a decrease in the exchange rate and small imports of embodied co2 emissions the results of the sda demonstrate that total export volume was the largest driving factor for the increase in embodied co2 emissions during 2002 2007 followed by intermediate input structure direct co2 emissions intensity had a negative effect on changes in embodied co2 emissions the results suggest that china should establish a framework for allocating emission responsibilities enhance energy efficiency and improve intermediate input structure

real time search in the laboratory and the market the standard model of labor market search posits repeated infinite horizon search from a fixed distribution of wages in a stationary environment under these circumstances the optimal search policy has a reservation wage property i e the decision to accept an offer involves a comparison of the offer with a time invariant constant w which itself is a function of the parameters characterizing the search environment a wage offer greater than or equal to w is accepted while any other is rejected and search is continued some early empirical job search studies however accumulated evidence of a declining trend in reservation wages over the course of an unemployment spell 1 since then several theoretical explanations for the declining reservation wage profiles have emerged all of which relax the stationarity assumption of the standard model for example reuben gronau 1971 assumes searchers have finite lives kenneth burdett 1977 gerard j van den berg 1990 james albrecht and susan vroman 2005 and others model short term unemployment benefits albrecht pieter a gautier and vroman 2006 permit directed search to heterogeneous prospects 2 john p danforth 1979 and silvio rendon 2006 consider general liquidity con strained search and burdett and tara vishwanath 1988 model learning about the job offer distribution behavioral explanations for declining reservation wages have been suggested by braunstein and schotter 1981 schotter and braunstein 1982 and others in this paper we present the results of the first ever to our knowledge real time search laboratory experiment performed in an effort to investigate this falling res ervation wage phenomenon where field studies of unemployed search often rely on strong identifying assumptions to recover searchers unobservable reservation wages in the laboratory we are able to elicit subjects complete reservation wage profiles in an incentive compatible manner 3 further in the laboratory we are able to

does amd spur intel to innovate more we estimate an equilibrium model of dynamic oligopoly with durable goods and endogenous innovation to examine the effect of competition on innovation in the personal computer microprocessor industry firms make dynamic pricing and investment decisions while consumers make dynamic upgrade decisions anticipating product improvements and price declines consistent with schumpeter we find that the rate of innovation in product quality would be 4 2 percent higher without amd present though higher prices would reduce consumer surplus by 12 billion per year comparative statics illustrate the role of product durability and provide implications of the model for other industries

holdups and holdouts what do they have in common abstract the holdup and holdout problems arise in different contexts but they share certain fundamental similarities that have not generally been recognized this paper characterizes the commonalties between the two problems and their remedies

a combined input output and sensitivity analysis approach to analyse sector linkages and co2 emissions abstract this paper proposes a methodology which identifies the main productive linkages between activity branches in terms of co2 emissions and applies this methodology to the spanish case it suggests that emissions are related to the input output productive relationships within an economy to the co2 emissions intensity of sectors and to the structure of final demand of different sectors a formal analysis of these factors is carried out by means of an input output framework combined with sensitivity analysis and lineal programming the most co2 emissions intensive productive relationships in spain are shown this consideration of the main linkages contributes to the identification of the key sectors and facilitates the design of effective policy measures aimed at co2 emissions abatement

analyzing the extent and influence of occupational licensing on the labor market this study examines occupational licensing in the united states using a specially designed national labor force survey estimates from the survey indicated that 35 of employees were either licensed or certified by the government and that 29 were licensed another 3 stated that all who worked in their job would eventually be required to be certified or licensed bringing the total that are or eventually must be licensed or certified by government to 38 we find that licensing is associated with about 18 higher wages but that the effect of governmental certification on pay is much smaller

economic structure and strategies for greenhouse gas mitigation abstract greenhouse gas ghg emission mitigation policy impacts the economic system directly in the short term by altering relative prices and indirectly in the long term by shifting the structure of the economy there may also be adjustments to economic structure independent of policy intervention due to changes in population consumption patterns and global markets the overall effectiveness of specific mitigation policy will partly depend on these indirect and exogenous changes to economic structure this study develops a new measure linking economic development with its environmental effects the technical cost of ghg mitigation under economic growth in an economy is calculated by combining traditional input output io analysis and a linear programming based sensitivity analysis the approach is applied to northern ireland ni producing an isoemission matrix that maps emission neutral expansion paths for the economy the measurement provides an indicator of the demand for technical improvement to achieve ghg mitigation at a national or regional level the flexibility and transparency of the approach make it useful for evaluating potential ghg mitigation strategies