the pricing of durable exhaustible resources partial or total durability characterizes a large class of exhaustible resources hotelling s r percent rule will apply to a durable resource produced in a competitive market but will not apply if the resource is produced in a monopolistic market however the r percent rule does not mean that price is steadily rising it is shown that in general the competitive market price will fall initially as the stock in circulation increases and later will rise as the stock decreases and eventually depreciates toward zero after production ceases accounting for durability may thus help explain the u shaped long term price profiles observed for many resources 11 references 3 figures

long term competition in a dynamic game the cold fish war this article presents a model of credible voluntary collective agreements in a dynamic game these agreements are implicit in collections of history dependent threat strategies i consider the strategies in a game of resource exploitation credibility is represented by perfect equilibrium voluntarism requires at least that all behavior be supported by the threat of collapse of the agreement which would return the players to the memoryless equilibrium collective rationality requires that the agreement be robust to the possibility of mutually beneficial renegotiation i analyze the set of agreements meeting each of these restrictions

on the international spillovers of us quantitative easing this article analyses the effects of the federal reserve s quantitative easing qe on global portfolio flows differentiating across recipient region of the flows type of flow and qe rounds furthermore the analysis differentiates between the impact of qe expansionary announcements and the actual market operations the analysis shows that qe1 resulted in slight rebalancing towards the us while qe2 and qe3 resulted in rebalancing towards non us assets this suggests that qe increased the pro cyclicality of flows outside the us in particular into emerging market equities the results also suggest a link between us macro financial conditions and the transmission of qe to portfolio flows

evaluating the comprehensive benefit of eco industrial parks by employing multi criteria decision making approach for circular economy abstract with the increasing conflicts among economic growth environmental deterioration and resource shortage as an effective way to achieve the sustainable development and circular economy the eco industrial park gradually becomes a critical research issue in the field of recycling economy in this paper a hybrid framework for evaluating the comprehensive benefit of eco industrial parks from the perspective of circular economy was proposed firstly the evaluation index system for eco industrial parks was constructed by employing the grey delphi method according to the opinions provided by experts from relevant fields which includes economic benefit criteria social benefit criteria environmental benefit criteria ecology industry construction criteria and management level criteria consisting of seventeen quantitative sub criteria and nine qualitative sub criteria secondly in order to solve complicated uncertain and ambiguous problems under the fuzzy background a hybrid multi criteria decision making mcdm approach was put forward on the basis of superiority linguistic ratings and entropy weight method for weight determination as well as fuzzy vikor for ranking alternatives finally the effectiveness and practicality of the proposed hybrid mcdm approach was demonstrated through a case analysis of six representative eco industrial parks in china and the comprehensive benefits of six eco industrial parks were prioritized effectively the hybrid mcdm approach in this paper presents a great potential in evaluating and ranking the comprehensive benefits of eco industrial parks through solving complex and ambiguous problems in a fuzzy environment and varying mcdm tools the evaluation findings by employing the proposed mcdm approach can provide references for the construction and management of eco industrial parks and relevant policy formulation

the tragedy of the commons in a violent world earlier research has shown that the tragedy of the commons may be resolved by folk theorems for dynamic games in this article we graft on a standard natural resource exploitation game the possibility to appropriate the resource through violent means because conflict emerges endogenously as resources get depleted the threat supporting the cooperative outcome is no longer subgame perfect and thus credible the unique equilibrium is such that players exploit noncooperatively the resource when it is abundant and they revert to conflict when it becomes scarce the players utility is shown to be lower even if conflict wastes no resources

common property resources storage facilities and ownership structures a cournot model of the oil market during the last decade economists have tried hard to convince meadows and his followers that market forces do not tend to exhaust our natural resources too rapidly as compared with the requirements of an intertemporal pareto optimum it is well known now that under well defined property rights and correct price expectations a competitive extraction industry brings about a pareto optimal depletion path and it has been shown that oligopolistic and monopolistic market structures may even produce a bias towards conservation 1 it is still an unresolved issue however which extraction path will result if property rights are imperfectly defined following the pioneering work of gordon 1954 there has been a large body of literature demonstrating that in the extreme case of free entry and myopic profit maximization there are strong reasons for excessive extraction 2 but this literature hardly yields reliable conclusions for the perhaps more realistic case where firms derive their behaviour from intertemporal optimization and where there is a common ownership but limited access to the resource the basic intuition behind the common pool problem is that the individual agent chooses an extraction policy other than the one he would choose under well defined property rights since he is afraid that part of the resource he leaves underground will be extracted and sold by others 3 despite the simplicity of this intuition there does not seem to be any publication that analyses it within an intertemporal equilibrium model with rational and far sighted agents this is the motivation for the present approach the approach studies the common pool problem in the context of an oligopolistic world market for oil it posits a given number of identical firms extracting oil from holdings between some of which there is mutual seepage the firms sell the extracted oil in the same market or they store it in privately owned seepage proof tanks each firm derives its behaviour from intertemporal optimization under perfect foresight of the time paths of the model variables but cournotesque conjectures about the reactions of its competitors except for the assumption of storage facilities this specification is closely related to models previously studied by khalatbari 1977 and kemp and long 1980 essay 10 4 the two models are very similar but they yield strikingly different conclusions while kemp and long find that the extraction path chosen by the firms is pareto optimal i e that the price of the resource rises at a rate given by the market rate of interest khalatbari contends that there is over extraction kemp and long convincingly demonstrate that khalatbari s model suffers from an inconsistency in the way the individual firm expects its rivals to respond to its own actions and they argue that this inconsistency is the reason for the divergence in results thus the casual reader gets the

trying to explain home bias in equities and consumption investors hold a substantially larger proportion of their wealth portfolios in domestic assets than standard portfolio theory would suggest a phenomenon called equity home bias in the absence of this bias investors would optimally diversify domestic output risk using foreign equities therefore consumption growth rates would tend to co move across countries even when output growth rates do not empirically however consumption growth rates tend to have a lower correlation across countries than do output growth rates a phenomenon i call consumption home bias in this paper i discuss these two biases and their potential relationship as suggested by the literature

on the industrial ecology potential in asian developing countries abstract this paper focuses on the current situation in the adaptation and adoption of industrial ecology in asian developing countries adcs the objective of this paper is to consider the possibilities to develop an eco industrial development eid strategy for these developing countries we review the regional indigenous resources of adcs and use the strengths weaknesses opportunities and threats swot grouping to classify the preconditions of industrial ecology in adcs the authors of this paper argue that unlike the usual way of applying industrial ecology as a technical tool or a practical instrument adcs need to adopt industrial ecology as a strategic vision and as a strategic approach to plan the economic social and ecological development of their national economies in this way it can be possible for the adcs to avoid the same problems that occurred when the developed countries experienced industrialization and rapid economic growth and move toward more sustainable development

us investment in global bonds as the fed pushes some emes pull we analyse reallocations within the international bond portfolios of us investors the most striking empirical observation is a steady increase in us investors allocations towards emerging market local currency bonds unabated by the global financial crisis and accelerating in the post crisis period part of the increase in emerging market economy eme allocations is associated with global push factors such as low us long term interest rates and unconventional monetary policy as well as subdued risk aversion expected volatility but also evident is investor differentiation among emes with the largest reallocations going to those emes with strong macroeconomic fundamentals such as less volatile inflation and more positive current account balances

perspectives on finland s sustainable consumption and production policy abstract the finnish approach that is starting from the basic human needs of food housing mobility and related lifestyles enables us to address the social dimension of sustainable development alongside the ecological and economic dimensions in this context environmental problems cannot be resolved in isolation from people s everyday lives as can happen if environmental policies are based purely on emissions but it is also worth questioning the potential for national scp programmes in today s global markets over the last ten years domestic material flows within the finnish economy have remained fairly constant with gains in material efficiency cancelled out by increasing levels of material consumption however external material flows and the consequent environmental impacts have steadily increased and the magnitude and environmental impacts of both imports and exports are approximately the same as for domestic flows this means that the role of external material flows can no longer be ignored in national scp policies it is also important to integrate scp with climate policies finland s national climate and energy strategy is mainly based on the need to reduce co 2 emissions from energy production and industrial installations but there is also a need for complementary actions to reduce the carbon footprints caused by private and public consumption

a private property rights regime to replenish a groundwater aquifer groundwater management is often reactive and in some cases the groundwater stock groundwater table of an aquifer may fall below its optimal steady state level before any thought is given to management this paper examines a private property rights regime to restore a groundwater resource to its optimal steady state results from a stochastic dynamic programming model of madera county california show that the private property rights regime recovers about 95 percent of the potential gain from groundwater management

promoting industrial symbiosis empirical observations of low carbon innovations in the humber region uk industrial symbiosis has been identified as a strategy to increase resource efficiency lower carbon emissions and increase business growth one type of industrial symbiosis is the innovative use of wastes from one company as a resource for another company however empirical understanding of implementing waste to resource innovations and hence how they can be promoted by public and private organisations is still limited therefore this study explored how companies implemented waste to resource innovations in the humber region uk five case studies were conducted with companies that used or supplied a secondary biomass resource for power generation or fuel manufacturing this article discusses how companies developed relations with biowaste resource suppliers or clients the results expanded operational understanding of waste to resource innovation processes as it revealed companies activities and their strategic considerations comparing the case studies the social processes through which relations between biowaste resource partners developed were largely similar however two different networking strategies were identified some companies had to engage new industries and therefore diversified their resource partners during the innovation process but strived to limit the number of resource partners once the innovation was realised conversely others expanded activities within their network and hence strengthened existing relations during the innovation but strived to increase the number of resource partners afterwards to manage risky over dependencies within their supply network finally resource security economic benefits and policy and regulation were of key importance to conclude operational and strategic insights to promote the uptake of waste to resource innovations are presented however further research is necessary before broad generalizations can be considered

approaches and policies for promoting industrial park recycling transformation iprt in china practices and lessons abstract industrial park recycling transformation iprt was one of the major circular economy construction demonstration programs in the 12th five year plan issued by the china state council in 2012 it comprised of 7 major tasks to transform traditionally high resource and energy intensive production into high efficiency and low pollutant production by 2017 129 industrial parks had been approved for iprt by the national development and reform commission ndrc this paper presents a thorough review on iprt content policies and practices with some lessons and suggestions for further development six types of projects were supported by national funds which included industrial chain extension and complementary projects water conversion and recycling projects energy saving projects pollution prevention projects platform construction projects and infrastructure construction sharing projects case studies show success for each case however deficiencies in industrial development management policy making and information sharing also emerged two suggestions were put forward first investment should be diverted from traditional industries to new industries past cases have shown that traditional industries have a greater risk of obsolescence failure in one park has already created a cascading effect on other enterprises in the park secondly the government led model should be transformed into a government and market co led model the government could establish more effective incentive and restraint mechanisms to attract participation from enterprises and or social capital information sharing platforms for example benefit enterprises by increasing awareness for circular economy projects to both private and public actors

duopoly in exhaustible resource exploration and extraction strategic considerations of exploration and extraction are investigated in a two player two period two stage perfect equilibrium framework relative to two plant monopoly the duopolists explore more and extract more period by period a mixed game in which there is co operation upstream in exploration and cournot competition down stream in quantitites extracted is investigated we also note that increasing returns to scale in exploration can introduce an unstable solution with a corner solution the presumed stable equilibrium

home bias in global bond and equity markets the role of real exchange rate volatility abstract this paper focuses on the role of real exchange rate volatility as a driver of portfolio home bias and in particular as an explanation for differences in home bias across financial assets we present a markowitz type portfolio selection model in which real exchange rate volatility induces a bias towards domestic financial assets as well as a stronger home bias for assets with low local currency return volatility we find empirical support in favour of this hypothesis for a broad set of industrialized and emerging market countries not only is real exchange rate volatility an important factor behind bilateral portfolio home bias but we find that a reduction of monthly real exchange rate volatility from its sample mean to zero reduces bond home bias by up to 60 percentage points while it reduces equity home bias by only 20 percentage points

the role of policy instruments in the innovation and diffusion of environmentally friendlier technologies popular claims versus case study experiences abstract moving towards sustainability will require that new environmentally friendlier technologies are developed and widely adopted policy instruments that promote eco efficiency are therefore necessary some claims frequently made in the literature on the relationship between policy instruments and technological development are examined the claims concern regulations environmental taxation and funding of research and development the claims are explored on the basis of empirical evidence from two sectors the pulp and paper industry and the marine engine industry little support was found for some of the claims in some cases even contradictory findings and for some claims the findings differed between the sectors and even within a sector depending on the issue

industrial ecosystems as technological niches abstract in this paper we consider industrial ecology as a novel and distinct state in the evolution of production systems trajectory more specifically adopting an evolutionary institutionalist s perspective at the socio technical system level of analysis we discuss the transition towards an industrial ecology inspired industrial production system through the governance approach of strategic niche management snm towards this end the paper first develops industrial ecology as a novel state of the industrial production socio technical system paying particular attention at its technological component then it discusses in detail the transition of this system through snm and examines whether existing implementations of the industrial ecology industrial ecosystems and eco industrial parks are efforts embracing this philosophy and transition procedures we conclude by stressing the importance of adopting the technology policy and strategic niche management perspectives in eco industrial projects and we provide insights for accomplishing it in a more effective manner

the european commission s sustainable consumption and production and sustainable industrial policy action plan abstract the promotion of sustainable consumption and production patterns is enshrined as a key objective in the renewed european union sustainable development strategy eu sds sustainable consumption and production is arguably the most challenging aspect of the eu sds it requires changes to the way products and services are designed produced used and disposed of taking into account producer and consumer behaviours this paper reviews the european commission s communication on the sustainable consumption and production and sustainable industrial policy action plan introduced on july 16 2008 the paper examines the priority areas identified for action the means adopted to improve energy and environmental performance of products as well as uptake by consumers the paper concludes that the absence of mandatory quantifiable targets and deadlines and a reliance on both cross sectoral and multi level relationships are likely to weaken the ability of the action plan s fundamental objective of decoupling economic growth from resource use

governing a groundwater commons a strategic and laboratory analysis of western water law we examine strategic behavior in groundwater depletion within the setting of state governance of groundwater resources in the american west solving a dynamic common pool resource model for its optimal solution and its subgame perfect equilibrium provides benchmarks for behavior observed in laboratory experiments three forms of legal rules common pool depletion with a rule of capture to establish ownership absolute ownership doctrine entry restrictions prior appropriation doctrine and stock quotas correlative rights doctrinekre examined in terms of their impact on individual strategic behavior in laboratory experiments

the pricing of durable exhaustible resources comment in its simplest form hotelling s 1931 r percent rule states that in a competitive market with no extraction costs the price of an exhaustible resource will grow at the rate of interest for instance if price grows at a rate slower than the rate of interest it is in the interest of each firm to sell its entire stock immediately the hypothesized price path is obviously not an equilibrium even if there are extraction costs and firms are not identical it remains true that price net of marginal cost rises at the rate of interest the proposition generalizes to monopolized resources along the equilibrium path of extraction net marginal revenue grows at the rate of interest in a recent article in this journal levhari and pindyck 1981 henceforth l p show the r percent rule extends to durable exhaustible resources in a competitive market but they conclude that it does not hold in a monopoly market this is a surprising result following the hotelling logic should it not be possible for the monopolist to rearrange production from low net marginal revenue dates to high net marginal revenue dates and raise its present value the primary purpose of this comment is to show that hotelling s rule does in fact hold this is shown in section ii our result is compared with that of l p in section iii the conflict is shown to arise from a disagreement over the relevant marginal revenue in continuous time increasing the flow of production of a durable good at a particular point in time has no effect on the sales price at that or any other point in time hence the rate of change in the flow of revenue at that particular point in time is the sales price this is the definition of marginal revenue l p use however durables are different from nondurables in that a perturbation in the production trajectory over some length of time will affect the entire sales price trajectory in choosing its

the forgotten history of domestic debt there is a rich scholarly literature on sovereign default on external debt comparatively little is known about sovereign default on domestic debt even today cross country data on domestic public debt remains curiously exotic particularly prior to the 1980s we have filled this gap in the literature by compiling a database on central government public debt external and domestic the data span 1914 to 2010 for most countries reaching back into the nineteenth century and earlier for many our findings here on debt sustainability sovereign defaults the temptation to inflate and the hierarchy of creditors only scratch the surface of what the domestic public debt data can reveal first domestic debt is big for the 64 countries for which we have long time series domestic debt accounts for almost two thirds of total public debt for most of the sample this debt carries a market determined interest rate except for the financial repression era between wwii and financial liberalization second the data go a long way toward explaining the puzzle of why countries so often default on their external debts at seemingly low debt thresholds third domestic debt has largely been ignored in the vast empirical work on inflation in fact domestic debt a significant portion of which is long term and nonindexed is often much larger than the monetary base in the run up to high inflation episodes last the widely held view that domestic residents are strictly junior to external creditors does not find broad support

learning about and exploiting exhaustible resource deposits of uncertain size the kemp loury model of a single uncertain deposit is cast in an n state framework and optimal programs characterized robson s problem of arranging the optimal sequence of uncertain deposits is recast and a market failure involving the jointness of learning about deposit size and gaining revenue from extracted ore is isolated the value of learning by preliminary extraction is characterized and extensions to the problem of arranging optimal sequences are noted this abstract was borrowed from another version of this item

cartel stability in an exhaustible resource model a simple oligopolistic common pool exhaustible resource game is considered by analysing punishment strategies including optimal punishments it is possible to determine which cartel agreements are implementable in a non cooperative play of the game joint profit maximizing allocations are sustainable for sufficiently low discounting but in general it is shown that no folk theorem exists for this model in particular for sufficiently high elasticities of demand it is shown that optimal punishments are not sufficiently severe to enforce most stationary symmetric extraction paths thus confirming the hypothesis that sufficient market power is needed for a cartel to be stable a simple common property exhaustible resource model in a discrete time infinite horizon framework will be considered by looking at punishments levelled against firms that deviate from an implicitly agreed extraction path it is possible to examine the extent to which different allocations can be supported as non cooperative equilibria we shall pay particular attention to the question of whether punishments can be severe enough to sustain implicit agreements that maximize joint profits and to the idea pindyck 1979 that cartel stability depends crucially upon market power this non cooperative approach to the question of cartel stability has been used by porter 1983 in a repeated oligopoly model with imperfect information see also green and porter 1984 while we assume perfect observability here the model is compli cated by the existence of a state variable in the form of the resource stock moreover we shall apply the idea of optimal punishments in this dynamic model abreu et al 1986 1990 have looked at general properties of the equilibrium set in the green porter model what we find is that by considering a more general strategy space than that conventionally studied cooperative extraction rates are sustainable in equilibrium for low enough discount rates in contrast to the over extraction results often obtained moreover in this model the predictions concerning the range of possible sustainable equilibria as the discount rate approaches zero are sharp while the cooperative solution belongs to the set of equilibria for low discount rates constant symmetric extraction paths below the maximum possible rate fail to be sustainable in the limit if the elasticity of demand is sufficiently high thus for low discount rates only extraction rates close to the cooperative rate are sustainable together with disagreement equilibria which involve very high extraction rates these results are in sharp contrast to those obtained from repeated games where in the limit the range of equilibria is very large the difference is explained by the existence of a state variable in the form of a declining stock of the resource these results are also in contrast to what can happen in our model when the demand elasticity is lower all constant symmetric extraction paths may be sustainable for low enough

key drivers for unsustainable resource use categories effects and policy pointers abstract prevailing resource use patterns of the global socio industrial metabolism are unsustainable an increasing number of people globally require ever more materials including energy carriers land and water for rising living standards and lifestyles converging towards western industrialised patterns therefore these resources will continue becoming both scarcer and depleted while environmental impacts associated with their consumption e g run away climate change will continue to rise for effective resource policies drivers for such unsustainable resource use and their effects need to be better understood and mapped by means of meta analysis of more than 60 sources of relevant literature we identified a set of ten driver categories that affect unsustainable resource use inter alia prevailing consumption and production patterns use and design of infrastructure and technology underlying paradigms and world views resource prices and the level of knowledge and information of resource users cumulative effects of the drivers contribute for instance up to 30 of phosphorus loss from soil and around 30 of building energy loss globally although the data does not allow clear cut causal attribution of effects it enables the distinction between direct and indirect drivers in relation to a multi dimensional network of drivers causing unsustainable resource use resource policy should combine policy objectives and instruments into policy mixes to target key drivers and their interrelations while policy mixes need to respond to context specific driver settings targeting consumer behaviour emerges as a general driver focus of policy mixes combining different instrument types and implementing them in a time dynamic sequence can mitigate trade offs between different instruments and in the longer term increase feasibility of profound behaviour changes

preference for output price uncertainty by the non renewable resource extracting firm abstract we establish a general preference for price uncertainty by the price taking risk neutral non renewable resource extracting firm with orthodox convex extraction costs we prove that the relevant value function for profits over an interval is convex in output price

understanding bilateral exchange rate volatility abstract this paper develops an empirical model of bilateral exchange rate volatility we conjecture that for developing economies external financial liabilities have an important effect on desired bilateral exchange rate volatility above and beyond the standard optimal currency area oca factors by contrast industrial countries do not face the same set of constraints in international financial markets in our theoretical model external debt tightens financial constraints and reduces the efficiency of the exchange rate in responding to external shocks we go on to explore the determinants of bilateral exchange rate volatility in a broad cross section of countries for developing economies bilateral exchange rate volatility relative to creditor countries is strongly negatively affected by the stock of external debt for industrial countries however oca variables appear more important and external debt is generally not significant in explaining bilateral exchange rate volatility

equity and bond flows to latin america and asia the role of global and country factors abstract this paper investigates the factors motivating the large capital flows to a number of developing countries in recent years we use monthly us capital flows to nine latin american and nine asian countries to analyze the behavior of bond and equity flows employing a panel data approach we find that although global factors the drop in us interest rates and the slowdown in us industrial production are important in explaining capital inflows country specific developments are at least as important especially for asia we also find that equity flows are more sensitive than bond flows to global factors but that bond flows are generally more sensitive to a country s credit rating and secondary market debt price

the benefits of a brazilian agro industrial symbiosis system and the strategies to make it happen abstract alcohol fuel is generally presented as a sustainable fuel in comparison with other fossil fuel due to lower emissions during production and combustion steps as well as due to its assumed closed carbon cycle however assessing the brazilian traditional alcohol production cycle many social and environmental impacts may still be indicated burning pesticides biodiversity labor exploration high water consumption erosion and others based on the strategy of an agro industrial networking and symbiosis a project was designed to optimize the system by means of polygeneration and total integration of production steps the case presented in this paper is the project for a social and ecological agro industry model named geripa geracao de energia renovavel integrada a producao de alimentos which produces renewable fuel electricity and organic food besides the technical project an economic evaluation is also presented resulting into a five year pay back time in addition environmental and social aspects were evaluated by means the emergy synthesis methodology odum 1996 which assesses the value of all inputs through an estimate of the environmental work directly and indirectly required for their production and sustainable supply the emergy based comparison of geripa system and a traditional system in brazil indicates better performance of geripa with an emergy sustainability index of 1 26 much higher than for a traditional system 0 22 the project is presently under discussion with investors and government and if approved will be carried out in marginal and presently unused land in addition to providing an environmentally friendly process for food and energy production the project would generate new jobs opportunities for brazilian rural workers presently unemployed

the effect of inflation targeting and financial openness on currency composition of sovereign international debt abstract this paper analyzes the joint effect of inflation targeting and capital account openness in promoting changes to the currency composition of sovereign international debt in developing countries first using difference in differences in combination with entropy balancing we offer empirical evidence that the adoption of inflation targeting together with high capital account openness can significantly reduce the reliance on foreign currency denominated sovereign international debt we find that financially integrated inflation targeting countries have 11 percentage points lower foreign currency shares in their sovereign debt compared to non targeting countries second we determine the threshold level of financial openness that countries need to attain before they see the full benefits of inflation targeting third the joint effect of inflation targeting and capital account openness significantly increases three years after the policy implementation our results are robust to alternative specifications which include instrumental variables to account for the endogeneity of the policy

do favorable land price policy affect renewable energy industry evidence from photovoltaics abstract renewable energy is necessary for sustainable social and economic development this is particularly so with global energy shortages the continuous deterioration of ecosystems and the environment as well as the world population explosion this article qualitatively and quantitatively analyzes the effects and problems of chinese favorable land price policy on photovoltaics in examining the favorable land price policy in china this study develops a multiple linear regression model to study the effects of favorable land price policy on photovoltaic power and photovoltaic industry data used in this research was mainly collected from 20 provinces in china it is found that the development of pv in china has been greatly affected by the favorable land price policy in the end it is highly recommended that favorable land price policy should be continued for renewable energy systemic deficiencies can be overcome through continual reform and innovation of mechanisms

energy management on industrial parks in flanders in the race against climate change aiming for low carbon competitiveness flanders has initiated a carbon neutrality strategy on industrial parks building towards energy efficient buildings and processes acting as a stimulus for the production and consumption of green electricity however premises and internal process optimisation on industrial parks is not considered sufficient to limit greenhouse emissions in flanders structural transition is called for aiming for industrial clustering and energy autonomy based on renewables therefore the concept of industrial symbiosis is analysed to determine how it could improve the energy related carbon management on industrial parks this article explores the literature on industrial symbiosis and eco industrial parks searching for specific energy strategies and is illustrated with case studies energy management on industrial parks can be integrated in the entire development process and park management maximising efficiency is a promising local optimisation issue in which business should be engaged stimulated and facilitated by clustering buildings and processes by energy exchange collective production and joint contracting of energy services local synergies can be intensified yet uncertainty and variability in time of energy consumption can keep developers from tailoring industrial park design and utilities instead flexibility and solidity could be gained and the offer of business space could be diversified supported by a persevering issuing procedure to join similar and matching energy profiles energy management on industrial parks in flanders has only recently started but is expected to gain professionalism however further research is needed on this flexible design and thermal planning

a review on circular economy the expected transition to a balanced interplay of environmental and economic systems el articulo muestra un estudio en donde se proporciona una revision extensa de la literatura de las dos ultimas decadas con el proposito de captar las principales caracteristicas y perspectivas de la ce economia circular origenes principios basicos ventajas y desventajas modelado e implementacion de ce en los diferentes niveles micro meso y macro en todo el mundo los resultados demuestran que los origenes de la ce se basan principalmente en la economia ecologica y ecologia industrial

common pool equities an arbitrage based non cooperative solution to the common pool resource problem abstract it is proposed that a new type of property right termed a common pool equity can solve the common pool resource problem this equity may be presented to any firm that extracts from the resource for a share in profits it is shown that a profit arbitrage condition ensures that the market and socially efficient solutions correspond whenever market power is absent the cost externalities are fully internalized

uncovering industrial symbiosis potentials in a small island developing state the case study of mauritius small island developing states sids face a serious issue of sustainability as far as waste management within the industrial sector is concerned this paper makes an attempt at addressing the eventual practice of industrial ecology in sids with mauritius as a case study three major polluting industries namely the slaughterhouse edible oil refinery and the scrap metal recycling plant have been considered with a particular focus on the recycling of electric arc furnace slag as concrete aggregates along with the potential areas of applications for the different waste materials this research has also addressed the benefits barriers and factors for implementing industrial symbiosis projects within sids the most striking benefits are the preservation of the fauna and flora of the island and reduced dependency on developed countries for the importation of raw materials while the absence of a landfill disposal fee for non hazardous wastes and lack of awareness of industrial symbiosis projects have been identified as the main barriers to overcome these barriers a shift from manufacture consume dispose to manufacture consume recycle manufacture is recommended this study concludes that if a sustainable island is anticipated in the future a combination of recycling options along with all necessary factors such as technology funding from international organisations regulatory framework and involvement of stakeholders general public and non governmental organisations is required ultimately this would result in the establishment of networks among source and sink industries thus being in harmony with the environment

inefficiency of credible strategies in oligopolistic resource markets with uncertainty abstract the implications of different information patterns for firms in oligopolistic resource markets are considered the traditional open loop nash equilibrium with static information sets is one of many possible nash equilibria and is not suitable for stochastic environments when shocks to resource growth are serially uncorrelated there are no gains from conditioning the harvest on past stock levels and the feedback or credible nash equilibrium is the appropriate nash equilibrium concept this credible equilibrium assumes that firms have knowledge of current stocks of reserves which typically leads to more rapid extraction of the resource and possibly extinction since the open loop nash equilibrium is efficient when demand is iso elastic and extraction costs are zero it is clear that an increase in information can be detrimental to firms in the industry

groundwater use under incomplete information abstract this paper introduces a game theoretic model of groundwater extraction in a two cell aquifer under incomplete information a novel assumption is that individual users have incomplete knowledge of the speed of lateral flows in the aquifer although a user is aware that his neighbor s water use has some influence on his future water stock he is uncertain about the degree of this impact we find that the lack of information may either increase or decrease the rate of water use and welfare in a two period framework the relevant characteristic is the ratio of the periodic marginal benefits of water use depending on whether this ratio is convex or concave the average speed with which the aquifer is depleted decreases or increases when users learn more about the local hydrologic properties of groundwater in principle welfare may decrease even in cases when the groundwater allocation is closer to the efficient groundwater allocation

an emergy evaluation of complexity information and technology towards maximum power and zero emissions abstract this paper mostly deals with the role of energy matter and information flows within both environmental and human dominated systems sustainable growth and development of both kinds of systems require optimum use of available resources for maximum power output as suggested by lotka s maximum power principle lotka aj contribution to the energetics of evolution in proceedings of the national academy of sciences of the united states of america vol 8 1922 p 147 50 lotka aj natural selection as a physical principle in proceedings of the national academy of sciences of the united states of america vol 8 1922 p 151 5 recently restated by odum odum ht maximum power and efficiency a rebuttal ecol model 1983 20 71 82 odum ht environmental accounting emergy and environmental decision making n y john wiley sons 1996 as maximum em power principle within the framework of his emergy synthesis approach in times of declining resources this principle translates into increased efficiency and optimum use of any kind of waste and co products ecosystems and any self organizing systems always apply this strategy and their selection evolution mechanisms are based on their ability of growing on any untapped resource available in order to do so they increase the number of components and patterns for resource degradation in order to optimize the resource throughput and power output such a strategy also applies to human dominated economic systems where the ability of dealing with co products and wastes by means of appropriate designs as well as reuse and recycling processes may lead to zero emission patterns increased complexity optimal resource throughput minimization of emissions resource exchange among system s components and be the key for successful and sustainable development in this paper life cycle assessment and emergy synthesis approaches are suggested as joint tools for qualitative and quantitative evaluation of progresses towards industrial symbiosis and more sustainable production and consumption patterns within a zero emission framework

on the oligopolistic extraction of non renewable common pool resources in recent literature the extraction of common pool resources ha s been discussed under the aspect of whether or not they can be used efficiently when a finite number of agents has access to the resource the objective of this paper is the derivation of a necessary equilibrium condition in a simple model this condition has severe consequences for existence propositions in papers of m c kemp and n v long 1980 j mcmillan and h w sinn 1984 and j f reinganum and n l stokey 1985 copyright 1986 by the review of economic studies limited

efficiency inducing tax for a common property oligopoly the author characterizes the markov perfect tax that induces a common property oligopoly to extract efficiently a nonrenewable resource for linear and isoelastic demand he provides closed form expressions of the unique specific tax industry profits may be higher or lower in the oligopoly with the tax relative to the competitive equilibrium with property rights for linear or isoelastic demand there exists no feasible open loop tax that induces efficient extraction in this case the policymaker gains no advantage from being able to make binding commitments copyright 1992 by royal economic society

eco industrial park initiatives in the usa and the netherlands first lessons abstract since the introduction of the industrial ecology concept by frosch and gallopoulos in 1989 and the apparent success of the kalundborg industrial symbiosis project attention to planned eco industrial park eip development projects has grown all over the world this article includes data from six of these eip development projects three of the projects discussed are located in the netherlands and three in the us this article compares the differences in project approach and results on a national level the approach suggested is derived from the available eip development literature initial research indicates that the dutch eip projects are more successful than their us counterparts this difference in success can be mostly attributed to the fact that the us projects are initiated by local and regional governments that see the project as a way to improve the local regional economy with access to substantial government funds because of this heavy government involvement us companies are in general not interested in the project the more successful dutch projects on the other hand are mostly initiated by the companies themselves with financial and advisory support from the local and regional government

the structure of a contract and the theory of a non exclusive resource the process of arriving at a useful concept of analysis is not only slow and painful but also may go astray and attain nothing useful someone begins with one example or observation followed by a theory which is intuitively plausible a theoretical term associated with a vague concept is coined examples of a seemingly different type emerge which call for another theory the process goes on as examples and theories continue to accumulate the different categories under the same heading of analysis serve only to confuse and each associated theory becomes ad hoc such has been the fate of the concept of externality a more useful approach i think is via contractual conditions the example chosen for illustration is marine fisheries where the fishing right is taken

the history and current applications of the circular economy concept abstract the challenges of balancing industrial development environmental and human health and economic growth in china and elsewhere in the world are drivers for recent resource use and low carbon development strategies that include the application of the circular economy ce concept a central theme of the ce concept is the valuation of materials within a closed looped system with the aim to allow for natural resource use while reducing pollution or avoiding resource constraints and sustaining economic growth the objectives of this study are 1 to review the history of the ce concept to provide a context for 2 a critical examination of how it is applied currently thematic categories are used to organize the literature review results including policy instruments and approaches value chains material flows and products and technology organizational and social innovation the literature review illustrates the variability in ce project success and failure over time and by region ce successes key challenges and research gaps are identified the literature review results provide useful information for researchers as well as multi stakeholder groups who seek to define the ce concept in practical terms and to consider potential challenges and opportunities it presents when implemented

a case study of industrial symbiosis development using a middle out approach abstract industrial symbiosis is emerged as a collective multi industrial approach to improve economic and environmental performance through the use of wastes by products as substitutes for raw materials the development of is initiatives depends on the context in which they occur characterised in terms of social economic political spatial and temporal embeddedness as a consequence the context can be influenced to become more supportive of is through a continuous interactive process combining top down governmental directives and bottom up spontaneous business initiatives a strategy to develop and enhance this process is explored in this paper and described by the authors as a middle out approach policies and policy instruments introduced by governmental agencies provide objectives and incentives to businesses the middle out approach induces the development of a strategy to create positive feedback loops among agents e g government industries that may guide their actions into setting the conditions to support is emergence this paper provides a case study that discusses a regional development of is in portugal that highlights critical factors for success in implementing is and shows that the middle out approach can also be understood as an extension and combination of previous research on context factors and planned spontaneous approaches to is development

appropriation of common access natural resources through exploration the relevance of the open loop concept in this paper the open loop equilibrium is rehabilitated as a sensible concept for analyzing common property situations in a model of natur al resource exploration in which the sole motivation to explore prior to extraction arises from a strategic incentive to preempt competito rs a consistency rule to the exploration game is applied under which the commonality of reserves is preserved even if strategies are open loop under this rule the so often claimed efficiency of the common property open loop equilibrium is lost copyright 1988 by economics department of the university of pennsylvania and the osaka university institute of social and economic research association

replication of industrial ecosystems the case of a sustainable biogas for traffic solution abstract distributed energy systems are key in building a sustainable energy economy biofuels are an example of an industry that needs to be based on a system of rather small scale local production units due to the limited transportation radius of biomass moreover the benefits of biofuels are greater if their production is based on the integration of local production activities and consumption among traditionally separate industries as implied by the notion of industrial symbiosis such an arrangement however requires the establishment of industrial ecosystems that are customised to local conditions which increases costs and uncertainty for the involved stakeholders and the integrating company in this paper we discuss replication strategy as a means of transferring not only technical knowledge but also the business format to new locations thereby achieving economies of repetition the case of a biogas for traffic solution serves as an illustrative example we analyse the establishment of a vanguard ecosystem and assess the potential of replicating the solution in six other locations based on this we propose a replication framework that builds on functional modularisation collaboration mechanisms required for cooperating with the relevant stakeholders and organisational learning the replication approach is expected to be useful for the companies attempting to build sustainable distributed energy systems based on industrial symbiosis

optimal pricing use and exploration of uncertain natural resource stocks abstract units of natural resources to be called mines are assumed distributed over an unexplored territory according to a poisson process in space at any moment total reserves and unexplored land are given society can determine the rate of consumption and the rate of exploration reserves are drawn down by consumption and increased by discoveries made during exploration the amount of unexplored land is decreased by exploration at any moment the payoff of society is a concave function of consumption less a linear function of exploration with future payoffs discounted optimal policies are considered and in particular it is shown for a large amount of unexplored land the shadow prices of reserves and of unexplored land move in random cycles but show only a slight upward tread thereby casting some light on the failure of mineral prices to rise at the market rate of interest

the currency composition of international portfolio assets in this paper we empirically assess the importance of gravity type variables and measures of macroeconomic and financial volatilities in explaining portfolio holdings denominated across the main global currencies us dollar usd euro eur pound sterling gbp japanese yen jpy and swiss franc chf our findings underscore the importance of trade ties and common membership euro area we also find that international positions co move with the level of macroeconomic and financial uncertainty importantly we identify heterogeneous patterns at a currency level

using an optimization model to evaluate the economic benefits of industrial symbiosis in the forest industry in this work a model comprising a pulp mill a sawmill a district heating network and a biofuel upgrading plant is used to demonstrate how the mind method an optimization method based on mixed integer linear programming can be used to evaluate industrial symbiosis in the forest industry using this method both energy and material flows on both the supply and the demand side can be studied simultaneously the method can be used to find improvements in the structure of the modelled system to find the optimal operational strategy of a given system and to evaluate and compare different systems the total system costs for stand alone cases and integrated industrial symbiosis system configuration are compared generating results that can be used as decision support when planning industrial symbiosis initiatives in the forest industry the results of this study showed that there are financial benefits to industrial symbiosis compared to the same system operated in stand alone mode and that the industrial symbiosis configuration generates a more stable system however it is difficult to generalize the results from a case study and the main conclusion drawn is that it is possible to show that industrial symbiosis has economical benefits although the magnitude of these benefits needs to be evaluated from case to case

industrial symbiosis and the policy instruments of sustainable consumption and production abstract industrial symbioses iss and eco industrial parks eips are key concepts of industrial ecology ie the aim of iss and eips is to minimise inefficient material and energy use by utilising local by product and energy flows industrial symbioses tend to develop through spontaneous action of economic actors for gaining of economic benefit but these systems can be designed and promoted via policy instruments as well a literature review showed that national programmes for eco industrial parks can be found in different parts of the world in the action programmes and other sustainable consumption and production scp policy documents of the eu on the other hand industrial symbioses gain less recognition as a path to enhanced sustainable production in this article we consider this and also analyse how the evolution and environmental performance of an industrial symbiosis system centred on a finnish pulp and paper mill have been affected by scp policy instruments with regard to the system forming the subject of the case study and finnish industrial systems in general policy instruments have succeeded in reducing emissions but not in systematically encouraging operators toward symbiosis like activities all in all few studies exist on the overall impact of policy instruments promoting design of eco industrial parks it is not self evident that symbiosis like production systems would be sustainable in every case as the background assumptions for political promotion of eips suggest we concluded that industrial symbioses should be analysed and developed on a life cycle basis with documentation of the real environmental benefits due to efficient resource use and decreased emissions in comparison to standalone production iss can then bring eco competitiveness to companies in relation to scp tools such as environmental permits ecolabels and future product regulation based on the ecodesign directive in europe indirect encouragement of symbiosis through land use regulation and planning in such a way that material fluxes between companies are possible both in operations and in financial terms may prove effective the same holds for waste policies that encourage increased reuse of a company s waste by other enterprises

toward a research agenda for policy intervention and facilitation to enhance industrial symbiosis based on a comprehensive literature review the normative question what role should governmental policy play to facilitate the development of industrial symbiosis has received considerable attention of researchers however for several reasons the effects of governmental policy actions on industrial symbiosis are still not clear this article proposes a research agenda to clarify the mechanisms of policy intervention and facilitation of industrial symbiosis based on a comprehensive review of industrial symbiosis literature focusing on how policy is conceptualized and studied the results show that existing research lacks an explicit definition of policy and employs a static conceptualization of policy that is reinforced by comparative statics research methods we argue that a dynamic process perspective is crucial to reveal the actual mechanisms through which policy intervention and facilitation affect the evolution of industrial symbiosis building on this view industrial symbiosis research is connected with insights from policy sciences and the case of policy translation of circular economy and eco industrial park in china is investigated in order to illustrate that policy is at heart a dynamic process we conclude with a research agenda proposing that the key to reveal the mechanisms is to identify the sequence of events connecting policy process and industrial symbiosis practices

theoretical contribution of industrial ecology to circular economy abstract circular economy ce currently represents a viable option for countries governments academia and society to transform the linear and semi circular materials and energy flows into circular flows and obtain better sustainable benefits in this sense industrial ecology ie with its tools can assist in the transition to ce therefore the main goal of this paper is to present the theoretical contribution of ie to ce the methodology used was based on bibliometric analysis in the international context with regard to the bibliometric analyses we have identified that the evolution of ce would not be possible without the existence of ie concepts and tools especially with tools such as industrial symbiosis is and eco industrial parks eips furthermore three levels of ie contribution to ce were identified such as conceptual technical and policy aspects finally new ce based researches from an ie perspective with bibliometric analysis and with co citation networks are possible including solid waste management and policies

industrial symbiosis the case for market coordination abstract despite the fact that all successful documented cases of industrial symbiosis to this day have been self organizing some authors and development officials have suggested that increased public planning might deliver better results in this respect than spontaneously evolved market coordination this paper takes an historical approach to suggest that comprehensive planning is unlikely to live up to the expectations of its proponents the essay is structured as follows the first section provides short case studies of industrial symbiosis in highly different economic and institutional settings the essentially free market regime of victorian england and communist hungary 1948 1989 the available evidence suggests that market coordination proved much more favorable to the emergence of industrial symbiosis despite the elaboration of a comprehensive policy to that effect in hungary insights derived from the so called austrian critique of central planning are then used to explain this paradox the analysis presented suggests that the hungarian planners failure was not so much the result of the bad implementation of sound policies but the logical outcome of a top down approach s shortcomings policy implications for the public planning of industrial symbiosis in a mixed economy are then derived and the case for self organization is found more compelling the creation of more innovative institutions that will force firms to internalize their externalities while leaving them the necessary freedom to innovate is viewed as an urgently needed and promising path towards increased sustainable reuse of industrial by products

currency matters analyzing international bond portfolios abstract bonds denominated in the investor s currency are special we show this indirectly in a global dataset of bilateral bond holdings indirectly because the global holdings dataset does not differentiate by currency denomination and then more directly in datasets of us holdings of foreign bonds that do differentiate by currency we find that the share of a country s bonds denominated in investors currencies is an important determinant of the amount of cross border investment it receives factors associated with greater or less cross border investment in bonds differ by currency denomination and one phenomenon of international portfolios the ever present home bias in some cases actually disappears when bonds are denominated in the investor s currency suggesting that the home bias is to some extent a home currency bias