developing countries and the future of the automobile industry abstract this paper reassesses the controversial view which has assumed that at some point in the future the global automobile industry having reached maturity would naturally migrate to the leading developing countries where the markets are growing more rapidly and wages are substantially lower the authors argue that the threshold facing a developing country seeking to establish a domestic automobile industry has risen because of two recent developments the rise of japan as a major automobile producer and a new wave of technological and organizational innovation this involves use of state of the art microelectronics and flexible manufacturing system as well as complete restructing of component supply resulting in considerable unit cost and lead time advantages the authors look at what these trends mean for both the oecd and the developing countries they outline the conventional view in more detail and then present an alternative analysis of the evolution of the industry new policy options for the developing countries are spotlighted

the price of pollution a dual approach to valuing so2 allowances under the 1990 clean air act amendments a market based scheme to reduce u s sulfur dioxide emissions takes effect in 1995 indications are that participation in the market will be light and allowance prices will be lower than was once expected using an output distance function approach for wisconsin coal burning utility plants we estimate the shadow price of so2abatement which should approximate the allowance price the estimated average shadow price is above the prices at which the few observed allowance trades have occurred wisconsin s stringent state so2legislation may explain a portion of this divergence

forward looking assessment of the ghg abatement cost application to china abstract evaluation of abatement costs is critical in setting reduction goals and devising climate policy however reliable forward looking assessment of the short term effects of climate policy remains a major challenge using panel data of 30 chinese provinces during 1997 2015 we first estimate the marginal co2 abatement costs using a novel data driven approach convex quantile regression based on the marginal abatement cost estimates and china s plans regarding carbon intensity reduction and economic growth we present a forward looking assessment of the abatement costs for chinese provinces for 2016 2020 our main finding is that all the chinese provinces have a negative abatement cost which means these provinces can benefit from an increase in the absolute level of co2 emissions despite the constraint on carbon intensity the magnitudes of economic benefits exhibit a significant regional disparity because some provinces can increase more co2 emissions than others however there is still costly carbon intensity abatement relative to a counterfactual where the provinces meet their economic growth targets but in the absence of the intensity reduction constraints policy implications have been proposed to enhance the efficiency and fairness of climate policy in china

the substitutability of non fossil energy potential carbon emission reduction and energy shadow prices in china abstract the rapidly increasing consumption of energy and fossil fuel dominated energy structure have caused great pressure on energy security and carbon reduction policies in china and the chinese government has attempted to substitute fossil with non fossil energy to investigate the feasibility of replacing fossil energy with non fossil energy in china we apply an input distance function to estimate the substitutability of non fossil energy for fossil energy and compare shadow prices the result confirms the feasibility of substituting non fossil energy for fossil energy we then divide the non fossil energy into nuclear energy and renewable energy and find that nuclear energy is more suitable than renewable energy to substitute for fossil energy the shadow price ratio of non fossil to fossil energy is 268 41 on average in the study period the ratio experiences several fluctuations and shows a declining trend at the end of the study period implying that improving energy structure in china is very promising

international sourcing and supply chain stability an international supply chain is conceptualized as a complex dynamic system in which disruptions interact with long shipping and lead times to generate costs findings from a case study and simulation model indicate that demand related disruptions created substantial and unexpected costs in terms of expedited shipping high inventories and lower demand fulfillment production related disruptions declined over time but demand related disruptions did not implications for management are discussed

weak disposability in nonparametric production analysis reply to fare and grosskopf fare and grosskopf this issue claim that a single abatement factor suffices for modeling weak disposability in nonparametric production models and that the kuosmanen 2005 technology that uses multiple abatement factors is larger than necessary this article demonstrates by a numerical example that a single abatement factor does not suffice to capture all feasible production plans and that its use leads to the violation of convexity one of the maintained assumptions of the model we also prove that the kuosmanen technology is the correct minimum extrapolation technology under the stated axioms

substitutability among undesirable outputs in recent years economists have started to move beyond calculating regulatory effects on a pollutant by pollutant basis since their interaction is important in this study we take up this issue to allow for joint production of multiple pollutants and marketable output we specify our technology using a directional distance function this allows us to treat pollutants as joint outputs yet accounts for their undesirability we estimate the distance function for a sample of coal fired electric power plants from 1985 to 1998 which includes the first 4 years of phase i of the clean air act amendments of 1990 we focus on the interaction between so2 and no x as they became more highly regulated and estimate shadow prices of the pollutants and the morishima elasticity of transformation between two pollutants no x and so2 as well as with respect to the desirable output kilowatt hours of electricity as expected we find that power plants increase no x emissions as they decrease so2 i e they are subs

directional shadow price estimation of co2 so2 and nox in the united states coal power industry 1990 2010 abstract shadow prices also termed marginal abatement costs provide valuable guidelines to support environmental regulatory policies for co 2 so 2 and no x the key contributors to climate change this paper complements the existing models and describes a directional marginal productivity dmp approach to estimate directional shadow prices dsps which present substitutability among three emissions and are jointly estimated we apply the method to a case study of co 2 so 2 and no x produced by coal power plants operating between 1990 and 2010 in the united states we find that dsp shows 1 1 times the maximal shadow prices estimated in the current literature we conclude that estimating the shadow prices of each by product separately may lead to an overestimation of the marginal productivity and an underestimation of the shadow prices

pollution from the electric power sector in japan and efficient pollution reduction abstract under the scheme of the kyoto protocol there are plans for the efficient reduction of carbon dioxide emissions in the electric power sector nuclear power generation which emits no carbon dioxide in the process of generating electricity has come under scrutiny however this energy produces a new environmental issue the disposal of radioactive waste first we derive shadow prices of carbon dioxide and low level waste as marginal abatement costs in the case of the electric power sector in japan employing a directional output distance function it is found that the shadow prices are us 39 per tonne for carbon dioxide and us 1531 per liter for low level waste secondly we calculate the indirect morishima elasticity between carbon dioxide and low level waste in order to identify their substitutability and it is found that the substitution of low level waste for carbon dioxide is easier than the reverse this result suggests that with the amount of generated electricity fixed carbon dioxide can be substituted more easily by low level waste when the relative price of carbon dioxide increases for example as a result of implementation of a carbon dioxide tax or an emissions trading system

marginal abatement costs of co2 emissions in the thermal power sector a regional empirical analysis from china abstract quantifying marginal abatement costs of co2 emissions are beneficial to estimate mitigation potentials and costs of china s regional thermal power sector based on the panel data of 30 provinces from 2004 to 2013 this study estimates the technical efficiency reduction potential and marginal abatement costs of co2 emissions from the thermal power sector in china using a parametric quadratic directional output distance function a regression analysis is undertaken to identify the factors that drive marginal abatement costs the main results are 1 the mean value of directional output distance function in china s thermal power sector is 0 0449 indicating that inefficient production of chinese thermal power sector accounts for 4 49 co2 emissions could be mitigated by accumulated 1 22 billion ton in the past ten year which is approximate 4 49 of total co2 emissions 2 the national weighted average marginal abatement costs of co2 emissions are 316 51 yuan ton which is far higher than carbon price in the current ets emission trading system pilots in china implying that carbon price does not inflect supply and demand of carbon allowance 3 the regression results show that the marginal abatement costs positively connect with regional power scale namely a 1 increase in power scale will result in a 13 8 increase technology level coal supply and power structure are negatively correlated with marginal abatement costs namely a 1 increase in technology level coal supply and power structure will result respectively in a 30 41 4 38 and 77 7 decrease

mixed strategy nash equilibrium in data envelopment analysis abstract in a typical productivity analysis the efficiency measure assumes a perfectly competitive market with an endogenous price and depends on a fixed orientation with respect to a specific firm such as an input oriented measure when an imperfectly competitive market affects the endogenous price however firms may take a mixed strategy approach to address uncertain competition this study proposes a mixed strategy measure msm we construct a model embedded with a data envelopment analysis dea framework that identifies the mixed strategy nash equilibrium in the first stage and considers a probabilistic and multi oriented efficiency measure in the second stage based on the environmental regulation and a typical nash measure we create two indices environmental consistency and strategic consistency to support the business roadmap development we validate the proposed msm with an empirical study of china s electric power industry the results find that the proposed msm complements the nash measure and the msm model successfully supports our two managerial strategies invest in capacity expansion or develop emission abatement technology

a new approach to measuring shadow price reconciling engineering and economic perspectives abstract shadow price is one of the most important pieces of information in environmental decision making two different approaches namely economic and engineering have been applied to obtain the shadow price of undesirable outputs while using different methodological backgrounds and perspectives the current study proposes a new conceptual framework and an economic estimation model to reconcile the shadow price estimates derived via the two approaches we also suggest a new mapping rule that incorporates the concept of abatement level which is a basic element in the engineering approach as a result the proposed model generates continuously changing estimates i e comprising a shadow price curve based on the abatement level we further investigate the determinant factors of shadow price by using second step regression the suggested methodology is used to investigate the shadow price of carbon emissions in south korean electricity generating plants thus yielding relevant policy implications

coordination demands of international strategies a study of fifty subsidiaries of multinational corporations shows a connection between their strategy and their use of different mechanisms of coordination the main finding is that subsidiaries pursuing strategies with a high degree of integration with their corporate parent make a much more extensive use of both formal and subtle coordination mechanisms than other firms in the sample these results are borne out in both static and dynamic tests they confirm previous literature on coordination mechanisms in organizations in general and apply that literature to the field of multinational corporations which are some of today s more important and complex business organizations

nash profit efficiency a measure of changes in market structures abstract imperfectly competitive markets can be characterized by endogenous prices limited or no competition and the exercise of market power to address the resulting dysfunctionality this study proposes an alternative efficiency measure estimated by the directional distance function ddf with the direction toward nash equilibrium and develops the nash profit efficiency npe and its decomposition which complements the typical profit efficiency measure we model the production possibility set and the price functions of inputs and outputs and then develop the mixed complementarity problem micp we validate the model with an empirical study of the oil and natural gas industry in new york state between 1981 and 1989 the results show that before 1984 firms exploited a less competitive market that between 1984 and 1986 the number of new entrants transformed the market and that after 1986 no firms could exercise market power due to market restructuring deregulation and an unforeseen oil glut based on the results we conclude that the direction toward nash equilibrium can be justified for efficiency estimation in imperfectly competitive markets and that npe is appropriate for investigating changes in market structures

valuation of marginal co2 abatement options for electric power plants in korea the electricity generation sector in korea is under pressure to mitigate greenhouse gases as directed by the kyoto protocol the principal compliance options for power companies under the cap and trade include the application of direct co2 emission abatement and the procurement of emission allowances the objective of this paper is to provide an analytical framework for assessing the cost effectiveness of these options we attempt to derive the marginal abatement cost for co2 using the output distance function and analyze the relative advantages of emission allowance procurement option as compared to direct abatement option real option approach is adopted to incorporate emission allowance price uncertainty empirical result shows the marginal abatement cost with an average of 14 04 ton co2 for fossil fueled power plants and confirms the existence of substantial cost heterogeneity among plants which is sufficient to achieve trading gains in allowance market the comparison of two options enables us to identify the optimal position of the compliance for each plant sensitivity analyses are also presented with regard to several key parameters including the initial allowance prices and interest rate the result of this paper may help korean power plants to prepare for upcoming regulations targeted toward the reduction of domestic greenhouse gases

meta data envelopment analysis finding a direction towards marginal profit maximization abstract this paper discusses a new meta dea approach to solve the problem of choosing direction vectors when estimating the directional distance function the proposed model emphasizes finding the direction for productivity improvement rather than estimating the score of efficiency focusing on planning over evaluation in fact the direction towards marginal profit maximization implies a step by step improvement and wait and see decision process which is more consistent with the practical decision making process an empirical study of u s coal fired power plants operating in 2011 validates the proposed model the results show that the efficiency measure using the proposed direction is consistent with all other indices with the exception of the direction towards the profit maximized benchmark we conclude that the marginal profit maximization is a useful guide for determining direction in the directional distance function

co2 emission abatement cost and its decomposition a directional distance function approach accurately estimating carbon dioxide co2 abatement costs and effectively identifying the factors impacting those costs can improve the applicability and effectiveness of policy implementation this paper proposes a new method to estimate co2 abatement costs cac based on the directional distance function the method theoretically decomposes cac into carbon productivity and output elasticity of substitutions this decomposition can identify the types of cac the method also investigates the effects of development mode selection on cac by selecting different directional vectors following the theoretical discussion an empirical study is presented focusing on high energy consumption firms in the united states u s the results were as follows 1 in sustainable development mode changes in the average cac of all firms were caused both by carbon productivity and output elasticity of substitution carbon productivity dominated cac differences among different firm types 2 in general the amelioration potential of firm technology and environmental management was gradually explored by firms during sample period corresponding environmental regulatory strategies are needed for firms with different cac characteristics 3 firms selecting different development modes will realize significant differences in cac firms in the sustainable development mode had the highest cac levels however this mode was best for achieving a win win between economic benefits and environmental protection

marginal co2 abatement costs findings from alternative shadow price estimates for shanghai industrial sectors abstract shanghai one of the most developed cities in china is implementing a pilot regional carbon emission trading scheme estimating the marginal abatement costs of co2 emissions for the industrial sectors covered in shanghai s emission trading scheme provides the government and participating firms useful information for devising compliance policies this paper employs multiple distance function approaches to estimating the shadow prices of co2 emissions for shanghai industrial sectors our empirical results show that the overall weighted average of shadow price estimates by different approaches ranges between 394 5 and 1906 1 yuan ton which indicates that model choice truly has a significant effect on the shadow price estimation we have also identified a negative relationship between the shadow price of co2 emissions and carbon intensity and the heavy industries with higher carbon intensities tend to have lower shadow prices it has been suggested that shanghai municipal government take various measures to improve its carbon market e g using the marginal abatement costs of participating sectors firms as a criterion in the initial allocation of carbon emission allowances

the transition to a market economy pitfalls of partial reform we present a theory of a partial economic reform of a planned economy similar to the one that took place in russia since 1988 and in china earlier in such a reform some markets are liberalized in the sense that producers can sell output to whomever they want including private firms at free prices but at the same time must sell to state firms at state prices we show that such a reform can result in a substantial diversion of subsidized inputs away from state firms and toward private firms even when state firms value these inputs more the result may be a reduction of total output the simple analysis sheds light on many consequences of the soviet reform such as breakdown of coordination of production increased state policing of delivery quotas prohibitions of trading cooperatives and opposition to privatization the model also explains why partial reform failed in russia but worked in china

why are stabilizations delayed when a stabilization has significant distributional implications e g tax increases to eliminate a large budget deficit socioeconomic groups may attempt to shift the burden of stabilization onto other groups the process leading to stabilization becomes a war of attrition each group attempting to wait the others out and stabilization occurring only when one group concedes and bears a disproportionate share of the burden the authors solve for the expected time of stabilization in a model of rational delay and relate it to several political and economic variables they motivate this approach and its results by comparison to historical and current episodes copyright 1991 by american economic association

the process of socialist economic transformation in this paper we consider the reform process in those central and east european countries that have made the decision to move from a more or a less planned socialist system to a private market economy one in which private ownership predominates and most resources are allocated through markets because the reform process is both complex and intertwined with political factors especially the shift towards representative democracy and because there are substantial differences among the reforming countries no single detailed road map can guide the way to the new systems rather the paper sets out general considerations that provide a framework for reform and relates the choices to some initial conditions of the various reforming countries the framework applies also to the soviet union or in the event of its disintegration to its successor states as they move to market systems

component sourcing strategies of multinationals an empirical study of european and japanese multinationals this is a study of component sourcing decisions of european and japanese manufacturers for supplying their manufacturing operations in their home countries for export to the u s as well as their operations in the united states specifically employing data from seventy one multinational manufacturers of european and japanese origin operating in the u s the study investigated the determinants of international sourcing decisions the authors found support for the hypothesis that international sourcing could be explained using international plant location theory the significance of this finding is that it offers a new theoretical framework to spur much needed research on the topic of international sourcing

the relationship between offshore sourcing and innovativeness of u s multinational firms an empirical investigation in increasingly complex global competition u s multinational firms have stepped up imports under items 806 30 and 807 00 of the tariff schedules of the united states as a part of offshore sourcing of components and finished products to serve the u s market

distinguishing operational performance in power production a new measure of effectiveness by dea measuring the efficiency of power plant systems requires capturing fluctuations in the level of sales to customers as well as accounting for the effects of regulatory caps on emissions this study proposes a novel effectiveness measure considering desirable outputs and undesirable outputs via data envelopment analysis dea the new measure complements typical efficiency measures we test the validity of the proposed measure with an empirical case study of the fifty u s states and the district of columbia we find that the current interregional electricity transmission plan increases 8 56 in effectiveness for the emissions control we suggest a 9 8 reduction in electricity generation towards an effective production frontier we conclude that the proposed effectiveness measure s ability to distinguish sales and regulation effects from typical productive efficiency eliminates the bias often found in currently used measures

circumstance and choice this article takes an integrated approach to evaluating the interaction of initial conditions political change reforms and economic performance in a unified framework covering 28 transition economies in east asia central and eastern europe and the fsu initial conditions and economic policy jointly determine the large differences in economic performance among transition economies initial conditions dominate in explaining inflation but economic liberalization is the most important factor determining differences in growth political reform emerges as the most important determinant of the speed and comprehensiveness of economic liberalization raising the important question of what determines political liberalization results suggest the importance of the level of development in determining the decision to expand political freedoms

messy marginal costs internal pricing of environmental aspects on the firm level abstract internal pricing of environmental aspects is usually not embedded in management accounting systems therefore we first show that pricing from a corporative perspective is possible and applicable contrary to common belief we also show that marginal costs curves of environmental aspects are often not monotonic and price changes are highly context specific we introduce a model that addresses different environmental aspects that translate into constraints or change direct cost factors in the objective function environmental constraints originate from different types of limit values concerning emissions and production processes as well as restraining the potential environmental damage as the outcome of ecological valuation methods direct cost factors include the taxation of emissions and costs stemming from being involved in the emissions trading market our model allows for calculating the marginal indirect costs of these environmental aspects as the constraints might enforce factor and product substitutions we show that the marginal costs differ substantially from the direct costs and do not follow a predictable pattern sensitivity analysis and parametric programming are applied to set up an internal pricing and cost allocation scheme for environmental aspects specifically focusing on the pricing of emissions resources and processes of production and recycling the model s implications on corporate decision making are illustrated by a numerical example that draws on the opportunity of process substitution e g producing a product on different machines even though we cannot use original data for proprietary reasons such settings are highly relevant in industry and the energy sector

marginal abatement costs of greenhouse gas emissions a meta analysis in this paper we carry out a meta analysis of recent studies into the costs of greenhouse gas mitigation policies that aim at the long term stabilisation of these gases in the atmosphere we find the cost estimates of the studies to be sensitive to the stringency of the stabilisation target the assumed emissions baseline the way in which the time profile of emissions is determined in the model the choice of control variable co2 only versus multigas the number of regions and energy sources in the model and to a lesser degree the scientific forum in which the study was developed we find that marginal abatement costs of the stringent long term targets that are currently considered by the european commission are still very uncertain but might exceed the costs that have been suggested by recent policy assessments

the architecture of globalization a network approach to international economic integration we combine data on international trade linkages with network methods to examine the global trading system as an interdependent complex network we map the topology of the international trade network and suggest new network based measures of international economic integration at both a global system wide level and a local country level we develop network based measures that incorporate not only the volume of trade but also the influence that a country has on the international trading system these measures incorporate the structure and function of the network and may provide a more meaningful approach to globalization than current measures based on trade volumes we find that in terms of participation and influence in the network global trade is hierarchical with a core periphery structure at higher levels of trade though integration of smaller countries into the network increased considerably over the 1990s the network is strongly balkanized according to geography of trading partners but not as strongly by income or legal origin using these new measures we find that a country s position in the network has substantial implications for economic growth we therefore suggest that a network approach to international economic integration has potential for useful applications in international business finance and development

the motor industry in an enlarged eu the motor industry in the first fifteen eu makes an enormous contribution to its economic prosperity this is manifest in the scale of employment output investment international trade and technological change the enlargement of the eu will see the full integration of the auto sector in the accession countries with the activities in the west to reinforce its already massive scale the nature of optimum size and the importance of economies of scale creates a bias to bigness in vehicle manufacture hence the auto industry in the accession countries consists largely of the local operations of transnational companies as car demand is income elastic the level of sales in the accession countries is relatively small but as the economies expand the potential is enormous this together with non scaler advantages such as low wage rates has attracted considerable investment by vehicle firms in the last fifteen years into the accession countries various tariff reduction agreements have meant that integration of the east central european motor industry with western operations has pre dated the current formal enlargement of the eu the countries that have done particularly well in attracting automotive investment have been poland the czech republic and particularly slovakia the recent history of the auto sector in the accession countries has not been without its problems the collapse of the command economies saw disruption in the market and the decline of the local indigenous car makers subsequently this was more than offset by new inward investment there has been no revival of the local commercial vehicle industry and further restructuring can be expected the long term survival of the auto component sector in the accession countries will depend on how the sector responds to the competitive challenges of free trade and enlargement however there are signs that significant high value added activities such as vehicle design and development will be sustainable in east central europe the motor industry in the accession countries will face its own challenges not least the tendency of the industry to anticipate formal integration this time it will mean expansion into eastern europe hence whilst the location of vehicle plants in the accession countries challenges the traditional centres of manufacture in the west including the periphery in turn they must be alert to even newer competition elsewhere

estimating the shadow prices of so2 and nox for u s coal power plants a convex nonparametric least squares approach abstract weak disposability between outputs and pollutants defined as a simultaneous proportional reduction of both outputs and pollutants assumes that pollutants are byproducts of the output generation process and that a firm can freely dispose of both by scaling down production levels leaving some inputs idle based on the production axioms of monotonicity convexity and weak disposability we formulate a convex nonparametric least squares cnls quadratic optimization problem to estimate a frontier production function assuming either a deterministic disturbance term consisting only of inefficiency or a composite disturbance term composed of both inefficiency and noise the suggested methodology extends the stochastic semi nonparametric envelopment of data stoned described in kuosmanen and kortelainen 2011 applying the method to estimate the shadow prices of so 2 and no x generated by u s coal power plants we conclude that the weak disposability stoned method provides more consistent estimates of market prices

sourcing strategies of european and japanese multinationals a comparison based on a typology of sourcing strategies this study identifies various sourcing patterns adopted by european and japanese multinational manufacturing firms in serving the u s market the study has found that the product s market performance is not at all related to its life cycle stage in world trade or to production location but is positively related to the internal components sourcing and negatively related to the product adaptation the findings strongly support levitt s call for a global product

the international reorganisation of auto production this paper analyzes the patterns of bilateral trade flows of auto components over the last decade by applying network analysis results show the rise of a number of emerging economies in asia and central and eastern europe as important parts suppliers but their role is still largely peripheral in fact there was a strengthening of the world s leading producers with a more hierarchical division of labor within their regions especially in europe regionalization of production declined in all of the groups of auto parts examined with the exception of electrical parts where a regional production network is emerging in asia

nash marginal abatement cost estimation of air pollutant emissions using the stochastic semi nonparametric frontier abstract emissions trading or cap and trade is a market based approach providing economic incentives for achieving reductions in the emissions of pollutants marginal abatement costs mac also termed shadow prices of air pollution emissions provide valuable guidelines to support environmental regulatory policies for co2 so2 and nox the key contributors to climate change smog and acid rain this study estimates the marginal abatement cost of undesirable outputs with respect to the nash equilibrium on the stochastic semi nonparametric envelopment of data stoned in an imperfectly competitive market considering an endogenous price function of electricity the mixed complementarity problem micp is formulated to identify the nash equilibrium in a production possibility set the proposed model addresses the four issues of mac estimation in the existing literature applying the proposed method to an empirical study of 33 coal fired power plants operating in china in 2013 shows that stoned provides a robust frontier that is not sensitive to the outlier and the proposed interval of mac estimation validates the shadow prices corresponding to the nash equilibrium in an imperfectly competitive market

the shadow prices of co2 and so2 for chinese coal fired power plants a partial frontier approach abstract shadow prices are widely employed in guiding environmental policies this paper contributes to the literature by developing a novel partial frontier approach for estimating shadow prices the proposed method is advanced in handling outliers and provides a precise estimation of the marginal rate of substitution along the production frontier to cope with the different disposability characteristics of undesirable emissions so2 is treated as an environmental input that is strongly disposable because most different undesirable outputs are jointly reduced this study is the first to use directional derivatives instead of partial derivatives and proposes a new separation method that separates individual directional shadow price from the cost of joint reduction of multiple undesirable outputs we apply the proposed method to a sample of 93 coal fired power plants covering six years the estimated average shadow prices of co2 and so2 are 69 tonne and 2525 tonne under the newly developed partial frontiers when assuming some undesirable output to be strongly disposable both shadow prices fall 20 32 tonne and 1018 23 tonne the present paper suggests the estimated shadow prices will be much different across different levels of disposability the cost of joint reduction is calculated as 91 05 unit given the current production level which leads to a directional shadow price for the two undesirable outputs of 91 32 tonne and 1250 06 tonne the estimated shadow prices for both undesirable outputs dispersed widely under the partial frontiers spatial distribution of estimated shadow prices shows that coastal provinces and municipalities have higher co2 shadow prices but lower so2 shadow prices whereas the northeast provinces are the opposite the co2 shadow price is comparatively stable over the study period while the so2 shadow price fluctuates policy implications are discussed

the fundamentals of the future international emissions trading system the study aims to analyze the sectoral marginal abatements cost curves for a number of eu countries as well as to examine the efficiency aspects and the economic impacts for the major sectors of the ets under different carbon market configurations in 2010 and 2020 to produce a consistent and realistic assessment we employ sources such as ghg national inventories naps and poles world energy model to constitute the sectoral base year and 2010 2020 emission levels in different countries and regions we then use the market analysis tool aspen which enables to derive supply and demand from sectoral maccs produced with the poles model and to evaluate the economic impacts on the carbon market participants the paper shows that in compliance with the kyoto targets the benefits of an enlarged carbon market are significant since more than 50 of the abatement in the short term have to be achieved in ets sectors which may indeed use cdm or ji credits a second major conclusion is that in 2020 the new flexibility margins provided by the adjustment of investments in new capacities compensate for the increase in pressure towards stronger emission reductions this reduces the relative importance of the enlarged carbon market

international manufacturing strategies of u s multinationals a conceptual framework based on a four industry study drawing upon complementary streams of research from the international production and manufacturing strategy literature a conceptual framework was developed that identifies the major internal and external factors that may influence a firm s international manufacturing configuration imc decisions the framework was then examined using sixteen companies drawn from four distinct industry sectors the findings indicate that a firm s competitive priorities expressed as the differential emphasis placed on four key manufacturing performance priorities in addition to other key variables such as market orientation experience and product characteristics play important roles in the development of imc strategies

transportation costs and international trade in the second era of globalization while the precise causes of postwar trade growth are not well understood declines in transport costs top the lists of usual suspects however there is remarkably little systematic evidence documenting the decline this paper brings to bear an eclectic mix of data in order to provide a detailed accounting of the time series pattern of shipping costs the ad valorem impact of ocean shipping costs is not much lower today than in the 1950s with technological advances largely trumped by adverse cost shocks in contrast air shipping costs have dropped an order of magnitude and airborne trade has grown rapidly as a result as a result international trade has also experienced a significant rise in speed

networks of value added trade global value chains gvcs require new methods for evaluating interconnections among countries which can no longer be accurately appraised by standard bilateral gross trade flows this paper uses tools of network analysis to examine the evolution of value added trade from 1995 to 2011 gvcs are very centralised and asymmetric networks with a few large economies acting as hubs which exposes them to the propagation of idiosyncratic shocks as gvcs expanded the networks of foreign value added in exports became denser more complex and intensively connected the regional dimension of gvcs is still dominant but is progressively giving place to a more global network networks of foreign value added in goods exports outpace those of services exports however foreign inputs of services are important for exports of both goods and services there is a striking rise of china as a supplier of value added while germany and the united states maintain a central role in gvcs over the whole period

environmental efficiency and abatement cost of china s industrial sectors based on a three stage data envelopment analysis abstract china has gained the reputation of global factory due to its phenomenal industrial growth over the past decades at the same time its industrial energy consumption has resulted in serious environmental problems accordingly there is an urgent and critical need to reduce industrial carbon emissions at a minimum cost without hampering the country s economic development the dual targets for carbon emission intensity and amount from the 12th five year 2011 2015 plan make it necessary to investigate the environmental efficiency and reduction costs of different sectors this study employs a three stage data envelopment analysis model based on a directional distance function approach with radial and non radial slacks of desirable and undesirable outputs considered to measure the environmental efficiency and marginal co2 emission abatement costs of china s 37 two digit industries during 2005 2014 based on the environmental efficiency and abatement cost of the industrial sectors we reached the following conclusions first the adjusted estimates differ significantly from the results that do not consider the influence of environmental factors and it is essential to consider the heterogeneity of industries in proposing emission reduction strategies in addition the stimuli for the smelting and pressing of metal industries result in cost reduction and the supervision on the top nine emitters and the equipment manufacturing industries should be strengthened finally the industrial sectors with large abatement potential are classified into short term and long term key target industries according to the emission abatement cost analyses

the applicability of marginal abatement cost approach a comprehensive review abstract the marginal abatement cost mac methodology is widely used in climate change policies policy makers rely on mac to assess feasible strategies and related costs to achieve emission reduction goals this paper introduces a variety of mac methodologies aiming at solving diverse problems which utilizes various calculable logic thus producing different results and implications this study applies a mind mapping method to capture differentiation of mac methods and systematically classify mac methodologies the applicability path analysis was proposed based on principles such as stakeholder type decision making objectives cost concept strategy mode and information scope our goal is to assess the applicability of different methodologies to reduce misuse by policy makers and to serve as a guide for subsequent research which might prompt and lead to the derivation of more consequential results in future studies the results of this study suggest that the complex method is not always better than the simplified method because policy makers are required to select the appropriate method according to the type of information needed it may even be suggested that mac could be reliable by ranking relative value of options compared with baseline rather than focusing on the absolute value of individual measures

weak disposability in nonparametric production analysis with undesirable outputs environmental economics and natural resources group at wageningen university in the netherlands weak disposability of outputs means that firms can abate harmful emissions by decreasing the activity level modeling weak disposability in nonparametric production analysis has caused some confusion this article identifies a dilemma in these approaches conventional formulations implicitly and unintentionally assume all firms apply uniform abatement factors however it is usually cost effective to abate emissions in those firms where the marginal abatement costs are lowest this article presents a simple formulation of weak disposability that allows for non uniform abatement factors and preserves the linear structure of the model

offshore sourcing reaction maturation and consolidation of u s multinationals the authors conducted a quasi longitudinal investigation of u s multinationals r d manufacturing offshore sourcing strategies and resultant global market performance implications utilizing comprehensive data collected by the 1977 1982 and 1989 benchmark surveys of u s direct investment abroad hypotheses were tested in a path analytic framework despite increased competition at home and abroad causing their global market share positions to weaken in recent years u s multinationals have maintained and even may have improved their global consolidated profitability levels by skillfully exploiting their technological prowess through technology transfer and off shore sourcing rapidly changing roles of u s parent firms and their foreign affiliates in technology development and global sourcing relationships portend a maturing yet arduous shift toward a global rationalization

macropolicies in transition to a market economy a three year perspective countries in transition to market economies have had to implement macroeconoimic stabilization programs at the same time that they were engaged in massive changes of their political institutions and the systemic framework of their economies what has been the interaction of stabilization with economic liberalization and deep institutional reform in the countries of eastern europe in particular the relations among initial conditions political developments reform strategies and outcomes experience in eastern europe suggests that when there is a political breakthrough as in the countries under review a radical stabilization liberalization stragety is probably the least risky approach to reform and will not constrain output or structural reform over the medium term even stabilization that is initially successful in containing inflation will later come under pressure because of social policies and the structural transitions impelled by reform several factors are identified that affect the credibility of reforms and lessons are derived for countries that have stabilized and those that yet face this task

financial contagion on the international trade network we combine data on international trade linkages with a network approach to map the global trading system as an interdependent complex network this enables us to obtain indicators of how well connected a country is into the global trading system we use these network based measures of connectedness to explain stock market returns during recent episodes of financial crisis we find that a crisis is amplified if the epicenter country is better integrated into the trade network however target countries affected by such a shock are in turn better able to dissipate the impact if they are well integrated into the network a network approach can help explain why the mexican asian and russian financial crises were highly contagious while the crises that originated in venezuela and argentina did not have such a virulent effect we suggest that a network approach incorporating the cascading and diffusion of interdependent ripples when a shock hits a specific part of the global trade network provides us with an improved explanation of financial contagion jel f10 f36 f40 g15

do markets differ much this essay reports the results of a crosssection study of differences in accounting profitability that sheds light on some basic controversies in industrial economics most previous cross section studies in this field have been concerned with testing hypotheses about structural coefficients in models meant to apply to essentially all markets as we have learned more about the difficulties of constructing such general models and of performing tests on their structural parameters properly structural cross section analysis has fallen out of fashion in contrast to most of the cross section literature the analysis reported here is fundamentally descriptive it does not attempt directly to estimate or to test hypotheses about structural parameters i hope to show by example that one can perform illuminating analysis of cross section data without a host of controversial maintained hypotheses cross section data can yield interesting stylized facts to guide both general theorizing and empirical analysis of specific industries even if they cannot easily support full blown structural estimation one can view the sort of search for stylized facts conducted here as either a replacement for or an input to interindustry structural estimation depending on one s feeling about the long run potential of that research approach this study also departs from much of the cross section literature by being fundamentally concerned with the importance of various effects not just with coefficient signs and t statistics in particular this essay provides estimates of the relative importance of firm market and market share differences in the determination of business unit divisional profitability in u s manufacturing using 1975 data from the line of business program of the u s federal trade commission ftc i find support neither for the existence of firm effects nor for the importance of market share effects moreover while industry effects apparently exist and are important they appear to be negatively correlated with seller concentration in these data section i relates firm market and share effects to current issues and controversies in industrial economics and thus supplies the motivation for our empirical analysis the remainder of the essay treats the data and

estimation and allocation of cost savings from collaborative co2 abatement in china abstract as an increasingly accepted way of relieving global warming collaborative carbon dioxide co2 abatement could improve not only emission performance but also cost effectiveness of abatement in this study we analyze the cost savings and benefits of collaborative abatement in the context of china by using data envelopment analysis dea approach specifically we establish 63 collaborative abatement scenarios by dividing the mainland china into six main regions and then estimate the costs savings in each collaboration abatement scenario through investigating the gains for each region in various scenarios the best collaborative partners for each region are suggested from perspectives of benefit maximization furthermore the contribution of each region to collaborative abatement cost saving is also differentiated with the shapley value approach

marginal abatement cost air pollution and economic growth evidence from chinese cities abstract the directional distance function ddf with multiple bad outputs allows estimation of conditional marginal abatement cost mac that would be more informative than the unconditional mac estimated with a single pollutant applying a multi pollutant parametric output ddf approach we estimate the macs of co2 so2 and nox emissions for 105 chinese cities in 2006 2014 it is found that the period medians of the macs for the three emissions all increase over time while the medians of the macs for different cities tend to vary significantly a goodness of fit criterion is developed and used to evaluate the fit of alternative models which demonstrates the superiority of the multi pollutant model we have also shown that there exists a positive relationship between mac and economic growth finally several policy implications are suggested for reducing the overall emission abatement costs of china

will regional economic integration influence carbon dioxide marginal abatement costs evidence from chinese panel data with frequent trade and technology diffusion the barriers between regions are gradually weakening and regions have become more integrated over recent years regional economic integration not only stimulates labour mobility but also achieve scale economy both of which may also influence carbon dioxide co2 marginal abatement costs through affecting energy consumption co2 emissions productivity growth and technical progress nevertheless to the best of our knowledge none of the studies has currently concerned the influence of regional economic integration on co2 marginal abatement costs to fill this research gap this study first theoretically clarifies the influence mechanism of regional economic integration on co2 marginal abatement cost and then empirically attempts to investigate their relationship in the context of china with panel data models to serve this purpose the provincial co2 marginal abatement cost and regional economic integration are estimated by parametric directional distance function and price based approach respectively the results show that china s regional economic integration level indeed gradually improved over 2002 2011 except in 2003 04 and 2006 09 due to the spread of severe acute respiratory syndrome sars and the sub prime loan crisis moreover evolution of regional economic integration indeed contributes to the increase of co2 marginal abatement cost at 5 significance level using robust tests it can be found that the results are also reliable and robust to sub samples