optimal shared savings contracts in supply chains linear contracts and double moral hazard in many supply chains consumption of indirect materials sold by a supplier to a customer for use in her production process can be reduced by efforts exerted by either party since traditional supply contracts provide no incentive for the supplier to exert such effort shared savings contracts have been proposed as a way to improve incentives in the channel leading to more efficient effort choices by the two parties such shared savings contracts typically combine a fixed service fee with a variable component based on consumption volume we formalize this situation using the double moral hazard framework in which both parties decide how much effort to exert by trading off the cost of their effort against the benefits that they will obtain from reduced consumption we also extend the double moral hazard framework to analyze a broader class of cost of effort functions than considered so far including the linear cost of effort functions commonly found in practice we show that the supplier can still always induce the optimal second best equilibrium with a linear shared savings contract under this broader class of functions however the behavior of the optimal contract as a function of the problem parameters becomes more complex we illustrate how small changes in the problem parameters can turn profits from being a well behaved to a poorly behaved function of the contract and provide some theoretical characterization of this phenomenon the practical significance of this is that simple linear contracts are sufficient in many double moral hazard contexts even for the broader class of functions we consider but care must be taken in selecting the optimal contract parameters

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

how responsible is a region for its carbon emissions an empirical general equilibrium analysis targets for co2 reduction tend to be set in terms of the amount of pollution generated within the borders of a given region or nation that is under a production accounting principle however in recent years there has been increased public and policy interest in the notion of a carbon footprint or the amount of pollution generated globally to serve final consumption demand within a region or nation that is switching focus to a consumption accounting principle however this paper argues that a potential issue arising from the increasing focus on consumption based carbon footprint type measures is that while regional co2 generation embodied in export production is attributed outside of the region i e to the carbon footprints of other regions nations regional consumers are likely to benefit from such production moreover where there is a geographical and supply chain gap between producers and final consumers it may be difficult to identify precisely whose carbon footprint emissions should be allocated to

casting a long shadow demand based accounting of canada s greenhouse gas emissions responsibility abstract canada is the only country to have ratified the kyoto protocol and then withdrawn part of the justification for canada s reluctance to commit to greenhouse gas ghg emissions reductions is the country s status as fossil fuel exporter in this paper we use input output analysis and the world input output database wiod to ask whether canada s contribution to global ghg emissions changes when calculated using a demand based shadow emission approach that excludes ghg emissions created in the production of exports like fossil fuels but includes emissions released to produce imports to canada we find that from 1995 to 2005 canada s contribution to global emissions was lower using this demand based ghg accounting approach than a production based approach from 2006 to 2009 however increased imports from ghg intensive trading partners like china meant that canada s demand based shadow emissions were higher than its production based ghg emissions we also introduce a method of calculating sub national ghg shadows using limited data applied to canada this exercise demonstrates that fossil fuel exporting provinces such as alberta and saskatchewan have demand based shadow emissions significantly lower than their production based emissions while populous provinces such as quebec and ontario have demand based emissions that are relatively higher than their production based emissions

venture capital staged financing and optimal funding policies under uncertainty abstract our paper presents a dynamic model of entrepreneurial venture financing under uncertainty based on option exercise games between an entrepreneur and a venture capitalist vc in particular we analyze the impact of multi staged financing and both economic and technological uncertainty on optimal contracting in the context of vc financing our novel approach combines compound option pricing with sequential non cooperative contracting allowing us to determine whether renegotiation will improve the probability of coming to an agreement and proceed with the venture it is shown that both sources of uncertainty positively impact the vc investor s optimal equity share specifically higher uncertainty leads to a larger stake in the venture and renegotiation may result in a dramatic shift of control rights in the venture preventing the venture from failure moreover given ventures with low volatility situations might occur where the vc investor loses his first mover advantage based on a comparative static analysis new testable hypotheses for further empirical studies are derived from the model

selection of entrepreneurs in the venture capital industry an asymptotic analysis we study a model of entrepreneurs who compete in an auction like setting for venture capital vc funding in a setting where limited capital dictates that the vc can only finance the best entrepreneurs with asymmetric information vcs can only assess entrepreneurs by the progress of development which in equilibrium reveals the quality of the new technology using an asymptotic analysis we prove that in attractive industries having a large number of entrepreneurs competing for vc funding could lead to underinvestment in technology by entrepreneurs as the effort exerted by losing entrepreneurs is wasted the study then proceeds to characterize the conditions under which a greater number of competing entrepreneurs is better the model also demonstrates that vcs could possibly increase their payoff by concentrating on a single industry in addition the study also provides some insights on the effects of multiple investments by vcs and the effects of competition among vcs on the same investments

money back contracts with double moral hazard we analyze money back contracts in which a seller promises to refund some fraction of the buyer s purchase price if an item is returned as a three stage game in a cooperative first stage the players determine a price and refund share in the second stage they noncooperatively choose inputs the buyer decides whether to return the item in the final stage this process economizes on the information necessary to enforce a contract and serves an incentive function when transactions involve double moral hazard efficient contracts exist when uncertainty is moderate inefficiencies result when there is either insufficient or excessive uncertainty

a multi period game theoretic model of venture capitalists and entrepreneurs abstract this study examines the relationship between a venture capitalist and an entrepreneur and follows it from its inception to the exit stage the model we use is a multi period game theoretic model with moral hazard where the contract is set in the first period the contribution of the study lies in the insights it provides on optimal contracts and its characterization of an endogenous exit point specifically the paper shows that the optimal incentive scheme should backload all incentive payments to the entrepreneur as much as possible consequently a straight debt contract would be optimal in venture financing

embodied carbon dioxide emission at supra national scale a coalition analysis for g7 bric and the rest of the world abstract presented in this study is an empirical analysis of embodied carbon dioxide emissions induced by fossil fuel combustion for the world divided into three supra national coalitions i e g7 bric and the rest of the world row via the application of a multi region input output modeling for 2004 embodied emission intensities for the three coalitions are calculated and compared with market exchange rate and purchase power parity separately used to investigate the difference between nominal and real production efficiencies emissions embodied in different economic activities such as production consumption import and export are calculated and analyzed accordingly and remarkable carbon trade imbalances associated with g7 surplus of 1 53 billion tons or 36 its traded emissions and bric deficit of 1 37 billion tons or 51 its traded emissions and approximate balance with row deficit of 0 16 billion tons or 3 its traded emissions are concretely revealed carbon leakages associated with industry transfer and international trades are illustrated in terms of impacts on global climate policies the last but not least per capita consumption based emissions for g7 bric and row are determined as 12 95 1 53 and 2 22 tons respectively and flexible abatement policies as well as equity on per capita entitlement are discussed

a review of recent multi region input output models used for consumption based emission and resource accounting abstract the interest in consumption based emission and resource accounting has grown significantly many studies juxtapose consumer emissions carbon footprint and producer territorial emissions of greenhouse gases in order to demonstrate the effects of trade on the national emission budget to this end a respectable number of studies have been undertaken worldwide in order to estimate emissions embedded in international trade of numerous countries and world regions input output approaches and increasingly multi region input output mrio models are commonly chosen as they provide an appropriate methodological framework for complete carbon footprint estimates at the national and supra national level with increasing processing capabilities of computers and a wider availability of economic accounts environmental accounts and trade data such models are now being implemented on a wide scale after a brief overview of salient single region input output studies i provide an in depth review of the most recent multi region input output models used for the purpose of consumption based environmental accounting the main methodological features and important results are described for around twenty studies covering the years 2007 to 2009 this is followed by a detailed review of studies dealing with uncertainty in mrio analysis an area which has not received a lot of attention so far i conclude that further research is mainly needed in two areas a improvements in data availability and quality and b improvements in the accuracy of mrio modelling

does ecological economics have a future contradiction and reinvention in the age of climate change abstract this paper addresses the role of neoclassical methodologies in ecological economics and the contradictions these methodologies pose to the field s critical founding principles we first consider robert costanza s treatment of nicholas stern s global deal and then survey climate change related articles published in this journal over the past five years this survey reveals how mainstream neoclassical methodologies dominate discourse and do so by marginalizing more critical political economy analyses this situation imperils the field s founding vision of a no growth steady state it also fails to address the related growth dynamics of capitalism without such a critical treatment the field s formal embrace of methodological pluralism actually entails an ideological empiricism that renders ecological economics theoretically incoherent this situation undermines the field s historical promise as an alternative economic paradigm ecological economics now faces a problematic future its survival in a form faithful to its founding vision will require an explicit choice to address its internal contradictions and reinvent itself in ways relevant to our contemporary context without such a choice ecological economics will likely succumb to an implicit acceptance of the hegemony of mainstream economic methodologies and their pro growth imperatives

additional precision provided by region specific data the identification of fuel use and pollution generation coefficients in the jersey economy turner k 2006 additional precision provided by region specific data the identification of fuel use and pollution generation coefficients in the jersey economy regional studies 40 347 364 a debate is currently ongoing in the uk regarding the need to collect and report data at the regional level one specific area of this debate is the extent to which region specific economic and environmental data are required to carry out analyses of devolved sustainability policy issues this paper uses the jersey economy as a case study to assess the added precision from using good quality region specific data compared with adjusted national uk data it is found that due to differences in polluting technology between jersey and the uk estimates based on national emissions intensities produce results that are misleading in terms of both absolute pollution levels and the relative contribution of different activities to total emissions in the economy while jersey may be regarded as atypical in many ways relative

a disequilibrium rational expectations model with walrasian prices and involuntary unemployment a fixprice non walrasian temporary equilibrium which co exists with the walrasian equilibrium at walrasian temporary equilibrium prices has been called unsatisfactory by hahn if consumers live and work for two periods expectations of future unemployment easily in particular with normal goods generate unsatisfactory keynesian unemployment equilibria if these expectations reflect serial correlation in unemployment assuming that the choice of temporary equilibrium walrasian or keynesian is governed by an extraneous serially correlated random variable sunspots a long run equilibrium of an overlapping generations model is presented which has persistent walrasian prices rational expectations and intermittent phases of keynesian unemployment and walrasian full employment

energy use embodied in china s construction industry a multi regional input output analysis abstract the rapid urbanization process was bound to produce considerable energy demand in china which increased the pressure on sustainable development this study employed a multi regional input output model to investigate energy use embodied in the consumption and interregional trade of china s construction industry results show that as a typical demand driven sector the construction industry consumed 793 74 million tons of coal equivalent in 2007 which is equal to 29 6 of china s total national energy consumption regions have been divided according to different driving forces for energy increment shanxi liaoning heilongjiang henan and sichuan were identified to be driven by their extensive construction activities and inefficient construction process interregional imports of the construction industry represented a resource dependent geographical distribution energy flows are from resource abundant areas in the central part to resource deficient areas in the eastern coast by contrast energy exports represented a regional discrete distribution which mainly transferred energy in the form of labor mobility and service supply this study provided insight into the current energy consumption status of provincial construction industry from both regional and sectoral perspectives which can be a basis for energy policy making and implementation

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

financing and advising optimal financial contracts with venture capitalists this paper analyses the joint provision of effort by an entrepreneur and by an advisor to improve the productivity of an investment project without moral hazard it is optimal that both exert effort with moral hazard if the entrepreneur s effort is more efficient less costly than the advisor s effort the latter is not hired if she does not provide funds outside financing arises endogenously this explains why investors like venture capitalists are value enhancing the level of outside financing determines whether common stocks or convertible bonds should be issued in response to incentives

calculation of embodied energy in sino usa trade 1997 2011 abstract in order to find efficient trade measures to reduce china s energy consumption and to provide theoretical support for the climate talks between china and america we investigate the impact of sino usa trade on energy consumption from the perspective of embodied energy an environmental input output life cycle assessment eio lca model was established to calculate the total energy consumption coefficient the direct consumption coefficient and the complete consumption coefficient of the sectors of the national economies of china and america after taking into consideration the data of every sector of the national economy in sino usa trade energy embodied in the import and export trade between china and america was calculated to verify the real energy flows in sino usa trade the research results suggest the following china is the net exporter of embodied energy in sino usa trade and coal crude oil and natural gas are the major components in 1997 2011 the net exports of china s embodied energy totaled 1523 082 200 t of standard coal the amount of china s energy consumption increased by 895 527 900 t of standard coal and america s energy consumption decreased by 11 871 200 t of standard coal as a result of sino usa trade on this basis corresponding policies and recommendations are proposed

double sided moral hazard and the nature of share contracts contractual arrangements involving revenue profit sharing are often based on fairly simple often linear rules in addition in many contexts these contracts are not finely adjusted to the particular circumstances of individual agents or markets nor do they vary over time to the extent current theories based on optimal contracting suggest they should we develop a simple model of such revenue or profit sharing arrangements based on double sided moral hazard and show that this model can account for many of these stylized facts more specifically the model shows that linear contracts can be optimal and that benefits from customizing terms can in some cases be quite limited if not zero

an entrepreneur s choice of venture capitalist or angel financing a behavioral game theoretic approach abstract we develop a game theoretic model that analyzes the effects of economic and behavioral characteristics on an entrepreneur s choice of financier venture capitalist or angel after the entrepreneur has chosen his financier the dyad faces double sided moral hazard problems in the form of ex ante effort shirking and ex post project expropriation in making his choice of financier the entrepreneur trades off the following factors the venture capitalist has higher value creating abilities than the angel however the entrepreneur anticipates a closer more empathetic and trusting relationship with the angel entrepreneur angel empathy and trust mitigates the double sided shirking and expropriation threats our model contributes to two strands of venture capitalist research the entrepreneur s choice of financier in the face of double sided moral hazard problems and the effect of behavioral factors such as empathy and trust on the creation of relational rents

global warming agreements international trade and energy carbon embodiments an input output approach to the italian case abstract in the kyoto protocol the absence of green house gases ghgs commitments of developing countries non annex i and the more flexible terms of implementation which are allowed to countries shifting toward a market economy transition economies naturally lead to the absence or to less constraining national measures and policies of reduction of the ghgs emissions which in turn may determine a comparative advantage in the production of the highest energy carbon intensive commodities for these countries these arguments are valid also considering the future implementation of the european emission allowance trading scheme eats thus developing countries may become a haven for the production of not environmental friendly commodities in this case the so called pollution haven hypothesis stating that due to freer international trade the comparative advantage may change the economic structure and consequently the trade patterns of the countries linked by trade relationships could occur this would lead to the increase of the transfers of energy and carbon embodied in traded commodities from developing countries and transition economies toward kyoto or eats constrained countries the aim of this paper is to verify if for italy as a kyoto and eats complying country evidence of a change in the trade patterns occurred on the basis of the pollution haven hypothesis does exist and to estimate the magnitude of the under estimation of the carbon actually emitted the carbon leakage the input output model has been used to calculate the intensities of energy consumption and the related green house gases emission for each italian economic sector

do increases in energy efficiency improve environmental quality and sustainability governments world wide increasingly see energy efficiency as an important aspect of sustainability however there is a debate in the literature as to whether the impact of improved energy efficiency on reducing energy use might be partially or more than wholly offset through rebound and backfire effects this paper clarifies the theoretical conditions under which such effects would occur and explores their likely significance using a computable general equilibrium cge model of the scottish economy we find that for scotland a general improvement in energy efficiency in the production sectors of the economy initially produces rebound effects that eventually grow into backfire energy use ultimately increases in response to an efficiency gain and the ratio of gdp to co2 emissions falls the economic factors underpinning rebound effects are straightforward energy efficiency improvements result in an effective cut in energy prices which produces output substitution competitiveness and income effects that stimulate energy demands however the presence of strong rebound or even backfire does not mean that efficiency enhancing policies are irrelevant rather it suggests that such policies operating alone are insufficient to generate environmental improvements the implication is that a co ordinated portfolio of energy policies is required

the economics of distributed energy generation a literature review the uk electricity system is likely to face dramatic technical and institutional changes in the near future current uk energy policy focuses on the need for a clean affordable and secure energy supply decentralisation of the electricity system is recognised as one means of achieving efficient and renewable energy provision as well as addressing concerns over ageing electricity infrastructure and capacity constraints in this paper we provide a critical literature review of the economics of increased penetration of distributed energy generation we find that there exists a large volume of research considering the financial viability of individual distributed generation technologies and we are necessarily selective in our review of these studies given the wide variety of technologies that the definition of distributed generation encompasses however there are few studies that focus on the pure economics of individual or groups of distributed energy generators and even fewer still based on the economy wide aspects of distributed generation in view of this gap in the literature we provide suggestions for future research which are likely to be necessary in order adequately to inform public policy on distributed generation and its role in the future of uk energy supply

carbon emissions embodied in value added chains in china abstract the literature on carbon leakage and embodied carbon in regional trade is extensive however many studies are primarily concerned with emissions embodied in demand supply chains and ignore the issue of carbon transfer behind the value added chains we promote a model to calculate value based emissions vbes and carbon emissions embodied in the value added chain using the multi regional input output model mrio taking china as an example vbes and carbon emissions embodied in value added chains at the sub national level based on mrio tables for 1997 and 2007 in china were analyzed transferred carbon emissions embodied in regional value added chains in china showed rapid growth between 1997 and 2007 however the absolute values of inter regional net transferred carbon emissions embodied in value added chains were small and showed a declining trend therefore the regional inequality between economic growth and carbon emissions pollution reduced between 1997 and 2007 although the amount of emissions embodied in regional value added chains increased as of the inter regional economic link in china gained close proximity

examining the global environmental impact of regional consumption activities part 1 a technical note on combining input output and ecological footprint analysis in recent years there have been a number of attempts to develop a more comprehensive approach to the issue of measuring resource use and or pollution generation embodied in trade flows including contributions that combine input output techniques and ecological footprint analysis in this two part paper we describe how to enumerate the resource and or pollution content of inter regional and inter national trade flows part 1 and we present a literature review of recent methodological and empirical developments part 2 it is straightforward in principle to extend the basic input output approach to capture international trade flows however in practice problems of data availability and compatibility and of computability of extended input output matrices mean that simplifying assumptions are generally applied but with the implications of these assumptions often not made fully explicit what appears to be absent from previous applications is an account of the analytical method by which ecological footprints should ideally be estimated in an international input output accounting analysis this allows an explicit analysis of the problems that prevent the application of the full method and identification of the most appropriate short cut methods in a transparent way the objective of this paper is to provide such an account

responsibility for regional waste generation a single region extended input output analysis for wales this paper uses a regional input output framework and data derived on waste generation by industry to examine different aspects of regional waste accountability in addition to estimating a series of industry output waste coefficients the paper considers a series of methods for waste attribution from production and consumption perspectives in particular it considers a method that permits a greater focus on regional private and public final consumption as the main exogenous driver of waste generation in doing so it uses a domestic technology assumption to consider a regional waste footprint where local consumption requirements are assumed to be met using production technologies over which regional authorities are likely to have more control

innovations in regional computable general equilibrium cge modelling with the emergence of regional computable general equilibrium cge models in the later 1980s there was significant optimism that they would greatly push economic policy and the empirical envelopes unlike partial equilibrium approaches or input output methods cge models can trace the impact of an economic shock or policy shock through the various sectors allowing estimates of changes in factors output and prices however many of the first generation of cge models had a black box feel to them their results could be sensitive to the functional form parameter estimates and assumptions about capital and labour flows for example in their survey article partridge and rickman 1998 11 partridge m d and rickman d s 1998 regional computable general equilibrium modeling a survey and critical appraisal international regional science review 21 205 250 crossref web of science csa view all references called on cge modellers to account for these problems and strive to produce more credible results in recent years regional cge modellers have improved their approaches producing innovative techniques to apply to real world problems

the co2 trade balance between scotland and the rest of the uk performing a multi region environmental input output analysis with limited data in this paper we attempt an empirical application of the multi region input output mrio method proposed by turner lenzen wiedmann and barrett turner k lenzen m wiedmann t barrett j 2007 examining the global environmental impact of regional consumption activities part 1 a technical note on combining input output and ecological footprint analysis ecological economics 62 1 37 44 in a recent issue of this journal in order to enumerate the co2 pollution content of interregional trade flows between scotland and the rest of the uk ruk we extend the analysis to account for direct emissions generation by households as final consumers and to a social accounting matrix sam where a more comprehensive account of incomes and expenditures is possible while the existence of significant data problems mean that the quantitative results of this study should be regarded as provisional the interregional economy environment io and sam framework for scotland and ruk allows an illustrative analysis of some very important issues in terms of the nature and significance of interregional environmental spillovers within the uk and the existence of a co2 trade balance between scotland and ruk

embodied environmental damage in interregional trade a mrio based assessment within china abstract a new lifelong accountability system for ecological and environmental damage will be established for local officials in china however if this new production based accountability system does not consider the responsibilities of consumers it is likely to aggravate the imbalance of regional development using a multi regional input output model this paper tracked the environmental damage transfers in interprovincial trade trade related damage from four major pollutants was quantified for each province in 2007 the results show that nearly 45 of the environmental damage that occurs at home to meet consumption in other regions can be ascribed to the interprovincial trade flows in china in 2007 the north municipalities the east coast and the south coast where the share of production based environmental damage in relation to the local gdp is lower transferred environmental damage to the developing northwest and central regions to make the local gdp greener via interregional trade leading to inequality in regional development it is suggested that the importance of environmental damage from a consumer perspective should be integrated into the future implementation of the new lifelong accountability system

carbon emissions embodied in demand supply chains in china abstract using the multi regional input output model mrio the paper distinguishes the carbon emissions embodied in commodities for domestic final consumption cbes consumption based emissions and those for export ebes export based emissions and then calculates carbon emissions embodied in the demand supply chains for consumption and export based on technical coefficients matrix of the mrio for one country taking china as an example we provide a dynamic analysis of cbes ebes and carbon emissions embodied in consumption and export demand supply chains at the sub national level based on the mrio tables for 1997 and 2007 the results show that in china the transferred carbon emissions embodied in demand supply chains driven by consumption and export both showed rapid growth during 1997 2007 and the net transferred carbon emissions embodied in the demand supply chains showed an increasing trend as well less developed regions with abundant fossil fuels tend to net flow out carbon emissions

the complementarity effect effort and sharing in the entrepreneur and venture capital contract abstract this paper focuses on the relationship between the venture capitalist and the entrepreneur in particular it analyses how both players unobservable effort levels affect the equity share that the entrepreneur is willing to cede to the venture capitalist we solve the entrepreneur s maximization problem in the presence of double sided moral hazard in this scenario we show that the venture capitalist s share is binding and therefore there is no efficiency wage we simulate the model and show that the entrepreneur s effort does not monotonically decrease in the share allocated to the venture capital while the venture capitalist s effort does not monotonically increase in his share we show that as efforts tend to be more complementary the project cash flows are distributed nearly equally at approximately 50 for each partner this theoretical finding is actually observed in real contracts between entrepreneurs and venture capitalists

economics of devolution decentralization in the uk some questions and answers mcgregor p g and swales k 2005 economics of devolution decentralization in the uk some questions and answers regional studies 39 477 494 the paper explores the economic implications of the radical process of devolution decentralization and delegation of decision making and policy delivery initiated by the post 1997 uk labour government it is argued that the economies of all the presently devolved regions ultimately suffer if the barnett formula is rigorously imposed it is shown that the efficiency of devolving fiscal authority involves a balance of positive and negative elements depending on wage bargaining and migration responses it is then argued that delegation devolution of regional economic development policies while exploiting regional information advantages neglects regional economic interdependence so there are potential gains from greater cooperation coordination

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