the renewables portfolio standard in texas an early assessment texas has rapidly emerged as one of the leading wind power markets in the united states this development can be largely traced to a well designed and carefully implemented renewables portfolio standard rps the rps is a new policy mechanism that has received increasing attention as an attractive approach to support renewable power generation though replacing existing renewable energy policies with an as of yet untested approach in the rps is risky early experience from texas suggests that an rps can effectively spur renewables development and encourage competition among renewable energy producers initial rps targets in texas were well exceeded by the end of 2001 with 915 mw of wind installed in that year alone rps compliance costs appear negligible with new wind projects reportedly contracted for well under 3 us cent k wh in part as a result of a 1 7 us cent kwh production tax credit an outstanding wind resource and an rps that is sizable enough to drive project economies of scale obliged retail suppliers have been willing to enter into long term contracts with renewable generators reducing important risks for both the developer and the retail supplier finally the country s first comprehensive renewable energy certificate program has been put into place to monitor and track rps compliance c 2002 published by elsevier science ltd less

technical change land quality and income distribution a general equilibrium analysis this paper investigates the distributional effects of technical progress in agriculture a small computable general equilibrium model is developed in which agricultural production occurs in two environments with fixed land resources of different quality the analytical structure permits not only the rate but also the factor biases of technical change to differ between environments distributional results are generated for several classes of households distinguished both by their ownership of factors and by their consumption patterns the results demonstrate that technical change produces distributional outcomes which are highly sensitive to its factor biases and to prior differences in land quality

the excise tax effects of the property tax abstract this paper constructs a theory of how differences across regions in property tax rates affect product prices and factor prices for a model where labor and capital are perfectly mobile between regions it is shown that consumers residing in different regions face the same nontraded good prices even when property tax rates differ across regions

cost competitive incentives for wind energy development in china institutional dynamics and policy changes abstract this paper presents an overview of the development of wind power in china the factors that affect the directions of wind power development are analyzed it examines the economics of windfarm development and compares it with conventional energy sources the major constraints in wind technology development and defects of the current policies are discussed it points out that wind power development should be subject to rational policy change and institutional adjustment it discusses the incentive mechanisms and institutional frameworks for future development particular importance is attributed to market incentives for wind power to reach the objectives of industrialization and commercialization a number of cost competitive incentive measures and policies are recommended i introducing market based mechanisms through standard power purchase agreement ii establishing effective investment policies and regulations to attract private investment iii promoting localization of wind turbine production iv adjusting tax and subsidy policies and v reforming governmental institutions to make clear rules and responsibilities for policymaking and enhancing communication coordination between relevant government agencies in order to formulate uniform and effective policies

why invest in wind energy career incentives and chinese renewable energy politics we study wind development at the provincial level in china modelling installed wind capacities as a function of both economics and politics we assume that the top provincial officials desire to maximize their chances of promotion under the chinese cadre evaluation system we expect that those with the strongest incentives to perform in order to achieve promotion would work harder to comply with the central government s policy agenda to promote renewable energy collecting and testing data on provincial leaders characteristics we find that provinces governed by party secretaries who were approaching the age of 65 are associated with significantly higher level of wind installed capacities this result supports the political tournaments theory of chinese politics we also find that better educated party secretaries are likely to be more supportive of renewable energy implying that education acts to encourage provincial leaders to support the central government s policy

global wind power development economics and policies abstract existing literature indicates that theoretically the earth s wind energy supply potential significantly exceeds global energy demand yet only 2 3 of global electricity demand is currently derived from wind power despite 27 annual growth in wind generating capacity over the last 17 years more than 95 of total current wind power capacity is installed in the developed countries plus china and india our analysis shows that the economic competitiveness of wind power varies at wider range across countries or locations a climate change damage cost of us 20 tco 2 imposed to fossil fuels would make onshore wind competitive to all fossil fuels for power generation however the same would not happen to offshore wind with few exceptions even if the damage cost is increased to us 100 tco 2 to overcome a large number of technical financial institutional market and other barriers to wind power many countries have employed various policy instruments including capital subsidies tax incentives tradable energy certificates feed in tariffs grid access guarantees and mandatory standards besides climate change mitigation policies such as the clean development mechanism have played a pivotal role in promoting wind power despite these policies intermittency the main technical constraint could remain as the major challenge to the future growth of wind power

public policy supports and export performance of bioenergy technologies a dynamic panel approach abstract this study investigates the effects of public policy supports on the export performance of bioenergy technologies it uses panel data from 18 countries from the 1992 to 2008 period panel unit root and cointegration tests are applied taking into account the results of structural break tests for each time series and testing for the presence in the panel of cross sectional dependence time series data on public supports and exports are integrated and cointegrated the results of dynamic ordinary least squares indicate that in the long term public r d expenditures have a positive effect on the exports the contribution of bioenergy to the total energy supply has a negative effect on the exports and gdp has a positive effect on the exports the contribution of bioenergy to total energy supply responds to deviations in the previous period from the long term equilibrium additionally blundell bond system generalized methods of moments estimations are made to determine dynamic causality in a panel vector error correction mechanism setting evidence of a positive strong and short term relationship from exports to r d expenditures and of a positive short term causality from exports to the contribution of bioenergy to total energy supply is found a positive strong bidirectional relationship between gdp and exports is also uncovered there is a positive strong bidirectional and short term relationship between gdp and the contribution of bioenergy to total energy supply finally some policy implications based on the results of this study are offered

government funded renewable energy innovation in china abstract with the rapid development of the economy china is facing pressures caused by traditional energy deficiency and environmental pollution in recent years which has forced the chinese government to start to pay attention to the development and utilization of renewable energy re this article based on data and statistics available up to 2008 studies features of china s re technology innovation and problems thereof it finds that national science and technology programs are the main aspect of china s re technology innovation and most of r d funds for the re technology come from china s three main national programs besides the overall expenditures on re technology innovation constitute only a small proportion of china s total domestic r d funding and seem not enough this paper also finds that compared with research and development stages of re technology the demonstration and diffusion of re technology in china are given less attention and thus are relatively less sufficient furthermore influenced by china s traditional scientific research system there appears lack of sufficient incentives and opportunities for private sectors to fully participate in re technology innovation because most national programs are undertaken by universities or research institutes

the role of transnational dimensions in emerging economy technological innovation systems for clean tech the technological innovation system tis framework and its system functions have become a popular analytical tool for the study of clean tech innovation there is increasing attention for the role of emerging economies in global clean tech innovation but the applicability of tis to emerging economies cases is not entirely straightforward a key issue is the limited geographical considerations in particular transnational dimensions in tis whereas earlier perspectives on innovation in emerging economies have stressed the role of such transnational dimensions this paper elaborates transnational tis actor networks and institutions categorizes these in relation to tis functions and describes their potential to induce or block tis development in emerging economies we draw on insights from the perspectives of national learning systems international technology transfer and global production networks for this purpose we conclude that the potential effects of these transnational dimensions may be accurately grasped by the existing list of system functions lending credence to its further application of the tis framework on emerging economy case studies policy makers in emerging economies should recognize these transnational dimensions and seek to optimize their potential effect on domestic tis development taking in to consideration a realistic assessment of its role in the global tis

trade and factor movements with three factors and two goods abstract with three factors and two goods there are two extreme and one middle factor regardless of technical complementaries in the individual production functions the extreme factors must be enemies and the middle factor the other factor s friend with constant product prices

backward incidence of pollution damage compensation policy abstract the backward incidence of higher rates of compensation paid for damage on a factor of production is examined in a two sector three factor model with a linear pollution damage function on labour endowment the results implied by the stolper samuelson theorem are obtained with a consequent decrease in pollution and national income provided that the polluting and nonpolluting sectors are respectively intense in capital and labour and the complement relation between pollution and labour are assumed a geometric interpretation of the results is also provided

investment the current account and the relative price of non traded goods in a small open economy abstract this paper incorporates traded and non traded investment expenditure into an infinite horizon setting with optimizing economic agents extending previous research that has incorporated traded and non traded investment into a two period setting the paper analyzes the dynamic adjustment of the relative price of non traded output the market price of capital and the current account following exogenous shocks to the system the exogenous shocks considered by the paper include permanent transitory and anticipated changes in an income tax and an investment subsidy as well as changes in the level of government purchases of traded and non traded output

handling financial resource mobilisation in technological innovation systems the case of chinese wind power to mitigate climate change a rapid and large scale expansion of sustainable innovations such as renewable energy technologies is crucial china s track record of wind power development shows both speed and scale that can provide valuable knowledge of how to stimulate and maintain transformation of energy systems the growth was made possible partly by ample access to financial capital however the rapid growth also led to growing pains and made the industry face increasing financial constraints while these constraints partly relate to structures and trends that are external to the wind power innovation system they were also a consequence of the particular path taken in chinese wind power development the case demonstrates that if a full fledged industry is to be developed and sustained a balanced growth is required and all innovation system functions need due attention sooner or later conceptually the article contributes by further exploring how mobilisation of financial resources affect and is affected by overall system dynamics

prospects for global market expansion of china s wind turbine manufacturing industry abstract emerging economies are increasingly contributing to global innovation including clean tech innovation the development of china s wind power sector has often been used to illustrate this point china s domestic wind power market is the largest in the world and is largely supplied by domestic manufacturers competition for market share in the domestic market may pressure firms to innovate which consecutively improves prospects for global expansion this paper reviews developments in china s domestic wind turbine market using the technological innovation system framework we analyze the pressure to innovate arising from market competition and assess the prospects for global expansion of chinese wind turbine manufacturers we conclude that domestic customers are not pressured or incentivized to perform with respect to power output such that turbine manufacturers are not pressured to perform with respect to turbine efficiency or maintenance needs pressure to innovate is further reduced by formalizing connections between wind farm developers and turbine manufacturers chinese turbine manufacturers cannot yet compete with leading global brands in technological leadership the prospects for exports are improved however by the preferential supply of project financing from institutional investors such as the china development bank from chinese utilities that seek global expansion and from the manufacturers themselves

the impact of development on women a specific factors analysis abstract the specific factors model is employed in this paper as a means of explaining how economic development may serve to diminish women s welfare three changes associated with the development process are analyzed for their effect on women s real and relative wage 1 an expansion of trade induced by an improvement in the terms of trade 2 technological change and 3 an increase in female labor force participation

grid connected renewable energy in china policies and institutions under gradualism developmentalism and socialism abstract this communication displays some of our on going research on the incompleteness of china s advances toward best practice in policy making and institution building for renewables in particular this paper 1 summarizes how chinese policies and institutions for the deployment of renewable electricity are only partially compliant with what is internationally recognized as best practice and 2 contextualizes chinese policies and institutions for renewables in the broader picture of china s political economy much as a political economy perspective has aided the understanding of why chinese economic reforms were partial and unique the said contextualization might help explain why china s policies and institutions for renewables diverge from best practice further given that china proved successful in promoting its economic growth with partial and unique reforms the partiality and uniqueness of its renewables policies and institutions need not impede the rapid development of renewable electricity this on going research has so far combined a review of specialized literature and the business press with semi structured interviews held with relevant actors in policy business and research related to renewable energies

large scale utilization of wind power in china obstacles of conflict between market and planning the traditional strict planning system that regulates china s power market dominates power industry operations however a series of market oriented reforms since 1997 call for more decentralized decision making by individual market participants moreover with the rapid growth of wind power in china the strict planning system has become one of the significant factors that has curtailed the generation of wind power which contradicts with the original purpose of using the government s strong control abilities to promote wind power development in this paper we first present the reasons why market mechanisms are important for large scale utilization of wind power by using a case analysis of the northeast grid and then we illustrate the impact of conflicts between strict planning and market mechanisms on large scale wind power utilization last we explore how to promote coordination between markets and planning to realize large scale wind power utilization in china we argue that important measures include implementing flexible power pricing mechanisms instead of the current fixed pricing approach formulating a more reasonable mechanism for distributing benefits and costs and designing an appropriate market structure for large scale wind power utilization to promote market liquidity and to send clear market equilibrium signals

local demand pull policy and energy innovation evidence from the solar photovoltaic market in china abstract market demand is an important driver for inducing innovation with many empirical studies supporting the demand induced innovation hypothesis critiques of such studies however emphasize that new empirical evidence that can address existing empirical challenges is needed furthermore existing literature disagrees about whether the locus of demand pull policy matters in this paper we use empirical evidence from the distributed solar photovoltaic pv market in china to address the following questions 1 is there evidence of demand induced innovation 2 does the effect of local demand pull policy differ from the effect of non local demand pull policy on demand induced innovation to address these questions we develop and analyze an original database of pv balance of system bos patents in the distributed pv market filed between 2005 and 2014 in china our results support the demand induced innovation hypothesis and suggest that only local demand significantly induces pv bos innovations in the distributed pv market in china the different effects of local demand and non local demand emphasize the importance of local markets and local policies lending some support to bottom up approaches to clean energy governance

democracy and the logic of political survival democracy is a central concept in political science scholars have linked it to patterns of war and peace alliance formation conflict escalation success in war political stability economic development and improvements in a wide array of social indicators these claims are subject to challenge but the existence of a substantial literature on each of them underlines the importance of the questions what however is the mechanism by which democracy generates these benefits is it a matter of norms behavior or institutions although democracy is a key concept there is no consensus regarding its theoretical underpinnings it is for these reasons that the appearance of the logic of political survival bueno de mesquita et al 2003 was hailed as a breakthrough the book provides a simple explanation for the effects of democratic institutions democratic leaders face different incentives than autocrats because democracies have different reselection institutions the selectorate theory holds that political power depends upon satisfying a winning coalition w of the relevant selectorate s as the size of the winning coalition increases leaders shift public policy from providing private benefits to supporters to providing public goods to the masses coalitions are most loyal when w is small relative to s a s the ratiow s increases defection becomes less risky and leaders must spend more to keep their coalitions satisfied

the rybczynski theorem in the three factor two good model abstract this paper proves that if each factor is normal in the three factor two good model the expansion of a factor endowment always increases at constant commodity prices the output of the commodity which uses the expending factor most intensively

factor price convergence in the late nineteenth century the authors examine a dramatic historical episode of factor price convergence in the late nineteenth century their focus is convergence between old world and new and the analysis centers on land and labor wage rental ratios boomed in the old world and collapsed in the new moving the resource rich labor scarce new world closer to the resource scarce labor abundant old world the authors use econometrics and simulations to identify proconvergence forces which include commodity price convergence factor accumulation and factor saving biases the results confirm that open economy characteristics and international market integration are important sources of convergence copyright 1996 by economics department of the university of pennsylvania and the osaka university institute of social and economic research association

renewable energy support mechanisms in the gulf cooperation council states analyzing the feasibility of feed in tariffs and auction mechanisms renewable energy will be a crucial ingredient in the transition to a more sustainable future the renewable energy sector requires a variety of financial support mechanisms in order to further consolidate and expand currently the most prominent renewable energy support mechanisms are feed in tariffs and renewable energy auctions although these mechanisms have been used and analyzed extensively in western countries and more recently economies in transition they have rarely been examined in the arab gulf region yet particularly the gulf cooperation council gcc states have undertaken important steps towards renewable energy adoption which could be greatly facilitated with the use of financial support mechanisms this paper analyzes the feasibility of feed in tariffs and renewable energy auctions adoption in gcc based on an extensive meta analysis of the literature on these two mechanisms in both developed and developing countries the paper identifies a set of conditions necessary for success and evaluates the presence of favorable these conditions in the gcc context our findings reveal that while conditions that would ensure political feasibility are largely absent for both types of mechanisms auctions could be a more successful strategy at the moment

renewable energy and the environment in south africa a way forward the need to mitigate the adverse environmental impacts of fossil fuel usage the volatility of fuel prices and enhancement of national energy security have largely driven a phenomenal growth around the world in renewable energy re generation particularly grid connected over the past two decades the necessity to apply policy support instruments to promote the dissemination of these technologies is now a universally accepted norm different countries and societies depending on the prevailing socio economic environment draft and apply their policy frameworks differently and debates abound as to which mechanisms should have been most suitable under which circumstance most of these debates however assume the existence of an intrinsic political environment in favour of the process in south africa the current political environment is not very conducive to the development of a sustainable re industry this paper explores some of the anomalies and barriers and suggests possible options for a way forward to a viable re industry in the country

the shadow price of foreign exchange with minimum wages abstract this note derives the shadow price of foreign exchange in a small open economy with minimum wage unemployment under tariffs quotas and voluntary export restraints the analysis is conducted in a dual general equilibrium framework with many goods and factors

income inequality and international migration the purpose of this paper is to analyse the impact of international factor movements on the personal distribution of income in order to get clearcut results we use a simple model of trade and migration in which there are two traded goods and three factors for any given country one of the traded goods corresponds to exports and the other to imports the three factors include capital and two types of labour skilled and unskilled we focus mainly on the alternative results of international migration of the two types of labour the geographical focus is worldwide excerpt

energy tariffs in a small open economy abstract tariffs on imported energy alter production and redistribute income the present paper examines a small open economy producing two traded goods with capital labor and imported energy a tariff reduces import and domestic factor income but payment to one domestic factor rises energy intensive output falls but the other output may rise in the general equilibrium political opinions on the tariff would differ revenue is concave in the tariff suggesting that the government might set the tariff to maximize revenue a simulation illustrates these general equilibrium properties across a range of tariffs

international labor flows and national wages when income levels of some group in the economy fall behind those of others the blame frequently is cast on the nature of international trading relationships such has been the case recently in the united states with the struggle to maintain real wages for relatively lessskilled workers much of the debate has asked how changes in world prices or in technology at home or abroad have altered wage rates see e g susan collins 1996 jones and engerman 1996 in this note we focus on another potential culprit immigration and probe more widely into past historical experience in the united states and other countries when inflows of labor from abroad disturb wage rates for nationals such international labor flows could serve to enhance rather than to depress the earnings of the country s own laborers if the question addressed concerns the effects of immigration on the welfare of the original inhabitants of a country a disarmingly simple answer was provided some years ago by harry johnson 1967 as long as immigrants bring an accumulated bundle of labor and physical or human capital that is different from that possessed by local residents the latter must gain from immigration this is the basic gains from trade argument appropriate only if the country originally did not engage in any other form of trade and if all residents held balanced portfolios of capital and labor as well it ignores the social costs incurred and extra taxes collected when migrants flow into a country in this note we focus not on aggregate welfare effects but on the effect of immigration on the return to some homogeneous national group of laborers this question is the one that most sharply divides the views of labor economists from those of trade economists on the one hand increases in the supply of labor would seem naturally to depress the return to labor but in the basic heckscher ohlin trade model with two factors and two produced commodities an inflow of labor can be absorbed with absolutely no change in wage rates as long as the terms of trade remain undisturbed we begin by asking what some basic theoretical models tell us about this issue before turning to the historical record simple theory reveals that there are two basic attributes of immigration that affect income distribution relatively how substitutable immigrant labor is for the national labor force and the occupations in which immigrants are allowed to work

resource rights and markets in a general equilibrium model of production rights to a free resource lead to distributional deadweight losses in partial equilibrium the present paper examines related distortions in a general equilibrium model of production with output prices constant for the small open economy the free resource can result in lower output than a market with weak substitution in the other sector the free resource also leads to a convex production frontier implying a price increase lowers output in the sector regarding policy an import tariff export subsidy or price support would lower sector output these general equilibrium distortions increase the incentives to favor resource markets over rights

import restrictions capital taxes and welfare this paper develops a two good small country general equilibrium model with trade restrictions i e a tariff an import quota or a voluntary export restraint ver inter national capital mobility and taxes on the rate of return to capital within this context it examines the price and welfare effects of capital taxes the second best policy towards capital in the presence of such trade restrictions and the welfare implications of trade liberalization in the presence of capital taxes the analysis demonstrates among other things that i the optimal policy towards capital is a zero tax when imports are quota constrained and is a tax under a tariff and a subsidy under a ver when the imported good is capital intensive and that ii an asymmetry exists between trade and capital movements liberalization under the various trade regimes

reform of china s electric power industry challenges facing the government abstract china s electrical power industry requires substantial reform if the country s economic growth is to be sustained the 1997 electricity law the creation of a state power company and the abolition of the ministry of electric power are important first steps on the path of reform but it seems that a clear plan is lacking objectives of the reform should include increasing the capacity to deliver power constraining the costs of the power industry increasing end user efficiency and minimising environmental damage efforts should be directed at restructuring the industry in such a way that fair competition may be introduced at least in power generation and at establishing a viable regulatory agency both tasks have the potential to be thwarted by a range of vested interests at different levels of government and industry

retesting selectorate theory separating the effects of w from other elements of democracy kevin clarke and randall stone 2008 offer a methodological critique of some of our tests of the selectorate theory in the logic of political survival bueno de mesquita et al 2003 we accept their critique of residualization for control variables in those tests but reject the contention that the size of the winning coalition does not predict the provision of public goods and private benefits we present new tests that control for elements of democracy other than w and that do not use residualization these new tests show that selectorate theory is strongly and robustly supported our measure of the size of the winning coalition is in the theoretically predicted direction and is statistically significant for 28 out of 31 different public goods and private benefits aspects of democracy not contained in the selectorate theory explain less of the variance than does the theory s core factor namely winning coalition size for 25 of the 31 public goods and private benefits

wind turbine manufacturing in china a review abstract domestic wind turbine manufacturing sector in china has experienced development stages starting from scratch to mass production during the 11th fyp period 2006 2010 the main goal of wind power policy in china is to promote the commercialization of wind power by large scale deployment of wind farms this goal has been realized to a great extent and now the cost of wind power generation is nearly comparable to coal fired power generation in china the industry policy which devotes to mass production of domestic wind turbines is also largely successful the purpose of the paper is to provide an overview on wind turbine manufacturing sector in china the policy evolution in different stages achievements and challenges pertinent to the sector are addressed in the paper key findings are that the misleading industry policy which provides strong incentive to blind entrance and competition for scale and price and restrains innovation as well is the key obstacle for the sustainable development of the sector deficient technology standard and qualification system and the misplaced franchise bidding system also indulge vicious competition and oversupply creating a level playground for all turbine supplies providing strong incentive to innovative manufacturers establishing thorough and practicable standard and qualification system and fine tuning the directive of the franchise bidding system towards technology and service are the primary policy implications proposed by our study

assessing and managing regulatory risk in renewable energy contrasts between canada and the united states abstact a challenge for energy firms when considering new investments is to balance expected financial gains against potential risks however while investment opportunities in different jurisdictions are often straightforward to identify the policy or regulatory risks for investors are more difficult to accurately ascertain here i provide a novel conceptual framework for how firms can assess regulatory risk that focuses on the institutional processes governing policy making risks are lower and policies will subsequently be more stable in jurisdictions where regulatory agencies have greater autonomy from politicians and where policies are formulated through more rigid policy making processes the contrasting development patterns of renewable energy policies in ontario and texas offer support for the framework i further develop strategies for how firms can successfully manage regulatory risks in different types of environment

policies to accelerate the growth of offshore wind energy sector in india abstract india s power generation capacity needs to be augmented to support the growing demands for electricity india which has predominantly used fossil fuels to power its generators need to make a switch to clean energy fuels but renewable sources form a miniscule portion 26 gw 12 of india s overall installed power capacity 210 gw there is no contribution from offshore wind farms to the energy basket for india as there is no policy framework to encourage the development of offshore wind farms several european countries have tapped the offshore wind energy potential to reduce their dependence on adopted by these countries to identify the core components 21 of them of robust policy intervention a detailed questionnaire was administered to 181 stakeholders of wind energy in india to seek their feedback on these building blocks these core components variables in research parlance are then subjected to factor analysis to understand the underlying structure of the variables the factor analysis logically reduces these 21 variables into five factors government support fiscal and quota based incentives availability of local expertise capital for investments and building an enabling r d ecosystem which are then fed into a logistic regression model as independent variables to predict the probability of growth of offshore wind energy dependent variable in the country the logistic regression model gives the weight the impact of these independent variables in influencing the growth of offshore wind energy in india it emerges that government support fiscal and quota based incentives and building an enabling r d ecosystem have a much higher impact on the growth of offshore wind energy for india this paper fills the gap of absence of an empirically tested framework on offshore wind energy policy for india

factor intensities and factor substitution in general equilibrium abstract this article examines how factor intensity rankings between industries and the economy wide asymmetry in the degree of factor substitution combine to influence the manner in which changes in relative commodity prices affect the factoral distribution of income the reciprocal influence of factor endowment changes on the composition of outputs is also discussed the analysis is undertaken in a general three factor two commodity framework the minimal sized model that allows both influences to affect factor prices and admits of the possibility of complementarity between factors factors which are good substitutes find their returns behave somewhat similarly when commodity prices change while factors which are complements experience strongly asymmetrical fortunes a crucial role is played by a comparison of the share of the middle factor in each sector

joint r d in low carbon technology development in china a case study of the wind turbine manufacturing industry abstract china faces the dual challenges of climate change and increased energy demand these challenges in turn increase the demand for wind energy development along with rapid growth in manufacturing capacity chinese companies have aspired to increase their innovation capacity in order to enhance their competitiveness in the market joint research and development r d is an attractive path for chinese companies striving to advance their r d capacity this paper examines joint r d between chinese wind turbine manufacturing companies and foreign design firms assessing the performance of joint r d activities in china using the structure conduct performance scp framework the study found that joint r d has improved chinese companies technical capacity human resources and financial growth however the effect on chinese companies innovation capacity is still limited because of unequal technical capacities of the two sides in collaboration as well as their preference for augmenting profits rather than technical capacity current joint r d mode is only the extension of licensing mode in wind turbine manufacturing industry

value generation of future csp projects in north africa this paper discusses the value generation potential for local and international industry in different development scenarios of the concentrating solar power csp market in north africa until 2030 it analyzes the economic impact resulting from the participation of north african and european companies during construction and operation of csp plants the assessment is based on a self developed solar technologies market development model stmd that includes economic and technical requirements and constraints for the creation of a local csp market in depth interviews with industry stakeholders provide specific input validate the calculations and complement the quantitative model results and conclusions long term potential for locally generated revenues from csp plant construction are modeled and lead to a share of local revenues of up to 60 potential market size of solar power plants in north africa could reach total revenues of 120 billion euros and thus demand for components and services contribute to national gross domestic products significantly recommendations are given for regional industry cooperation and policy actions for the support of local and international csp industry in north africa in order to improve the investment environment and growth of renewable energies in the region

factor trade and goods trade world equilibria with trade in both goods and some factors are studied when international factor endowment differences are the cause of trade a generalized heckscher ohlin theorem is presented the goods trade patterns with and without factor trade are compared factor trade and goods trade tend to be substitutes complements if traded and non traded factors are cooperative non cooperative

energy security in china a quantitative analysis and policy implications abstract this study aims to examine how china s energy security has changed over 30 years of reform and the opening period it constructs a 4 as quantitative evaluation framework the availability of energy resources the applicability of technology the acceptability by society and the affordability of energy resources the quantitative results show that china s energy security was at its best during the sixth fyp period 1981 1985 but then deteriorated until it hit higher levels between 1995 and 2005 however it was still lower than the level reached during the sixth fyp period during the eleventh fyp period 2006 2010 the energy security situation deteriorated again differences in policy priority over the study period appear to affect the country s energy security status this study suggests that china needs to develop renewable energy resources on a large scale and pay more attention to emissions control to reverse the downward trend in energy security

capital markets urban unemployment and land abstract this paper shows that the remarkable result by khan and naqvi that a reduction in the capital rental differential always improves welfare despite the presence of a rigid urban wage can be obtained only for the 2 2 harris todaro model in an extended harris todaro framework incorporating a third specific factor a decrease in a distortion may not necessarily be welfare improving

can public sector employment spur human capital acquisition abstract in a general equilibrium model of a product and an education sector we add government employment of educated labor for public goods provision and for political economy reasons education subsidy may cause fewer public goods and retard the product sector

envisaging feed in tariffs for solar photovoltaic electricity european lessons for canada abstract while it is widely agreed that support schemes need to be put in place to promote the use of renewable electricity there is less consensus as to what are the best kinds of strategies to use what is attracting increasing attention in canada is a system of renewable portfolio standards in this all power suppliers are under an obligation to ensure that a certain percentage of the electricity they generate is from renewable resources they can either generate that electricity themselves or purchase green certificates from those who have used renewables to generate electricity recent experience from europe however suggests that a whole hearted commitment to this single strategy could be premature and potentially damaging for the development of all kinds of renewable electricity in canada solar photovoltaics included on the other side of the atlantic ocean the use of so called feed in tariffs that is an obligation for utilities to purchase at a set price the electricity generated by any renewable energy resource is widely credited with accelerating the development of renewable electricity in many countries the purpose of this article is to reflect upon this european experience with feed in tariffs to stimulate discussions regarding what promise they might hold for the development of solar photovoltaic electricity in canada the article is divided into three main sections in the first section policies to promote renewable electricity presently in place in different parts of canada are reviewed attention is then focused more specifically in the second section of this article upon feed in tariffs after defining and describing this alternative system experiences in the countries of the european union are reviewed the main strengths and weaknesses of feed in tariffs in the european experience are also examined the focus then moves back to canada in the third section of the article in this a system of feed in tariffs is proposed for the province of ontario in order to provide just one example of the kind of support that could be forthcoming

between fragmented authoritarianism and policy coordination creating a chinese market for wind energy abstract the chinese grid connected wind energy sector has undergone a number of fundamental changes during its 20 years of existence the scope of this article is to track the reforms of the energy bureaucracy and its policy approach on the one hand and changes in wind energy installations on the other by comparing three historically distinct phases of wind energy in china it is shown how policy reforms have changed largely from a state of fragmented authoritarianism towards policy coordination in the initial phase 1986 1993 wind energy was expanding very slowly with disjointed policy making and in the incremental phase 1994 1999 the energy authorities were in dispute over the strategy and launched conflicting policy initiatives with poor results in wind energy output the latest coordinated phase 2000 2006 however developed a coherent renewable energy agenda and policy regime for the wind power sector it is found that this phase with coordinated market regulations and incentives has helped give birth to a take off in chinese wind energy installations and substantial cost reductions although the latter is threatening the profitability of wind farms the article contributes to the academic debate over the role of policy making in renewable energy development and argues that china should continue and improve the coordination of regulations and incentives

wind farm investment risks under uncertain cdm benefit in china abstract china has set an ambitious target to increase its wind power capacity by 35 gw from 2007 to 2020 the country s hunger for clean power provides great opportunities for wind energy investors however risks from china s uncertain electricity market regulation and an uncertain energy policy framework mainly due to uncertain clean development mechanism cdm benefits prevent foreign investors from investing in china s wind energy the objectives of this paper are to 1 quantify wind energy investment risk premiums in an uncertain international energy policy context and 2 evaluate the impact of uncertain cdm benefits on the net present values of wind power projects with four scenarios this study simulates possible prices of certified emissions reductions cers from wind power projects project net present values npvs have been calculated the project risk premiums are drawn from different and uncertain cer prices our key findings show that uncertain cdm benefits will significantly affect the project npvs this paper concludes that the chinese government needs revising its tariff incentives most likely by introducing fixed feed in tariffs fits and re examining its cdm granting policy and its wind project tax rates to facilitate wind power development and enable china to achieve its wind energy target

a synthesis of the heckscher ohlin and the neoclassical models of international trade a comment abstract batra and casas 1976 have asserted that in the two sector three factor neoclassical model an increase in the supply of one factor at constant commodity prices will increase the output of the commodity using the expanding factor relatively intensively and thereby reduce the output of the other commodity the present note points out that there is a case against their assertion

the missing link the ricardian approach to the factor endowments theory of trade this paper views all interpersonal trade as ricardian while all international trade reflects each country s factor endowment the model provides the logical link betwe en heckscher ohlin and ricardo the strength of the model is that it allows simpler and more robust theorems about trade welfare and fac tor payments factor price equalization holds universally and stolper samuelson is not tied to the number of goods or factors a key resul t is that the old mill theorem that the small country gains all from trade is incorrect trade patterns with three factors and two goods a re completely characterized copyright 1988 by american economic association

free trade and income redistribution in a three factor model of the u s economy the move toward free trade promises to alter the distribution of income in the u s labor groups generally do not favor the move toward free trade which can be characterized by the continuing decline in the price of manufactured goods relative to business services the present study predicts that unskilled labor in the u s will lose under a program of free trade using a general equilibrium model of production factor shares industry shares and estimates of substitution for skilled labor unskilled labor and capital are used to examine comparative statics the interplay of factor intensity and factor substitution in the three factor production structure has proven a considerable analytical challenge building on the textbook production model with two factors the third productive factor allows technical complementarity and creates a more complex pattern of factor intensity both factor intensity and factor substitution affect the qualitative nature of the comparative statics little is known about the model s quantitative properties a 3 x 3 model with outputs of the three major sectors agriculture manufacturing services is specified and a 3 x 2 model without agriculture is also examined factor substitution is estimated with production function across states skilled labor separated by various census categories cannot be aggregated with unskilled labor in any sector and constant returns to scale cannot be rejected as a null hypothesis additionally the three inputs capital labor skilled labor are all technical substitutes comparative static results follow a pattern suggested by factor intensity changing prices of goods generally have elastic effects on factor prices stolper samuelson results in other words have a quantitative weight price changes due to a program of free trade will significantly affect income distribution similarly rybczynski type results are quantitatively significant in that factor endowment changes have elastic effects on outputs the implication is that output patterns will differ significantly across freely trading partners elasticities of factor prices with respect to endowment changes on the other hand are very inelastic this inelasticity suggests that there would only be small long run effects of international migration capital flows or endowment differences on the international pattern of factor income this inelasticity is called near factor price equalization nfpe under nfpe freely trading countries will experience a vector of factor prices nearly equal to each other nfpe suggests that the qualitative effects of changing or different factor endowments

renewable energy gathers steam in south africa abstract south africa s renewable energy independent power producers procurement programme the rei4p is an extensive initiative to install 17 8 gw of electricity generation capacity from renewables wind solar biomass biogas and hydropower over the period 2012 2030 although at the outset the rei4p seemed an expensive option designed only to deflect criticism of south africa s high carbon footprint and excessive dependence on coal based electricity generation the escalating costs of the latter the rapidly falling costs of photovoltaic and wind power and the increasingly competitive bidding process of the rei4p have changed this prospect at the conclusion of round three the weighted cost of energy has reached a 23 discount to the cost of new coal based generation and a 28 discount to global renewable energy prices the bidders commitments to local employment creation have similarly increased from 11 to 18 jobs mw the programme is now well placed to deliver on a broad range of objectives including regional development and black economic empowerment however maximum benefit from the rei4p will not be secured without some revision to aspects of the bidding and procurement process more specifically the local content provisions need to be tightened to drive higher levels of local manufacturing

policies and market factors driving wind power development in the united states abstract in the united states there has been substantial recent growth in wind energy generating capacity with growth averaging 24 percent annually during the past five years about 1700 mw of wind energy capacity was installed in 2001 while another 410 mw became operational in 2002 during 2003 development activity has remained strong with an estimated 1600 mw of capacity installed with this growth an increasing number of states are experiencing investment in wind energy projects currently about half of all states host at least one wind power project this paper explores the key factors at play in the 12 states in which a substantial amount of wind energy capacity has been developed or planned some of the factors that are examined include policy drivers such as renewable portfolio standards rps federal and state financial incentives as well as market drivers such as consumer demand for green power natural gas price volatility and wholesale market rules

an energy factor proportions model of the us economy abstract a factor proportions model examines the effects of falling energy input and its rising price in the us economy based on a novel production function motivated by the definition of physical work this physical production function specifies separate interaction of energy and labor with capital estimated with annual data from 1951 to 2008 energy has a large output elasticity and inelastic own input demand a rising energy price lowers the return to capital in the general equilibrium even though capital is a moderate substitute for energy energy has robust comparative static elasticities linked to manufacturing in the general equilibrium

stability of the mobile capital harris todaro model some further results a necessary and sufficient condition for stability is derived for the mobile capital harris todaro model of rural to urban migration in developing countries when land is a scarce factor in agriculture the stability condition when land is ignored that the urban sector comprising manufacturing industry and the urban unemployed be more capital abundant is no longer either necessary or sufficient for stability nevertheless this condition always enhances stability and it is sufficient though not necessary for stability in many circumstances e g when land is separable in production from labour and capital intuitive explanations of these conditions are provided excerpt

political regimes and income inequality abstract we construct a theoretically motivated model of income inequality through a pooled regression on an international panel we demonstrate that political regime whether extractive redistributive or reinvestment oriented correlates with within country income inequality

trade and factor prices in a model of capital utilization in recent years there has been considerable work on the economics of capital utilization but the implications of endogenous capital utilization for trade and comparative advantage have not been worked out empirical research has revealed that there is a great deal of variation across countries in the willingness of employees to work during evening and night hours and on weekends and the partial equlibrium theory of optimal capital utilization shows that a willingness on the part of employees to work during abnormal hours can reduce the cost of production frequently by reducing the need for fixed capital the effects on production costs will depend of course on the wage premium demanded by workers for abnormal hours work it stands to reason therefore that recognition of the varying degrees of willingness of employees to work during abnormal hours will have important implications for comparative advantage and trade this paper will be concerned with the introduction of endogenous capital utilization into one of the sectors of the standard two factor two sector model of trade there are two fundamentally different ways in which this introduction can take place in the first approach as each firm increases its level of capital utilization it in effect imposes abnormal hours of work on its existing labor force and it must increase the wage premium for labor during abnormal hours in this model the firm s optimal level of capital utilization occurs where the increased wage premium from the increase in abnormal hours work balances the saving of capital costs from the increase in capital utilization in the second approach the firm regards as given the wage rates for normal hours and for abnormal hours work and therefore the wage premium for abnormal hours is also

alternatives to coal and candles wind power in china china is in a unique position to be able to exploit her vast wind resources to satisfy both the rapidly growing energy demand which fuels her economy as well as needs of approximately 72 million people who live in rural areas and have no access to conventional electricity services china mainly through the e orts of the inner mongolia autonomous region has already successfully disseminated over 150 000 small scale wind electric generators which power households in rural areas through a well coordinated combination of local research and development technology transfer industry support end user incentives and an infrastructure for information dissemination and technical training in this paper we review china s utilization of wind energy and discuss how it can be increased for both rural electri cation and the rapidly growing power sector we nd that novel approaches in technical implementation of wind power use may help to better meet china s needs use of hybrid systems may help to provide higher quality more reliable power for rural households and villages than is currently provided through wind only systems grid connected wind power which currently is more costly and less reliable than coal power can become cost competitive and more reliable through local mass production of wind turbines combined with storage systems we examine governmental support through policy infrastructure development and nancial incentives that have fostered the successes of dissemination of small scale wind turbines and also the support or lack thereof that has hindered commercial development of large scale wind power we nd that a better policy and regulatory framework is the most important measure that china can take to increase the use of this indigenous clean resource 2000 elsevier science ltd all rights reserved

a theorem on income distribution in a small open economy abstract if the number of productive factors exceeds the number of commodities produced changes in factor endowments and or any commodity price will alter factor prices in a way that depends both upon factor intensities and the degree of factor substitutability however bilateral factor intensity rankings for constant price industries by themselves restrict possible factor price changes if factors are ranked from most to least intensive in any such pair of industries all the gainers cannot be located at one end of the ranking

international factor movements and the ramaswami argument in a succinct but classic article appearing in economica in 1968 ramaswami put forth an argument supporting the superiority of a policy that attracts foreign factors over a policy that allows a relatively abundant factor to emigrate in each case the active home country is assumed to levy taxes on factor flows so as to capture for itself the discrepancy in return to the same factor at home and abroad the asymmetry reflected by this policy ranking rests on a basic propeity of production functions the convexity of technology plus the ability of the active home country to hire or rent out factors at wages or rentals prevailing in the foreign country briefly put the ramaswami argument proceeds as follows suppose the active home country is capital abundant and has levied on optimal tax on earnings of its own capital operating abroad now consider repatriating this capital and allowing for the first time some inflow of foreign labour in particular suppose the home country allows a level of immigration identical to the labour force previously employed with the home capital that is being repatriated such a transfer of home capital and foreign labour out of the foreign country leaves factor proportions abroad undisturbed and thus does not alter the wage that must be paid to attract the requisite bundle of foreign workers although the home country thus avoids any increase in factor costs in foreign markets it can increase output since the capital labour ratiooriginally employed at home at high home wage rates is greater than the ratio in the freshly acquired bundle from abroad by adopting a uniform capital labour ratio over all factors now employed at home output and thus real income rises there may be even further gains to be had by allowing yet a different optimal level of immigration in the home country which has now banned capital exports 2 essential to the ramaswami argument is the ability of the home country to extract a bundle of factors previously employed abroad without disturbing factor prices in that country indeed jones coelho and easton 1983 have suggested that in the context of the ramaswami discussion the original argument could be pursued to suggest that the home country gains not only from repatriating its own capital but from actually encouraging foreign capital to be employed at home such a capital flow is admittedly uphill the home country would have to pay out more in rentals than such capital can earn at home despite this fact such an import of capital and labour in the same proportions found abroad does not alter foreign factor prices but does via the same ramaswami type argument on the convexity of the technology result in gains at home although ramaswami s own discussion starts with a repatriation of home capital previously invested abroad his argument can be applied directly to the foreign autarky factor endowment bundle if technology exhibits constant returns to scale and if all both factors are indeed internationally

unemployment and trade liberalisation in contrast to the focus of the public debate over trade liberalisation on job losses there is a widespread view among economists that unemployment and trade issues should be considered separately this view cannot be justified theoretically and ignores the growing number of general equilibrium trade models with unemployment in a simple model with an exogenous wage floor trade liberalisation can lead to either gains or losses depending on the production technology severity of the factor market distortion factor intensities of the industries and conditions in trading partners definite results can be derived about gains from liberalising trade with lower wage floors about relative abundance of the unemployed factor dampening losses when trade is liberalised and about gains when the good which uses the unemployed factor is exported the theoretical models are then linked to the policy modelling literature using the example of recent australian controversies over liberalisation of trade in automobiles and textiles it is argued that trade liberalisation would be better advanced by including endogenous employment in trade policy simulation exercises and by discussing employment effects rather than brushing them aside as temporary adjustment problems or regional difficulties

agricultural supply response in the argentinean economy este trabajo tiene como objetivo estimar la forma reducida de una funcion de oferta agropecuaria de la economia argentina en el marco de un modelo de equilibrio general los resultados de la estimacion de la oferta agropecuaria con datos que cubren los anos 1939 1984 muestran que hay una elasticidad precio de oferta de largo plazo de aproximadamente 1 3 que es estadisticamente significativa y que la convergencia al estado estacionario se logra en aproximadamente nueve anos esta estimacion de la elasticidad de oferta agropecuaria es aproximadamente tres veces mas grande que estimaciones previas con modelos de equilibrio parcial

free trade and factor price polarization abstract factor price equalization between trading partners is perhaps the best known implication of the heckscher ohlin samuelson model of production and trade it has long been known that with more primary factors than goods this result is not necessary recent studies have investigated effects of changing prices on factor payments in the three factor two good trade model this short note emphasizes that when such an economy moves from autarky to free trade payment to a relatively cheap factor may fall polarizing factor prices conditions favoring this outcome are examined

political and institutional analysis of the successes and failures of china s wind power policy this paper identifies and explains how political and institutional factors have determined the relative successes and failures of china s wind power policy over the period 2005 2011 it finds that china has made significant progress in pursuing its wind power policy in terms of cumulative installed capacity wind turbine manufacturing industry development and wind turbine cost and argues that these achievements can be attributed to the political motives and institutional arrangements of the chinese government as well as to institutional changes on the other hand the paper finds that there are two prominent policy failures namely the low proportion of grid connected capacity and the rising trend of wind turbine incidents these have undermined the efficiency and effectiveness of china s wind power program the paper holds that the institutional sources for the first policy failure lies in the preference for setting wind power development targets in terms of installed capacity rather than generation and in coordination problems while the second policy failure lies in the lack of state technical codes for wind power integration and the unfair competition from the large state owned power companies the paper contributes to the academic literature on the political and institutional roles in china s wind power policy

review of china s wind power firms internationalization status quo determinants prospects and policy implications abstract in recent years an increasing number of chinese wind power firms have been going international in search of global market for development channels by employing qualitative research and case study methods this paper examines the export scale and markets of china s wind turbines the market entry modes and location choices of china s outward foreign direct investment fdi in the wind power sector identifies the determinants and prospects of chinese wind firms internationalization as well as provides policy implications it is found that chinese wind power firms has chosen to internationalize very differently from the uppsala model in that the exports and fdi of chinese wind power firms both took place around 2008 and the exports and fdi of chinese wind power firms are closely linked the determinants of chinese wind firms internationalization are the competitive advantages of leading chinese wind firms and the intensified domestic market competition followed by chinese government support for internationalization and the attractive overseas market the prospects of chinese wind firms internationalization are bright but challenging drawn on this analysis conclusions and three policy implications are provided at the end of the paper this paper contributes to the study of china s wind power sector from a new perspective

an affinity to commons model of public support for environmental energy policy abstract as atmospheric co 2 continues to rise above 450 ppm policymakers struggle with uncertainty concerning predictors of citizen support for environmental energy policies eeps and preferences for their design topics which have received limited attention in empirical literature we present an original model of policy support based on citizens affinity to commons pathways by which individuals enjoy natural public goods that in turn shape preferences between alternative policy mechanisms we evaluate this model using a survey of southern california electricity customers with results indicating the model s utility in predicting public support of eep stronger community ties are associated with preferences for pull type subsidies whereas stronger connections to natural commons are linked to support for both pull and push type sanctions findings have implications for coalition building as advocates may engender support for green energy policy by framing sanctions as protecting natural commons and framing subsidies either in this same way and or as producing benefits for communities

the evolution of wind energy policies in china 1995 2014 an analysis based on policy instruments abstract the rapid growth of china s installed wind power capacity in recent years is closely related to the wind energy policies issued by the chinese government using content analysis and quantitative analysis methods this paper studies the historical evolution of chinese wind energy policies based on 72 wind energy policies issued in the past two decades 1995 2014 this paper analyzes the issuing organization form number and stringency of wind energy policies and compares different policy instruments in two periods the results show that the number and stringency of wind energy policies fluctuated greatly from 1995 to 2014 and that more than twenty organizations had independently or jointly issued the policies the main organization issuing wind energy policies however is the department that controls key economic and administrative resources and not the one that is in charge of wind energy of the 72 policies issued twenty three took the form of notices and eleven were measures as to the policy instrument environmental policies are most widely applied by the chinese government and regulation control and goal planning instruments are the ones most frequently adopted furthermore the application of supply and demand type policies is inadequate and few effective instruments have been adopted

factor movements with three factors and two goods in the u s economy abstract ruffin s 1981 theoretical finding that extreme factors must be enemies and the middle factor must be a friend of both extreme factors with constant product prices in a three factor two good general equilibrium model is confirmed empirically for the united states results are used to explain the positions factor owners take on issues of factor movement policies

industrial shut downs and medium run factor intensity reversals while short run factor intensity reversals lead to industrial shut downs when there are two productive factors this paper shows that an industry can undo an intensity reversal over the medium run and avoid shutting down when there are three or more factors medium run adjustment begins with a capital fixed input and extends until it has become perfectly mobile j peter neary 1978 develops a picture of adjustment with two industries and two inputs where an industry must shut down following an intensity reversal the present study adds a third input skilled labor or natural resources to capital and labor

factor mobility trade and welfare abstract the paper develops a north south model which is driven by scale economies in the modern sector the model predicts that skilled and unskilled labor migrate from south to north and capital migrates from north to south migration of skilled labor and capital exhibits complementarity with trade while migration of labor may exhibit complementarity or substitutability if the terms of trade effects are ignored small movements of all factors affect the welfare of the population in south negatively and of that in north positively the effects of migration on the terms of trade are ambiguous in general

do tariffs protect specific factors it is shown that a tariff can lower payment to a productive factor used only in specific to the protected industry in a simple production model this may occur anytime the protected sector shares more than one common factor with the rest of the economy as seems most likely intuition based on the well known specific factors model where sectors share a single common factor should be modified whether specific factors effectively receive protection from tariffs becomes an empirical issue

to what extent does wind power deployment affect vested interests a case study of the northeast china grid abstract china s wind power is in an embarrassing state along with its dramatic development since 2005 its curtailment ratio has been rising although this could be attributed to both physical and institutional factors it is the institutional obstacles mainly resulting from the adjustment difficulties of interests distribution that have exercised a greater impact the stakeholders relating to wind power integration are thermal power companies grid companies and local governments the extent to which wind power deployment affects these vested interests determines the core institutional obstacles to be addressed mainly based on quantitative and case analyses we argue that currently wind deployment in china has a little impact on the interests of thermal companies moderate impact on the interests of grid companies and great impact on local governments we recommend that it is crucial to elevate the role of environmental protection and renewable energy increase while de emphasize the role of economic growth in the evaluation of local governments performance as well as provide incentives for grid companies to attend more to their social responsibilities rather than their scale expansion and revenue growth

welfare effects of migration in societies with indirect taxes income transfers and public good provision abstract we construct a general equilibrium trade model of a two class small open host or source country when consumption tax revenue finances the provision of a public good marginal migration reduces social welfare in the source country and raises it in the host when consumption tax revenue is equally distributed among domestic households in each country then migration has an ambiguous impact on social welfare in either country when tariff revenue in either country is either equally distributed among domestic households or it is used to finance the provision of a public good then migration has an ambiguous effect on social welfare in the host country and is expected to reduce social welfare in the source

the value of holding scarce wind resource a cause of overinvestment in wind power capacity in china abstract china s wind power capacity has increased dramatically in recent years but about 30 of the installed capacity sits idle so overinvestment in wind power capacity seems to be a serious problem this paper explores reasons for the overinvestment the economic analysis shows that given uncertain future policy on wind power it is optimal for power companies to invest more than the amount in a certain world a part of the overinvestment has a real value which can be interpreted as the value of holding scarce wind resource this value exists because the wind rich sites with convenient locations to connect to the grids are scarce resource and also because the specific government policies that are essential for promoting wind power are uncertain in the future this value should be taken into account in the investment decision but it results in the phenomenon of overinvestment the concept of the value of holding scarce resource can be generally applied to the resources that are scarce and for which the future policy is uncertain

fostering a renewable energy technology industry an international comparison of wind industry policy support mechanisms this article examines the importance of national and sub national policies in supporting the development of successful global wind turbine manufacturing companies we explore the motivations behind establishing a local wind power industry and the paths that different countries have taken to develop indigenous large wind turbine manufacturing industries within their borders this is done through a cross country comparison of the policy support mechanisms that have been employed to directly and indirectly promote wind technology manufacturing in 12 countries we find that in many instances there is a clear relationship between a manufacturer s success in its home country market and its eventual success in the global wind power market whether new wind turbine manufacturing entrants are able to succeed will likely depend in part on the utilization of their turbines in their own domestic market which in turn will be influenced by the annual size and stability of that market consequently policies that support a sizable stable market for wind power in conjunction with policies that specifically provide incentives for wind power technology to be manufactured locally are most likely to result in the establishment of an internationally competitive wind industry

energy policymaking in denmark implications for global energy security and sustainability denmark is arguably the most energy secure and sustainable country in the organization of economic cooperation and development oecd the country has reduced its dependence on foreign sources of energy to zero and become self sufficient in its own energy production and use offering important lessons for other nations around the world this study explores the core of denmark s successful approach a commitment to energy efficiency prolonged taxes on energy fuels electricity and carbon dioxide and incentives for combined heat and power chp and wind turbines through these commitments the study shows how denmark transitioned from being almost 100 percent dependent on imported fuels such as oil and coal for their power plants in 1970 to becoming a net exporter of fuels and electricity today the country leads the world in terms of exportation of wind energy technology with a hold on roughly one third of the world market for wind turbines it was able to phase out the use of virtually all oil fired power plants in less than five years and implemented a progressive moratorium on future coal fired power plants in the 1990s their most recent strategy seeks to achieve 30 percent of total energy supply from renewable energy by 2025

accumulation of human capital in ldcs in the presence of unemployment this paper takes up an aggregative growth framework to study how human and physical capital evolve over time as households allocate their investment between the two assets in the context of unemployment of educated labor it develops a general equilibrium model of an economy with two sectors a composite good sector and a schooling sector where output is subject to increasing returns to scale a temporary equilibrium for this economy depends on the endowments of physical and human capital as well as on the output elasticity of returns to scale and the price elasticity of education the dynamic evolution of this economy is explored in terms of the accumulation of the two types of capital a rise in education subsidy increases the demand for education at the cost of investment in physical capital and could lead to inefficient substitution between skilled and unskilled workers in the long run copyright 1994 by the london school of economics and political science

capital utilization and factor specificity in this study a model of firm behavior that allows the level of capital utilization to be optimally chosen by cost minimizing firms is embedded into the standard specific factors model employed in the international trade literature the resulting generalization of the specific factors model provides several new insights for instance allowing for variable utilization in either or both sectors gives rise to a greater variety of possible trade patterns than forcing utilization to remain constant similarly international differences in the willingness to work during abnormal hours generate a wider variety of trade patterns than are possible in the standard specific factors model finally this model allows a reconciliation of the dual scarcity explanation of the nineteenth century anglo american pattern of trade with the historical evidence on levels of utilization

constructing china s wind energy innovation system abstract the rapid rise of china as the largest wind energy market worldwide with several global leaders in turbine manufacturing received much attention from both scholarly and policy analytical work however little attention has been given to the innovation activities of the chinese wind industry in our paper we aim to address this gap based on second hand sources and over 50 personal interviews with wind energy related experts we argue that china s wind industry has made great progress in terms of manufacturing and installing but is confronted with various challenges and problems regarding the development of its indigenous innovation capabilities using innovation systems approaches as an analytical tool and focusing on institutions actors technology and their interaction in supporting innovation activities we decompose the elements of china s wind energy innovation system and their role in developing the domestic wind industry against this backdrop we identify and discuss challenges and obstacles in the development of an innovation driven wind industry in china the paper strongly argues that more attention should be paid to improve the coordination and cooperation among the various actors of the wind energy innovation system to the build up of a market oriented education and training system as well as to intellectual property protection

complementarity in a simple general equilibrium production model a simple three factor two good general equilibrium model allowing complementarity in production is examined conclusions of general equilibrium economics with two factors must be reinterpreted and qualified when complementarity is possible sign patterns of how changing factor endowments affect outputs and how changing prices affect factor payments are uncovered for a small open economy results should prove valuable to a wide range of economists interested in extending general equilibrium analysis to include complementary factors of production