community based tradable permits for localized pollution this paper considers the assignment of tradable permits representing property rights of an environmental good to community members who are harmed by pollution generated by firms these community members can in turn sell permits to polluters according to their personal preferences for a special case with a sole household market transactions between the household and polluters achieve an efficient pollution level however for a group of households the decentralized market solution fails to yield social efficiency because of competitive consumption of the environmental goods we design a revenue sharing mechanism akin to unitization under which market transactions also achieve efficient resource allocation importantly in some cases efficiency can be achieved even when regulators are ignorant of the private valuation of the environmental good

regulating stock externalities under uncertainty abstract using a simple analytical model incorporating benefits of a stock costs of adjusting the stock and uncertainty in costs we uncover several important principles governing the choice of price based policies e g taxes relative to quantity based policies e g tradable permits for controlling stock externalities as in weitzman rev econom stud 41 4 1974 477 the relative slopes of the marginal benefits and costs of controlling the externality continue to be critical determinants of the efficiency of prices relative to quantities with flatter marginal benefits and steeper marginal costs favoring prices but some important adjustments for dynamic effects are necessary including correlation of cost shocks across time discounting stock decay and the rate of benefits growth applied to the problem of greenhouse gases and climate change we find that a price based instrument generates several times the expected net benefits of a quantity instrument

transactions in the european carbon market a bubble of compliance in a whirlpool of speculation the european union emissions trading scheme eu ets is supposed to help regulated installations to cover their co2 emissions by trading in allowances in practice the eu ets is mainly a financial market used for hedging and speculation this financial feature is regarded as a solution hedging and liquidity to a problem the price risk and volatility imposed on installations which the market has actually created itself this paper provides an estimation of the real underpinning of the scheme i e the needs of installations for allowances transfers to achieve compliance in the two first exchange periods this estimation which was singularly lacking in the literature shows that compliance transactions become more and more marginal as market activity grows and that they are drowned in a whirlpool of speculation this challenges the role of the carbon price whose financial and self referential evaluation can obviously not reveal installations marginal abatement costs the condition of cost effectiveness expected from carbon trading

open economy implications of two models of business fluctuations a wage contract model and misperceptions model of aggregate fluctuations are shown to have strikingly different implications when applied to a small open economy with a flexible exchange rate positive monetary disturbances reduce the relative price of non traded goods and create a trade surplus in the wage contract model but raise the relative price of non traded goods and create a trade deficit in the misperceptions model they also have different implications for production in each industry consumption nominal prices and the exchange rate open economy applications of macro economic models are shown to be a useful source of additional testable implications

an agent based stock flow consistent model of the sustainable transition in the energy sector major structural changes to the current fossil fuel based economic system are needed in order to address the climate change challenge to this purpose effective renewable energy sources res support policies along with concrete efforts towards the improvement of energy efficiency have been adopted in many countries one of these policies is the feed in tariff fit mechanism according to which electricity produced by res is sold at guaranteed prices feed in tariffs which are higher than market ones for fixed periods of time in this paper we investigate how to foster a sustainability transition of the energy system towards an economically and ecologically sustainable growth path by using an enriched version of the eurace model eurace has been enriched by including an energy sector where electricity is demanded by domestic producers and is supplied by a fossil fuel based power producer as well as a renewable energy based one both power producers undertake pricing and capacity investment decisions based on the price of imported fossil fuel and feed in tariff government policy in particular we investigate how the economy is affected by the fiscal costs of financing the feed in tariff mechanism and by the benefits of lower fossil fuels imports in order to devise the policy with the best cost benefit trade off for the macroeconomy as a whole results show that the feed in tariff policy is effective in fostering the sustainability transition of the energy sector and that it increases the level of investments in the economy with a slightly positive impact on the unemployment rates moreover we observe that its financing costs do not impact government finances in a relevant way on the other hand the higher level of investments occurs at the expense of the production of consumption goods therefore with a negative impact for the living standards at least according to the perspective of a consumerist society however if factors like better employment rates and the reduced ghg emissions are also taken into account along with consumption by an appropriate preference function the final outcome on well being should be probably deemed as favourable

what can we learn from the grand policy experiment lessons from so2 allowance trading stable url http links jstor org sici sici 0895 3309 28199822 2912 3a3 3c69 3awcwlft 3e2 0 co 3b2 tthe journal of economic perspectives is currently published by american economic association your use of the jstor archive indicates your acceptance of jstor s terms and conditions of use available athttp www jstor org about terms html jstor s terms and conditions of use provides in part that unless you have obtainedprior permission you may not download an entire issue of a journal or multiple copies of articles and you may use content inthe jstor archive only for your personal non commercial use please contact the publisher regarding any further use of this work publisher contact information may be obtained athttp www jstor org journals aea html each copy of any part of a jstor transmission must contain the same copyright notice that appears on the screen or printedpage of such transmission the jstor archive is a trusted digital repository providing for long term preservation and access to leading academicjournals and scholarly literature from around the world the archive is supported by libraries scholarly societies publishers and foundations it is an initiative of jstor a not for profit organization with a mission to help the scholarly community takeadvantage of advances in technology for more information regarding jstor please contact support jstor org http www jstor orgtue jun 26 16 25 17 2007

money output and the trade balance theory and evidence this paper develops a two country equilibrium model of the world economy under floating exchange rates and draws out its implications for co movements of money output and the trade balance the predictions of this model are then compared with those of a fixed price keynesian version of the mundell fleming model the predictions of the two models for co movements of money output and the trade balance are shown to differ on almost all counts empirical evidence on the effects of anticipated and unanticipated changes in money growth rates on output and the trade balance from the recent canadian experience with floating rates is presented and discussed this evidence generally speaking is consistent with the implications of the equilibrium model

aggregate information and the role of monetary policy in an open economy a model of a small open economy in which agents trade in local goods markets and an economy wide asset market is developed purchasing power parity is assumed to hold at the aggregate level however because of local deviations from purchasing power parity agents possess differential information using this framework it is shown that when the exchange rate is flexible monetary policy can influence the distribution of real output by altering the information content of the exchange rate however when monetary policy is committed to fixing the exchange rate by a feedback rule the distribution of real output is independent of the particular exchange rate rule chosen the stability of real output under the two regimes is compared and it is demonstrated that regardless of the stability of domestic monetary policy a flexible exchange rate regime is superior in this respect possible qualifications and extensions of these results are also discussed

real exchange rates under alternative nominal exchange rate systems abstract the paper develops an equilibrium model of the determination of exchange rates the relative price of nontraded goods and the current account the focus is on the effects of various real and nominal disturbances and the conditions under which the nominal exchange rate system is neutral with respect to real variables in the economy the model demonstrates an assymetry in the roles of trade and nontraded goods in affecting exchange rates an econometric investigation of the raltion between the exchange rate system and the variability of real exchange rates provides some evidence against the neutrality hypothesis

the effects of government spending on non traded goods it is widely believed that fluctuations in government spending influence economic variables such as output consumption investment and real interest rates recent business cycle models have reemphasized that government purchases have a substantial business cycle role works of barro 8 and hall 15 have inspired a great deal of research in identifying and quantifying the effects of government purchases during business cycle episodes this paper pursues this line of research in particular it studies theoretically and empirically the role of government purchases in the cyclical behavior of the relative price of non traded goods in terms of traded goods and output of non traded goods in a two country world following barro 8 it emphasizes the distinction between temporary and permanent government spending since these two components have different implications for wealth and consequently have different effects on the economy this paper illustrates that temporary foreign government spending reduces the home relative price of non traded goods and output of home non traded goods temporary home government spending raises output of home non traded goods the effects of home temporary government spending on the home relative price of non traded goods are in general ambiguous the empirical implementation of the model employs canadian and u s quarterly data for the period 1968 1 1987 111 we treat canada as the home country and the u s as the foreign country and estimate the model by nonlinear least squares the results indicate that temporary u s government spending reduces the canadian relative price of non traded goods and output of non traded goods the results also suggest that temporary canadian government spending raises output of canadian non traded goods and reduces the canadian relative price of non traded

economic growth and transport energy consumption in the latin american and caribbean countries abstract transport is a strategic sector for economic development whilst being one of the most polluting sectors of the economy the latin american and caribbean countries have been consolidated as the region with significantly faster energy consumption growth this paper analyzes how the gdp per capita affects the transport energy consumption testing possible non linear relationships between variables a transport energy consumption function depending on gdp and its squared and cubed value is estimated for 22 lac countries over the period 1990 2014 the results support an n shaped curve while the elasticity values of transport energy consumption with respect to gdp per capita do not show a tendency to decrease in the long term fourteen lac countries show absolute coupling levels at the end of the period while the rest exhibit partial couplings likewise trade openness population density degree of urbanization and structural changes in the economy have positive effects on the transport energy consumption this paper proposes some energy efficiency measures to control the growing energy use and the promotion of biofuels and electric vehicles is also considered necessary to reduce the negative effects of transport energy use

european emission trading scheme and competitiveness a case study on the iron and steel industry abstract we quantify the impact of the european emission trading scheme ets on the two dimensions of competitiveness production and profitability for the iron and steel industry among those covered by the scheme this sector is one of the most exposed since it is both highly co 2 intensive and relatively open to international trade we also examine the robustness of these results to various assumptions marginal abatement cost curve trade and demand elasticities as well as pass through rates and updating of allocation rules of which the latter two are scarcely debated we conclude that for this sector competitiveness losses are small we prove this conclusion to be robust hence arguments against tightening the environmental stringency of the ets in phase ii are not justified on grounds of competitiveness loss our systematic sensitivity analysis allows us to identify the important assumptions for each output variable it turns out that pass through rates and updating rules are significant despite being often implicit and least debated in existing analyses

the european union s emissions trading system this paper investigates the european union s emissions trading system eu ets which is often presented as the cornerstone of the eu s strategy for fighting climate change the paper analyses the basic design of the scheme its workings during the first trading period 2005 07 the adjustments made for the second trading period 2008 12 and its performance during the years 2008 and 2009 it also discusses the european commission s ec proposal to revise the eu ets for the period 2013 20 and the agreement reached the paper offers a critical assessment of the eu ets from a value theoretic and class based standpoint challenging mainstream accounts following the consultation and co decision processes that preceded the adoption of the eu ets directive and its amendment one reaches the conclusion that the eu ets has become the flagship of the european climate change programme because it is more conducive to the dominant eu industrial capitals that compete with non eu capitals under strenuous international market conditions the limited environmental effectiveness the windfall profits and distributional injustice that characterise the scheme from its start are pitfalls generated from the embeddedness of the scheme in the eu capitalist economies

the electricity consumption versus economic growth of the polish economy abstract the aim of this contribution is an investigation of causal interdependences between electricity consumption and gdp in poland our research was conducted for total electricity consumption as well as for the industrial consumption of electricity in order to reflect the causality between gdp and electricity consumption properly we performed our investigations in a three dimensional framework with employment chosen as an additional variable we used reliable quarterly data from the period q1 2000 q4 2009 in order to check the stability of the causalities the investigations were performed on two samples a full sample and a pre crisis i e q1 2000 q3 2008 subsample we applied both traditional methods and some recently developed econometric tools we found feedback between total electricity consumption and gdp as well as between total electricity consumption and employment we also found unidirectional causality running from industrial electricity consumption to employment and no direct causal links between industrial electricity consumption and gdp in addition all these findings were in general not seriously affected by the financial and economic crises of 2008 a significant exception is the causal effect of industrial electricity consumption on employment which was more pronounced after the crisis of 2008

market design in cap and trade programs permit validity and compliance timing abstract cap and trade programs have considerable heterogeneity in permit validity and compliance timing for example permits have different validities across time e g banking borrowing and seasons and space e g zonal restrictions and compliance timing can be annual in overlapping cycles or in multi year periods we discuss nine prominent cap and trade programs along these dimensions and construct a general model of permit validity and compliance timing we derive sufficient conditions under which abatement is invariant to compliance timing i e compliance timing cannot smooth abatement cost shocks under these conditions i expected compliance costs are invariant ii the variance of compliance costs increases with the delayed compliance iii equilibrium prices may not be unique and iv the delayed compliance equilibrium may rely on degenerate prices not determined by marginal abatement costs we demonstrate the model s broad applicability by illustrating different types of temporal permit validity

calls for carbon markets at cop21 a conference report a number of leading international industry associations and organizations representing thousands of companies from around the globe took part in a side event at the ieta wbcsd business hub in the blue zone at le bourget on wednesday 2 december the hub was part of the cop21 assembly of the united nations framework convention on climate change unfccc in paris in the session a series of so called carbon markets statements were presented in order to emphasize the importance of including carbon market provisions in the paris agreement unfccc 2015 if global warming is to be maintained below 2 c while the conference as expected did not achieve a global carbon price the unfccc agreement 2015 p 19 mentions the role of non party stakeholders such as civil society the private sector and financial institutions in addressing climate change and recognizes the important role of providing incentives for emission reduction activities including tools such as domestic policies and carbon pricing the conference report summarizes the findings of the session along with the message delivered by industry representatives drawing on individual industry statements presented in the session several themes are identified 1 the importance of carbon markets 2 benefits of carbon markets 3 competitiveness of organizations and development of low carbon solutions and 4 the need for improvements to carbon markets as emphasized by the industry associations the paris agreement failed to explicitly address carbon markets albeit the expectations of this being realized were quite low however countries have submitted ambitious intended nationally determined contributions indcs for greenhouse gas emissions reduction which will demand ambitious reductions in carbon emissions therefore countries will be forced to bring forward policies to meet these targets and further development of carbon markets may materialize in response

designing climate mitigation policy this us paper provides an exhaustive review of critical issues in the design of climate mitigation policy by pulling together key findings and controversies from diverse literatures on mitigation costs damage valuation policy instrument choice technological innovation and international climate policy the authors begin with the broadest issue of how high assessments suggest the near and medium term price on greenhouse gases would need to be both under cost effective stabilization of global climate and under net benefit maximization or pigouvian emissions pricing the remainder of the paper focuses on the appropriate scope of regulation issues in policy instrument choice complementary technology policy and international policy architectures

what is the value of the option to defer an investment in transmission expansion planning an estimation using real options abstract in deregulated markets transmission expansion planning tep is usually performed by a central network planner seeking to maximize social welfare in doing that the network planner commonly follows a traditional project valuation considering a discounted cash flow dcf methodology although incorporating uncertainty and reliability considerations accordingly once the optimal transmission expansion plan is determined the network planner frequently auctions the needed investments obligating the investor to execute the expansion in the fixed inflexible terms defined in the bidding process a key problem is that dcf does not take into account the responses of the planner when uncertainties are resolved because dcf evaluates the project with the information available today in tep managerial flexibility may be valuable because optimal decisions may change over time with the release of new information transmission investors may want to defer or expand according to such information the aim of this article is to estimate the value of adding some flexibility in tep through real options in particular by means of using a real option approach with binomial trees we study the benefits for a social network planner of having the option to defer some transmission investments our results suggest that incorporating flexibility in tep may increase social welfare

intertemporal permit trading for the control of greenhouse gas emissions this paper integrates two themes in the intertemporal permitliterature through the construction of an intertemporal bankingsystem for a pollutant that creates both stock and flow damages a permit banking system for the special case of a pollutant thatonly causes stock damages is also developed this latter simpler case corresponds roughly to the greenhouse gas emissionreduction regime proposed by the u s department of state as ameans of fulfilling the u s commitment to the frameworkconvention on climate change this paper shows that environmentalregulators can achieve the socially optimal level of emissionsand output through time by setting the correct total sum ofallowable emissions and specifying the correct intertemporaltrading ratio for banking and borrowing for the case ofgreenhouse gases we show that the optimal growth rate of permitprices and therefore the optimal intertemporal trading rate hasthe closed form solution equal to the ratio of current marginalstock damages to the discounted future value of marginal stockdamages less the decay rate of emissions in the atmosphere given a non optimal negotiated emission path we then derive apermit banking system that has the potential to lower net socialcosts by adjusting the intertemporal trading ratio taking intoaccount the behavior of private agents we use a simplenumerical simulation model to illustrate the potential gains fromvarious possible banking systems

combining price and quantity controls to mitigate global climate change abstract uncertainty about compliance costs causes otherwise equivalent price and quantity controls to behave differently and leads to divergent welfare consequences although most of the debate on global climate change policy has focused on quantity controls due to their political appeal this paper argues that price controls are more efficient simulations based on a stochastic computable general equilibrium model indicate that the expected welfare gain from the optimal price policy is five times higher than the expected gain from the optimal quantity policy an alternative hybrid policy combines both the political appeal of quantity controls with the efficiency of prices using an initial distribution of tradeable permits to set a quantitative target but allowing additional permits to be purchased at a fixed trigger price even sub optimal hybrid policies offer dramatic efficiency improvements over otherwise standard quantity controls for example a 50 trigger price per ton of carbon converts the 3 trillion expected loss associated with a simple 1990 emission target to a 150 billion gain these results suggest that a hybrid policy is an attractive alternative to either a pure price or quantity system

addressing global environmental externalities transaction costs considerations is there a way to understand why some global environmental externalities are addressed effectively whereas others are not the transaction costs of defining the property rights to mitigation benefits and costs is a useful framework for such analysis this approach views international cooperation as a contractual process among country leaders to assign those property rights leaders cooperate when it serves domestic interests to do so the demand for property rights comes from those who value and stand to gain from multilateral action property rights are supplied by international agreements that specify resource access and use assign costs and benefits including outlining the size and duration of compensating transfer payments and determining who will pay and who will receive them four factors raise the transaction costs of assigning property rights i scientific uncertainty regarding mitigation benefits and costs ii varying preferences and perceptions across heterogeneous populations iii asymmetric information and iv the extent of compliance and new entry these factors are used to examine the role of transaction costs in the establishment and allocation of property rights to provide globally valued national parks implement the convention on the international trade in endangered species of wild fauna and flora execute the montreal protocol to manage emissions that damage the stratospheric ozone layer set limits on harvest of highly migratory ocean fish stocks and control greenhouse gas emissions jel d23 p14 q22 q51 q54 q58

experimentation in federal systems will decentralization lead to a laboratory in policy experimentation or is centralization necessary to prevent free riding in the innovation process we present a model where experiments have two dimensions all prefer quality but preferences

energy and output dynamics in bangladesh the relationship between energy consumption and output is still ambiguous in the existing literature the economy of bangladesh having spectacular output growth and rising energy demand as well as energy efficiency in recent decades can be an ideal case for examining energy output dynamics we find that while fluctuations in energy consumption do not affect output fluctuations movements in output inversely affect movements in energy use the results of granger causality tests in this respect are consistent with those of innovative accounting that includes variance decompositions and impulse responses autoregressive distributed lag models also suggest a role of output in bangladesh s energy use hence the findings of this study have policy implications for other developing nations where measures for energy conservation and efficiency can be relevant in policymaking

unraveling the notion of fair carbon key challenges for standards development standards organizations and ngos have begun to refer to fair carbon projects and fairly traded carbon credits fairness is a fuzzy notion subject to multiple and competing interpretations this paper draws on a framing used by standards organizations which encompasses issues of access and benefits to critically examine challenges and opportunities for achieving desired fair outcomes as discussed in the literature arising knowledge gaps are presented as a research agenda that explores what fair carbon means to multiple stakeholders illuminates governance processes through which fairness is being standardized and examines its implications within certified carbon projects

causal nexus between energy consumption and economic growth for high middle and low income countries using frequency domain analysis abstract this study aims to investigate the causal nexus between energy consumption and economic growth for 119 countries from all over the world having at least 30 years of available data on candidate variables including 30 high income oecd 13 high income non oecd 65 middle income and 11 low income countries the study employs granger causality in the frequency domain context for empirical analysis which allows one to examine the causal nexus over different frequencies and thus provides relatively a better picture of the causal nexus between the candidate variables in particular we examine the temporary short run as well as at permanent long run causal nexus between energy consumption and economic growth the empirical results suggest that 18 countries including 5 high income oecd 2 high income non oecd 10 middle income and 1 low income confirm the existence of feedback hypothesis 25 countries including 4 high income oecd 3 high income non oecd 14 middle income and 4 low income confirm growth hypothesis out of total 119 countries similarly 40 countries including 6 high income oecd 6 high income non oecd 27 middle income and 1 low income suggest conservation hypothesis while 36 countries comprising of 15 high income oecd 2 high income non oecd 14 middle income and 5 low income hold neutrality hypothesis between energy consumption and economic growth out of 119 countries the findings of the study suggest that an appropriate and effective public policy is required for all sample countries both in the short and long term while considering sustainable economic growth and development

the causal relationship between electricity consumption and economic growth in the asean countries abstract this paper investigates the causal relationship between electricity consumption and economic growth among the association of south east asian nations asean 4 members namely indonesia malaysia singapore and thailand using modern time series techniques for the period 1971 2002 the results indicate that there is a bi directional causality between electricity consumption and economic growth in malaysia and singapore this means that an increase in electricity consumption directly affects economic growth and that economic growth also stimulates further electricity consumption in the two countries however uni directional causality runs from economic growth to electricity consumption in indonesia and thailand without any feedback effect thus electricity conservation policies can be initiated without deteriorating economic side effects in the two countries

oil prices nuclear energy consumption and economic growth new evidence using a heterogeneous panel analysis abstract this paper applies panel data analysis to examine the short run dynamics and long run equilibrium relationships among nuclear energy consumption oil prices oil consumption and economic growth for developed countries covering the period 1971 2006 the panel cointegration results show that in the long run oil prices have a positive impact on nuclear energy consumption suggesting the existence of the substitution relationship between nuclear energy and oil the long run elasticity of nuclear energy with respect to real income is approximately 0 89 and real income has a greater impact on nuclear energy than do oil prices in the long run furthermore the panel causality results find evidence of unidirectional causality running from oil prices and economic growth to nuclear energy consumption in the long run while there is no causality between nuclear energy consumption and economic growth in the short run

the transmission of disturbances under alternative exchange rate regimes with optimal indexing the paper develops a general stochastic macroeconomic model that can be used to study the international transmission of disturbances under four alternative exchange rate systems uniform flexible exchange rates uniform fixed exchange rates and two versions of two tier exchange rates the analysis makes two general points first one cannot assume stability of structure when assessing the consequences of alternative exchange rate regimes for example the slope of the aggregate supply curve and the rationally formed expectations in the asset markets can respond dramatically to the government s choice of exchange rate regime second exchange rate regimes that provide full insulation from foreign disturbances may nevertheless be inferior to other regimes in terms of their ability to maximize social welfare

carbon markets 15 years after kyoto lessons learned new challenges abstract carbon markets are substantial and they are expanding there are many lessons from market experiences over the past eight years there should be fewer free allowances better management of market sensitive information and a recognition that trading systems require adjustments that have consequences for market participants and market confidence moreover the emerging market architecture features separate emissions trading systems serving distinct jurisdictions and a variety of other types of policies exist alongside the carbon markets this situation is in sharp contrast to the top down integrated global trading architecture envisioned 15 years ago by the designers of the kyoto protocol and raises a suite of new questions in this new architecture jurisdictions with emissions trading have to decide how whether and when to link with one another stakeholders and policymakers must confront how to measure the comparability of efforts among markets as well as relative to a variety of other polic

industry level production functions and energy use in 12 eu countries abstract in the eu context industrial sectors have significantly reduced their energy consumption in the last decade despite significant disparities existing across industry branches comparative studies focused on the effect of energy use in the production growth of the different industry branches are limited and not related to the eu countries this study undertakes a production growth approach to analyze the effect of energy use in different industry branches through the estimation of translog production functions based on data from 12 eu countries during the 2000 2014 period in addition two sub periods are studied to evaluate if industrial energy efficiency has been improving through time specifically from 2007 findings confirm the existence of different behavior patterns with respect to energy use in the considered sectors and from one sub period to another as a result policy measures should be sector specific since no general production energy use patterns can be obtained

electricity consumption and economic growth a cross country analysis abstract electricity has been the foundation of economic growth and constitutes one of the vital infra structural inputs in socio economic development the world faces a surge in demand for electricity that is driven by such powerful forces as population growth extensive urbanization industrialization and the rise in the standard of living this paper attempts to ascertain whether there is a systematic relationship between electricity consumption and economic growth to this end we use a large set of data that spans 88 countries during the period 1975 2004 a statistically significant inverted u shaped relationship between per capita consumption of electricity and per capita income is detected nevertheless by using a purchasing power parity that is much higher than the per capita income of all the countries in the world the level of per capita income is estimated at the peak point of per capita electricity consumption to be 61 379 in 2000 constant international dollars moreover we segment the sample into organization for economic cooperation and development oecd countries and non oecd countries and separately analyze the developed and developing countries the separate estimation shows that even though the peak income is higher than the average per capita income a statistically significant inverted u shaped relationship is found in oecd and developed countries but not in non oecd and developing countries

a meta analysis investigation of the direction of the energy gdp causal relationship implications for the growth degrowth dialogue abstract the complex relation between energy use and the economic process has long attracted attention issues such as the scarcity of energy resources energy theory of value degrowth and a growth approaches are closely related to the relationship between energy and development the present study traces the implications of the energy gdp causality dialogue for the context of the growth degrowth debate where the energy development link plays a decisive role in that context the present research investigates the possible existence of a fundamental macro direction of causality between energy use and economic growth that is not influenced by study specific characteristics and events towards this objective we perform a meta analysis that takes into account 158 studies on causality between energy and gdp covering the period 1978 2011 this is the first time to our knowledge that meta analysis has been applied to investigate the direction of the energy and gdp causal relationship the meta analysis results neither support the existence of a fundamental macro direction nor the so called neutrality hypothesis e gdp in the causal relationship between energy consumption and economic growth

electricity use and economic development abstract a study of the relationship between electricity use and economic development in over one hundred countries constituting over 99 of the global economy has been undertaken correlations between electricity consumption capita and gdp capita have been analysed and compared with those between total primary energy supply capita and gdp capita a supporting analysis has correlated the proportion of energy used in the form electricity the e e ratio with gdp capita the general conclusions of this research are that wealthy countries have a stronger correlation between electricity use and wealth creation than do poor countries and that for the global economy as a whole there is a stronger correlation between electricity use and wealth creation than there is between total energy use and wealth the study also shows that in wealthy countries the increase in wealth over time correlates with an increase in the e e ratio the results imply that the energy ratio toe should be replaced by the electricity ratio kwh as a development indicator and more precisely by the e e ratio kwh toe

permanence discounting for land based carbon sequestration abstract one major concern regarding land based carbon sequestration involves the issue of permanence sequestration may not last forever and may either be released in the future or require expenditures to maintain the practices that keep it sequestered in this paper we investigate the differential value of offsets in the face of impermanent characteristics by forming a price discount that equalizes the effective price per ton between a perfect offset and one possessing some with impermanent characteristics we find this discount to be a function of the future needs to replace offsets in the face of lease expiration quantity or volatilization upon activities such as timber harvest and the magnitude of any needed maintenance costs we investigate the magnitude of the discounts under alternative agricultural tillage and forest management cases in those studies we find that permanence discounts in the range of 50 are not uncommon this means that in the market place an impermanent sequestration offset may only receive payments amounting to 50 of the market carbon price furthermore we find that in the face of escalating carbon prices that offsets may prove to be worthless

real interest rates home goods and optimal external borrowing the paper investigates the optimal time path of consumption and external borrowing in the dependent economy model the small country faces given world prices and a given world real interest rate the presence of a home goods sector implies that the relevant real interest rate appropriate to consumption decisions depends on the rate of change of the real price of home goods the paper shows how transitory disturbances in output or in the world real interest rate affect the time profile of consumption and the trade balance in particular it is shown that the presence of a home goods sector dampens the consumption effects of changes in the world interest rate

analyzing the effects of energy action plans on electricity consumption in covenant of mayors signatory municipalities in andalusia permitted deposit due to funding body institutional and governmental policy or mandate may be required to comply with embargo periods of 12 months to 48 months

carbon and livelihoods in post kyoto assessing voluntary carbon markets 1 introductionthe rst kyoto commitment period ends in 2012 with no clearconsensus regarding post kyoto governance there is nonethelessan increased recognition that efforts to adapt to climate change areas important as mitigation strategies world bank 2010 adaptationobjectivesbuildonlong termeffortstorelatemorefullyclimatechangemitigation embodied by the establishment of carbon markets to theenhancement of adaptive capacity and sustainable development smitand pilifosova 2003 ideally carbon marketscan contribute toadapta tion and mitigation objectives by reducing greenhouse gas emissionswhile also contributing to sustainable development outcomes a win win agenda that is explicitly represented in the dual goals of theclean development mechanism cdm milder et al 2010 estimatethat25to50 million low income landstewardscouldbene tfromcar bon markets alone by 2030 especially if carbon projects invest in liveli hood enhancing practices despite the rapid growth of carbon offsets over the past decade sustainable development objectives for the developing world are lag ging boydet al 2009 olsen 2007 sutterandparreno 2007 toun derstand the dynamics at play i relate mitigation actions driven byland based carbon projects to livelihood outcomes in the developingworld i focus speci cally on voluntary carbon markets vcms situating them within the wider carbon governance system i e cdm because these markets have been at the forefront of newdevelopments in carbon governance facilitating for instance theadvent of reduced emissions for deforestation and degradation redd mechanisms while carbon markets have the potential tofoster pro poor growth and environmental conservation in practicelinking carbon markets to livelihoods is greatly constrained by thecomplexity of socio economic political and environmental conditionson the ground as well as dif culty in building trust and linkages acrossscales 2 voluntary carbon market within the wider regulatory contextof carbon nancethe kyoto protocol 1997 was instrumental to the developmentof global carbon nance mechanisms including regulatory frame works such as the cdm and parallel voluntary markets these mar kets support the trade of carbon offsets to reduce sequester oravoid the emission of greenhouse gases globally despite their rapidgrowth during the past 7 years carbon markets have slowed downdue to their vulnerability to global economic crises as well as abroader uncertainty relating to the fate of the kyoto agreementpost 2012 linacre et al 2011 peters stanley et al 2011 whilethe total value of global carbonstabilized around 142 billion the pri mary cdm decreased by 50 since 2009 for a total value of 1 5 billion less than 2005 when the kyoto protocol was rst implemented linacre et al 2011 9 given these uncertainties lessons learnedfrom the voluntary carbon will be extremely valuable to assess howcarbon markets may evolve vcms are considerably smaller than regulatory frameworks with0 1 of the value and 0 02 of the volume of the global carbon market peters stanley et al 2011 11 yet their impact on the trajectory ofcarbon markets is not negligible in opposition to a declining cdm 131 2 mtco2e were traded in 2010 for an overall value of 424 millionusd 34 more than 2009 and even exceeding historic trends 45 ofthese credits were land based and 29 were related to the burgeon ing redd carbon market peters stanley et al 2011 11 the volumeof vcms even exceeded that of the primary cdm in 2010 fig 1 the cdm was developed to reach a twofold agenda reduce ghgemissions by facilitating the trade of carbon offsets between industri alized countries that rati ed the kyoto protocol and the developingworld while simultaneously contributing to sustainable developmentin the host countries while in theory synergies exist between thetwo objectives in practice there are trade offs between cost ef cient mitigation and sustainable development goals which resultlimited sustainable development outcomes boyd et al 2009 olsen 2007 sutter and parreno 2007 sustainable development efforts

managing permit markets to stabilize prices the political economy of environmental policy favors the use of quantity based instruments over price based instruments e g tradable permits over green taxes at least in the united states with cost uncertainty however there are clear efficiency advantages to prices in cases where the marginal damages of emissions are relatively flat such as with greenhouse gases the question arises therefore of whether one can design flexible quantity policies that mimic the behavior of price policies namely stable permit prices and abatement costs we explore a number of quantity plus policies that replicate the behavior of a price policy through rules that adjust the effective permit cap for unexpectedly low or high costs they do so without necessitating any monetary exchanges between the government and the regulated firms which can be a significant political barrier to the use of price instruments

coal consumption urbanization and trade openness linkage in indonesia abstract this paper explores the effects of economic growth urbanization industry and trade openness on coal consumption in indonesia over the period 1970 2015 to closely adhere to the environmental kuznets curve narratives we consider coal consumption which has been scarcely explored in the ekc debate as a proxy of environmental pressure we estimate the autoregressive distributed lag ardl method and confirm that the variables are cointegrated for long run linkage with the presence of structural breaks the empirical evidence showed that economic growth urbanization and trade openness increase coal consumption while decreasing share of secondary industry reduce it we also verify the existence of environmental kuznets curve having a vital role in the energy mix indonesia needs to restrain excessive coal consumption to enhance environmental quality our results also imply urbanization and trade openness are crucial factors on coal consumption consequently it should be taken into consideration in energy policy making process such as energy conservation policies in the residential sector and prioritize foreign investment which brings cutting edge coal technologies

a literature survey on energy growth nexus abstract this paper provides a survey of the recent progress in the literature of energy consumption economic growth and electricity consumption economic growth causality nexus the survey highlights that most empirical studies focus on either testing the role of energy electricity in stimulating economic growth or examining the direction of causality between these two variables although the positive role of energy on growth has become a stylized fact there are some methodological reservations about the results from these empirical studies a general observation from these studies is that the literature produced conflicting results and there is no consensus neither on the existence nor on the direction of causality between energy consumption electricity consumption and economic growth as a policy implication to avoid from conflicting and unreliable results the authors may use the autoregressive distributed lags bounds test two regime threshold co integration models panel data approach and multivariate models including new variables such as real gross fixed capital formation labor force carbon dioxide emissions population exchange rates interest rates etc thus the authors should focus more on the new approaches and perspectives rather than by employing usual methods based on a set of common variables for different countries and different intervals of time