from the classical economists to empiricists a review of the terms of trade controversy contrary to the classical position the works of prebisch and singer in the middle of the last century launched the controversial hypothesis of a long term decline in the terms of trade of primary products vis a vis manufactured goods and a corresponding decline in the terms of trade of developing countries vis a vis advanced ones the present study traces the origin and evolution of the hypothesis and reviews the related statistical debate it also reviews the theoretical support for the prebisch singer hypothesis it is an exercise in the history of economic thought to trace how the controversies surrounding the terms of trade have evolved over time specifically noting that with the development of the field of econometrics the central thesis of the argument got lost somewhere in the realm of hi tech statistical debates

market structure firm characteristics and innovative activity in this study the determinants of product innovation by west german firms operating in the metal industry are investigated a strong positive impact of imperfect competition on innovative activity is estimated aside from competition and barriers to entry factors like the ownership structure of a firm internal finance and the skill level of the workforce are considered one result is that firms led by hired managers tend to innovate less intensively than owner managed enterprises copyright 1989 by blackwell publishing ltd

environmental drag evidence from norway abstract economic growth affects the environment negatively a polluted environment and other environmental constraints reduce economic output and the well being of consumers the cost to society of environmental constraints may be called the environmental drag the traditional economic analysis of growth neglects the environmental drag while this paper attempts to measure it empirically we employ a dynamic general equilibrium model of the norwegian economy extended to include some important environmental linkages which feed back to the productivity of labor and capital from damages to health materials and nature the environment also directly affects the consumers well being using this model we are able to estimate the environmental drag measured as reduced welfare from consumption and environmental services we present macroeconomic effects in terms of reduced production and consumption and calculate the overall welfare effects we find that the environmental constraints incorporated in the model probably have a modest effect on production over the next century the direct welfare loss from a degraded environmental quality however is significant a lower rate of technological growth and a lower discount rate both increase the drag

are there diminishing returns to r d abstract semi endogenous models and to some extent also schumpeterian models are based on the assumption of diminishing returns to r d this paper shows that the null hypothesis of constant returns to r d cannot be rejected for the oecd countries

the fundamental determinants of the terms of trade reconsidered long run and long period equilibrium ronald findlay s analysis of the long run equilibrium uniform international growth rates determinants of the terms of trade in the context of north south models of trade and growth is reconsidered when the north is a keynesian and a kaleckian economy also examined are the determinants of the terms of trade in long period equilibrium uniform profit rates so that the consequences of capital mobility are accounted for two surprising results are noted first the long run terms of trade when the north is a kaleckian economy will be independent of the north s markup and second in the long period it is theoretically possible for the north to raise its markup but experience a deterioration in its own terms of trade copyright 1990 by american economic association

environment and development is there a kuznets curve for co2 emissions this article re examines the relationship between growth in per capita income and environmental degradation using econometric techniques appropriate for smooth transition regressions with panel data this is a more intuitive and flexible methodology than the polynomial models widely used in the literature and it can reconcile some of the mixed results found previously the methodology is applied to carbon dioxide emissions from nonoecd countries over the period 1971 to 1997 although there is no evidence of environmental kuznets curve we find two regimes namely a low income regime where emissions accelerate with economic growth and a middle to high income regime associated with a deceleration in environmental degradation

on the prevalence of trends in primary commodity prices abstract this paper applies new time series procedures to examine the prebisch singer hypothesis of a secular deterioration in relative primary commodity prices specifically we allow for up to two structural breaks in 24 price series covering the 1900 98 period for the majority of commodities it is shown that the trend is not well represented by a single downward slope but instead by a shifting trend that often changes sign over the sample period unlike some recent work that has also allowed for structural breaks these results provide much less support for the prebisch singer hypothesis

firm incentives to promote technological change in pollution control reply abstract the process of technological change in pollution control is broken into three basic steps innovation diffusion and optimal agency response firm incentives to promote these steps are then examined under five regulatory regimes direct controls emission subsidies emission taxes free marketable permits and auctioned marketable permits on a relative basis emission taxes and auctioned permits provide the highest firm incentives to promote technological change at times free permits generate lower incentives direct controls which are common regulatory tools usually provide the lowest relative firm incentives to promote technological change

the impact of environmental policy stringency on industrial r d conditional on pollution intensity and relocation costs stringent environmental regulations may encourage industrial innovation as technological advancements lower the cost of pollution abatement popp et al in handbook of the economics of innovation vol ii academic press burlington pp 873 938 2010 the pollution havens hypothesis on the other hand indicates that rather than innovating dirty industries may relocate to countries with less stringent environmental regulations copeland and taylor in j econ lit 42 1 7 71 2004 thus more stringent environmental regulations may increase or decrease innovative activities this paper examines empirically the impact of environmental regulations on r d intensities and r d expenditures in 21 manufacturing industries in 28 oecd countries from 2000 to 2007 i consider pollution intensity and the relative ease of relocation immobility as industry characteristics that determine the optimal industry response to increased environmental policy stringency i find that more pollution intensive industries innovate less as regulatory environments become more restrictive relative to less pollution intensive industries at the same time more immobile industries innovate more than more mobile industries as environmental regulations become more stringent illustrating innovation as an alternative to relocation

the commodity terms of trade unit roots and nonlinear alternatives a smooth transition approach market price dynamics for north american oriented strand board markets are examined specifically the role of transactions costs are examined vis a vis the law of one price weekly data for the january 3rd 1995 through april 14th 2006 period are used in the analysis nonlinearities induced by unobservable transactions costs are modeled by estimating smooth transition autoregressions stars results indicate that nonlinearity is an important feature of these markets and that the parity relationships implied by economic theory are generally supported by the star models implications for the efficiency of spatial market linkages are examined by estimating generalized impulse response functions

demand pull and technology push public support for eco innovation the case of the biofuels sector the purpose of this paper is to explore the differentiated impact of demand pull and technology push policies in shaping technological patterns in the biofuels sector the empirical analysis is based on a novel and original database biopat containing patents in the field of biofuels selected using appropriate keywords and classified according to the technological content of the invention our results generally show that technological capabilities and environmental regulation spur innovative activities in the biofuels sector both demand pull and technology push factors are found to be important drivers of innovation in the biofuels sector however technology exploitation activities in first generation technologies are found to be mainly driven by quantity and price based demand pull policies on the contrary the pace of technology exploration efforts in advanced generation biofuels is shown to react positively to price based demand pull incentives but also to technology push policy the clear diversity in the impact of different public support instruments provides new insights which fuel discussion on the optimal policy mix debate and offers new elements for the design of future policy strategies

commodity and developing country terms of trade what does the long run show recently the debate surrounding the commodity net barter terms of trade and the terms of trade of developing countries has entered a new phase in this journal spraos i980 presents evidence of a stable declining commodity terms of trade and sapsford i985 although fl nding instability in the work of spraos argues in support of the stable declining terms of trade hypothesis grilli and yang i988 henceforth gy also provide evidence supporting this view and state the implications of this finding for developing country terms of trade a major contribution of gy is a published set of data on the main price indices with a high degree of consistency for the whole century 1 however cuddington and urzua i989 in thisjournal illustrate that the hypothesis of a secular deterioration in the commodity terms of trade is not robust to the alternative claim that there was a once and for all shift in commodity prices in the period i920 i after taking this shift into account these authors find little evidence to support the view of a secular decline 2 this debate has important implications for the prebisch singer hypothesis of a stable declining commodity terms of trade see for instance prebisch i 950 it also has implications for both development and stabilisation strategies adopted by commodity dependent developing countries a central issue in this analysis is the order of integration of the commodity terms of trade a time series is said to be integrated of order o i o if its mean and variance are constant or roughly speaking if the series is stationary a time series is said to be i n if the series requires first differencing n times before a stationary series is obtained alternatively if adding a time trend is sufficient to induce stationarity the series is termed trend stationary a trend stationary series implies that the variable in question simply adjusts around a constant growth path but an i i series is truly non stationary and displays very different properties a commonly cited example of an 1 i series is the random walk the order of integration of a single time series is related to the idea of cointegration of a number of time series consider two variables x and y that are not themselves i o but are of the same order of integration if the residuals from regressing x on y or vice versa are i o or roughly speaking if the residuals are stationary it can be concluded that the two variables are cointegrated in turn this implies that there is some form of equilibrium

economic growth pollution and renewable resources abstract this paper first analyzes a model of economic growth with stock pollution allowing smooth substitution between emissions and reproducible capital when emissions are optimally controlled the steady state consumption is lower than without pollution control but the optimal steady state equilibrium may not exist if the marginal productivity of capital is bounded the steady state is shown to be a local saddle point independent of the rate of discount if pollution is not controlled a competitive economy moves along a stable growth path toward a too heavily polluted steady state next a growth model in which pollution affects the growth of renewable resources is presented the conditions for the existence and saddle point property of the steady state are given and the consequences of nonoptimal externality taxes are discussed when renewable resources are included higher than optimal pollution may decrease steady state consumption contrary to the case where renewable resources are ignored

on why agriculture declines with economic growth abstract when economic growth is characterised by a slow rise in the demand for food and rapid growth in farm relative to non farm productivity it is understandable that agriculture in a closed economy declines in relative terms as that economy develops but why should agriculture decline in virtually all open growing economies as well including those able to retain a comparative advantage in agricultural products a key part of the answer is that the demand for non tradable goods tends to be income elastic so resources are diverted to their production even in open economies

environmental performance innovation and spillovers evidence from a regional namea abstract the achievement of positive environmental performance ep at national level could strongly depend on differences in regional features namely productive specialization regulation stringency and innovation capabilities of both public institutions and the private business sector we present empirical evidence for a newly released namea available for the 20 italian regions in order to demonstrate the role played by sector innovation regional spillovers and environmental policies the italian north south divide regarding industrial development and productive specialization patterns seems to affect regional ep nonetheless such a pattern presents some interesting differences revealing a more heterogeneous distribution of emissions which may reflect the role of other driving forces in particular agglomerative effects seem to play a major role and the ep of neighboring regions influences the regional internal ep this means that together with the spatial concentration of specific sectors into restricted areas there is also some convergence in the adoption of cleaner or dirtier production process techniques finally interregional technological spillovers are more important than sector internal innovation for improving ep revealing that accounting for spatial features and linking ecological economics to regional economics are crucial in understanding the key drivers of ep

economic indicators of resource scarcity a critical essay abstract the theoretical arguments of the conceptual and empirical literature on economic indicators of long run resource scarcity are logically flawed if resource allocators were informed of the nature of resource scarcity their behavior and the economic indicators it generates would reflect the scarcity but if they were so informed we could simply ask them if resources were scarce if they are not informed their behavior and economic indicators are as likely to indicate their ignorance as the reality unfortunately there is no way of knowing whether they are informed or not unless we already know whether resources are scarce

determinants of patent rights a cross national study abstract this paper presents an index of patent rights for 110 countries for the period 1960 1990 the index is used to examine what factors or characteristics of economies determine how strongly patent rights will be protected the evidence does indicate that more developed economies tend to provide stronger protection but the underlying factors which influence patent protection levels are the country s level of research and development r d activity market environment and international integration which are correlated with its level of development the results qualify however that r d activity influences patent protection levels after a nation s research sector reaches a critical size an implication of this is that to raise patent protection levels in weakly protecting countries it is important to foster a significant research base in those countries and thereby create incentives for protecting patent rights

environmental policy stringency and technological innovation evidence from survey data and patent counts this article uses patent data to examine the impact of public environmental policy on innovations in environment related technology the analysis is conducted using data on an unbalanced panel of 77 countries between 2001 and 2007 drawing upon data obtained from the european patent office epo world patent statistical patstat database and the world economic forum s wef executive opinion survey the results support our hypotheses concerning the positive role of both general innovative capacity and environmental policy stringency on environment related innovation a subsequent two stage model assesses the factors which drive innovation in general and uses the fitted values to estimate environmental innovation while the analysis is conducted on a smaller sample they confirm the findings of the reduced form model

natural resource dependence a macroeconometric model for the united arab emirates this study constructs a macroeconometric model to analyse the problems of regions that exhibit dependence on nonrenewable resources e g oil the role of the oil sector in the uae and the extent to which it subsidizes the rest of the economy is evaluated the macroeconometric model constructed consists of four sectors has 25 equations and is evaluated and calibrated employing dynamic simulation techniques counter factual and policy experiments are carried out and the instruments targets approach is used to analyse the impact of the oil sector the article highlights the continued dependence of the uae economy on oil and the urgency to diversify the economy and securing more nonhydrocarbon sources of revenue

economic growth drag in the central china evidence from a panel analysis this article employs recently developed panel methods to test for unit roots cointegration and granger causality to justify and estimate the drag induced by resource constraint and environmental pollution for the central china the results of the panel cointegration test show that there is a stable long run relationship amongst total output capital labour land water and so2 when total output is the dependent variable the results of the causality test with error correction model ecm analysis suggest that the available water resource and environmental pollutant have no impacts on total output temporarily but in the long run there is a granger causality running from these variables to total output indicating the economic growth drag induced by the natural resource and environmental pollution can be further estimated given the stable cointegration and significant granger causality being the study shows that the drag on the total output reduces annual economic growth rate by about 1 1 percentage po

the prebisch singer hypothesis four centuries of evidence we employ a unique data set and new time series techniques to reexamine the existence of trends in relative primary commodity prices the data set comprises 25 commodities and provides a new historical perspective spanning the seventeenth to the twenty first centuries new tests for the trend function robust to the order of integration of the series are applied to the data results show that eleven price series present a significant and downward trend over all or some fraction of the sample period in the very long run a secular deteriorating trend is a relevant phenomenon for a significant proportion of primary commodities 2010 the president and fellows of harvard college and the massachusetts institute of technology

does energy policy hurt international competitiveness of firms a comparative study for germany switzerland and austria this paper investigates the impact of energy policies on the export performance of firms there has been a long policy debate on potentially negative impacts of cost increasing energy policies on international competitiveness we use firm level data from three countries with similar industry structure but different energy policies germany switzerland and austria we rely on firm manager assessments on the relevance of energy policy in terms of taxes regulations standards subsidies and demand stimulation for their firm operation and link data on the adoption and development of new energy technologies regression analyses and matching approaches both show very few impacts of energy policy on export performance suggesting that either policy impacts on firms cost are negligible in the period of study 2012 to 2014 or likely negative impacts are balanced by the adoption of new technology

some estimates of prebisch and singer effects on the terms of trade between primary producers and manufacturers abstract movements in the prices of primary products and manufactured goods are analyzed using a model based on the seminal contributions of raul prebisch and hans singer estimates are obtained from a system of equations using post wwii data on prices wages and manufacturing mark ups with the results providing evidence of the negative effects on the terms of trade of primary producers suggested by both prebisch and singer these effects more than offset positive effects arising from diminishing returns in primary production thereby providing an explanation for the negative net trend in the terms of trade of primary producers in the postwar period

technology policy for a world of skew distributed outcomes abstract this paper draws implications for technology policy from evidence on the size distribution of returns from eight sets of data on inventions and innovations attributable to private sector firms and universities the distributions are all highly skew the top 10 of sample members captured from 48 to 93 percent of total sample returns it follows that programs seeking to advance technology should not be judged negatively if they lead to numerous economic failures rather emphasis should be placed on the relatively few big successes to achieve noteworthy success with appreciable confidence a sizeable array of projects must often be supported the outcome distributions are sufficiently skewed that even with large numbers of projects it is not possible to diversify away substantial residual variability through portfolio strategies

the open eco innovation mode an empirical investigation of eleven european countries this paper deals with the open innovation mode in the environmental realm and investigates the effects that knowledge sourcing has on the environmental innovations eis of firms using the community innovation survey cis 2006 2008 we refer to the firm s probability of both introducing an ei and extending the number of ei typologies adopted we estimate the impact of the depth and breadth of knowledge sourcing in addition we test for the moderating role of the firm s absorptive capacity knowledge sourcing has a positive impact on both types of ei performance however a broad sourcing strategy reveals a threshold above which the propensity to introduce an ei diminishes cognitive constraints in processing knowledge inputs that are too diverse may explain this result absorptive capacity generally helps firms to turn broadly sourced external knowledge into ei however internal innovation capabilities and knowledge socialization mechanisms seem to diminish the ei impact of knowledge sourced through deep external interactions the possibility of mismatches between the management of internal and external knowledge and of problems in distributing the decision makers attention between the two may explain this result

can globalisation stop the decline in commodities terms of trade in this paper we address the following question would a fully integrated world economy eliminate the widely reported decline in the terms of trade of primary commodities we address the question by looking at the terms of trade within the us a highly integrated economy our findings show two results first us internal real commodities terms of trade over the 1947 1998 period experienced slowly declining but significant trends second once we control for the effect of us prices on international terms of trade we find a long run relationship between the us and international relative prices these findings support the view that the decline of commodities terms of trade bears no relationship with the process of globalisation this seems to indicate that if world terms of trade behaved as the us terms of trade neither increased integration nor protectionist measures would eliminate this trend

investigating policy and r d effects on environmental innovation a meta analysis in the last decades a wide research effort has been devoted at the analysis of the determinants of environmental innovation ei whereas agreement seemed to emerge around a cluster of determinants mainly technology push market pull policy push pull and firm specific factors empirical analyses have failed to provide strong confirmation on the relevance of some core variables after a qualitative discussion of this literature we empirically assess it by exploiting meta regression analysis techniques to test the effectiveness of two determinants policy and r d our findings are clear as for the first we show that only certain types of policy have proven to affect ei in particular regulatory stringency as for r d we show that the use of estimation methods is not neutral to the outcome of the primary studies

how do environmental regulation and environmental decentralization affect green total factor energy efficiency evidence from china abstract green development is critical for china s economic transformation enhancing green total factor energy efficiency hereafter gtfee is vital to emission reduction and to win win industrial development this study uses the panel data of 30 chinese provinces for the period 2005 2016 to investigate the relationship between environmental regulation and china s gtfee the spatial durbin model is employed to control for the possible spatial spillover effect a dynamic threshold panel model that can effectively address the endogeneity problem and regional heterogeneity is utilized to examine the potential non linear relationship between environmental regulation and gtfee under different conditions of environmental decentralization the estimation results indicate that there is a significant u shaped relationship between environmental regulation and china s gtfee with the further expansion of environmental decentralization the local government s autonomous choice of pollution control is improved the improvement of environmental decentralization can lead to negative moderating effect of environmental regulation on gtfee additionally the regression results of dynamic threshold model show that environmental decentralization can increase the negative influences of environmental regulation on gtfee interestingly the non linear impact of environmental regulation on gtfee is dependent on the specific type of environmental decentralization higher degree of environmental decentralization can lead to an increase in the restraining effect of environmental regulation on gtfee however an improvement in the decentralization of environmental supervision and environmental monitoring can increase the negative influences of environmental regulation on gtfee

eco innovation and regulatory push pull effect in the case of reach regulation empirical evidence based on survey data abstractnumerous theoretical and empirical studies provide evidence of a positive correlation between eco innovation and environmental regulation however few analyses explain how environmental policies drive eco innovation this article studies eco innovation friendly mechanisms in the design of european reach registration evaluation authorization of chemicals regulation the aim of reach which became effective in 2007 is to ensure a high level of protection of human health and the environment while improving competitiveness and innovation which makes it appropriate and original for analysing the relationship between environmental regulation and eco innovation the primary contribution of this article is to provide a new theoretical and empirical perspective on eco innovation by showing how design regulation is able to push and pull the environment innovation based on an original survey related to reach regulation the econometric model shows that 1 regulatory push mechanisms seem to be more

resource drag in an endogenous growth context a panel data based estimation with cross sectional dependences and structural breaks the article develops a resource drag model based on the endogenous growth theory and provides fresh empirical evidence to estimate the drags for china by using the recently developed panel model with both cross sectional dependences and structural breaks the results indicate that there exists a long run equilibrium relationship between gdp and its inputs and both the land and water resources have significantly positive impacts on gdp except from some provinces after allowing for cross sectional heterogeneities and structure breaks in addition the study employs the common correlated effects estimators to investigate the resource drags at both the pooled and individual levels the result shows that the aggregate drag reduces annual growth rate by about 0 016 percentage points in china as a whole while there exist significant differences in both these disaggregate and aggregate drags for the province groups suggesting there is a fair amount of geographic clustering for them

the effect of within sector upstream and downstream energy taxes on innovation and productivity the aim of this paper is to investigate the effect of environmental regulatory stringency on innovation and productivity using a panel of 8 european countries for 13 manufacturing sectors over the years 2001 2007 this research topic falls under the heading of the porter hypothesis ph of which different versions have been tested we consider both the strong and the weak versions of the ph while also adding some peculiar features to the analysis firstly we assess the role played by environmental taxes that is an instrument rarely tested as a factor which can support the ph secondly we analyse not only the effect of environmental taxes within a given sector within sector but also the role played by environmental taxes in upstream and downstream sectors in terms of input output relationships thirdly we test these relationships also indirectly by verifying whether innovation is one of the channels through which higher sectoral productivity can be achieved by imposing tighter environmental regulations our main findings suggest that downstream stringency is the most relevant driver of innovation and productivity while within sector regulations only affect productivity but not innovation moreover the effect of regulations on productivity is mostly direct while the part of the effect mediated by induced innovations as measured by patents is relevant only for what concerns downstream regulations

energy consumption economic growth and prices a reassessment using panel vecm for developed and developing countries this paper reinvestigates the energy consumption gdp growth nexus in a panel error correction model using data on 20 net energy importers and exporters from 1971 to 2002 among the energy exporters there was bidirectional causality between economic growth and energy consumption in the developed countries in both the short and long run while in the developing countries energy consumption stimulates growth only in the short run the former result is also found for energy importers and the latter result exists only for the developed countries within this category in addition compared to the developing countries the developed countries elasticity response in terms of economic growth from an increase in energy consumption is larger although its income elasticity is lower and less than unitary lastly the implications for energy policy calling for a more holistic approach are discussed c 2006 elsevier ltd all rights reserved

intra firm diffusion of green energy technologies and the choice of policy instruments environmental benefits only unfold if green environmentally friendly technologies are widely diffused and intensively deployed within a firm we investigate how different types of policies directly and in combination affect the number of different green energy technologies adopted by a single firm intra firm diffusion using data from a dedicated survey on the diffusion of green energy technologies of 1200 swiss firms and applying well identified econometric models we found that energy taxes are a very effective policy instrument for the intra firm diffusion of green energy technologies even more important however are non political measures that show the largest effect among all tested instruments additional analyses show that a time consistency in policy making is more important for energy tax regimes than for regulations and b no evidence for complementarities between the policy types could be identified

determinants of commodity prices a panel of annual information between 1960 and 2006 for approximately 50 different commodity prices and some other variables and sources is used to tests the determinants of commodity prices according to the evidence interest rates seem to maintain a negative relationship with commodity prices

primary commodity prices manufactured goods prices and the terms of trade of developing countries what the long run shows the authors revisit in this article the empirical foundation of the alleged secular decline in the prices of primary commodities relative to those of manufactures they use a newly constructed index of commodity prices and two modified indexes of manufactured good prices and find that from 1900 to 1986 the relative prices of all primary commodities fell on trend by 0 5 percent a year and those of nonfuel primary commodities by 0 6 percent a year they thus confirm the sign but not the magnitude of the trend implicit in the work of prebisch but even the more limited secular decline shown by their relative price indexes may be magnified by an incomplete account of quality improvements in manufactures they then show that the evolution of terms of trade of nonfuel primary commodities is not the same as that of the net barter terms of trade of non oil exporting developing countries finally they find that despite the decline that has probably occurred during the current century in the terms of trade of nonfuel primary commodities the purchasing power of total exports of these products has increased considerably similarly the fall that may have occurred after world war ii in the net barter terms of trade of developing countries seems to have been more than compensated for by the steady improvement in their income terms of trade

the long run behavior of the relative price of primary commodities statistical evidence and policy implications abstract this paper is concerned with both the statistical and policy issues surrounding the long run behavior of the ratio of primary commodities prices to those of manufactured goods seen as a measure of the barter terms of trade between primary producers and the producers of manufacturers the statistical evidence reported is found to offer support for the secular deterioration hypothesis the policy implications of this finding for less developed countries are explored

do multinationals deteriorate developing countries export prices the impact of fdi on net barter terms of trade this paper explores the economic relationship between foreign direct investment fdi to developing countries and the export prices of the latter measured by terms of trade it is rst shown that economic theory suggests such a relationship for various reasons but is inconclusive about the direction of the eect to address this open issue empirically i analyze data on more than 50 developing countries throughout the period 1980 2008 using robust dynamic panel data methods the results show that fdi had an economically relevant and statistically signicant positive impact on developing countries net barter terms of trade a higher level of education in the developing country fosters this eect

innovation in pollution control comparisons of the various institutional arrangements for controlling pollutant emissions from individual sources effluent fees effluent control subsidies marketable permits and direct command and control regulation have usually focused on their static efficiency properties and institutional feasibility e g dales 1968 zerbe 1970 baumol and oates 1975 kneese and schultze 1975 marin 1978 mills and white 1978 spence and weitzman 1978 russell 1979 a relatively neglected area has been the study of how each arrangement influences innovation in pollution control a few studies e g kneese and schultze 1975 marin 1978 mills and white 1978 russell 1979 have casually claimed that the control methods that rely on economic incentives provide superior incentives for innovation but there have been few systematic studies of the question this paper provides a simple model of pollution control innovation by a profitmaximizing polluter who is subject to the various control methods the consequences of the methods will be explored in three major contexts first we assume that the polluter and the innovation is a small enough part of the overall pollution problem so that none of the important marginal conditions are changed by the innovation second we assume that the polluter and the innovation are important enough so that marginal conditions are changed by the innovations but that the governmental authority determining pollution control incentives or levels fails to make the appropriate adjustments third we again assume that the innovation causes marginal conditions to change but in this case the governmental authority makes the appropriate adjustments we use the term ratcheting to describe this last phenomenon in all cases we assume that the innovating polluter correctly predicts the reactions of the governmental authority and bases his innovation decisions on that prediction a profit maximizing entrepreneur would normally be expected to adopt any innovation that promised gains present discounted value to him in excess of initial

whither the terms of trade an elaboration of the prebisch singer hypothesis movements in the prices of primary products and manufactured goods are analysed using a model that introduces differences in wage and price determination between primary production and manufacturing wages and prices in primary production are treated as competitively determined while prices and wages in manufacturing are determined by mark up pricing and union employer bargaining respectively the objective is to capture the influence of structural differences between manufacturing and primary production on the terms of trade between industrialised and developing worlds as discussed in the seminal contributions to the development literature by raul prebisch and hans singer the model is estimated using price and wage data from the post world war ii period support is found for the prebisch singer hypothesis however our estimates suggest that during periods of particularly rapid manufac turing growth there have been intervals of net improvement in the terms of trade of primary producers

determinants of environmental innovation in us manufacturing industries abstract this paper provides new evidence on the determinants of environmental innovation we employ panel data models to study how environmental innovation by us manufacturing industries responded to changes in pollution abatement expenditures and regulatory enforcement during the period 1983 through 1992 we find that 1 environmental innovation as measured by the number of successful environmental patent applications granted to the industry responded to increases in pollution abatement expenditures however 2 increased monitoring and enforcement activities related to existing regulations did not provide any additional incentive to innovate we also find some empirical evidence that environmental innovation is more likely to occur in industries that are internationally competitive

r d innovation and output evidence from oecd and non oecd countries this article uses data from 41 oecd and nonoecd organisation for economic co operation and development countries to examine the predictions of nonscale endogenous growth theories that an increase in the share of researchers in labour force leads to an increase in innovation and innovation raises per capita output the results show that an increase in the share of researchers in labour force increases innovation only in the large market oecd countries moreover an increase in innovation raises per labour gdp gross domestic product in all nonoecd countries except for low income countries while raising it only in the high income oecd countries these findings suggest that though the large market oecd countries are the world leader in innovation nonoecd countries benefit more from it in promoting their growth

product oriented climate policy learning from the past to shape the future abstract product oriented climate policies such as labels financial incentives and emission standards for vehicles and buildings have achieved considerable reductions in emissions and triggered innovations that offer very low emissions during the use phase in contrast to other climate policy instruments these policies are successfully applied in an increasing number of regions however a major proportion of global emissions namely those from industry remain outside the scope of most current forms of product oriented climate policies all economic activities could be included by extending product oriented policies to embodied emissions i e emissions resulting from manufacturing products to guide such a development we need a better understanding of the current state and potential future development of this policy approach therefore in this paper we review and evaluate policy evolution over the past decade in terms of both measures implemented and emissions addressed on this basis we synthesize a framework for developing policy towards greater stringency and broader scope the framework describes a step wise process to achieve increasingly stringent standards once established standards can extend their scope to include additional similar products and related embodied emissions our framework and policy review informs the reinforcement and extensions of current product oriented climate policies a relevant implication for international climate policy is that the regional adoption of such policies incentivizes the global diffusion of low ghg products international climate policy can foster this development by supporting the harmonization of carbon footprint norms for products in order to enhance conformity with international trade and facilitate the extension of product oriented climate policy to embodied emissions

the statistical debate on the net barter terms of trade between primary commodities and manufactures a comment and some additional evidence i950 p s hypothesis according to this hypothesis the net barter terms of trade nbtt between primary products and manufactures have over the longrun exhibited a downward trend spraos presented a detailed and thorough analysis of both the adequacy of the various statistical series available to proxy the nbtt s behaviour over the long run and the wide range of conceptual including quality problems involved in such an exercise on the basis of his analysis spraos concluded that the balance of the evidence for the seventy year period ending with the outbreak of world war ii supported the p s hypothesis of a secular deterioration in the nbtt it should however be noted that the evidence also suggested that the particular series cho sen for analysis by prebisch i950 himself did appear to exaggerate possibly to a large extent the rate of deterioration however when the analysis was extended to include the post world war ii period spraos found that while the deteriorating tendency cannot be decisively refuted it is open to doubt when the record up to the i970s is taken into account i980 p i26 as we shall see in this paper closer scrutiny reveals a statistical problem with spraos s analysis and the purpose of this paper is to show that once appropriate action is taken to overcome this problem some quite strong evidence in support of the p s hypothesis emerges the paper is organised as follows section i briefly discusses spraos s methodology and section ii discusses an econometric issue arising from this analysis section iii presents our empirical evidence while section iv summarises the main findings of the paper

innovation and the international diffusion of environmentally responsive technology abstract new evidence is presented on environmental innovation and diffusion over the 1970s and 1980s at a global level a substantial amount of innovations occurred in the united states japan and germany the share of environmental patents in all patents varied between 0 6 and 3 and as such was higher than the corresponding share of pollution abatement expenditure in gdp japanese environmental innovation rates were consistently high certain plausible connections between environmental regulation and innovation also emerge across these three countries and over time innovation responded to pollution abatement expenditure an indicator of the severity of environmental regulations environmental patenting rates in developing countries were also high reaching 2 in many years in brazil developing country innovators obtained a non trivial number of patents most of which appear geared towards adapting imported technologies to local conditions however domestic innovation was only one path to new technologies imports of disembodied environmental technologies foreign patents registered in developing countries were substantial foreign patents were typically important or generic patents evidence also suggests that such patents protected intellectual property in equipment exported developing countries especially in east asia often chose to obtain technologies embodied in pollution abatement equipment

a panel data heterogeneous bayesian estimation of environmental kuznets curves for co2 emissions this article investigates the environmental kuznets curves ekc for co2 emissions in a panel of 109 countries during the period 1959 to 2001 the length of the series makes the application of a heterogeneous estimator suitable from an econometric point of view the results based on the hierarchical bayes estimator show that different ekc dynamics are associated with the different sub samples of countries considered on average more industrialized countries show evidence of ekc in quadratic specifications which nevertheless are probably evolving into an n shape based on their cubic specification nevertheless it is worth noting that the eu and not the umbrella group led by us has been driving currently observed ekc like shapes the latter is associated to monotonic income co2 dynamics the eu shows a clear ekc shape evidence for less developed countries consistently shows that co2 emissions rise positively with income though there are some signs of an ekc analyses of future performance neverthe

can patent family size and composition signal patent value abstractrecent research has proposed a method of patent valuation based on weighting patent family size by the market size of the countries in the family the premise is that inventors tend to seek

policy design and technological substitution investigating the reach regulation in an agent based model this article proposes an agent based model to study the impact of the european regulation reach on industrial dynamics this new regulation was adopted in 2006 and establishes a new philosophy of how to design environmental protection and health especially through the authorization process and the extended producer responsibility the main contribution of this article is to investigate how different combinations of flexible and stringent mechanisms create the incentives and constraints to shape market selection and innovation the model outcomes stress that 1 stringency is the most determining feature of policy design timing is also decisive but it appears to be of secondary importance 2 technology substitution that brings radical technological change and significant pollution reduction is possible only if regulation is stringent enough but after many sacrifices especially in terms of market concentration and number of failures and 3 soft regulation does not lead to technology transition because of weak incentive and selection effects

the prebisch singer hypothesis a reappraisal independent of stationarity hypotheses time series behaviour of the relative price of primary commodities raul prebisch i950 and hans singer i950 believed that the long term trend of primary commodity prices was negative the latter in an interesting discussion of the above quandary pp 482 3 viewed rises in primary commodity prices as purely temporary sources of surplus that offered short lived opportunities to increase industrial investment these opportunities were missed by private investors who instead increased primary sector investment in such circumstances because all private activity tends to be governed by the price