an evaluation of technical progress and energy rebound effects in china s iron steel industry abstract as a pillar industry in china the iron steel sector have under through rapid growth and technical progress for decades however energy polices aiming at energy savings may not be as good as expected due to the existence of rebound effects the motivation of the paper is to analysis the nexus between technical progress and energy rebound effects based on a three input trans log cost function model we first estimate the share equation and the corresponding price elasticity for each input factor then the rebound effect in china s iron steel industry over 1985 2015 is evaluated through decomposing the energy prices empirical results show that 1 the price elasticities of input factors are negative 2 energy capital and energy labor show substitute relationships 3 the average energy rebound effect in the isi is as high as 73 88 4 the energy rebound effect shows a downward trend before the 11th five year period and then an upward trend after that therefore policies proposals of lowering the rebound effect should be placed not only on technical progress but also on energy price reform by reducing energy subsidies and thus accelerating energy price marketization so as to promote energy substitution reduce energy rebound effect and produce further economic and environmental benefits

occupational choice and the process of development this paper models economic development as a process of institutional transformation by focusing on the interplay between agents occupational decisions and the distribution of wealth because of capital market imperfections poor agents choose working for a wage over self employment and wealthy agents become entrepreneurs who monitor workers only with sufficient inequality however will there be employment contracts otherwise there is either subsistence or self employment thus in static equilibrium the occupational structure depends on distribution since the latter is itself endogenous we demonstrate the robustness of this result by extending the model dynamically and studying examples in which initial wealth distributions have long run effects in one case the economy develops either widespread cottage industry self employment or factory production employment contracts depending on the initial distribution in the other example it develops into prosperity or stagnation

defining the rebound effect abstract this paper gives rigorous definitions of the rebound effect not only in the well described single commodity case khazzoom 1980 the energy journal 1 4 21 40 but also for a multiple commodity case it is shown that the familiar laws for the single case do not hold for the multiple case the paper describes the state of the art of empirical estimation of the rebound effect with special focus on the estimates done for the netherlands we conclude that according to every definition empirical evidence shows that the re is probably small between 0 and 15

credit market constraints consumption smoothing and the accumulation of durable production assets in low income countries investments in bullocks in india in this paper we formulate and estimate a finite horizon structural dynamic model of agricultural investment behavior that incorporates the major features of low income agricultural environments income uncertainty constraints on borrowing and rental markets and the use of investment assets to generate income and smooth consumption the model is fit to longitudinal indian household data on farm profits bullock stocks and pump sets the estimated structural parameters are used to assess the effects on the life cycle accumulation of bullocks agricultural profits and welfare associated with complete markets and bullock liquidity and with second best policies that provide assured sources of income to farmers and weather insurance

the symbiotic rebound effect in the circular economy abstract the circular economy has emerged as an important approach in addressing how society can use its resources more efficiently theoretical advancements in the circular economy have yielded benefits for both practice and policymaking however if the eco efficiency of resource use is to be improved then certain challenges that face the circular economy must be resolved one of these challenges concerns the rebound effect by investigating resource flow with a circular rather than linear system as well as within a producer producer rather than producer consumer type of relationship we identify a rebound effect that we term symbiotic rebound we differentiate it from other forms of rebound effect on the basis of its main driver opportunity costs drive a higher than expected use of resources in a circular economy rather than the usual driver of demand as found in other types of rebound in identifying describing and illustrating a symbiotic rebound effect we make two contributions first to the rebound literature and second to theory development on the circular economy

evidence of direct and indirect rebound effect in households in eu 27 countries abstract this research estimates the direct and indirect rebound effect of energy efficiency in households for the eu 27 countries the first twenty seven member states of the european union a hybrid methodology that combines econometric estimates environmental extended input output analysis and re spending models has been developed although most of the economies present values below 100 there are seven countries situated above this critical threshold by weighting individual estimates by gdp an average value for the overall eu 27 economy has been found between 73 62 and 81 16 these results suggest that the energy policy at the european level should be rethought if efficiency measures pursue reducing energy consumption and tackling climate change

direct rebound effect of residential gas demand empirical evidence from france abstract energy policymakers are increasingly concerned about energy efficiency improvements as such improvements are considered to be a key strategy in reducing energy demand in the residential sector however energy efficiency investments may not yield the expected energy savings due to the rebound effect concept which leads to lower savings than expected when energy efficiency increases using the standard ols regression and autoregressive distributed lag cointegration ardl approach this paper provides estimates of the magnitude of the rebound effect for residential gas consumption in france using 1983 2015 annual time series data the methodology is based on estimates of the gas demand elasticity with respect to service price the empirical findings indicate that the variables used in the model are cointegrated and suggest the presence of an obvious rebound effect in residential gas use more specifically estimates of the direct rebound effect in residential gas demand are approximately 53 in the short run and approximately 60 in the long run our findings reject the hypothesis of a backfire effect regarding residential gas use in france and hence suggest incorporating carbon taxation energy efficiency and alternative energy in the formulation of an energy saving policy to facilitate the transition towards a low carbon economy in france

credit constraint and human capital investment an empirical analysis using brazilian household budget survey abstractthis article is a first step towards understanding the relationship between credit market imperfections and inequality of opportunity in skill formation the main goal is to investigate the effects of the credit constraint on the optimal human capital decision in terms of degree of schooling taking into account the household preferences for education our starting point is a theoretical model of human capital investment decision with credit constraint following a previous model in the literature we propose a reduced form approach that estimates the relation between education decision and initial wealth in brazil our empirical analysis is conducted using data from a brazilian household budget survey pesquisa de orcamentos familiares for years 2002 2003 and 2008 2009 our results point out that education decision is in fact credit constrained the empirical results show a strong and highly significant effect of wealth on educational level of children teenagers and adults even controlling b

estimating direct and indirect rebound effects for u s households with input output analysis part 2 simulation abstract this is the second part of a two part paper that integrates economic and industrial ecology methods to estimate the indirect rebound effect from residential energy efficiency investments we apply the model developed in part one to simulate the indirect rebound given an estimate of the direct rebound using a 2002 environmentally extended input output model and the 2004 consumer expenditure survey in 2002 for the u s we find an indirect rebound of 5 15 in primary energy and co 2 e emissions assuming a 10 direct rebound depending on the fuel saved with efficiency and household income the indirect rebound can be as high as 30 40 in no x or so 2 emissions for efficiency in natural gas services the substitution effect modeled in part one is small in most cases and we discuss appropriate applications for proportional or income elasticity spending assumptions large indirect rebound effects occur as the u s electric grid becomes less carbon intensive in households with large transportation demands or as energy prices increase even in extreme cases there is limited evidence for backfire or a rebound effect greater than 100 enacting pollution taxes or auctioned permits that internalize the externalities of energy use would ensure that rebound effects unambiguously increase consumers welfare

estimating direct and indirect rebound effects for u s households with input output analysis part 1 theoretical framework abstract this is the first part of a two part paper providing an analytical model of the indirect rebound effect given a direct rebound estimate that integrates consumer demand theory with the embodied energy of household spending from environmentally extended input output analysis the second part applies the model developed in part one to simulate the direct and indirect rebound for the average u s household in terms of primary energy co2e nox and so2 emissions and for energy efficiency investments in electricity natural gas or gasoline services part one provides a critical review of the largely independent economic and industrial ecology literatures on the indirect rebound by studying the two goods case and the n goods case we demonstrate that the indirect rebound is bounded by the consumer budget constraint and inversely related to the direct rebound we also compare the common proportional spending and income elasticity spending assumptions with our model of cross price elasticities including both substitution and income effects for the indirect rebound by assuming zero incremental capital costs and the same embodied energy as conventional technologies for efficient appliances we model an upper bound of the indirect rebound future work should also consider the increase in consumer welfare possible through the rebound effect

impact of energy efficiency gains on output and energy use with cobb douglas production function abstract a special issue of energy policy 28 2000 was devoted to a collection of papers edited by dr lee schipper the collection included a paper entitled a view from the macro side rebound backfire and khazzoom brookes in which it was argued that the impact of fuel efficiency gains on output roughly gdp is likely to be relatively small by cobb douglas production function however an error in the analysis leads to under estimation of the long term impact this paper first provides a partial equilibrium analysis by an alternative method for the same case and then proceeds to an analysis on the issue in a two sector general equilibrium system in the latter analysis energy price is internalized both energy use efficiency and energy production efficiency are involved

achieving low carbon urban passenger transport in china insights from the heterogeneous rebound effect abstract the rapid increase in energy consumption and carbon emissions in china s passenger transportation sector threatens both the environment and the nation s energy security energy efficiency improvements leading to lower fuel consumption are therefore of considerable interest to policymakers trying to achieve low carbon travel however it is well established that higher miles per gallon efficiencies can by reducing the costs of travel lead to some level of increased personal travel the so called rebound effect this paper describes an empirical study to measure the size and also the variability in this effect at the provincial level and what this variability implies for a carbon tax policy this rebound effect is quantified using a two stage almost ideal demand system aids model a backfire effect i e the rebound is 100 is observed in urban passenger transport with disparities in the size of the rebound effect ranging from 114 to 153 among china s provinces the differences in economic development as well as related differences in consumers behavior especially in the behavior of marginal consumers have contributed to this heterogeneity with a larger carbon tax more than 110yuan tonne needed in richer provinces such as jiangsu zhejiang guangdong and fujian in order to bring about similar levels of carbon reductions nationwide

income distribution and macroeconomics this paper analyzes the role of wealth distribution in macroeconomics through investment in human capital it is shown that in the presence of credit markets imperfections and indivisibilities in investment in human capital the initial distribution of wealth affects aggregate output and investment both in the short and in the long run as there are multiple steady states this paper therefore provides an additional explanation for the persistent differences in per capita output across countries furthermore the paper shows that cross country differences in macroeconomic adjustment to aggregate shocks can be attributed among other factors to differences in wealth and income distribution across countries

a general equilibrium assessment of rebound effects in this paper we use a general equilibrium model applied to a national economy norway to explore the potential for energy efficiency improvements to trigger economic forces that offset potential savings from using more efficient technologies rebound effects two types of energy efficiency improvements electricity and oil are introduced into various sectors of the economy our results suggest significant and surprising differences across sectors concerning both energy use and consequences for the build up of greenhouse gases rebound effects are found to be quite significant for manufacturing sectors since long term consumption of energy undergoes minor reductions or increases in response to efficiency improvements in other sectors rebound effects appear to be weak or almost absent

exploring the rebound effect from the perspective of household an analysis of china s provincial level abstract the existence of the energy rebound effect may partially even totally offset the expected energy savings in order to explore the status of the household rebound effect in china we manually compiled the provincial energy input output table of china then combining econometric methods input output analysis and the re spending model we conduct a detailed analysis of both the direct and indirect energy rebound effect from the household perspective in china under a unified research framework the results show there are significant differences in risk vulnerability regarding energy rebound effect among different regions qinghai is the most vulnerable province as 69 23 of its economic sectors could lead to a backfire effect two economic sectors have the potential to cause a backfire effect in thirteen provinces in addition the chinese government and its provincial government should take full account of the regional differences when formulating energy policies to alleviate the pressure on energy conservation and carbon emission reduction

macroeconomic effects of efficiency policies for energy intensive industries the case of the uk climate change agreements 2000 2010 abstract this paper reports a study modeling the uk climate change agreements ccas and related energy efficiency policies for energy intensive industrial sectors bottom up estimates of the effects of these policies are introduced into the energy demand equations of a top down dynamic econometric model of the uk economy with fifty industrial sectors mdm e3 this allowed estimation of the effects of the reduced energy use for the outputs from the sectors i e the reductions in unit costs of the energy intensive industries on the demand for their outputs both in the uk and in the export markets the model is solved as a counterfactual 2000 2005 and as a projection 2005 2010 in a series of scenarios to allow estimation of the effects of the policies on inflation and growth as well as on overall energy demand and co 2 emissions the system wide final energy reductions is estimated to be 4 2 mtoe or 2 6 of total final demand for energy by 2010 including a rebound effect of 19 with negligible effects on inflation and a slight increase in economic growth through improved international competitiveness

empirical estimates of the direct rebound effect a review beginning with william stanley jevons in 1865 a number of authors have claimed that economically justified energy efficiency improvements will increase rather than reduce energy consumption jevons paradox is extremely difficult to test empirically but could have profound implications for energy and climate policy this paper summarises and critiques the arguments and evidence that have been cited in support of jevons paradox focusing in particular on the work of len brookes and harry saunders it identifies some empirical and theoretical weaknesses in these arguments highlights the questions they raise for economic orthodoxy and points to some interesting parallels between these arguments and those used by the biophysical school of ecological economics while the evidence in favour of jevons paradox is far from conclusive it does suggest that economy wide rebound effects are larger than is conventionally assumed and that energy plays a more important role in driving productivity improvements and economic growth than is conventionally assumed 2008 elsevier ltd all rights reserved

living up to expectations estimating direct and indirect rebound effects for uk households this study estimates the combined direct and indirect rebound effects from various types of energy efficiency improvement by uk households in contrast to most studies of this topic we base our estimates on cross price elasticities and therefore capture both the income and substitution effects of energy efficiency improvements our approach involves estimating a household demand model to obtain price and expenditure elasticities of different goods and services utilising a multiregional input output model to estimate the ghg emission intensities of those goods and services combining the two to estimate direct and indirect rebound effects and decomposing those effects to reveal the relative contribution of different mechanisms and commodities we estimate that the total rebound effects are 41 for measures that improve the efficiency of domestic gas use 48 for electricity use and 78 for vehicle fuel use the primary source of this rebound is increased consumption of the cheaper energy service i e direct rebound and this is primarily driven by substitution effects our results suggest that the neglect of substitution effects may have led prior research to underestimate the total rebound effect however we provide a number of caveats to this conclusion as well as indicating priorities for future research

on the rebound feedback between energy intensities and energy uses in iea countries abstract the interaction or feedback between energy efficiencies or energy intensities and energy use has long been the topic of debate some have argued that energy efficiency improvements by reducing energy intensities and therefore lowering the cost of energy services would lead to rebound effects offsetting much or all of any initial savings in energy in this paper we analyse historical data on energy use efficiency and pricing in different sectors to try and identify rebounds for the period of our data since about 1970 we show that key measures of activity car use manufacturing output and structure house area etc have changed little in response to changes in energy prices or efficiency instead continuing their long term evolution relative to gdp or other driving factors while our analysis cannot disentangle more macro level economic feedbacks in a detailed way we show indirectly that such effects also appear to have been small over the 1970s and 1980s overall our analysis of disaggregated sectoral and subsectoral energy use and activity trends in a variety of iea economies suggests that any feedback effect is small compared to both the effects on energy use of changes in energy intensities and overall economic growth we conclude that most of the improvements in energy efficiencies led to reductions in energy intensities observed in the 1970s and 1980s weighted by 1990 activity levels intensities were roughly 15 20 lower in 1994 5 than in 1973 which in turn meant real savings of energy energy demand in iea countries is roughly this much below what it would have been for the same gdp had these savings not occurred rebounds may have taken back some of the overall savings but most remain even after the fall of oil prices in 1986 any boost to gdp as a result of these savings could not have been sufficient to increase energy demand enough to significantly alter these conclusions that the savings remained after the fall in oil prices supports the notion that net savings restrained energy growth relative to gdp in some formulations arise from technological progress even if energy prices do not increase how far this effect can reach however is a matter of considerable debate

technological progress and sustainable development what about the rebound effect abstract sustainability concepts that rest on the idea of resource or energy efficiency improvements due to technological progress tend to overestimate the potential saving effects because they frequently ignore the behavioral responses evoked by technological improvements efficiency improvements also affect the demand for resources and energy and often an increase in efficiency by 1 will cause a reduction in resource use that is far below 1 or sometimes it can even cause an increase in resource use this phenomenon is commonly labeled the rebound effect which is well known among energy economists but never attracted much attention in ecological economics the paper starts with the traditional neoclassical analysis of the rebound effect in a partial equilibrium framework that concentrates on the demand of one particular energy service such as mobility or room temperature it also provides an overview of some of the main empirical studies based on this model that mostly confirm the existence of the rebound effect but are controversial about its actual importance however we have to go beyond the neoclassical single service model in order to take care of the variety of possible feedback affecting energy use the paper presents two important expansions of the single service model in order to show the potential relevance of the rebound effect to ecological economics first it is shown that in a multi services model it proves to be difficult to make general statements about the relevance of the rebound effect in this case the overall effect of an increase in energy efficiency on total energy use depends on the on the assumptions about the substitutability between the services considered and the direction of the income effect second the paper also tries to take care of the fact that changes in resource use or energy use are frequently just side effects of other forms of technological progress especially technological change of a time saving nature can have a large influence on energy use as many time saving devices for example faster modes of transport require an increase in energy consumption that is frequently reinforced by a rebound effect with respect to time this effect will be especially strong when wages are high and at the same time energy prices are low as is currently the case in most industrialized countries consequently the paper also provides a strong argument for the introduction of energy taxes

empirical evidence of direct rebound effect in catalonia this paper reviews the empirical literature concerning the direct rebound effect in households it briefly analyzes the main theoretical and methodological aspects and finally estimates the magnitude of direct rebound effect for all energy services using electricity in households of catalonia spain using econometric techniques the main results show an estimated direct rebound effect of 35 in the short term and 49 in the long term the existence of a rebound effect reduces the effectiveness of energy efficiency policies

the rebound effect an evolutionary perspective the rebound effect presents a major flaw in to energy conservation policies that aim to reduce energy consumption through energy efficiency development economics and energy related disciplines have thus far developed tools to measure such a phenomenon this paper attempts to explain this seeming paradox using a thermodynamic evolutionary theoretical framework in addition to the traditional economic approach we here propose that evolutionary systems such as biological or even economic systems may rearrange themselves in a more complex fashion under the pressure of an increasing flux of energy driven by the higher conversion rate of greater efficiency higher complexity due to a greater energy density rate counteracts the positive effects of energy efficiency we investigated this hypothesis in the context of the road freight transport system and the productive structure the qualitative analysis in this paper further substantiated by figures provides a link between the dynamics of production patterns and the effect of efficiency in the light of the macro economic effects of increased energy demand the analysis departs from a rigorous investigation of the actual energy efficiency evolution in the road freight transport system to develop through a survey of the subsequent worldwide economic revolution in the production system it is then shown how outsourcing the key feature of globalization can be identified as the main source of traffic density growth finally four paradigms are used to stress how the shift in the production system must be considered a leap in structural complexity that consequently serves to increase the frequency of components interactions

fuel conserving and using production functions abstract this article compares eight production cost functions used or potentially useful for exploring how energy efficiency gains affect energy consumption we show the practitioner s choice of function can inadvertently pre determine results and make recommendations as to which functions are flexible enough to prevent this we also show pre selected factor substitution elasticities can similarly pre determine results to aid the comparison we decompose the energy consumption rebound effect into intensity and output income effects which also delivers insight into the mechanisms of rebound we conclude by recommending practitioners restrict themselves to either the gallant fourier or the generalized leontief symmetric generalized barnett cost functions as being sufficiently rebound flexible the translog cost function may be suitable given certain conditions and a particular form of the ces solow function is a possible but problematic candidate along the way the article provides a general methodology for similarly examining any arbitrarily defined constant returns to scale production or cost function

conflict settlement and the shadow of the future abstract we examine a conflictual setting in which adversaries cannot contract on an enforcement variable arms and where the future strategic positions of adversaries are very different when there is open conflict than when there is settlement we show that as the future becomes more important in this setting open conflict becomes more likely than settlement we demonstrate the theoretical robustness of this finding and test it in a laboratory experiment as predicted we find that subjects are more likely to engage in destructive conflict as the future becomes more important

economic structure and energy savings from energy efficiency in households when an energy efficiency improvement occurs at the household level several mechanisms grouped under the name of the rebound effect increase the available income and consumption increasing the total energy consumption of the economic structure the present research analyses the links between energy efficiency improvements in households consumption and the economic structure in an input output framework we examine from an empirical perspective the relationship between energy efficiency improvements and the economic structure and between the direct and the indirect rebound effect the limits of the input output methodology in assessing the direct and indirect rebound effect have been empirically tested with respect to efficiency improvements of electricity uses in households in catalonia

the influence of energy efficiency on other natural resources use an input output perspective abstract energy efficiency improvements reduce the costs of energy services and under some circumstances increase the available income this generates an additional increase of consumption of goods and services that need additional energy to be produced distributed and consumed this effect is known as the indirect rebound effect in the literature however beyond this additional increase of global energy consumption there is also a variation of the use of other natural resources due to the same mechanism this effect which we label as direct and indirect cross rebound effect is generally not considered by academia nor policy making when designing and implementing energy policies this research conceptualizes this effect develops a methodology for its estimation and provides estimates for the spanish economy results show that an energy efficiency in households could increase the use of minerals and water while reducing the use of energy fossil fuels and metal ores in spain these reductions however are lower than the expected ones from an input output perspective leading to positive direct and indirect cross rebound effects between 64 6 and 74 7 for energy equivalent to direct and indirect rebound effect 48 63 for fossil fuels 84 89 for metal ores backfire for non metallic minerals 147 134 and extreme backfire for water 1191 1628

risk financial markets and human capital in a developing country this paper explores the link between financial market incompleteness and human capital accumulation we examine how child school attendance responds to seasonal fluctuations in the income of agrarian households using panel data from rural india to pinpoint market imperfections we study responses to aggregate and idiosyncratic as well as to anticipated and unanticipated income shocks our main finding is that seasonal fluctuations in school attendance are a form of self insurance but one which does not result in a substantial loss of human capital on average

rebound effect of transportation considering additional capital costs and input output relationships the role of subsistence consumption and unmet demand abstract the anticipated carbon mitigation through energy saving technology progress might be partially or even totally offset due to rebound effect a better understanding of rebound effect especially the underling mechanisms has important implications for energy efficiency policies to achieve the goal of sustainability previous studies usually ignore additional capital costs for adopting energy efficient equipment and indirect carbon emissions for providing new consumption bundles also the precise mechanisms of how living standard affects rebound effect are unknown using almost ideal demand system aids model and input output relationships among sectors this paper builds a method to estimate the rebound effect that allows for additional capital costs and carbon emission changes of all other goods and services due to backward forward linkages we find that rebound effect is over 100 for transportation in rural china even though additional capital costs would indeed reduce the magnitude and the results are quite robust to alternative settings as for the mechanisms rebound effect is divided into substitution and income channels by slutsky decomposition here we show that both of these two channels are dependent on living standard because of subsistence consumption and unmet demand carbon emissions of poor households will rebound more through income channel of unmet demand while rich households usually do not restricted by subsistence consumption and thus through substitution channel rebound of carbon emissions would be larger for rich households the opposite directions of mechanisms dig more information about the nonlinearity of rebound effect to income levels furthermore given the estimating results this paper gains several insights in terms of welfare benefits rather than just focuses on carbon reduction

analyzing co2 emissions from passenger cars in europe a dynamic panel data approach abstract road transport accounts for 92 per cent of co2 emissions from all transport services and car transport makes the largest contribution to the total we examine the dynamic relationship between car co2 emissions in western european union countries eu 13 with the dieselization of the passenger vehicle fleet technological progress fuel efficiency mobility indicator economic activity and motorization rate we take advantage of a panel data set of 13 eu countries between 1990 and 2015 and estimate a dynamic panel data dpd model using alternative econometric methods this approach allows us to estimate the effect on car co2 emissions of induced indirect channels involving the reaction of economic agents to changes in aforementioned explanatory variables we provide evidence that co2 emissions have been benefited from global technological progress and changes in average fuel efficiency while increases of economic activity motorization rate and the dieselization process hold positive and significant relationship with car co2 emissions these results are consistent with alternative model specifications and econometric methods

a theory of trickle down growth and development this paper develops a model of growth and income inequalities in the presence of imperfect capital markets and it analyses the trickle down effect of capital accumulation moral hazard with limited wealth constraints on the part of the borrowers is the source of both capital market imperfections and the emergence of persistent income inequalities three main conclusions are obtained from this model first when the rate of capital accumulation is sufficiently high the economy converges to a unique invariant wealth distribution second even though the trickle down mechanism can lead to a unique steady state distribution under laissez faire there is room for government intervention in particular redistribution of wealth from rich lenders to poor and middle class borrowers improves the production efficiency of the economy both because it brings about greater equality of opportunity and also because it accelerates the trickle down process third the process of capital accumulation initially has the effect of widening inequalities but in later stages it reduces them in other words this model can generate a kuznets curve

making negotiated land reform work initial experience from colombia brazil and south africa abstract the paper describes background initial experience and future challenges associated with a new negotiated approach to land reform this approach has emerged as following the end of the cold war and broad macroeconomic adjustment many countries face a second generation of reforms to address deep rooted structural problems and provide the basis for sustainable poverty reduction and economic growth it reviews possible theoretical links through credit market or political channels between asset ownership and economic performance program characteristics in each country as well as lessons for implementation and implications for monitoring and impact assessment are discussed

the dynamics of the wealth distribution and the interest rate with credit rationing are uniquely determined and wealth dispersion among individuals or firms is irrelevant introducing credit rationing into the solow model modifies these conclusions multiple stationary interest rates and wealth distributions can exist because higher initial rates can be self reinforcing through higher credit rationing and lower capital accumulation the wealth accumulation process is ergodic in every steady state but wealth mobility is lower with higher steady state interest rates aggregate output is higher in steady states with lower interest rates because credit is better allocated short run interest rate or distribution shocks can be self sustaining and can have long run effects on output through the induced dynamics of the wealth distribution and credit rationing

how to deal with the rebound effect a policy oriented approach policy makers and environmental agencies have echoed concerns brought forward by academics about the need to address the rebound effect for achieving absolute energy and environmental decoupling however such concerns have generally not been translated into tangible policy action the reasons behind this inaction are not fully understood and much remains unknown about the status of the rebound effect issue on the policy agenda and policy pathways available such knowledge gaps may hamper the development of effective policies to address this issue in this paper we examine the extent to and ways in which the rebound effect is considered in policy documents and analyse thirteen specific policy pathways for rebound mitigation the effectiveness of the pathways is scrutinised and conclusions are offered to mitigate rebound effects the main policy conclusions of the paper are that an appropriate policy design and policy mix are key to avoiding undesired outcomes such as the creation of additional rebound effects and environmental trade offs from the discussion economy wide cap and trade systems as well as energy and carbon taxes when designed appropriately emerge as the most effective policies in setting a ceiling for emissions and addressing energy use across the economy

impacts on rural poverty of land based targeting further results for bangladesh abstract landholding class has been widely advocated as a targeting indicator for fighting rural poverty in south asia and elsewhere supporters have pointed to the correlation between poverty and lack of land and have also claimed that land based targeting raises output the paper tries to assess the impact on rural poverty in bangladesh of a benchmark policy under seemingly ideal conditions generalizing earlier results of ravallion 1989 on improved data poverty is reduced though the maximum gains turn out to be small even allowing for pro poor productivity effects consistent with the farm size productivity relationship in bangladesh the gains are likely to be even smaller under real world incentive and political economy constraints

risk bearing and the theory of income distribution this paper develops the stochastic theory of distribution with a dynamic model which focuses on the role of incomplete insurance in generating inequality unlike previous work our approach takes explicit account of the reason for market incompleteness in modeling agents behaviour in particular the amount of risk borne is endogenous using a model of growth with altruism in which agents are risk averse and there is moral hazard we show that lineage wealth follows a markov process which converges globally to an ergodic distribution this also represents the long run population distribution of wealth we discuss the role of particular assumptions such as availability of production loans and unboundedness of utility in yielding the qualitative properties of the distribution of wealth the choice of occupation and the prevention of poverty traps