offset carbon emissions or pay a price premium for avoiding them a cross country analysis of motives for climate protection activities abstractthis article contributes to the economic literature on pure and impure public goods by considering two alternatives for contributing to the public good climate protection offsetting carbon emissions from conventional consumption or paying higher prices for climate friendly products we empirically examine a wide range of motives and their impact on individuals choice in favour of these two alternatives relying on data from representative international surveys our results indicate that environmental awareness warm glow motives and the desire to set a good example have the most robust effects on both climate protection activities in germany and the united states however some motives differ considerably between both alternatives and the two countries a green identity enhances the willingness to pay a price premium for climate friendly goods or services in germany while social norms seem to be of much higher relevance in the united states our results further suggest that the choice of climate

control of accumulating stock pollution by heterogeneous producers abstract this paper presents a framework to determine optimal resource allocation over time for the production of a good by heterogeneous producers who generate a stock externality we analyze the optimal intertemporal and quality specific combination of abatement strategies at the source source abatement given by a change in the intensity intensive margin of production and in the chosen technology extensive margin and or removal of existing pollution stock stock abatement the results show how the specifications of the production and the emission functions affect technology adoption and the design of the optimal intertemporal combination of source and stock abatement strategies moreover the paper shows that regulation at the intensive margin cannot be considered as a substitute for a regulation at the extensive margin the paper employs the so called two stage solution approach for solving the resulting quality distributed intertemporal optimal control problem

devaluation and the j curve some evidence from ldcs within the international trade literature it is not uncommon to find arguments about whether devaluation will improve the trade balance it is argued that the flows of goods respond only with time lags to changes in the exchange rate the j curve terrn is used to describe the movement over time of the trade balance it may deteriorate at first and improvement may come later this paper presents a method by which one could detect the existence of the j curve the method is applied to four developing countries the empirical evidence supports the pattern of movemnent described by the j curve a major policy option for a country facing a persistent balance of payments deficit is said to be devaluation of its currency within the international trade literature it is not uncommon to find arguments about whether devaluation will improve the trade balance or the balance of payments for example proponents of the elasticities approach describe the necessary and sufficient conditions for an improvement in the trade balance in terms of elasticities of demand and supply referred to as the marshall lerner condition while there is abundant empirical evidence to suggest that these conditions are indeed met at least for industrial countries there have been circumstances under which 2 devaluation has not been successful for example one might wonder why the u s trade balance deteriorated so much in 1972 despite the devaluation of the dollar in 1971 this unfavorable effect of devaluation on the trade balance is termed the j curve phenomenon received for publication august 23 1984 revision accepted for publication november 26 1984 the university of wisconsin milwaukee i would like to thank two anonymous referees for their valuable comments on the initial draft of this paper 1 proponents of the absorption approach e g alexander 1952 describe how devaluation may change the terms of trade increase production and switch expenditures from foreign to domestic goods thus improving the trade balance international monetarists argue that devaluation reduces the real value of cash balances and or changes the relative price of traded and nontraded goods thus improving both the trade balance and the balance of payments 2 for an cstimate of the elasticities see houthakker and magee 1969 and warner and kreinin 1983 the former study provides the elasticities estimates under fixed exchange rates and the latter under floating rates this content downloaded from 157 55 39 17 on wed 31 aug 2016 04 39 37 utc all use subject to http about jstor org terms

empirical investigation of one opec country s successful non oil export performance abstract this study examines indonesian non oil export success between 1975 and 1994 with a focus on the role of exchange rate management and trade policy in export performance across sectors to examine the link between export quantity and changes in policy i estimate structural export supply functions that are derived from utility and profit maximization behavior the results indicate that non oil exporters respond positively to improved price incentives including exchange rate devaluation with the strongest impact in textiles garments and sawnwood the study offers a richer description than previous work of the relationship between price incentives and export performance

effects of exchange rate risk on exports crosscountry analysis abstract in this paper we investigate the effects of exchange rate uncertainty on the aggregate exports of 19 developed and 67 developing countries using cross sectional data exchange rate uncertainty is found to be detrimental to the exports of both developing and developed countries developed countries exports however are found to be less sensitive to exchange risk than that of developing countries furthermore within the developing countries those who fixed their exchange rates to one major currency were found to be subject to less risk than the other developing countries

alternative models of individual behaviour and implications for environmental policy abstract most insights of environmental economics are in line with the standard neoclassical economic model of rational behaviour formulated in terms of maximization of utility in general or of profits in particular the standard theory of environmental policy is a case in point however the maximization hypothesis and its methodological foundation have been criticized on many grounds related to a lack of either logical or empirical content moreover over the years a great many alternative models of behaviour have been proposed both criticism and alternatives are surveyed here attention is devoted to relevant insights from the philosophy of science the notion of methodological individualism and other criticism the alternative behavioural models include bounded rationality and satisficing lexicographic preferences habitual behaviour incommensurability and multicriteria evaluation and various models of behaviour under uncertainty major implications of the criticism and alternative models of individual behaviour for environmental policy theory are outlined

determinants of international trade flows this paper models and estimates import demand and demand for export functions for 19 industrial countries although primary emphasis is placed on the period of generalized floating exchange rates 1972 through 1980 estimates are also provided for the fixed exchange rate years 1957 1970 thus making possible a comparison between the two eras aside from the conventional income and price variables the paper assesses the effect of variations in the exchange rate and in the expected exchange rate on real trade flows additionally it estimates an unrestricted lag structure of the effect of price and exchange rate variations on imports

yes in my backyard spatial differences in the valuation of forest services and local co benefits for carbon markets in mexico forests provide many and large benefits including cost efficient climate change mitigation however international carbon markets have not stimulated the demand for forestry offsets domestic market mechanisms are emerging in many countries and forests could be highly valued through these policies as most of the benefits produced by forests are enjoyed locally here a choice experiment explores drivers of valuation and willingness to pay for forest carbon services in voluntary markets in mexico by comparing the valuation of citizens from four regions to test geographical preference for projects n 645 findings from multinomial logit models show valuation of forest carbon services is transferable and citizens would pay more for offsets from projects closer to their homes proximate forests provide a range of co benefits to local users including environmental services and opportunities for recreation factors related to valuation include sense of responsibility previous knowledge of carbon emissions previous visits to the sites regional identification and the valuation of local environmental services e g improvements in local air quality knowledge of spatial heterogeneity in valuation of the use of forest services can help to design market based instruments by identifying highly valued areas for environmental services programs and carbon markets

long run price elasticities and the marshall lerner condition revisited abstract in estimating trade elasticities most previous researchers employed nonstationary data and ols or 2sls method with new developments in the literature this paper uses stationary data and johansen s cointegration analysis to provide new trade elasticities for almost 30 countries

bilateral j curve between india and her trading partners india a land of over one billion people and one of the newly emerging industrial powers in the world is going through a slow but steady metamorphism for centuries india has played a major role in the international trade it was not uncommon to see her ships carrying silk and spices across the arabian seas and bringing back machine made textile invasions of india first by mughals and latter by the british through the east india company were all trade oriented india s presence in the world trade is relatively small at this time but is gaining momentum after independence in 1947 india for a brief period experimented with socialism the five year plans were mainly focused towards building infrastructure and development of small scale agriculture based industries the industrial development even though extremely important for growth played a secondary role the foreign investment was encouraged but only in the selected sectors of the economy however threat of nationalization a large bureaucracy corruption lack of understanding of the indian business practices and the requirement that a major share holder must be an indian national discouraged foreign capital investment in india during 1991 1992 india adopted a policy of trade liberalization to attract foreign capital and to encourage non resident indians to invest in their home country government of india established a separate unit within the home ministry whose main function was to expedite processing of applications india also relaxed the requirement that a major partner be an indian national india provided export subsidies to the exporters in terms of cash as well as foreign exchange so that they could import machines and raw materials exports responded to the trade liberalization and increased from 44 041 crores of rupees in 1991 1992 to 141 603 crores in 1998 1999 where one crore is equivalent to ten million in us dollar terms at a current exchange rate of 42 48 rupees per dollar this translates to an increase from 10 37 billion to 33 34 billion over eight years india also anticipates that through a major increase in the information technology mainly software industry her exports will increase to 90 billion by 2005 the trade liberalization has been accompanied by changes in the monetary policies the inflation rate has been reduced from about 12 to 9 per year the interest rates have declined from 14 to 10 and the exchange rate has been allowed to respond to market forces as a result from 1991 1992 to 1998 1999 the rupee has declined from 19 62 rupees per dollar to 42 48 rupees per dollar by december 2000 rupee had further devalued to 46 25 per dollar with a hope that it will further boost india s exports and improve her trade balance however the impact of currency depreciation on the trade balance is not instantaneous indeed there is ample evidence in the literature that after currency depreciation the trade balance worsens in the short run before improving in the long run since this pattern of movement of the trade balance over time resembles the letter j magee 1973 labelled it the j curve phenomenon magee argued that after devaluation contracts that are in transit at old exchange rates dominate the short run response of the trade balance over time new contracts at new prices begin to exert their favourable impact at this stage elasticities may increase leading to an eventual improvement in the trade balance of course the delayed response could also be due to lags in the process of increasing the production of exportables junz and rhomberg 1973 have identified five lags namely recognition lags decision lags delivery lags replacement lags and production lags only after the realization of these lags the trade balance could improve early studies that tried to investigate the impact of currency depreciation on the trade balance relied upon estimating the marshall lerner condition the condition

determinants of pro environmental consumption the role of reference groups and routine behavior abstract this paper investigates the determinants of pro environmental consumption focusing on the role of reference groups and routine behavior we study the factors that explain whether or not people have installed residential solar energy equipment or have subscribed to green electricity programs and the factors that influence the intensity of buying organic food in addition to demographic characteristics and environmental attitudes we consider the following categories of determinants economic and cognitive factors income estimated price premium level of information on environmentally friendly goods consumption patterns of reference persons own consumption patterns in the past using a unique data set from a survey conducted in the region of hanover germany we find the following 1 economic and cognitive factors are significant covariates of all three kinds of pro environmental consumption their influence is greatest in the case of green electricity 2 consumption patterns of reference persons are significant covariates of all three kinds of pro environmental consumption their influence is greatest in the case of organic food 3 the intensity of buying organic food is greater the longer people have been consumers of these goods

from rational actor to efficient complexity manager exorcising the ghost of homo economicus with a unified synthesis of cognition research it is now commonplace to note that economics canonical model of humans as rational self interested utility maximizers homo economicus is both descriptively misleading and often insufficiently predictive however certain outdated assumptions tied to homo economicus persist often influencing discourse and research design even in sustainability oriented fields we argue this ghost of homo economicus endures because the diversity of findings that confound the canonical model has surfaced across multiple behavioral and cognitive sciences each with its own terminology and focus area as such a unified accessible synthesis of this new information has yet to emerge in this paper we review recent insights from across the behavioral and cognitive sciences and propose an efficient complexity manager ecm model homo efficens as the best synthesizing option the crux of this model is that our species works within biological limits to efficiently filter massive environmental complexity this is achieved largely through analogical or case based reasoning we explain this synthesized model using a series of accessible metaphors finally we speculate on how this model may enrich future sustainable development research insofar as it points to fruitful units of analysis can stimulate methodological innovation and provide a more explicit theoretical foundation for the field

the demand for organic foods in the south of italy a discrete choice model abstract this paper analyses organic food consumer s demand that can help advising on implementing organic food policies at european level or for a particular european country in particular it investigates the main factors explaining organic food demand in the south of italy following the lancaster consumer s demand theory we assume that consumer s utility depends on product characteristics instead of the product itself thus consumers will choose the product organic versus conventional that possesses the combination of attributes that maximises its utility consumer s choice for organic foods is analysed within the random utility discrete choice model and a bivariate probit model has been specified the data were collected through a questionnaire conducted in the italian region of campania naples in 2003 findings indicate that economic factors are still factors limiting the growth of organic demand in europe moreover the consumers perceived benefits of organic food environmental and health are factors promoting organic food demand in addition greater information on organic food products is crucial to expand its demand in the south of italy because this information will increase the consumer s organic knowledge then higher organic knowledge will increase the probability to buy organic foods and to a larger extent the level of consumption among existing consumers

evaluation of property tax bonus to promote solar thermal systems in andalusia spain abstract this paper evaluates the effects of a property tax bonus to promote the installation of solar thermal energy systems in buildings in andalusia southern spain the propensity score matching methodology is used the treatment group consists of municipalities of andalusia that established property tax bonuses in their municipalities in 2010 the control group consists of municipalities that did not the response variable measures the number of new square meters of solar thermal systems installed in 2010 the analysis leads to the conclusion that municipalities that established a property tax bonus had installed on average 102 245 to 122 389 square meters more these results indicate that the percentage increase in squares meters installed in municipalities which adopted the tax bonus promotion ranged from 70 74 to 98 38 these percentages were lower for rural municipalities 49 00 to 77 06

success factors for environmentally sustainable product innovation a systematic literature review the growing awareness regarding environmental sustainability has fully reached business reality consumers and companies alike are looking for alternatives to mitigate pressing environmental demands resulting from continuous population and economic growth on the other hand companies must deal with an increasingly competitive scenario where innovation is regarded as a survival need in most markets it is thus clear that systematic academic research is paramount to guide companies to succeed in environmentally sustainable product innovation in this context this paper i consolidate extant research and aggregate findings of different studies on environmentally sustainable product innovation through an interpretative framework of published literature on the topic and ii map critical success factors that drive the success of product innovation developed in this new logic of production and consumption to achieve these objectives a systematic literature review on environmentally sustainable product innovation was conducted results show that there are four main critical success factors for environmentally sustainable product innovation market law and regulation knowledge interfunctional collaboration innovation oriented learning and r d investments the factors identified in this research and corresponding variables were subjected to a brief empirical test by professionals the test allowed a preliminary approval of the developed framework and identification of the most important variables within each factor a research agenda based on the state of the art on the topic is also proposed

brazil us commodity trade and the j curve currency devaluation or depreciation is said to temporarily worsen a country s trade balance and improve it later an effect that is called the j curve previous research that tested the j curve for brazil used the country s aggregate trade flows with the rest of the world and did not find support for the phenomenon in this article we consider the trade flows between brazil and a major trading partner the united states disaggregating their trade flows by commodity we then test the empirical validity of the j curve for each of the 92 industries that trade between the two countries we find support for the phenomenon in 31 industries therefore disaggregation by industry seems to yield some support for the phenomenon

determinants of international trade flows the case of developing countries abstract the question of magnitude and the time path of the trade flows to changes in the exchange rates and to changes in the price level is of emitent practical importance to assess the above proposition a distributed lag structure is imposed on the relative prices and on the effective exchange rate as the determinants of trade flows then import and export demand functions are estimated for a sample of developing countries using the almon procedure the empirical findings appeared to sustain orcutt s early conjecture that trade flows adjust differently to different price stimuli more precisely it was found that imports and exports reactions were quicker and the total response time was shorter when an exchange rate rather than relative prices caused a change in international prices

the gains from differentiated policies to control stock pollution when producers are heterogeneous we derive optimal input taxes to control stock pollution problems generated by heterogeneous agents the taxes vary over time and in response to differences of asset quality and technology choice we also derive second best policies and compare them to the efficient policy and also among themselves different policies will affect the timing for when and the extent to which conservation technologies are adopted a numerical example based on the california drainage problem shows significant efficiency gains from the optimal policy compared to no intervention but much of the gains are lost with second best interventions the gains from optimal policies do not always increase with the degree of heterogeneity copyright 2008 oxford university press

kalman filter approach to estimate the demand for international reserves a few studies have provided empirical support for the fact that the demand for international reserves experienced structural instability in 1973 and 1979 due to a change in exchange rate system and oil price shocks thus under the current managed float due to exchange rate and oil price fluctuations coefficient estimates could be time dependent after showing that indeed estimated coefficients are time dependent the kalman filter estimation method is employed and the reserve demand function for 19 industrial countries estimated the kalman filter approach incorporates the time varying properties of coefficients estimates

the externalities associated with the common property exploitation of groundwater abstract in this paper the rate of groundwater extraction under the common property arrangement is the outcome of a dynamic game played with feedback strategies the analysis clarifies the externalities associated with the common property extraction of groundwater and identifies an risk externality that arises when firms are risk averse identifying the various externalities bears on the development of appropriate forms of groundwater management in particular the risk externality would be unknown to the watermaster of a central control agency suggesting the need for creative decentralized forms of groundwater management

will developing country debt forgiveness increase agricultural trade abstract latin american countries are important customers in international agricultural trade however between 1981 and 1987 u s agricultural exports to these countries declined by almost 50 one explanation for the above decrease is the change in financial conditions facing many countries in this region outstanding debt in the latin american countries continued to rise through the 1980 s reaching over 120 billion for brazil and mexico by 1987 in this paper we develop an import model which considers the effect of the debt crisis on the ability of developing countries to purchase agricultural commodities in world markets we estimate the model for four countries mexico brazil chile and venezuela the estimated results are used in a simulation model to obtain the effects of a 50 debt forgiveness scenario results indicate only a modest improvement in agricultural imports of the four latin american countries considered in this study these four countries would expand agricultural imports by 400 million per annum given the debt reduction

asymmetric j curve evidence from industry trade between u s and u k previous research that assessed the impact of exchange rate changes on the trade balance between the u s and u k assumed the effects are symmetric in this paper we add to the literature on the

the j curve a literature review due to lag structure currency devaluation is said to worsen the trade balance first and improve it later resulting in a pattern that resemble the letter j hence the j curve phenomenon since its introduction by magee in 1973 brooking papers on economic activity 1 pp 303 25 a large number of studies have attempted to test the phenomenon using different techniques and different model specifications the results are at best ambiguous and deserve to be collected together for the future generation of researchers and graduate students this paper fills such a vacuum in the literature by reviewing the j curve related empirical papers

trade liberalisation the peso and mexico s commodity trade flows with the united states abstract we assess the effects of real peso devaluations as well as the effects of gatt and nafta on mexico s in payments and out payments with the united states for 102 industries we find that relatively few trade flows are sensitive to changes in the real exchange rate probably due to production sharing and intra industry trade but devaluations affect mexican imports more than exports trade liberalisation has had a larger impact particularly on imports of intermediate goods and exports of certain manufactures many affected export industries are ones that have previously been shown to have economies of scale

environmental quality competition and taxation in the presence of green network effect among consumers we examine the impact of a green network effect in a market characterized by consumers environmental awareness and competition between firms in terms of both environmental quality and product prices the unique aspect of this model comes from the assumption that an increase in the number of consumers of green brown product increases the satisfaction of each green brown consumer we show that paradoxically when the network effect of a green product is higher than that of a brown product this externality reduces product environmental quality and raises consumption of the green product conversely when the network effect of the brown product is higher the externality improves product environmental quality and raises consumption of the brown product in both cases the network effect does not affect the overall pollution level the externality correction requires the use of three optimal fiscal policies an ad valorem tax on products an emission tax and a subsidy or a tax on the green purchase a second best optimum can also be reached through the green taxation

look at me saving the planet the imitation of visible green behavior and its impact on the climate value action gap abstract examining the regional distribution of 15 different greenhouse gas mitigation practices mps across australia we study the tendency for consumers to imitate visible pro environmental behavior in their local region while there is a great deal of variation in the specific type of mps adopted by consumers located in the same region anova results suggest that they tend to adopt a similar number of mps as their neighbours using discrete choice modelling our results suggest that this is due to the peer adoption of certain visible mps such as using public transport or car pooling encouraging agents to adopt other types of visible mps however the character of this spillover is limited in that visible pro environmental behavior does not appear to influence the adoption of non visible mps we also find that social imitation patterns help individuals overcome the observed gap between their stated concern about climate change and their propensity to act on this concern known as the climate value action gap policy implications for designing effective green nudges are discussed

when households go solar determinants of uptake of a photovoltaic scheme and policy insights abstract the need to reduce dependence on fossil fuels has resulted in escalating interest in renewable energy generation yet few countries have seriously tested household potential to produce energy from pv panels propelled by mandatory eu targets for renewable energy and constrained with limited territory the government of malta launched a subsidy scheme with a view to encouraging pv installation by households the scheme reached the desired adoption levels within a very short period of time the study takes an entire country dimension to assess the determinants of household investment in pv panels a unique dataset is specifically constructed for this study we find that the prevalence of younger households higher incomes dwelling ownership and unshared roof space results in higher rates of uptake neither higher educational levels nor the participation in other environmental schemes recycling contribute any explanatory power to uptake of pv panels pro government sentiment captured by voting outcomes significantly and positively influences the take up of the grant and installation of pv panels we conclude by identifying some pointers for policy makers interested in harvesting the potential of households

trade flows relative prices and effective exchange rates a var on ethiopian data the dynamic response of trade flows to price and effective exchange rate changes is examined via var using quarerly data from ethiopia for the period 1973 i 1985 iv the results show one way granger causality running from prices and exchange rates to imports and exports without significant feedback imports and exports exhibit similar response patterns to unexpected changes in relative prices and exchange rates the responses of imports and exports are larger and the adjustment takes longer when relative prices rather than exchange rates caused a change in international prices in the long run changes in prices account for a larger percentage of the forecast error variances in imports and exports than exchange rate changes it is shown that devaluation may have an initial adverse effect on the trade balance

technological diffusion and preference learning in the world of homo sustinens the challenges for politics abstract this article relates agents learning of a preference for a technology competition of technologies and their relative diffusion among potential adopters competitive interactions between two technologies are captured by an extended lotka volterra model to also incorporate preference learning on the part of potential adopters of these technologies we combine it with a model of cultural learning based on role model conformist and hedonistic learning our theoretical analysis is illustrated by a concrete example the competition between electric mobility and conventional forms of individual mobility the model enables an evaluation of specific policy instruments as to the promotion of sustainable technology

us consumers willingness to pay for green electricity abstract we analyze us consumers demand for environmental attributes of deregulated residential electricity services using results from a survey designed to elicit consumers willingness to pay for such attributes and using results from a hedonic analysis of actual price premiums charged for green electricity in several deregulated markets survey results suggest that many population segments are willing to pay for decreased air emissions even if there is no alteration in fuel source furthermore several groups are willing to pay significantly more when emissions reductions stem from increased reliance upon renewable fuels the hedonic analysis suggests that several product features not considered in the survey help explain real price premiums including fuel mix from newly created renewable generation capacity green e certification brand name and state of offer while survey and hedonic results are not easily compared due to limitations of the survey both point to similar values for key environmental attributes though the survey results are likely to overstate actual willingness to pay in sum the results suggest that consumer driven purchases can in part support the future of renewable generation capacity in the united states though reliance upon other policy alternatives may be needed if energy prices spike

political consumerism and public policy good complements against market failures political consumerism has become over the past years an ever growing phenomenon by which citizens express through their consumption their political environmental and ethical opinions this paper discusses political consumerism from an economic science perspective focusing on the link between political consumerism and public policies it wonders to what extent political consumerism may represent an effective and fair instrument against market failures overall it seems that it would be better to consider it as a complement to conventional public policies

the dynamics of spatial pollution the case of phosphorus runoff from agricultural land abstract the paper analyzes based on a land classification system the optimal management of negative production externalities while taking into account the intertemporal and spatial aspects of the problem to incorporate both aspects simultaneously a two stage modeling approach is proposed where the solution of the spatial problem first stage is optimized over time second stage as a result it is possible to relate long run and short run supply and input demand functions attention is given to runoffs from agricultural land leading to the contamination of a water body in particular the one of phosphorus and the eutrophication of lakes the employment of a land classification system supports a full information approach and allows to address the optimal management of mineral fertilizer and manure based on zonal taxes zonal permits and zonal standards which all vary over time

towards sustainable consumption economic modelling of mobility and heating for austria abstract the paper focuses on economic modelling and empirical analysis of sustainable structures in private consumption and strives to extend conventional economic consumption models the model analysis of sustainable consumption in the areas heating and transport for austria attempts to depart from traditional measurement of consumption in national accounts and economic consumption models the focus of the analysis is laid on consumer services derived from a combination of stocks e g building stock transport systems and flows mainly energy this approach intends to illustrate that a concentration on flows in consumption models lacks important aspects of sustainable consumption the economic analysis of sustainable consumption patterns aims to highlight the effects related to the substitution of flows by stocks in the consumption areas transport and heating e g improvements in thermal quality of buildings more energy efficient transport systems relevant too in this respect is the role that can be played by technological innovation improvements in energy efficiency of stocks the potential for specific incentives to promote new technologies two essential factors are crucial in the context of sustainable consumption the demand shifts concerning the consumer services desired and the composition of the stock flow mix necessary for the service provision

cost effectiveness of alternative green payment policies for conservation technology adoption with heterogeneous land quality this paper quantitatively analyses the cost effectiveness of alternative green payment policies designed to achieve a targeted level of pollution control by heterogeneous microunits these green payment policies include cost share subsidies that share the fixed costs of adoption of a conservation technology and or input reduction subsidies to reduce the use of a polluting input the paper shows that unlike a pollution tax that achieves abatement through three mechanisms a negative extensive margin effect a negative intensive margin effect and a technology switching effect a cost share subsidy and an input reduction subsidy are much more restricted in the types of incentives they provide for conservation of polluting inputs and adoption of a conservation technology to control pollution moreover they may lead to varying levels of expansion of land under production costs of abatement with alternative policies and implications for production and government payments are compared using a simulation model for controlling drainage from irrigated cotton production in california with drip irrigation as a conservation technology

taiwan s exports and trade imbalance against us and japan an empirical analysis the persistence of the bilateral trade surplus between taiwan and the usa and the bilateral trade deficit between taiwan and japan despite the significant appreciation or depreciation of the nt dollar during the early 1980s to the mid 1990s renewed interest to seek explanations for these phenomena to assess the above proposition a polynomial distributed lag pdl method is imposed on the impact of changes in the real exchange rate on the bilateral trade structure particularly export demand and trade imbalance between taiwan the usa and japan from 1981 to 1998 the empirical findings show that 1 the real income factors have important effects on the real exports in both cases 2 the real exchange rates and the real imports are not major determinants of the export demand from taiwan to the usa but they do play an important role on the real exports from taiwan to japan 3 the real exchange rate has significant effect on the real trade surplus with the usa and on trade deficit with japan but the real

economics and identity this paper considers how identity a person s sense of self affects economic outcomes we incorporate the psychology and sociology of identity into an economic model of behavior in the utility function we propose identity is associated with different social categories and how people in these categories should behave we then construct a simple game theoretic model showing how identity can affect individual interactions the paper adapts these models to gender discrimination in the workplace the economics of poverty and social exclusion and the household division of labor in each case the inclusion of identity substantively changes conclusions of previous economic analysis

exploring the gap between consumers green rhetoric and purchasing behaviour why do consumers who profess to be concerned about the environment choose not to buy greener products more regularly or even at all this study explores how consumers perceptions towards green products consumers and consumption practices termed green perceptions contribute to our understanding of the discrepancy between green attitudes and behaviour this study identified several barriers to ethical consumption behaviour within a green consumption context three key themes emerged from the study it is too hard to be green green stigma and green reservations there is currently a perception based on a number of factors that it is too hard to be green which creates a barrier to purchasing green products furthermore some consumers were reluctant or resistant to participate in green consumption practices due to their unfavourable perceptions of green consumers and green messages this article suggests that green perceptions may influence consumers intention to purchase green products accordingly it discusses the implications and suggests avenues for future research

competitive versus efficient extraction of a common property resource the groundwater case abstract in this paper socially optimal and private extraction of a common property aquifer are compared open loop equilibrium and feedback equilibrium in linear strategies have been computed to characterize private extraction the use of these two equilibrium concepts allows us to distinguish between cost and strategic externalities as long as the open loop solution captures only the cost externality and the feedback solution captures both the results show that strategic behaviour increases the overexploitation of the aquifer compared to the open loop solution however if the groundwater storage capacity is large the difference between the socially optimal and private extraction the latter characterized by a feedback equilibrium is negligible

biological conservation in dynamic agricultural landscapes effectiveness of public policies and trade offs with agricultural production article i nfo land use change and land management intensification are major drivers of biodiversity loss especially in agricultural landscapes that cover a large and increasing share of the world s surface incentive based agri environmental policies are designed to influence farmers land use decisions in order to mitigate environmental degradation this paper evaluates the effectiveness of agri environmental schemes for biological conservation in a dynamic agricultural landscape under economic uncertainty we develop a dynamic ecological economic model of agricultural land use and spatially explicit population dynamics we then relate policies subsidies to grassland taxation of agricultural intensity to the ecological outcome probability of persistence of a species of interest we also analyze the associated trade offs between agricultural production in value and biological conservation in probability of persistence at the landscape scale

is there a long run relation between the trade balance and the real effective exchange rate of ldcs abstract using quarterly data over 1973 1988 period the cointegration analysis is used and it is shown that the trade balance and the real effective exchange rate of some ldcs are cointegrated in the long run this approach is argued to be a close substitute for testing the marshall lerner condition

how national culture and ethics matter in consumers green consumption values abstract going green in consumption is gaining momentum globally but little is known how national cultural values and consumers ethical ideologies explain green consumption with a culturally rich sample of 1929 responses from consumers in finland germany portugal and the united kingdom the present study examines how cultural long term orientation and collectivism predict consumers green consumption values and if these relationships are moderated by ethical ideologies the study finds that cultural collectivism has a significant positive effect on green consumption values as expected however the results show that the two long term orientation constructs namely planning and tradition point in opposite directions when predicting green consumption we demonstrate that while long term planning has a significant positive effect on green consumption values the effect of traditional values is negative we further show that this negative effect varies across consumers ethical ideologies so that the effect is the greatest for exceptionists and absolutists that is those who rely in their actions on universal moral principles rather than particular circumstances therefore our research contributes to the literature by providing new evidence for the cultural and ethical aspects in green consumption values furthermore the study suggests that managers pay special attention to the consumers who have high collectivistic and future oriented values to promote environmentally friendly consumption

water quantity management in a heterogeneous landscape with farsighted farmers agricultural production contributes to many environmental problems in semi arid areas agricultural irrigation causes the so called waterlogging phenomenon this phenomenon is both spatial and dynamic since percolation depends on soil quality summed up in landscape heterogeneity and evolves along time furthermore farmers can be farsighted with respect to their contribution to percolation we study regulation schemes to be implemented to restore the socially optimal spatial and temporal production plan of farmers in such a context we show that both a temporal tax on percolation and a spatio temporal tax on inputs both at the extensive and at the intensive margin are efficient for the restoration of the socially optimal solution furthermore a numerical example demonstrates that the consequences of implementing a fiscal scheme designed for myopic farmers whereas they are farsighted depends on the distribution of soil quality

an assessment of the greek incentives scheme for photovoltaics abstract after two years of elaboration a new legislation was enacted in 2006 in greece providing an appealing feed in tariff fit scheme for photovoltaics pvs the response of the market was immediate with more than 7947 licenses having been submitted in less than 2 years time the effectiveness however of an incentives scheme cannot be judged solely by the response of prospective investors aim of this paper is to present and discuss a quantitative assessment of this newly introduced fit law in greece with respect to its attractiveness to investors its effectiveness towards launching a new market its cost efficiency and its ability to lift non economic barriers that led to significant delays in the diffusion of res over the last 10 years

green returns of labor income and human capital empirical evidence of the environmental behavior of households in developing countries abstract an important part of the environmental contamination comes from the daily practices of the households which has been partially ignored in the recent empirical literature the objective of this research is to examine the green returns of labor income and human capital in a developing country ecuador we use data from the national institute of statistics and census nisc during 2010 2016 and panel data econometrics techniques our results show that labor income and human capital plays a relevant role in the environmental behavior of households in this country both variables have a positive effect on the friendly environmental behavior of households in addition we found that the cantons 1 specialized in manufacturing have a poor environmental performance while the cantons specializing in services do not have a clear pattern we also don t find significant differences in the environmental behavior associated with the composition of the ethnic groups of each canton finally natural geographic regions generate differences in the environmental behavior of households one possible implication derived from this research is that those responsible for environmental policy can mitigate pollution by promoting educational programs with environmental content and encouraging improvements in the behavior of households using tax mechanisms

exchange rate volatility and pakistan s exports to the developed world 1974 85 abstract the paper attempts to estimate the impact of exchange rate uncertainty on pakistan s exports to the developed world for 1974 85 discovering strong evidence to suggest that exports were adversely affected by the increased variability of its bilateral exchange rates unlike much of the recent evidence on developed countries however it is the variability in nominal rather than real exchange rates that is significant the computations also suggest the presence of strong third country effects

foreign exchange reserves and import demand evidence from latin america this paper investigates the impact of foreign reserves domestic real income and relative import prices on import demand for seven latin american countries we differentiate empirically between the short run and long run impact of reserves income and prices on imports the paper has three main results first we show that there exists a unique long run relationship among real imports real income relative import prices and real foreign exchange reserves for all seven countries second we find that increases in foreign exchange reserves exert a significant positive effect on import demand in both the long run and the short run in all countries however the economic impact of foreign exchange reserves is rather small finally we find that the long and short run impact of real domestic income on import demand is positive as well while the effect of relative prices is negative

determinants of participation versus consumption in the nordic swan eco labeled market abstract this paper analyzes the determinants of demand for nordic swan eco labeled paper products and whether the factors determining the discrete decision to buy a swan labeled product are different from those that determine the quantity purchased using observed consumer purchase data from denmark we find that prices and socio demographic characteristics have a strong impact on the decision to purchase a swan labeled good the quantity consumed of swan labeled goods on the other hand is strongly affected by the availability of swan goods discounts and household size

the character of demand in mature organic food markets great britain and denmark compared abstract we investigate the organic food market in two selected european countries great britain and denmark identifying main differences and similarities we focus particularly on consumer perceptions and priorities labelling schemes and sales channels as a basis for assessing market stability and prospects for future growth we employ a unique set of household panel data that includes information on stated values and concerns as well as registered purchasing behaviour most organic food on both markets is produced and processed by large scale industrialised units and distributed through mainstream sales channels consumer confidence being sustained at present by organic labelling schemes that appear to function well however a parallel market based on the supply of goods through various direct sales channels to heavy users prevails we find that organic food purchase decisions are primarily motivated by private good attributes such as freshness taste and health benefits attributes that may be perceived as being compatible with modern production and sales structure mature markets for organic foods nevertheless appear to be vulnerable to consumer dissatisfaction particularly among heavy users of organic food products

use of economic instruments in the german renewable electricity policy this article surveys the economic instruments adopted in germany since the start of the previous decade and analyse the factors determining their effectiveness it is found out that their effect has always diminished in correspondence of increased uncertainty on the future of the system in particular while in two of these instances uncertainty was mainly due to national factors in the other the debate on the european renewable directive played a very important role recent changes in the production incentives have introduced a process simulating the effect of competition among renewable generators it is pointed out that the biennial revision of the rates can increase the uncertainty intrinsic in the policy on the other hand this process also provides a forum for the debate on the future of the renewable sector one can notice that currently germany the biggest renewable market in europe is granting one of the lowest production incentives this is rather curious as germany never relied on market competition in order to increase the renewable electricity production

nominal and real effective exchange rates of middle eastern countries and their trade performance indexes of real and nominal effective exchange rates that are published by the imf are mostly for industrial countries none of the middle eastern countries have received any attention on this regard this paper tries to close the gap by constructing such indexes for 11 middle eastern countries over 1971 i 1994 iv period as an application long run response of their trade balance to devaluation is also investigated

impulse response analysis and orcutt s hypothesis in trade evidence from developing countries orcutt s hypothesis in international economics implies that trade flows respond to exchange rate changes faster than to changes in relative prices most previous studies used import and export demand models and tested the hypothesis by imposing and comparing lag lengths on the exchange rate and relative prices one recent study however employed impulse response of trade flows to one sd shock to the nominal exchange rate and one sd shock to relative prices and tested the orcutt s hypothesis for several industrial countries in this article we follow this study and test the hypothesis for six developing countries using impulse response analysis like the other study for industrial countries we do not find much support for the hypothesis

driving factors for the success of the green innovation market a relationship system proposal this study aims to map out the relationships that make up green innovation initiatives in brazilian industry the sample comprised 100 managers at manufacturing companies most of them operating in the business of farm machinery and equipment 45 managers and steel structures 14 managers to develop this study medeiros et al j clean prod 65 76 86 2014 study mapping critical factors that drive the success of green product innovation and the paradigm of complexity was used as a reference study based on the results it was possible to identify that the operational dynamic of the factors and variables that affect market success do not happen in an isolated or fragmented way they occur systematically with different contingencies and structured basic and intermediate skills in order to meet the expectations of consumers laws and environmental legislation initially the technological expertise factor was noted as very important for sustaining green product innovation furthermore since proactive leaders are an important factor for successfully developing environmentally sustainable products it must be added to technological expertise as the foundation for developing green innovation after defining the basis for green product innovation the intermediary conditions necessary for using the available technology appropriately were mapped out in this sense variables such as elimination of cultural barriers capacity for critical reflective analysis and experimentation are also very important in addition some of the variables of the cross functional collaboration and market knowledge factors were a part of the structure that organizations need to transform potential into developing green products which is the basis for the third level of the model the fourth level of the model has the meeting consumer expectations and following law and legislation factors which make up the main goals for developing environmentally sustainable products according to a number of surveys that were conducted

decision making governance for purchases of solar photovoltaic systems in japan in this study we analyze the factors that affecting purchasing decision time for solar photovoltaic pv s in japan based on our survey consumers spend about 4 months to make purchase decision also our estimation results show that information and knowledge that consumers obtained from the neighborhood and elsewhere make consumers more careful in their decision making and extend the purchase decision on the other hand experts on the advantages and disadvantages of installation shortened the decision time the situation and environment of each household in terms of income family size and the way of purchase of new homes have influenced on the decision to purchase a pv system in addition the availability of feed in tariffs was highly correlated with purchasing motivation but unexpectedly the capital subsidy programs have either little impacts or even delayed impacts on the purchasing timing