environmental regulation and u s economic growth in this article we quantify the costs of pollution controls by reporting the results of simulations of the growth of the u s economy with and without regulation for this purpose we have constructed a detailed model of the economy that includes the determinants of long term growth we have also analyzed the interaction between industries in order to capture the full repercussions of environmental regulations however we have not attempted to assess the benefits resulting from a cleaner environment we find that pollution abatement has emerged as a major claimant on the resources of the u s economy the cost of emission controls is more than 10 of the total cost of government purchases of goods and services

clustering and competition in asset markets economists financial commentators regulatory agencies and the legal community have recently criticized the nasdaq stock market inc because there is greater clustering of stock quotations on even eighths on nasdaq than on the new york stock exchange or the american stock exchange a phenomenon which critics attribute to collusion or some other defect in nasdaq market structure however as this article demonstrates clustering occurs in varying degrees in many other incontestably competitive financial markets including the nyse the amex the london stock exchange the london gold market and the international foreign exchange market this article provides a competitive theory of clustering that emphasizes the effect of uncertainty the size of transactions volatility and the informational and transactional roles of quotations on the degree of clustering in addition the article examines how market structure can affect the degree of clustering and considers the relation between clustering spread

cognitive limitation and investment performance evidence from limit order clustering we hypothesize that cognitive limitation may be manifested in a disproportionately large volume of limit orders submitted at round number prices if investors use these numbers as cognitive shortcuts using detailed limit order data in the taiwan futures exchange we find that investors with lower cognitive abilities defined as higher limit order submission ratios at round numbers suffer greater losses in their round numbered and non round numbered limit orders market orders and round trip trades the positive correlation between cognitive ability and investment performance is monotonic and robust across futures and options markets in addition past trading experience helps mitigate cognitive limitation

a presumptive pigovian tax complementing regulation to mimic an emissions fee if regulations are used to make cars and fuels cleaner should gasoline taxes be used to manage demand for trips that pollute anaysis of a well composed program for mexico city indicates that the emission reductions would cost 24 percent more if a tax on gasoline was not introduced a simple analytical framework is developed to analyze the use of abatement requirements to make cars cleaner and a gasoline tax to economize on the use of cars the two instruments should be combined to mimic the incentives that would have beeen provided by an emissions fee thus cleaner cars and fewer trips are analogous to competing suppliers of emission reductions the planner should buy from both so that marginal costs are equal applying that rule the marginal cost of emission reductions is simply the gasoline tax rate divided by emissions per liter

uniform compliance costs for mineral commodities who gains and who loses changes in energy and nonfuelmineral production consumption and net export revenue that result from environmental protection are estimated by income class and geographic region unlike previous assessments of unilateral adoption of standards i assume that all producers incur equal cleanup costs adjustment is therefore accomplished through changes in prices and quantities rather than altered trade patterns the estimated magnitude of worldwide changes is not large moreover many poor countries are forecast to benefit since their terms of trade improve however the problem of obtaining foreign exchange for investment remains a financing scheme that divorces efficiency from equity is suggested

induced innovation evolutionary theory and path dependence sources of technical change the i960s to the i98os were very productive of new theory and empirical insights into the sources of technical change in the i96os and i970s major attention focused on the implications of changes in demand and relative factor prices on the rate and direction of technical change in the late i 970s and early i980s attention shifted to evolutionary models inspired by a revival of interest in schumpeter s insights into the process of economic development since the early i98os these have been complemented by the development of historically grounded path dependent models of technical change each of these models has contributed substantial insight into the sources of technical change this paper was motivated by a perception that each of the three research agendas is approaching a dead end the three models induced evolutionary and path dependent represent elements of a more general theory that has not yet been invented ruttan 1996 a in a closing comment i suggest some steps toward the development of a more general theory of the sources of technical change

environmental policy adjustment costs and behavior of the firm abstract the effects of environmental policy in the form of emission charges or emission limits on the firm s optimal choices of productive and abatement inputs are analyzed short run and long run impacts on inputs and the properties of static emission function are determined through comparative static analysis comparative dynamics reveal the properties of the cumulative emission function and the cumulative shadow cost of emission limits function

trading and pricing in upstairs and downstairs stock markets we provide empirical evidence on the economic benefits of negotiating trades in the upstairs trading room of brokerage firms relative to the downstairs market using helsinki stock exchange data we find that upstairs trades tend to have lower information content and lower price impacts than downstairs trades this is consistent with the hypotheses that the upstairs market is better at pricing uninformed liquidity trades and that upstairs brokers can give better prices to their customers if they know the unexpressed demands of other customers we find that these economic benefits depend on price discovery occurring in the downstairs market copyright 2002 oxford university press

the cost of environmental protection reported expenditures for environmental protection are often cited as an assessment of the burden of current regulatory efforts however the potential for both incidental savings and uncounted costs means that the actual burden could be either higher or lower than these reported values using a production cost model that considers the possible interaction between environmental and non environmental expenditures we directly estimate the dollar for dollar incidental savings uncounted costs arising from a one dollar increase in reported environmental expenditures although recent literature supports the idea that reported expenditures probably understate the actual burden we find no such evidence in the manufacturing sector based on a large panel of plant level data in one industry we find statistically significant overstatement in three others we find no significant deviation in either direction we conclude that although cost estimates are not overstated on average variation and uncertainty exist

environmental investment and policy with distortionary taxes and endogenous growth abstract recent studies consider public r d spending that affects abatement knowledge and endogenous growth distortionary taxes that affect capital formation pollution taxes that affect environmental degradation and regeneration that restores natural capital our model combines all those elements the combination affects prior results focusing on two parameters the need for distorting taxes and productivity of abatement knowledge relative to pollution first these two extensions can reverse prior findings that pollution tax revenue is always enough to pay for public r d second tax distortions and externalities alter prior findings that the ratio of public to private capital depends only on output elasticities third dynamics affect prior static findings about other public spending crowding out environmental public goods fourth a greater need for public spending can lead to greater increases in distorting taxes or pollution taxes fifth greater environmental regulation can mean growth is higher or lower even if welfare is higher

the effect of clean water regulation on profitability testing the porter hypothesis previous theoretical research provides opposing arguments regarding the effect of environmental regulation on profitability this study provides empirical evidence on this debated effect by testing the strong version of the porter hypothesis we employ panel data analysis to examine the effect of water regulation as measured by permitted wastewater discharge limits on the profitability of publicly held firms operating within the chemical manufacturing industries we find that tighter water regulation meaningfully lowers profitability by reinterpreting profitability in terms of sales and costs the results demonstrate that tighter water regulation increases costs conditioned on a given level of sales

internalization and stock price clustering finnish evidence abstract internalization the practice of brokers executing trades in house is a significant phenomenon in the helsinki stock exchange during the continuous trading session 97 5 upstairs market trades are internalized the corresponding figure for after hours upstairs market trades is 73 1 the prices of internalized trades are somewhat more clustered than the prices of other trades during the continuous trading session but they are not more clustered than the prices of negotiated trades in the after hours upstairs market this suggests that finnish brokers do not use a more discrete set of prices for internalized trades than for other upstairs trades

international trade and environmental quality a survey abstract international trade has been incorporating various aspects of environmental issues since 1970 the extent to which environmental problems might affect many facets of trade or vice versa has been the subject of considerable debate over these years in this article we have attempted to establish some of the links between international trade and environmental quality by performing a comprehensive literature review we discuss issues such as establishing direct and indirect effects of international trade on environmental quality effects of trade on economic development environmental quality and energy and their relation with each other and finally the role of governments and international organizations in this context studies have so far revealed some linkages between trade and environment through conventional trade theory however interactions between international trade and types of pollution their sink and assimilative capacity need to be analyzed using a general equilibrium approach currently very little knowledge and agreement on the nature of interactions between trade theories development process and environmental quality exist existing studies have shown that the structure of environmental regulations should be modified to reflect the existence of trade under imperfect competition therefore further research on the interaction between new trade theory and environmental regulation is needed also theoretical and quantitative analysis regarding the effects of environmental regulations on competitiveness and location decision is needed the intensity and type of environmental measures vary across issues and countries therefore harmonizing environmental measures creates an inefficient atmosphere and to assume that trade restrictions will either improve or reverse the environmental damages is a serious mistake given the dynamic and intricate nature of the problem trade and environment debate continues despite vast research and poses a challenge for researchers and policy makers in the foreseeable future

the economic costs of environmental regulation in u s dairy farming a directional distance function approach analyses of the costs of regulating greenhouse gas emissions from dairy production which could be used to assess the effectiveness of alternative policy measures is a missing link in the literature this article addresses this gap by establishing the economic impact associated with a hypothetical greenhouse gas environmental regulatory regime across major dairy producing counties in the united states in doing so the article makes three important contributions to the literature first it develops a comprehensive pollution index based on environmental protection agency methodologies which contrasts with previous studies that rely on partial measures based only on surplus nitrogen stemming from the over application of fertilizer second the article uses a directional output distance function an approach that has not been employed previously to evaluate polluting technologies in the u s dairy sector third the article incorporates a four way error approach that accounts for unobserved county heterogeneity time invariant persistent technical efficiency time varying transient technical efficiency and a random error the results indicate that regulating greenhouse gas emissions from dairy farming would induce a 5 percentage point increase in average technical efficiency in addition the economic costs of implementing this hypothetical regulatory framework exhibit significant spatial variation across counties in the united states

stock price clustering and discreteness stock prices cluster on round fractions clustering increases with price level and volatility and decreases with capitalization and transaction frequency clustering is pervasive price clustering will occur if traders use discrete price sets to simplify their negotiations exchange regulations require that most stocks be traded on eighths clustering on larger fractions will occur if traders choose to use discrete price sets based on quarters halves or whole numbers an econometric model of clustering is derived and estimated projections from the results suggest that traders would frequently use odd sixteenths when trading low price stocks if exchange regulations permitted trading on sixteenths article published by oxford university press on behalf of the society for financial studies in its journal the review of financial studies

the economics of the greenhouse effect the recognition that economic activity is contributing to climatic change with attendant costs that may be of large magnitudes has set in motion a substantial research effort this paper seeks to review the contribution of economics to analysis of the greenhouse effect and to the policies and instruments suggested as means of mitigating its damage a brief overview of the causes and consequences of global warming is given and a number of energy economy forecasting models are examined as the costs of global warming depend upon the extent to which preventative and adaptive measures are undertaken the techniques available to evaluate these costs are surveyed we examine extant targets for greenhouse gas emissions reduction and explore the frameworks within which optimal policy targets can be designed the paper also considers the narrower question of minimized abatement costs and surveys the types of models used to estimate them the merits of alternative policy instruments are examined paying particular attention to the role that risk and uncertainty and the costs of monitoring and implementation of policy under conditions of imperfect information may play in the choice of instruments problems of international co operation in the development of abatement policy are examined and we consider the compensations across both nations and generations that are likely to be necessary conditions for effective action

a new approach to measuring shadow price reconciling engineering and economic perspectives abstract shadow price is one of the most important pieces of information in environmental decision making two different approaches namely economic and engineering have been applied to obtain the shadow price of undesirable outputs while using different methodological backgrounds and perspectives the current study proposes a new conceptual framework and an economic estimation model to reconcile the shadow price estimates derived via the two approaches we also suggest a new mapping rule that incorporates the concept of abatement level which is a basic element in the engineering approach as a result the proposed model generates continuously changing estimates i e comprising a shadow price curve based on the abatement level we further investigate the determinant factors of shadow price by using second step regression the suggested methodology is used to investigate the shadow price of carbon emissions in south korean electricity generating plants thus yielding relevant policy implications

market based systems for reducing chemical use in agriculture in the united states this study uses a computable general equilibrium cge model of the u s economy to estimate the economic effects of agricultural fertilizer and pesticide input reductions on individual farm sectors and on the economy as a whole the costs of reducing agricultural chemicals using a market based approach and a command and control approach are compared the real cost to society of restrictng fertilizer and pesticide use by 20 percent across all uses is estimated to be 2 3 billion a market based approach that would provide incentives to reduce chemical use in the most cost efficient manner would be about 10 percent less costly

tick size share prices and stock splits minimum price variation rules help explain why stock prices vary substantially across countries and other curiosities of share prices companies tend to split their stock so that the institutionally mandated minimum tick size is optimal relative to the stock price a large relative tick size provides an incentive for dealers to make markets and for investors to provide liquidity by placing limit orders despite its placing a high floor on the quoted bid ask spread a simple model suggests that idiosyncratic risk firm size and visibility of the firm affect the optimal relative tick size and thus the share price in stock markets around the world the average price per share differs substantially the median u s stock for example sells for about 40 a typical london stock sells for about 5 7 50 and a typical hong kong share is about 2 furthermore when stock prices rise above a country s usual trading range firms often split their stocks to restore prices to that range why are these price ranges so different among countries these trading ranges can be remarkably stable over time during the half century from 1943 to 1994 the s p composite index increased over 1 500 percent yet the average new york stock exchange nyse share price was

environmental regulations and productivity growth the case of fossil fueled electric power generation this paper measures and analyzes the effect of sulfur dioxide emission restrictions on the rate of productivity growth in the electric power industry over the 1973 79 business cycle a firm specific measure of regulatory intensity is developed which depends on the severity of the emission standard the extent of enforcement and the unconstrained emission rate relevant to each utility the results indicate that emission regulations result in significantly higher generating costs primarily from the increased use of low sulfur fuels the average rate of productivity growth was reduced by 0 59 percentage points per year for constrained utilities

thermodynamics and process analysis for future economic scenarios economists are increasingly interested in forecasting future costs and benefits of policies for dealing with materials energy fluxes polluting emissions and environmental impacts on various scales from sectoral to global computable general equilibrium cge models are currently popular because they project demand and industrial structure into the future along an equilibrium path but they are applicable only to the extent that structural changes occur in or near equilibrium independent of radical technological or social change the alternative tool for analyzing economic implications of scenario assumptions is to use leontief type input output i o models i o models are unable to endogenize structural shifts changing i o coefficients however this can be a virtue when considering radical rather than incremental shifts postulated i o tables can be used independently to check the internal consistency of scenarios or i o models can be used to generate scenarios by linking them to econometric macro drivers which can in principle be cge models explicit process analysis can be integrated in principle with i o models this hybrid scheme provides a natural means of satisfying physical constraints especially the first and second laws of thermodynamics this is important to avoid constructing scenarios based on physically impossible processes process analysis is really the only available tool for constructing physically plausible alternative future i o tables and generating materials energy and waste emissions coefficients explicit process analysis also helps avoid several problems characteristic of pure cge or i o models viz 1 aggregation errors 2 inability to handle arbitrary combinations of co product and co input relationships and 3 inability to reflect certain non linearities such as internal feedback loops

an econometric model of production with endogenous improvement in energy efficiency 1970 1995 the purpose of this paper is to introduce a modification of a standard four input production process where energy is used in an inefficient way due to partly unnecessary waste of energy in this production process r d investment is an additional input in order to improve energy efficiency it closes the gap between energy purchased and energy used effectively the more is invested the less is the waste of energy with the cost and benefit of r d investment incorporated in our model of the firm we analyze the impact of an energy tax on r d effort on output and on the waste of energy the model is implemented empirically by choosing a translog cost function and a set of first order conditions using data for the german chemical industry 1970 1995 in a simulation study based on higher energy prices we found outsourcing as the consequent reaction of the firm more material is used and less of energy labor and capital given the unchanged output level there is no indication of a double dividend in terms of environmental improvement as well as higher demand for labor on the industry level calling for a computable general equilibrium approach in order to answer this open question

natural versus manufactured capital win lose or win win a case study of the finnish pulp and paper industry abstract the effect of investments on environmental variables has been discussed through the win win rhetoric specifically in micro level analysis on the macro level the win win rhetoric has been replaced by the arguments for and against the substitutability of natural and manufactured capital here these two concepts belonging to different levels of analysis are linked by looking at the environmental and economic effects of chosen investment strategies in a traditionally capital intensive industry over time the paper shows that rather than generalise the existence of win win situations or the substitutability of capital these positions are determined by purely situational factors as a result in the assessment of substitutability the specific operating context of the industry needs to be taken into account this implies also that environmental policy needs to be designed to be adaptive and responsive to those situational factors to create beneficial outcomes for the economy and for the environment

oil consumption and economic efficiency a comparative analysis of advanced developing and emerging economies abstract this paper investigates the economic efficiency oil consumption relationship in 42 countries during the period 1986 2006 in a first stage by using dea window analysis countries economic efficiencies are obtained in a second stage an econometric analysis based on robust gmm estimators reveals an inverted u shape relationship between oil consumption and economic efficiency in order to capture heterogeneities among countries development stages the analysis has been separated into two groups advanced economies and developing emerging economies the results show that advanced economies have much higher turning points compared to emerging and developing economies it appears that oil consumption increases countries economic efficiency in addition the consumption patterns of oil products and its derivatives have changed through years and among countries the different turning points from the econometric analysis indicate the dependence of oil consumption in advanced economies higher turning points is driven mainly by household purchasing activities and their standards of living transport housing and water food etc finally it appears that oil consumption is the main driver behind the progress of industrialization and urbanization regardless of the country s development stage

sectoral and macroeconomic impacts of the large combustion plants in poland a general equilibrium analysis abstract this paper analyses the final incidence of direct costs of implementation of the eu directive on so 2 and no x emission limits for large combustion plants in poland first we simulate a model from a power sector perspective where compliance with the directive appears to be associated only with direct costs second a more realistic market wide perspective is modeled where abatement costs borne by the power sector become the revenues of the sectors supplying abatement technologies and services simulations indicate that if environmental benefits of implementation are unaccounted for the directive would seem to cause a deadweight loss in the economy the overall impact however is likely to be less negative than what the interest groups claim

the role of policy in energy transitions lessons from the energy liberalisation era the aim of this paper is to discuss the period of energy privatisation and liberalisation which began in the 1980s within its wider historical context the key issues are what has been learned from this recent period and how significant is it in the light of an energy transition to low carbon energy system by 2050 energy liberalisation has led to positive and globally widespread but modest efficiency gains but a lack of clearly visible direct benefits to households in many countries it has significantly improved the governance of monopoly utilities via independent regulators the prospects for competition and innovation and the quality of policy instruments for environmental emissions control through the emergence of trading mechanisms we conclude that it is not liberalisation per se that will determine the movement towards a low carbon energy transition but the willingness of societies to bear the cost which will be significant no matter what the extent of liberalisation

tightening environmental standards the benefit cost or the no cost paradigm ms ff ichael porter and claas van der linde have written a paper that is interesting and to us at least somewhat astonishing it is a defense of environmental regulation indeed an invitation to more stringent regulation that makes essentially no reference to the social benefits of such regulation this approach contrasts starkly with the methods that economists and other policy analysts have traditionally used when assessing environmental or other regulatory programs the traditional approach consists of comparing the beneficial effects of regulation with the costs that must be borne to secure these benefits for environmental regulation the social benefits include the reductions in morbidity or premature mortality that can accompany cleaner air the enhanced recreational opportunities that can result from water quality improvements the increased land values that might attend the cleanup of a hazardous waste site the enhanced vitality of aquatic ecosystems that might follow reductions in agricultural pesticide use or any of the other potentially significant benefits associated with tighter standards from this benefit cost approach emerges the standard tradeoff discussed in virtually every economics textbook porter and van der linde deny the validity of this approach to the analysis of environmental regulation claiming it to be an artifact of what they see as a static mindset in their view economists have failed to appreciate the capacity of

toward a new conception of the environment competitiveness relationship accepting a fixed trade off between environmental regulation and competitiveness unnecessarily raises costs and slows down environmental progress studies finding high environmental compliance costs have traditionally focused on static cost impacts ignoring any offsetting productivity benefits from innovation they typically overestimated compliance costs neglected innovation offsets and disregarded the affected industry s initial competitiveness rather than simply adding to cost properly crafted environmental standards can trigger innovation offsets allowing companies to improve their resource productivity shifting the debate from pollution control to pollution prevention was a step forward it is now necessary to make the next step and focus on resource productivity

super partes assessing the effect of judicial independence on entry incumbents can enjoy a cost advantage vis a vis new entrants and so deter new firm entry by establishing and leveraging connections with the judicial system connected firms may in fact avoid fully complying with the costly norms implied by a law a regulation or a contract at the same time they can also credibly threaten to sue new entrants therefore a change in the institutional environment that diminishes the ability of incumbent firms to establish judicial connections i e an increase in judicial independence can promote entrepreneurship exploiting reforms that change the way in which u s state judges are selected we confirm that this is the case and we show that this effect is more salient in states and industries where the likelihood of entering into a business dispute is higher the paper also sheds some light on the mechanisms behind this effect data and the online appendix are available at https doi org 10 1287 mnsc 2017 2794 this paper was accepted by toby stuart entrepreneurship

globalization and electronic commerce inferences from retail brokering e commerce has contributed to the retail brokerage industry becoming more global and more contestable by examining the different stages of the value chain we can analyze the differential impact of the information and communication technology ict revolution on each segment of the industry to date the primary drivers of globalization have been manifested at the wholesale stage of the industry in contrast important features of the broker customer interface have perpetuated a multi locational competitive structure at the retail stage of the industry nevertheless actual and potential competition has been significantly increased by the spread of e commerce at all stages of the industry e commerce innovations encourage both standardization and variety within an increasingly competitive industry

the effect of epa enforcement funding on private sector pollution control investment the paper estimates the effects of the us environmental protection agency epa enforcement budget upon the demand for pollution control equipment in the private sector there are two possible effects a direct effect occurs when the enforcement budget is used for inspections that result in enforced compliance requiring additional pollution control equipment a second effect is anticipatory and arises from the private sector s objective of minimizing expected costs due to fines imposed by the epa for infractions of pollution control requirements this component of demand depends in part on the epa enforcement budget we find that increases in the epa budget increase the demand for pollution abatement equipment this in turn implies that increases in the epa enforcement budget have been effective in mitigating pollution

the substantial bias from ignoring general equilibrium effects in estimating excess burden and a practical solution we show that under typical conditions the simple excess burden triangle formula substantially underestimates the excess burden of commodity taxes in some cases by a factor of 10 or more this formula performs poorly because it ignores general equilibrium interactions most important interactions between the taxed commodity and the labor market many prior studies have shown that general equilibrium interactions affect excess burden but have not appreciated the bias associated with ignoring these interactions or the quantitative importance of this bias we derive an implementable alternative to the simple formula this alternative formula captures interactions that the simple formula omits as a result it is both unbiased and usually more accurate

the contingent valuation debate why economists should care t he contingent valuation method involves the use of sample surveys questionnaires to elicit the willingness of respondents to pay for generally hypothetical projects or programs the name of the method refers to the fact that the values revealed by respondents are contingent upon the constructed or simulated market presented in the survey a spirited and occasionally mean spirited battle over such methods is currently being waged involving competing factions within the federal government economists and lawyers representing business and environmental groups and interested academics as well at issue is a seemingly quite specific question should environmental regulations currently under development at both the department of the interior and the department of commerce sanction the use of the contingent valuation method in estimating the damage done by spills of oil chemicals or other substances covered by federal law more generally the debate raises broad questions about what economists have to say about the values that individuals place on public or private goods the two papers that follow this one make cases for and against the use of the contingent valuation method my aim here is to provide an overview of the technique and the debate surrounding it i also want to suggest why this debate should matter to economists both professionally and in their roles as citizens and consumers

tobin s q and the importance of focus in firm performance using tobin s q as a measure of performance we seek to estimate the relative importance of industry focus and share effects in determining firm performance our methods are analogous to those of richard schmalensee and like him we find that industry effects account for the majority of the explained variance however we also find that firm effects exist in the form of focus effects that is narrowly diversified firms do better than widely diversified firms we interpret this finding as consistent with profit maximization by firms with different factor endowments

the control of co2 emissions and its economic impact an age model for a german state since it is believed that co2 is responsible for 55 of the greenhouse effect a co2 levy is now under consideration in several countries for an assessment of the macroeconomic implications of an integrated energy and environmental policy we employ an applied general equilibrium model age since all sectors of an economy and all private households contribute to co2 emission our model is a temporary equilibrium model with capacity extension under adjustment costs and with abatement activities for so2 and nox emissions

estimating the costs of environmental protection in brazil abstract in this paper an effort is made to estimate the amounts of money the government of the state of sao paulo brazil must transfer to counties in which environmentally protected areas of any sort have been established by the state a methodology to estimate these transfers is proposed based on the potential loss of production in the protected areas and the corresponding amounts are calculated the results indicate that protecting 7 68 of the state s territory will cause a maximum decrease in its gdp of 0 05 the estimation of monetary values for environmental costs is of interest because it provides a basis for judgement among different environmental protection alternatives and between these and other investment projects

tax interaction effects environmental regulation and rule of thumb adjustments to social cost preexisting distortions in factor markets complicate the estimation of the social welfare effects of regulatory interventions the existence of these tax interaction effects ties suggests that general equilibrium ge approaches should be used to evaluate regulatory policies however formal ge analysis is not always feasible for the numerous environmental regulations proposed by federal state and local agencies the question addressed in this paper is whether an empirically based rule of thumb upward adjustment factor is appropriate to properly scale social cost estimates in environmental policy we argue that such rule of thumb adjustments are significantly less reliable than estimates based on a detailed general equilibrium analysis because of the uncertainty about both the magnitude and sign of the social cost distortion in addition to addressing this question the paper gives an overview of ties and their relevance to environmental policy

environmental and gender feedbacks in macroeconomics abstract potential interactions between the macroeconomic and environmental and or gender eg systems are traced out drawing on insights from the other papers in this special issue and the eg literature more generally

environmental technological change and governance in sustainable development policy abstract an evolutionary economics perspective between technological innovation and public policy is applied to analyse the relationships between technological change sustainable development and industrial competitiveness this leads us to emphasise the fundamental role that firm s strategies vis a vis the endogenisation of technological change can play for giving effect to win win strategies however allowing industrial competition to become the only factor determining win win strategies could lead to locked technological and social options being chosen which do not contribute to overall goals of ecological social and economic sustainability for this reason we introduce as complements to competitiveness the requirement of new forms of governance in pursuit of ecological economic sustainability

in search of liquidity block trades in the upstairs and downstairs markets we analyze the ability of various market mechanisms to provide liquidity for large equity trades using data on 21 077 block transactions in dow jones stocks we find that the down stairs nyse floor market is a significant source of liquidity although negotiation in the informal upstairs market provides better execution than the downstairs market for large trades these differences are economically small we find however that upstairs markets are used by traders who can credibly signal that their trades are liquidity motivated thus upstairs markets allow trades that may not otherwise occur article published by oxford university press on behalf of the society for financial studies in its journal the review of financial studies

does the porter hypothesis explain expected future financial performance the effect of clean water regulation on chemical manufacturing firms previous research provides opposing theoretical arguments regarding the effect of environmental regulation on financial performance as one important argument the porter hypothesis claims that tighter regulation improves financial performance this study provides empirical evidence on this debated effect in particular we employ panel data analysis to examine the effect of clean water act regulation as measured by permitted wastewater discharge limits on expected future financial performance as measured by tobin s q for publicly owned firms in the chemical manufacturing industries we find that tighter permitted discharge limits lower tobin s q i e more stringent clean water act regulation undermines expected future financial performance by decomposing tobin s q into its constituent components market value and replacement costs and estimating each component separately we find that tighter permitted discharge limits lower both components with a larger impact on market value which implies that investors revise their expectations of the discounted present value of future profits in response to changes in clean water act regulation

why nasdaq market makers avoid odd eighth quotes recent studies argue that implicit collusion explains the tendency of nasdaq market makers to avoid odd eighth price quotes this paper focuses on the role that preference trading plays in determining quoted spreads under the postulated effects of preference trading an analysis of the relation between spreads and price fractions explains the paucity of odd eighth quotes on nasdaq empirical results from a comprehensive data set show that exogenous economic characteristics explain the distribution of price fractions across securities and illustrate the stability of that distribution over time these results contradict empirical results offered as support for the collusion hypothesis

global fiscal adjustment and trade rebalancing the emergence of substantial fiscal deficits and a large build up of government debt in major advanced economies will inevitably lead to a period of fiscal consolidation in coming years in an earlier paper mckibbin and stoeckel 2010 explored the effects of this fiscal adjustment in advanced economies on the global economic outlook this paper focuses on the differences between the impacts of fiscal policy in advanced versus emerging economies in particular the need for more fiscal spending on infrastructure in emerging economies and the need for fiscal consolidation in advanced economies leads naturally to the question of what this asymmetric fiscal adjustment might do to global trade balances as well as global economic growth over the coming decades the adjustment needed in both regions is substantial and the asymmetry of the adjustment implies important consequences for trade and capital flows between regions as well as asset price adjustments within and between regions

environmental regulation cost and industry structure changes nonstationary markov analyses are used to investigate impacts of environmental regulatory costs associated with compliance on changes in market structure in pulp and paper industries results show environmental regulation expenditures have statistically significant effects on the probabilities of capacity moving to a larger company size category so industry structure is affected by environmental regulation however counter to expectations results further show consolidation occurs with higher probability when environmental costs are falling rather than when they are rising policy analyses that presume immediate policy responses to cost changes or that industry structure is unchanged may yield time inconsistent policy conclusions

a comparison of industrial productivity growth in canada and the united states this paper provides a consistent international comparison of the patterns of growth in canadian and u s industries while much previous work has been done comparing sectoral total factor productivity in these two countries the methods are not entirely comparable our approach here is to use methods and definitions that are almost identical for the two countries and therefore to provide a better sense of the relative productivity performance of the two countries our methodology for international comparisons of growth in output inputs and productivity is based on the economic theory of production we use measures of labor and capital that take into account the changing composition of the labor force and capital stocks relatively more educated and older workers and relatively more equipment compared to structures we find that during the 1961 1973 period canadian industries were able to bring their productivity levels closer to u s levels and they also had a higher rate of output growth however the growth in output and productivity slowed down after 1973 in both countries as a result the gap in the level of productivity between the canadian and u s industries has remained virtually unchanged since 1973 looking closely at the sources of industrial output growth we find that input growth is the predominant source of the growth for almost all industries in the two countries over the 1961 1995 period productivity growth contributes on average only about 20 percent of the growth of industrial output in the two countries over this period

measuring the environmental consequences of trade policy a nonmarket cge analysis the newly approved gatt trade agreement is likely to focus greater attention on the conflicts between the proliferation of diverse national policies toward environmental quality and the need to maintain competitiveness in world markets virtually all policy evaluations of this conflict have been limited by a significant misspecification in existing models none of the available computable general equilibrium cge models for international trading patterns consistently reflect the effects of environmental resources on consumers preferences the purpose of this paper is to report the first generation of a composite nonmarket and cge model nm cge for the european community the united states japan and a single region for the rest of the world the model incorporates the morbidity and mortality effects of particulates sulfur oxides and nitrogen oxides it uses existing nonmarket valuation estimates freeman with a specification for consumer preferences that allows changes in atmospheric emissions to diffuse in different amounts to

estimates of the costs of kyoto marrakesh versus the mckibbin wilcoxen blueprint in this paper we update our earlier estimates of the cost of the kyoto protocol using the g cubed model taking into account the new sink allowances from recent negotiations as well as allowing for multiple gases and new land clearing estimates we then compare the protocol to an alternative policy outlined in mckibbin et al brookings policy brief no 17 june the brookings institution washington 1997 climate change policy after kyoto a blueprint for a realistic approach the brookings institution washington 2002a j econom perspect 16 2 2002b 107 that does not impose rigid emissions targets we focus particular attention on the sensitivity of compliance costs under each policy to unexpected changes in future economic conditions to illustrate the issue we evaluate the policies under two plausible alternative assumptions about a single aspect of the future world economy the rate of productivity growth in russia we find that moderate growth in russia would raise the cost of the kyoto protocol by as much as 50 percent but would have little effect on the cost of the alternative policy we conclude that the kyoto protocol is inherently unstable because unexpected future events could raise compliance costs substantially and place enormous pressure on governments to abrogate the agreement the alternative policy would be far more stable because it does not subject future governments to adverse shocks in compliance costs

when green isn t mean economic theory and the heuristics of the impact of environmental regulations on competitiveness and opportunity cost abstract the conventional neoclassical economic wisdom argues that the opportunity costs of environmental regulations are high with negative implications for costs and profits and by implication for growth and per capita gross domestic product gdp the minority view that environmental controls induce cost offsets that minimise such opportunity costs is marginalised by the conventional wisdom which assumes that economic agents are x efficient in production a behavioral model of the firm is presented in this paper whereby x inefficiency in production prevails even in a world of perfect product market competition that is dominated by rational economic agents in this model environmental regulations affect both the level of x efficiency and the extent of technological change and greener firms can be cost competitive and profitable however private economic agents cannot be expected to adopt green economic policy independent of regulations since in this model there need not be any economic advantage accruing to the affected firms in becoming greener

macro economic and development indexes and iso14001 certificates a cross national analysis abstract environmental management systems emss implemented according to the iso14001 standard have been examined by many authors especially focussing on its impact at the firm level however only a few papers have investigated the impact of iso14001 from a country perspective this paper aims to contribute to bridging this gap the aim is to study the relation between iso14001 growth and the trend in selected macro economic and development indexes by applying the growth mixture model to a panel of 73 countries for the period 1999 2012 we assess the following hypotheses a the increase in numbers of iso14001 certifications corresponds to an increase in economic indexes b the increase in iso14001 corresponds to an increase in development indexes c the trends of iso14001 adoption and macro economic indexes confirm the relationship described by the environmental kuznets curve the results confirm a positive relation among the trends of some variables such as iso14001 and gross domestic product gdp iso14001 and industry value added while no significant results were found when observing the relation between iso14001 and the selected development indexes in addition using the industry added value as the variable to measure economic development our results support the theory of the environmental kuznets curve

banning the bulb institutional evolution and the phased ban of incandescent lighting in germany much academic attention has been directed at analysing energy efficiency investments through the lens of behavioural failure these studies have challenged the neoclassical framing of regulation which emphasises the efficiency benefits of price based policy underpinned by the notion of rational individual self mastery the increasing use of a regulatory ban on electric lamps in many countries is one of the most recent and high profile flash points in this dialectic of freedom versus the state in the public policy discourse this paper interrogates this debate through a study of electric lamp diffusion in germany it is argued that neoclassical theory and equilibrium analysis is inadequate as a tool for policy analysis as it takes the formation of market institutions such as existing regulations for granted further still it may be prone to encourage idealistic debates around such grand narratives which may in practice simply serve those who benefit most from the status quo instead we argue for an evolutionary approach which we suggest offers a more pragmatic framing tool which focuses on the formation of market institutions in light of shifting social norms and political goals in our case progress towards energy efficiency and environmental goals

graduate education in ecological economics abstract interest in graduate education in ecological economics is increasing however no formal plan of study for a phd in ecological economics has been disseminated the lack of a formal plan is problematic as the field of ecological economics matures interest grows and new programs are being developed this paper attempts to fill a void by creating a program of study addressing the proficiencies a graduate student in ecological economics should have upon completion of his her phd based on the us educational system the plan of study presented in this paper has been developed to make the graduate of an ecological economics program as competitive on the labor market as students awarded traditional economics degrees the plan i describe is created to meet the requirements necessary for a phd in ecological economics further fields of specialization are suggested to complement the core of an ecological economics program to enhance the education process and to give the student with an ecological economics degree a higher level of marketability

climate change and the planetary trust abstract three models for thinking about our responsibilities with respect to climate change are compared and evaluated one is concerned with maximizing the present discounted value of consumption the second views climate change through the lens of the tragedy of the commons both of these approaches are found to rest on implausible assumptions a third model based on the conception of a fiduciary trust is found to be more credible and not to require overly burdensome policies

alternative specifications for environmental control costs in a general equilibrium framework abstract we use a computational general equilibrium model to demonstrate that commonly used simplified specifications for environmental control costs do not yield results that are comparable to those obtained when environmental control costs are correctly specified the results indicate that simplified specifications may perform well when the objective is to qualitatively identify sectors disproportionately affected by environmental regulation but not when the goal is to estimate the magnitude of the effects

corporate lobbying regulatory conduct and the porter hypothesis michael porter the influential harvard management guru has promoted the idea that compliance with stricter environmental regulations can afford secondary benefits to firms through improved product design innovation corporate morale and in other ways once these secondary benefits are factored the net cost of compliance is argued to be lower than conventionally thought and may even be negative whilst environmental economists have rejected the porter hypothesis as being based on excessively optimistic expectations of the likely size of such secondary benefits the underlying ideas do enjoy significant credence in the business community in the context of a lobbying model of regulatory policy making we argue that the epa should change the way it conducts regulatory policy to take account of porter s views even if it knows those views to be misguided the model serves to illustrate the more general point that fashions in management thinking can be expected to impact the optimal conduct of regulatory policy

case study evidence that direct regulation remains the main driver of industrial pollution avoidance and may benefit operational efficiency abstract environmental regulation is required to reduce industrial pollution to levels that are socially acceptable and economically efficient but there is debate over the most efficient form of such regulation typically a limited range of environmental and economic parameters are accounted for in the econometric studies that inform that debate this paper integrates evidence from two separate studies to assess a broad range of parameters related to the efficiency of industrial environmental regulation questionnaire responses from 25 italian manufacturers of building chemicals and 28 irish pharmaceutical manufacturers provided evidence on the environmental effectiveness and operational impacts of different regulatory instruments combined with extensive emissions data from irish pharmaceutical manufacturers survey results enabled a quantitative estimation of pollution avoidance specifically attributable to direct regulation the monetised social benefit of avoided pollution was found to be equal to direct compliance costs chemical manufacturers in italy and ireland stated that direct regulation is a more important driver of industrial environmental performance than economic or voluntary regulation and their responses indicated that direct compliance costs may be countered somewhat by stimulated operational improvements it was concluded that direct regulation is an effective approach for multi pollutant control in an industrial context and that the efficiency of such regulation may be underestimated in studies that do not consider the full range of pollutants and operational effects

do environmental regulations hamper productivity growth how accounting for improvements of plants environmental performance can change the conclusion abstract many economists maintain that environmental regulations hamper productivity growth a view supported by several empirical studies on industry or state level data however there is little research of the relationship between the stringency of environmental regulation and productivity growth at the plant level and the results of the few existing studies are ambiguous moreover the measures of productivity growth applied in previous studies do not credit plants for emission reductions and this may result in understatement of productivity growth we perform regression analyses of productivity growth on regulatory stringency using plant level data to credit a plant for emission reductions we include emissions as inputs when calculating an environmental malmquist productivity index emi and do not include emissions when calculation the traditional malmquist productivity index mi the regression analyses show that the overall effect of the regulatory stringency faced by plants on plants productivity growth is statistically insignificant when mi is applied to measure productivity growth however when we apply emi the effect is positive and statistically significant this indicates that not accounting for emission reductions when measuring productivity growth can result in too pessimistic conclusions regarding the effect of regulatory stringency on productivity growth

co2 emissions energy consumption economic and population growth in malaysia abstract this study investigates the dynamic impacts of gdp growth energy consumption and population growth on co2 emissions using econometric approaches for malaysia empirical results from ardl bounds testing approach show that over the period of 1970 1980 per capita co2 emissions decreased with increasing per capita gdp economic growth however from 1980 to 2009 per capita co2 emissions increased sharply with a further increase of per capita gdp this is also supported by the dynamic ordinary least squared dols and the sasabuchi lind mehlum u slm u test tests consequently the hypothesis of the ekc is not valid in malaysia during the study period the results also demonstrate that both per capita energy consumption and per capita gdp has a long term positive impacts with per capita carbon emissions but population growth rate has no significant impacts on per capita co2 emission however the study suggests that in the long run economic growth may have an adverse effect on the co2 emissions in malaysia thus significant transformation of low carbon technologies such as renewable energy and energy efficiency could contribute to reduce the emissions and sustain the long run economic growth

modelling reality the need for both inter temporal optimization and stickiness in models for policy making there is a thriving debate on the usefulness of economic models for policy analysis which this paper explores it argues that there is a need for models that incorporate both the modern intertemporal approach to macroeconomics and short run ad hoc behaviour this need cannot be met by the simple models that permeate the macroeconomics literature but requires large scale simulation models such as the msg2 and g cubed multi country models in particular it is shown that the approach of these models gives insights into the adjustment into a number of historical episodes that are not well explained by simple macroeconomic frameworks reaganomics in the 1980s german reunification in the early 1990s fiscal consolidation in europe in the 1990s the formation of nafta the asian crisis and the current productivity boom in the usa the paper also argues that using a well defined theoretical specification but introducing real world rigidities can also go some way towards explaining the so called six major puzzles in international macroeconomics highlighted in a recent paper by obstfeld and rogoff 2000 copyright 2000 by oxford university press

the value of environment across efficiency quantiles a conditional regression quantiles analysis of rangelands beef production in north eastern australia in agricultural systems the value of environmental inputs can be measured using the production function approach whereby the marginal contributions of factors are associated with a shadow value under perfect competition and rationality assumptions however empirical studies show that inefficiency in production is common indicating that the rationality assumption is not met furthermore substantial evidence exists to suggest that the contributions of environmental inputs in particular may be differentiated across the efficiency distribution this means that the frontier technology may not be an appropriate reflection of the technology in use by inefficient enterprises this article presents the use of conditional regression quantiles to consider how the value of environmental inputs measured by their contributions to production vary across efficiency quantiles we employed a case study of rangelands beef production in australia to consider how environmental health differentially contributes to production values across efficiency quantiles our approach generates detailed insights into the nature of environmentally sourced technical inefficiency and suggests that conditional quantile regression approaches are ideal for consideration of issues wherein substantial heterogeneity exists limiting the information content of conditional mean based analyses

environmental regulation and environmental productivity the case of china abstract constrained by the dual mission of supporting industrial growth and reducing emissions china s traditional emission reduction oriented environmental policies unavoidably face a dilemma this study adopts the gml index to calculate china s industrial productivity by considering environmental factors in addition based on the assumption of industry heterogeneity the author examines the non linear relationship between china s environmental regulation and environmental productivity and calculated the optimal regulation environment for industries according to this study when impact of undesirable outputs pollutant emissions is considered environmental regulation and environmental productivity are positively correlated which to some degree validates the porter hypothesis at present environmental regulation has significant positive effects on clean production industries but shows a lag effect on pollution intensive industries the degree of environmental regulation and environmental productivity show an inverted u shaped relation and display three thresholds it should be noted however that the relationship between regulation and productivity may vary across industries these findings have clear policy implications rather than continually increasing the level of environmental regulation the government should establish standards for individual industries that emphasize flexibility

environmental regulation and the export dynamics of energy technologies abstract the pollution haven hypothesis affirms that an open market regime will encourage the flow of low technology polluting industries toward developing countries because of potential comparative advantages related to low environmental standards in contrast the hypothesis suggested by porter and van der linde claims that innovating firms operate in a dynamic competitive situation which allows global diffusion of environmental friendly technologies environmental regulation may represent a relevant mechanism through which technological change is induced in this way countries that are subject to more stringent environmental regulations may become net exporters of environmental technologies this paper provides new evidence on the evolution of export flows of environmental technologies across different countries for the energy sector advanced economies particularly the european union have increasingly focused on the role of energy policies as tools for sustaining the development path the kyoto protocol commitments together with growing import dependence on energy products have brought attention to the analysis of innovation processes in this specific sector the analysis uses a gravity model in order to test the determinants and the transmission channels through which environmental technologies for renewable energies and energy efficiency are exported to advanced and developing countries our results are consistent with the porter and van der linde hypothesis where environmental regulation represents a significant source of comparative advantages what strongly emerges is that the stringency of environmental regulation supplemented by the strength of the national innovation system is a crucial driver of export performance in the field of energy technologies

technical change and measuring pollution abatement costs an activity analysis framework the cornerstones of studies that estimate the effectof environmental regulations on an economy areestimates of the pollution abatement costs incurred bythe manufacturing and electric utility sectors however there are concerns regarding the accuracy ofthe surveys used to generate these cost estimates this paper demonstrates that technical change tends toresult in an increasing share of pollution abatementcosts being impossible to measure this finding hasimportant implications for estimating the productivityeffects of environmental regulations developingregulatory budgets and data collection effortsrelated to environmental accounting

redefining industry structure for the information age we are entering a new competitive age in which the basis of competition is being fundamentally altered through the introduction of advanced information technologies and public communication infrastructures such as the internet in these environments the nature and locus of competition will radically alter as information becomes an increasingly important resource this paper develops ideas around the strategic characteristics of information information separability and information specificity moreover it attempts to redefine the nature of industry structure in such a competitive environment by examining what constitutes the real boundaries of competition industry concentration related diversification and innovation for firms competing in the information age 1998 john wiley sons ltd

on economic disequilibrium and free lunch there is a sharp disagreement between mainstream economists and advocates of energy efficiency as regards the potential for free lunches or no regrets policies to cut greenhouse gas emissions from an economics perspective the critical question is whether the economic system is or is not close to a pareto optimum equilibrium state if so it follows that most technological systems now in place are optimum or nearly so from an economic perspective if not there may be many sub optimal technologies in place with corresponding opportunities for very high returns on appropriate investments this paper presents some of the evidence supporting the latter thesis

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

applied general equilibrium models for energy studies a survey the importance of energy in any economy developed or underdeveloped became clear after the first oil shock in 1973 since then different studies were carried out to formulate energy policies and to study their impact on the economies since energy policy issues are related to various aspects of the economy such as price formation output determination income generation and distribution consumption behaviour government operation etc a coherent and systematic mechanism is required for such analysis by offering such a framework of analysis age models gained popularity among energy modellers in the 1980s the environmental issues have gained importance and the focus shifted towards curbing and containing emissions of environmentally unfriendly gases resulting from the use of energy age models because of their capability to capture the complexities of the economy have found relevance in analysing the economic impacts of controlling pollution and greenhouse gases this paper surveys the literature on such general equilibrium models as applied to energy studies and reports their special features evolution through time as well as their limitations

do markets differ much this essay reports the results of a crosssection study of differences in accounting profitability that sheds light on some basic controversies in industrial economics most previous cross section studies in this field have been concerned with testing hypotheses about structural coefficients in models meant to apply to essentially all markets as we have learned more about the difficulties of constructing such general models and of performing tests on their structural parameters properly structural cross section analysis has fallen out of fashion in contrast to most of the cross section literature the analysis reported here is fundamentally descriptive it does not attempt directly to estimate or to test hypotheses about structural parameters i hope to show by example that one can perform illuminating analysis of cross section data without a host of controversial maintained hypotheses cross section data can yield interesting stylized facts to guide both general theorizing and empirical analysis of specific industries even if they cannot easily support full blown structural estimation one can view the sort of search for stylized facts conducted here as either a replacement for or an input to interindustry structural estimation depending on one s feeling about the long run potential of that research approach this study also departs from much of the cross section literature by being fundamentally concerned with the importance of various effects not just with coefficient signs and t statistics in particular this essay provides estimates of the relative importance of firm market and market share differences in the determination of business unit divisional profitability in u s manufacturing using 1975 data from the line of business program of the u s federal trade commission ftc i find support neither for the existence of firm effects nor for the importance of market share effects moreover while industry effects apparently exist and are important they appear to be negatively correlated with seller concentration in these data section i relates firm market and share effects to current issues and controversies in industrial economics and thus supplies the motivation for our empirical analysis the remainder of the essay treats the data and

the impact of economics on environmental policy abstract environmental economists have seen their ideas translated into the rough and tumble policy world for over two decades they have witnessed the application of economic instruments to several environmental issues including preserving wetlands lowering lead levels and curbing acid rain this essay examines the impact of the rise of economics in the policy world on the making of environmental policy i focus on two related but distinct phenomena the increasing interest in the use of incentive based mechanisms such as tradable permits to achieve environmental goals and the increasing interest in the use of analytical tools such as benefit cost analysis in regulatory decision making i argue that economists and economic instruments have had a modest impact on shaping environmental health and safety regulation but that economists will play an increasingly important role in the future although the role of economics is becoming more prominent it does not follow that environmental policy will become more efficient this apparent inconsistency can be explained by the political economy of environmental policy

bringing economic opportunity into line with environmental influence a discussion on the coase theorem and the porter and van der linde hypothesis environmental concerns and tightened environmental policy parameters have been associated with the notion of additional costs of compliance rather than with innovation and sustainability the contrary has also been suggested claiming that strict environmental legislation merely serves as a catalyst for firms to retain obvious economic and environmental mutual gains so called win wins laying around waiting to be collected such implications can be seen from the porter and van der linde writings heavily criticised by palmer et al as being built on faulty examples this paper supports that conclusion and uses property rights and transactions costs theories to find private incentives to explore the win wins for those actors who have the largest potentials to diminish the pressure on our environment by applying the coase theorem emphasising transaction costs and property rights this paper argues that strong public support is needed to create private incentives for exploring economic and environmental win win innovations the public support suggested is to a extend producer responsibilities where the same costs which may be neglected by the end consumers will if transferred to the design owner be viewed as a production cost and to b enforce environmental public procurement both may be combined with a support to c actors such as non governmental organisations and consumer agencies positioning themselves as information bridges by informing the consumers the negative effects of asymmetric information among actors can thereby be diminished as well as the low interest to primarily care for the environment among common consumers

energy and depletable resources economics and policy 1973 1998 abstract this paper reviews the impact of the literature in depletable resources and energy economics over the period 1973 1998 particularly the initial period of publication of the journal of environmental economics and management 1974 1998 a discussion of prominent policy issues in this arena is provided along with an indication of what academic economics papers have contributed to that debate this is followed by a citation analysis of contributions in the fields of energy and exhaustible resource economics for each of these two fields a list of the top papers in each five year period from 1974 to 1998 is presented along with a list of the top journals in each decade based on average citations per article the top ten cited articles in the fields in the journal of environmental economics and management are also presented

environmental regulations and plant exit a qualitative response model is applied to study the relationship between environmental regulations and plant exit the data set is norwegian panel data for establishments in three manufacturing sectors that have high shares of units which have been under strict environmental regulations in two of the sectors the estimated exit probability of regulated establishments is ceteris paribus only one third of the exit probability of non regulated establishments we also find that the probability to change regulation status from being non regulated to become regulated depends significantly on economic factors in particular establishments with weak profitability had the highest probability to come under environmental regulation

messy marginal costs internal pricing of environmental aspects on the firm level abstract internal pricing of environmental aspects is usually not embedded in management accounting systems therefore we first show that pricing from a corporative perspective is possible and applicable contrary to common belief we also show that marginal costs curves of environmental aspects are often not monotonic and price changes are highly context specific we introduce a model that addresses different environmental aspects that translate into constraints or change direct cost factors in the objective function environmental constraints originate from different types of limit values concerning emissions and production processes as well as restraining the potential environmental damage as the outcome of ecological valuation methods direct cost factors include the taxation of emissions and costs stemming from being involved in the emissions trading market our model allows for calculating the marginal indirect costs of these environmental aspects as the constraints might enforce factor and product substitutions we show that the marginal costs differ substantially from the direct costs and do not follow a predictable pattern sensitivity analysis and parametric programming are applied to set up an internal pricing and cost allocation scheme for environmental aspects specifically focusing on the pricing of emissions resources and processes of production and recycling the model s implications on corporate decision making are illustrated by a numerical example that draws on the opportunity of process substitution e g producing a product on different machines even though we cannot use original data for proprietary reasons such settings are highly relevant in industry and the energy sector

the marginal efficiency effects of taxes and subsidies in the presence of externalities a computational general equilibrium approach abstract using 1983 data we develop a 19 sector computational general equilibrium model incorporating producer producer externalities and producer consumer externalities simulation results indicate that when additional government expenditure is financed by pigouvian taxes the marginal cost of public funds is substantially below one labor sales and output taxes also affect the output of the polluting industries and thus have indirect pigouvian effects which tend to reduce the associated marginal costs of public funds pigouvian taxes are usually more efficient than pigouvian subsidies since the tax revenue can be used to reduce other taxes