the effect of urbanization affluence and trade openness on energy consumption a time series analysis in malaysia abstract this paper investigates the impact of urbanization on energy consumption by applying the stochastic impacts by regression on population affluence and technology stirpat in case of malaysia the study covers the time period of 1970q1 2011q4 the unit root test and the ardl bounds testing approach have been applied to examine integrating properties and long run relationship in the presence of structural breaks our results validated the existence of cointegration and exposed that urbanization is a major contributor in energy consumption affluence raises energy demand capital stock boosts energy consumption trade openness leads to affluence and hence increases energy consumption the causality analysis finds that urbanization granger causes energy consumption the feedback effect is found between energy consumption and affluence and energy consumption and capital the bidirectional causality exists between trade openness and energy consumption

option bounds with finite revision opportunities this article generalizes the single period linear programming bounds on option prices by allowing for a finite number of revision opportunities it is shown that in an incomplete market the bounds on option prices can be derived using a modified binomial option pricing model tighter bounds are developed under more restrictive assumptions on probabilities and risk aversion for this case the upper bounds are shown to coincide with the upper bounds derived by perrakis while the lower bounds are shown to be tighter in 1984 perrakis and ryan 6 derived upper and lower bounds on european option prices in discrete time and under modest assumptions on preferences and

analytical upper bounds for american option prices american options require numerical methods namely lattice models to provide accurate price estimates the computations can become expensive when more than one state variable is involved analytical upper bounds can therefore provide a useful guideline for how high american values can reach in this paper we derive analytical closed form upper bounds for american option prices under stochastic interest rates stochastic volatility and jumps where american option prices are difficult to compute with accuracy in a stochastic volatility model heston 1993 and scott 1997 that has two random factors we demonstrate that the upper bound only takes a very small fraction of the time that the american option needs to compute

multi region input output analysis of co2 emissions embodied in trade the feedback effects energy related co2 emissions embodied in international trade have been widely studied by researchers using the environmental input output framework despite the increasing interest in using the multi regional input output mrio model by researchers few studies have looked into the mechanism of feedback effects we introduce a method called the stepwise distribution of emissions embodied in trade swd eet to reveal how the emissions embodied in trade are absorbed by a country s final demands through a series of allocation steps a country s indirect absorption patterns and its indirect trade balance of emissions from bilateral trade with other countries are also studied based on the proposed method an empirical study using the data of asian economies shows significant differences in the consumption based emission estimates for some economies due to feedback effects through international trade the differences can be largely captured by the first step or the first two steps of the adjustment procedure in the swd eet analysis other findings and some recommendations are also presented

quote inefficiency in options markets in an arbitrage free economy with non zero bid ask spreads the existence of payoffs whose price is lower than the price of a dominated payoff cannot be discarded in general however when the former price corresponds to trivial portfolios which involve buying or selling one unit of the basis assets its presence although not an arbitrage is a severe market anomaly which we refer to as an inefficient quote in an empirical study we report evidence that indicates that in options markets both the frequency and the magnitude of these anomalies are substantial and we document puzzling patterns in their behavior

valuing catastrophe derivatives under limited diversification a stochastic dominance approach abstract we present a new approach to the pricing of catastrophe event cat derivatives that does not assume a fully diversifiable event risk instead we assume that the event occurrence and intensity affect the return of the market portfolio of an agent that trades in the event derivatives based on this approach we derive values for a cat option and a reinsurance contract on an insurer s assets using recent results from the option pricing literature we show that the assumption of unsystematic event risk seriously underprices the cat option last we present numerical results for our derivatives using real data from hurricane landings in florida

upper and lower bounds of put and call option value stochastic dominance approach applying stochastic dominance rules with borrowing and lending at the risk free interest rate we derive upper and lower values for an option price for all unconstrained utility functions and alternatively for concave utility functions the derivation of these bounds is quite general and fits any kind of stock price distribution as long as it is characterized by a nonnegative beta transaction costs and taxes can be easily incorporated in the model presented here since investors are not required to revise their portfolios continuously the price that is paid for this generalization is that a range of values rather than a unique value is obtained in the last decade there has been an increasing interest in the options market by both academicians and practitioners the most well known valuation models are the black scholes 4 model the jump stochastic process model see cox and ross 6 the binomial model see cox ross and rubinstein 7 rendleman and bartler 19 and sharpe 22 and rubinstein s discrete model 21 recently perrakis and ryan 18 using rubinstein s approach have derived upper and lower bounds for option prices the relative pricing theory of contingent claims differs in the continuous time and discrete time models in a continuous time framework the instantaneous expected rate of return of the option and that of the underlying stock must follow a certain market equilibrium condition in this case the equilibrium condition is easily determined by a continuous hedging strategy in the discrete time case there is no hedging strategy to provide a simple relationship between the option and the stock price however for a given value distribution of the stock the value distribution of the option is uniquely determined by the option exercise price and this suggests some possible relationships between the stock and option values

robust stochastic discount factors when the market is incomplete a new non redundant derivative security cannot be priced by no arbitrage arguments alone moreover there will be a multiplicity of stochastic discount factors and each of them may give a different price for the new derivative security this paper develops an approach to the selection of a stochastic discount factor for pricing a new derivative security the approach is based on the idea that the price of a derivative security should not vary too much when the payoff of the primitive security is slightly perturbed i e the price of the derivative should be robust to model misspecification the paper develops two metrics of robustness the first is based on robustness in expectation the second is based on robustness in probability and draws on tools from the theory of large deviations we show that in a stochastic volatility model the two metrics yield analytically tractable bounds for the derivative price as the underlying stochastic volatility model is perturbed the bounds can be readily used for numerical examination of the sensitivity of the price of the derivative to model misspecification

how strong is the causal relationship between globalization and energy consumption in developed economies a country specific time series and panel analysis we examine the causal relationship between globalization economic growth and energy consumption for 25 developed economies using both time series and panel data techniques for the period 1970 2014 due to the presence of cross sectional dependence in the panel countries from asia north america western europe and oceania we employ the pesaran 2007 cips test to ascertain unit root properties the westerlund 2007 cointegration test indicates the presence of a long run association between globalization economic growth and energy consumption long run heterogeneous panel elasticities are estimated through the pesaran 2006 common correlated effects mean group cmg estimator and the eberhardt and teal 2010 augmented mean group amg estimator the causality between the variables is examined via dumitrescu and hurlin 2012 and emirmahmutoglu and kose 2011 granger causality tests the empirical results reveal that for most countries globalization increases energy consumption in the usa and uk globalization is negatively correlated with energy consumption the causality analysis indicates the presence of the globalization driven energy consumption hypothesis this empirical analysis suggests insightful policy guidelines for policy makers using globalization as an economic tool to utilize energy efficiently for sustainable economic development in the long run

decreasing absolute risk aversion and option pricing bounds in this paper efficient bounds for the price of a call option are obtained using the decreasing absolute risk aversion dara dominance rule such lower and upper bounds are obtained minimizing and maximizing respectively the objective function of a nonlinear optimization problem an explicit formula related to an exponential utility function is given for the special case of three states of nature a large number of experiments have been carried out and the numerical results support the conjecture that the same formula holds for problems with a number of states n 3 moreover dara bounds are more efficient than the bounds obtained using different criteria

examining the global environmental impact of regional consumption activities part 2 review of input output models for the assessment of environmental impacts embodied in trade this paper offers a detailed review of recently described single and multi region input output models used to assess environmental impacts of internationally traded goods and services it is the second part of a two part contribution in part 1 turner k lenzen m wiedmann t and barrett j in press examining the global environmental impact of regional consumption activities part 1 a technical note on combining input output and ecological footprint analysis ecological economics we describe how to enumerate the resource and pollution content of inter regional and inter national trade flows with the aim to illustrate an ideal accounting and modelling framework for the estimation of ecological footprints a large number of such environment economic models have been described but only in the last few years models have emerged that use a more sophisticated multi region multi sector input output framework this has been made possible through improvements in data availability and quality as well as computability we identify six major models that employ multi sector multi region input output analysis in order to calculate environmental impacts embodied in international trade results from the reviewed studies demonstrate that it is important to explicitly consider the production recipe land and energy use as well as emissions in a multi region multi sector and multi directional trade model with global coverage and detailed sector disaggregation only then reliable figures for indicators of impacts embodied in trade such as the ecological footprint can be derived

a first empirical comparison of energy footprints embodied in trade mrio versus plum abstract the ecological footprint as an indicator that accounts for human demand on global bioproductivity sets out to quantify the impacts associated with consumption in a given country including the impacts associated with trade the national footprint accounts nfa by global footprint network gfn calculate trade embodied footprints by multiplying yield and embodied energy factors with mass volumes of traded goods in a product land use matrix plum this article compares energy footprints embodied in trade from and to the united kingdom in 2002 as calculated by the nfa plum with the results from a recently developed multi region input output model mrio for the uk although totals for imports and exports are comparable breaking down the results by economic sectors reveals large differences and hardly any correlation between the two methods the omission of trade in services especially transport services and upstream impacts of energy goods fossil fuels and the use of inappropriate embodied energy factors in the nfa plum method are identified as the main reasons for these differences in the light of the results it seems that a comprehensive footprint account of trade can better be achieved with an input output based approach i conclude that mrio models once fully developed will be particularly suitable in the future to estimate the ecological footprints of imports and exports of nations with the possibility to track their origin via inter industry linkages international supply chains and multi national trade flows

bounds on contingent claims based on several assets abstract in 1987 lo derived an upper bound on the price of a european call option on a single asset lo s bound depends only on the mean and variance of the terminal asset price and is termed a semi parametric bound this paper derives similar semi parametric bounds on a european call on the maximum of any number of assets a distribution free bound for the price of this option is obtained the bound depends only on the means and covariance matrix of the returns on n underlying assets the bound is obtained by optimizing over the entries of a positive definite matrix a this can be accomplished by a technique known as semidefinite programming we demonstrate the methodology using two specific applications the first concerns the valuation of a european call option on the maximum of several assets this is known as an outperformance option and is of some practical interest the second application concerns the valuation of a discretely adjusted lookback option these lookback options are of interest in connection with certain equity annuity insurance products

energy overview for globalized world economy source supply chain and sink abstract energy use of the globalized world economy is comprehensively overviewed by means of a systems input output analysis based on statistics of 2010 emphases are put on the sources of primary energy exploitation inter regional trade imbalance of energy use via global supply chains and sinks of energy use in final demand the largest final user turns out to be the united states compared with china as the leading energy exploiter the global trade volume of energy use is shown in magnitude up to about 90 of the global primary energy exploited the united states is recognized as the world s biggest energy use importer in contrast to russia as the biggest exporter approximately one third of global primary energy exploited is shown to be embodied in inter regional net trade japan and russia are respectively illustrated to be the world s leading net importer and leading net exporter of energy use for china as the leading energy exploiter about 30 of its exploited energy is for foreign regions final use and 70 for its own final use for the european union as the largest sink region nearly 80 of the energy required in its final use is from foreign regions led by russia as reflected in the results the conventional perspective based only on the direct energy consumption by region inevitably leads to inter regional energy grabbing and carbon leakage which raises a serious concern of regional decrease at the expense of global increase in current context of energy shortage and climate change this global energy overview can provide essential strategic implications at the international national and regional scales for sustainable energy policy making

energy embodied in the international trade of china an energy input output analysis abstract growing international trade has not only positively affected the people s republic of china s china s economic development but also expanded the exportation of energy embodied in goods during their production this energy flow out will pose risks to china s rational utilization of natural resources as well as environmental protection in this paper we evaluate the energy embodied in goods produced in china during 1992 2005 and use input output structural decomposition analysis to identify five key factors causing the changes of energy embodied in exports direct primary energy efficiency primary energy consumption structure structure of intermediate inputs structure of exports and scale of exports for the three sub periods of 1992 1997 1997 2002 and 2002 2005 results show that china is a net exporter of energy and the energy embodied in exports tends to increase over time the expanding total volume of exports and increasing exports of energy intensive goods tend to enlarge the energy embodied in exports within all three sub periods but these driving forces were offset by a considerable improvement of energy efficiency and changes in primary energy consumption structure from 1992 to 2002 and the effects of structure of intermediate input only in the sub period from 1992 to 1997 from 2002 to 2005 the sharp augmentation of energy embodied in exports was driven by all the five factors our research has practical implications for the chinese economy results of this study suggest that the energy embodied in trade should receive special attentions in energy policies design to limit the energy resource out flow and pollution generation

an analysis of the driving forces of co2 emissions embodied in japan china trade abstract by using the latest china japan input output data sets and the index decomposition analysis ida approach this article analyzes the driving forces of co2 emissions embodied in trade between the two countries during 1990 2000 we found that the growth of trade volume had a large influence on the increase of co2 emissions embodiments in bilateral trade the dramatic decline in carbon intensity of the chinese economy is a primary cause in offsetting co2 emissions exported from china to japan over 1995 2000 we argue that a better understanding of the factors affecting co2 emissions embodied in international trade will assist in seeking more effective climate policies with wider participation in the post kyoto regime

from production based to consumption based national emission inventories abstract under the united national framework convention of climate change unfccc countries are required to submit national emission inventories nei to benchmark reductions in greenhouse gas ghg emissions depending on the definition and system boundary of the nei the mitigation options and priorities may vary the territorial system boundary used by the unfccc has been critiqued for not including international transportation and potentially causing carbon leakage to address these issues past literature has argued in favour of using consumption based nei in climate policy this article discusses several issues in moving from the standard production based nei to consumption based nei first two distinct accounting approaches for constructing consumption based nei are presented the approaches differ in the allocation of intermediate consumption of imported products second a consistent method of weighting production based and consumption based nei is discussed this is an extension of the previous literature on shared responsibility to nei third due to increased uncertainty and a wide system boundary it may be difficult to implement consumption based nei directly into climate policy several alternative options for incorporating consumption based inventories into climate policy are discussed

natural gas overview for world economy from primary supply to final demand via global supply chains abstract as the world is smoothing the transition towards a low carbon energy structure natural gas has occupied a critical position in global energy supply also globalization has catalyzed ever increasing indirect energy flows in international trade in order to present a comprehensive overview of natural gas use in globalized economy this paper applies the systems multi regional input output mrio analysis to track natural gas use from primary suppliers to final consumers via the links by producers in the world economy supported by typical statistics for the year of 2011 natural gas embodied in international trade is revealed amounting to 2722 1 bcm in magnitude up to 90 of total gas extraction for energy use indicating the intensive relocation of gas use by trade 83 of traded embodied natural gas is associated with intermediate trade mainly from leading primary suppliers including russia usa and western asia to dominant final consumers like usa eu27 and east asia significant differences are found between direct and embodied natural gas flows consumption based resource efficiency can break the illusion of efficiency improvements and trade imbalance in terms of gas use can be opposite to the trade imbalance in conventional monetary terms this paper has constructed a comprehensive analytical framework to trace natural gas flows in globalized economy for the first time aiming to provide new insights for policy making

quantifying the supplier portfolio diversity of embodied energy strategic implications for strengthening energy resilience this paper investigates energy resilience of countries by quantifying the supplier diversification of both direct and embodied energy import in particular we quantify two approaches to diversify a country s supplier portfolio by lowering the dependency on each supplier portfolio diversification and by having embodied energy suppliers that are different from its direct energy suppliers portfolio differentiation we examine possibilities for strategic utilization of embodied energy trade to compensate for low diversity of direct energy trade for three types of fossil resources coal oil and gas we find that the diversity of embodied energy import is much greater than that of direct energy import of the three energy resources coal enables countries to adopt portfolio diversification and portfolio differentiation more than gas and oil our results suggest embodied energy can be considered as a transfer of energy resources across national borders that can directly benefit from the diversity of the world energy production by skipping the limited diversity of the world energy export

coal nuclear and renewable energy policies in germany from the 1950s to the energiewende over the last 50 years german energy policy has ranged from strong enthusiasm for both coal and nuclear energy to deep skepticism the most dramatic changes with respect to energy policies have occurred as a response to nuclear accidents yet the accidental and unintended effects of coal policies are also important in influencing the trajectory the newly emerging climate debate prevented the coal industry from acting as a substitute for the diminishing share of nuclear power in 2011 the conservative government announced the energiewende energy transformation and decided to reduce the amount of fossil fuels from 80 of the energy supply to 20 by 2050 however while the verdict on nuclear was unequivocal with a final phase out date of 2022 the share of coal in the electricity market did not decrease and the amount of carbon dioxide released into the air slightly increased from 2011 to 2013 there are growing conflicts over the immediate costs and practicalities of coal replacement consequently the future of coal in germany is still relatively open and contested

taxing foreign profits with international mergers and acquisitions a large part of border crossing investment takes the form of international mergers and acquisitions in this article we ask how optimal repatriation tax systems look like in a world where investment involves a change of ownership instead of a reallocation of real capital we find that the standard results of international taxation do not carry over to the case of international mergers and acquisitions the deduction system is no longer optimal from a national perspective and the foreign tax credit system fails to ensure global optimality the tax exemption system is optimal if ownership advantage is a public good within the multinational firm however the cross border cash flow tax system dominates the exemption system in terms of optimality properties

a structural decomposition analysis of the emissions embodied in trade abstract the aim of this study is to quantify the driving forces behind the growth of carbon dioxide emissions embodied in trade eet the world input output database is used to estimate eet in 40 countries during 1995 2007 after which a structural decomposition analysis is applied to avoid biases in the results we have used the input output tables in previous year s prices and chained the outcomes in many developed countries the growth of emissions embodied in imports is much higher than the growth of emissions embodied in exports a key reason for this finding is the change in the structure of trade both in intermediate and in final products emerging economies like the bric countries have increased their share in production and trade at the expense of developed countries producers and consumers in developed countries have shifted towards importing a larger share of products from emerging countries this is the distinguishing feature that led to an increase of emissions embodied in imports for developed countries and an increase of emissions embodied in exports for emerging countries these results suggest policy makers to monitor eet more carefully and take the effects of trade on emissions into consideration

analysis of energy embodied in the international trade of uk interest in the role embodied energy plays in international trade and its subsequent impact on energy security has grown as a developed nation the uk s economic structure has changed from that of a primary producer to that of a primary consumer although the uk s energy consumption appears to have peaked it imports a lot of energy embodied in international trade alongside the more obvious direct energy imports the uk has seen increasing dependency on imported fossil energy since the uk became a net energy importer in 2005 in this paper an energy input output model is established to calculate not only the amount of fossil energy embodied in uk s imports and exports but also the sector and country distributions of those embodied fossil energy the research results suggest the following uk s embodied fossil energy imports have exceeded embodied fossil energy exports every year since 1997 uk embodied energy imports through the so called made in china phenomena are the largest accounting for 43 of total net fossil energy imports if net embodied fossil energy imports are considered the gap between energy consumption and production in uk is much larger than commonly perceived with subsequent implications to the uk s energy security

role of embodied energy in the european manufacturing industry application to short term impacts of a carbon tax abstract role of energy in the manufacturing industry is a major concern for energy and environmental policy design issues like energy prices security of supply and carbon mitigation are often connected to the industry and its competitiveness this paper examines the role and consequences of embodied energy in the european industry to this end a multi regional input output analysis including 59 industrial sectors for all european union countries and 17 more aggregated industries for other regions of the world is developed other segments of the economy are not included this base is combined with energy consumption carbon emission as well as bilateral trade data for every sector in all included countries our main result is that embodied energy in manufactured products imports represents a significant aspect of the energy situation in european industries with quantities close to the direct energy consumption these flows can further be broken down for detailed analysis at the sector level thanks to the number of distinct industries included results demonstrate that an important part of embodied energy inside european products is not concerned with domestic energy price changes in addition a european wide carbon tax would induce an unbalanced burden on industries and countries

third order extensions of lo s semiparametric bound for european call options computing semiparametric bounds for option prices is a widely studied pricing technique in contrast to parametric pricing techniques such as monte carlo simulations semiparametric pricing techniques do not require strong assumptions about the underlying asset price distribution we extend classical results in this area specifically we derive closed form semiparametric bounds for the payoff of a european call option given up to third order moment i e mean variance and skewness information on the underlying asset price we analyze how these bounds tighten the corresponding bounds when only second order moment i e mean and variance information is provided we describe applications of these results in the context of option pricing as well as in other areas such as inventory management and actuarial science

a review of recent multi region input output models used for consumption based emission and resource accounting abstract the interest in consumption based emission and resource accounting has grown significantly many studies juxtapose consumer emissions carbon footprint and producer territorial emissions of greenhouse gases in order to demonstrate the effects of trade on the national emission budget to this end a respectable number of studies have been undertaken worldwide in order to estimate emissions embedded in international trade of numerous countries and world regions input output approaches and increasingly multi region input output mrio models are commonly chosen as they provide an appropriate methodological framework for complete carbon footprint estimates at the national and supra national level with increasing processing capabilities of computers and a wider availability of economic accounts environmental accounts and trade data such models are now being implemented on a wide scale after a brief overview of salient single region input output studies i provide an in depth review of the most recent multi region input output models used for the purpose of consumption based environmental accounting the main methodological features and important results are described for around twenty studies covering the years 2007 to 2009 this is followed by a detailed review of studies dealing with uncertainty in mrio analysis an area which has not received a lot of attention so far i conclude that further research is mainly needed in two areas a improvements in data availability and quality and b improvements in the accuracy of mrio modelling

will economic restructuring in china reduce trade embodied co2 emissions we acknowledge the support of the national social science foundation of china project no project no 09 zd029 and the institute for energy environment and economy at tsinghua university which is supporting tianyu qi s doctoral research as a visiting scholar at the massachusetts institute of technology we further acknowledge the support of eni s p a icf international and shell international ltd initial sponsors of the china energy and climate project in the mit joint program on the science and policy of global change at mit none of the sponsoring organizations played a role in the study design collection analysis or interpretation of the data used for this study nor did they influence our decisions to submit the article for publication and all errors are our own we also acknowledge general industrial and government sponsors of the joint program on the science and policy of global change http globalchange mit edu sponsors all

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

comparing structural decomposition analysis and index to analyze and understand historical changes in economic environmental employment or other socio economic indicators it is useful to assess the driving forces or determinants that underlie these changes two techniques for decomposing indicator changes at the sector level are structural decomposition analysis sda and index decomposition analysis ida for example sda and ida have been used to analyze changes in indicators such as energy use co2 emissions labor demand and value added the changes in these variables are decomposed into determinants such as technological demand and structural effects sda uses information from input output tables while ida uses aggregate data at the sector level the two methods have developed quite independently which has resulted in each method being characterized by specific unique techniques and approaches this paper has three aims first the similarities and differences between the two approaches are summarized second the possibility of transferring specific techniques and indices is explored finally a numerical example is used to illustrate differences between the two approaches

stochastic dominance in an ordinal world abstract existing stochastic dominance rules apply to variables such as income wealth and rates of return all of which are measured on cardinal scales this study develops and applies stochastic dominance rules for ordinal data it is shown that the new rules are consistent with the traditional von neumann morgenstern expected utility approach and that they are applicable and relevant in a wide variety of managerial decision making situations where existing stochastic dominance rules fail to apply we apply ordinal sd rules to the transformation of random variables

coal use for world economy provision and transfer network by multi region input output analysis concerns surrounding climate change and environmental challenge make the coal utilization network essential not only for understanding the pattern of energy provision and transfer but also for illustrating the interaction between anthropogenic activities and ecological systems at global level this paper fills the research gap by dint of multi regional input output model to outline coal embodied routes from natural boundaries to economic activities and to identify the central hubs in the global coal supply chain based on the most recent available statistics for 2011 as the economic value and environmental influences of different kinds of coals could be remarkably diverse the separation of coal categories in systematic analysis could provide fundamental information regarding the displacement and teleconnection of coal utilization in the world the estimation shows that in weight 64 99 of coal direct supply is ultimately embodied in international trade indicating the crucial roles of trade interlinks in global coal utilization apart from this the findings pertinent to sectoral structure regional supply chain and per capita characteristics of coal embodied utilization could be valuable to identify the global energy routes driven by international trade as well as to facilitate energy and environmental policy

the lmdi approach to decomposition analysis a practical guide in a recent study ang energy policy 32 2004 compared various index decomposition analysis methods and concluded that the logarithmic mean divisia index method is the preferred method since the literature on the method tends to be either too technical or specific for most potential users this paper provides a practical guide that includes the general formulation process summary tables for easy reference and examples

co2 emissions energy consumption trade and income a comparative analysis of china and india in order to prevent the destabilisation of the earth s biosphere co2 emissions must be reduced quickly and significantly the causes of co2 emissions by individual countries need to be apprehended in order to understand the processes required for reducing emissions around the globe china and india are the two largest transitional countries and growing economies but are in two entirely different categories in terms of structural changes in growth trade and energy use co2 emissions from the burning of fossil fuels have significantly increased in the recent past this paper compares china and india using the bounds testing approach to cointegration and the ardl methodology to test the long and short run relationships between growth trade energy use and endogenously determined structural breaks the co2 emissions in china were influenced by per capita income structural changes and energy consumption a similar causal connection cannot be established for india with regard to structural changes and co2 emissions because india s informal economy is much larger than china s india possesses an extraordinarily large number of micro enterprises that are low energy consumers and not competitive enough to reach international markets understanding these contrasting scenarios is prerequisite to reaching an international agreement on climate change affecting these two countries

primary energy and greenhouse gases embodied in australian final consumption an input output analysis input output modeling of primary energy and greenhouse gas embodiments in goods and services is a useful technique for designing greenhouse gas abatement policies the present paper describes direct and indirect primary energy and greenhouse gas requirements for a given set of australian final consumption it considers sectoral disparities in energy prices capital formation and international trade flows and it accounts for embodiments in the gross national expenditure as well as the gross domestic product primary energy and greenhouse gas intensities in terms of mj and kg co2 e are reported as well as national balances of primary energy consumption and greenhouse gas emissions

input output analysis of co2 emissions embodied in trade and the driving forces processing and normal exports in recent years energy related co2 emissions embodied in international trade and the driving forces have been widely studied by researchers using the environmental input output framework most previous studies however do not differentiate different input structures in manufacturing processing exports and normal exports using china as an example this paper exemplifies how implications of results obtained using different export assumptions differ the study posits that the utilization of traditional i o model results in an overestimation of emissions embodied in processing exports and an underestimation in normal exports the estimate of co2 emissions embodied in china s exports drops by 32 when the extended i o model is used the choice of export assumption has more impact on the decomposition results for processing exports the study further highlights that for a country with an export structure similar to china it is meaningful to look into the impact of export assumption in embodied emission studies

the effect of globalisation on energy footprints disentangling the links of global value chains abstract this paper investigates the impact of global value chains on energy footprints energy footprints are consumption based indicators which record the energy used to produce a country s final demand in order to disentangle key characteristics of global value chains and their effects on the global energy footprint we employ structural decomposition analyses sda furthermore the analysis combines a retrospective with a prospective sda approach after an analysis of the global energy footprint for the period between 1995 and 2009 we discuss three scenarios of international integration and their implications for energy footprints for the period from 2009 to 2030 our results show that the global energy footprint has increased by 29 4 from 1995 to 2009 and the scenarios indicate that it will increase by another 23 5 until 2030 economic activity is the most important driver for the increase in energy footprints rising final demand alone would have increased the global energy footprint by 47 0 between 1995 and 2009 the composition of countries from where consumption and investment goods come adds another 12 6 sectoral energy intensity reductions are the most important decelerator of energy use 27 8 there is a substantial contribution of changing global value chains on the rise in the global energy footprint 7 5 stronger backward linkages in global value chains increased the global energy footprint by 5 5 between 1995 and 2009 changes in the regional composition of intermediate inputs raised it by another 1 8 the shift of the world economy towards east asia alone would have increased the global energy footprint by 3 0 the sectoral composition of global value chains on the other hand had a negligible effect on energy footprints

china s energy consumption under the global economic crisis decomposition and sectoral analysis abstract it is now widely recognized that there is a strong relationship between energy consumption and economic growth most countries energy demands declined during the economic depression of 2008 2009 when a worldwide economic crisis occurred as an export oriented economy china suffered a serious exports decline in the course of the crisis however it was found that energy consumption continued to increase against such a background this paper aims to assess and explain the factors causing the growth of energy consumption in china first we will explain the impact of domestic final use and international trade on energy consumption by using decomposition analysis second embodied energy and its variation across sectors are quantified to identify the key sectors contributing to the growth lastly the policy implications for long term energy conservation are discussed the results show that the decline in exports was one of the driving forces for energy consumption reduction in the crisis but that the growth of domestic demand in manufacturing and construction largely stimulated by economic stimulus plans had the opposite effect on energy consumption international trade contributed to decreasing energy consumption of china during and after the crisis because the structure of exports and imports changed in this period

energy use embodied in china s construction industry a multi regional input output analysis abstract the rapid urbanization process was bound to produce considerable energy demand in china which increased the pressure on sustainable development this study employed a multi regional input output model to investigate energy use embodied in the consumption and interregional trade of china s construction industry results show that as a typical demand driven sector the construction industry consumed 793 74 million tons of coal equivalent in 2007 which is equal to 29 6 of china s total national energy consumption regions have been divided according to different driving forces for energy increment shanxi liaoning heilongjiang henan and sichuan were identified to be driven by their extensive construction activities and inefficient construction process interregional imports of the construction industry represented a resource dependent geographical distribution energy flows are from resource abundant areas in the central part to resource deficient areas in the eastern coast by contrast energy exports represented a regional discrete distribution which mainly transferred energy in the form of labor mobility and service supply this study provided insight into the current energy consumption status of provincial construction industry from both regional and sectoral perspectives which can be a basis for energy policy making and implementation

generalised r based and s based taxes under uncertainty this paper considers the relationship between two general neutral business tax structures which we label the firm tax and the shareholder tax the well known r based and s based cash flow taxes analysed by meade 1978 are special cases of these two taxes we demonstrate the neutrality of both taxes in the presence of uncertainty and characterise the tax rules required in the event of default and wind up our analysis provides the first proof of the neutrality of the s based cash flow tax and the allowance for corporate equity ace corporation tax under uncertainty we also discuss implementation and tax avoidance issues

determinants of net carbon emissions embodied in sino german trade abstract the existing research on carbon emissions embodied in trade has been concentrated between net importing countries and net exporting countries few study has been conducted to analyze carbon emissions embodied in trade between net exporting countries to fill the research gap this work systematically investigated the net carbon emissions embodied in trade between the largest net exporter of developing countries china and the largest net exporter of developed countries german based on the non competitive input output analysis and the structural decomposition analysis was used to study the driving factors effecting the change of net embodied carbon emissions in sino german trade the results show the net carbon emissions embodied in sino german trade increased significantly with the sharp increase of net trade volume after china s accession to the world trade organization carbon transfer through trade was mainly concentrated in the carbon intensive industrial sectors in sino german trade this phenomenon was attributed to the differences in the trade structure and the production efficiency between china and germany the decomposition analysis shows china s intermediate input structure effect and the country structure effect of germany s final demand were the leading contributors to growth in net carbon emission in sino german trade which mainly was offset by china s carbon intensity effect finally some policy implications are offered

modeling energy and development an evaluation of models and concepts most global energy models are developed by institutes from developed countries focusing primarily on issues that are important in industrialized countries evaluation of the results for asia of the ipcc sres models shows that broad concepts of energy and development the energy ladder and the environmental kuznets curve can be observed in the results of the models however improvements can be made in modeling the issues that underlie these concepts like traditional fuels electrification economic structural change income distribution and informal economies given the rapidly growing importance of energy trajectories of developing countries for global sustainability the challenge for the future is to develop energy models that include all these aspects of energy and development

german s oil footprint an input output and structural decomposition analysis abstract it is generally thought that the country with net exports in goods is also a net exporter of energy embodied in goods in this work we report a paradox phenomenon which shows that germany was a net goods exporter but also a net importer of embodied oil based on the multi region input output model and structural decomposition analysis this paper comprehensively analyzed the changing trend and main driving factors of oil footprints in german trade the results showed that germany s embodied oil exports increased by 35 06 with the expansion of trade scale and germany s net imports of embodied oil fell by 45 49 during the study period although the focus of embodied oil transfer in trade was eu countries the embodied oil trade volume between germany and developing countries especially china grew rapidly from sectoral level heavy manufacturing and transport industry dominated more than 70 of the germany s embodied oil trade the decomposition analysis showed that the scale effect of final demand was the main factor that contributed to the growth of oil footprints in germany s international trade which offset the inhibition of oil consumption intensity the effect of production structure played an important role in the embodied oil trade and the low oil intensive industrial structure was the main reason why germany was a net importer of embodied oil

semi parametric upper bounds for option prices and expected payoffs abstract upper bounds on the expected payoff of call and put options are derived these bounds depend only on the mean and variance of the terminal stock price and not on its entire distribution so they are termed semi parametric a corollary of this result is a set of upper bounds for option prices obtained by the risk neutral valuation approach of cox and ross as an example these bounds are shown to obtain across both lognormal diffusions and mixed diffusion jump processes for any given data set we present an illustrative example that suggests these bounds may be of considerable practical value

recovering an asset s implied pdf from option prices an application to crude oil during the gulf crisis we develop a general method for estimating the implied martingale equivalent probability density function pdf for futures prices from american options prices the early exercise feature of american options precludes expressing the price of the option in terms of the pdf there exist tight bounds for the price of american options in terms of the pdf we demonstrate how these bounds together with observed option prices can be used to estimate the parameters of the pdf we estimate the distribution for crude oil during the persian gulf crisis and find the distribution differs significantly from that recovered using standard techniques

option pricing bounds with standard risk aversion preferences abstract for a theoretical valuation of a financial option various models have been proposed that require specific hypotheses regarding both the stochastic process driving the price behaviour of the underlying security and market efficiency when some of these assumptions are removed we obtain an uncertainty interval for the option price up to now the most restrictive intervals for option prices have been obtained using the decreasing absolute risk aversion dara rule in a state preference approach precautionary saving entails the concept of prudence in particular decreasing absolute prudence is a necessary and sufficient condition that guarantees that the saving of wealthier people is less sensitive to the risk associated to future incomes if this condition is coupled with the dara assumption we obtain standard risk aversion sra which guarantees on the one hand that introducing a zero mean background risk to wealth makes people less willing to accept another independent risk and on the other hand that an increase in the risk of the returns distribution of an asset reduces the demand for this asset the main idea of this contribution is to apply decreasing absolute prudence and sra rules in a state preference context in order to obtain efficient bounds for the value of european style options portfolio strategies lower and upper bounds for the options portfolio value are obtained by solving non linear optimization problems the numerical experiments carried out show the efficiency of the technique proposed

structural decompositions of energy consumption between 1995 and 2009 evidence from wiod abstract energy is key to achieving sustainable development this paper explicitly distinguishes between the supply side of energy consumption and demand side of energy consumption and investigates the factors that affect the energy consumption across economies using data from the world input output database wiod this paper decomposes the relative changes of energy consumption into intensity effect production structure structural change in final demand total final demand effect and household consumption then it further decomposes production structure into inter industry structural effect and trade effect in intermediate inputs overall energy consumption growth is mainly driven by total final demand 55 04 increase at the world level but can be significantly reduced by intensity effect due to technological change 21 02 decrease at the world level there is heterogeneity of structure related effects across economies and within the same economy in both aspects of energy consumption in addition the trade effect and household effect are relatively small this paper provides an empirical framework for analyzing energy consumption in a globalizing world and suggests tailored and integrated energy policies

option pricing bounds in discrete time upper and lower bounds are derived for call options traded at discrete intervals these bounds are independent of assumptions on the stock price distribution other than a restriction satisfied by the stock being non negative beta the development of the bounds relies on the single price law and arbitrage arguments both single period and multiperiod results are produced and put option bounds follow by extension the bounds exist as equilibrium values given a consensus on stock price distribution they are also valid for empirical studies being adjustable for dividends and commissions following the impetus of the black scholes pricing model the majority of option analyses have been in continuous time such approaches have relied on the formation of perfect riskless hedges involving the option its underlying security and a riskless asset since the hedge must be continuously revised and maintained while actual trading opportunities are discrete this crucial assumption limits the accuracy and applicability of the black scholes and related formulae in fact the black scholes formula can only be considered as a valid approximation to the discrete time solution merton 8 p 663 while the closeness of that approximation has not been ascertained in general 1 earlier discrete models such as boness 3 and samuelson 12 have been succeeded by those of brennan 5 cox et al 6 and rubinstein 11 in which distributional restrictions are imposed on share returns usually the discrete formula converges to the black scholes expression under appropriate limit conditions using the rubinstein 11 approach we derive upper and lower bounds for option prices with both a general price distribution and discrete trading opportunities the bounds are functions of the share and exercise prices the riskless rate of interest the distribution of the share price change per period and the number of periods of expiration of the option the lower bound is tighter than that of merton 7 derived from more general arbitrage considerations while being less exact than the results already mentioned for restricted distributions

input output analysis of co2 emissions embodied in trade the effects of sector aggregation abstract energy related co2 emissions embodied in international trade have been widely studied by researchers using the environmental input output analysis framework it is well known that both sector aggregation and spatial aggregation affect the results obtained in such studies with regard to the latter past studies are often conducted at the national level irrespective of country or economy size for a large economy with the needed data studies may be conducted at different levels of spatial aggregation we examine this problem analytically by extending the work of su et al su b huang h c ang b w zhou p 2010 input output analysis of co2 emissions embodied in trade the effects of sector aggregation energy economics 32 1 166 175 on sector aggregation we present a numerical example using the data of china and by dividing the country into eight regions it is found that the results are highly dependent on spatial aggregation our study shows that for a large country like china it is meaningful to look into the effect of spatial aggregation

broadening the tax base of neutral business taxes abstract the samuelson tax is a neutral business income tax on the normal return on capital only i discuss two modifications of the samuelson tax in order to include pure profits in its tax base but still achieve neutral business taxation

calculation of embodied energy in sino usa trade 1997 2011 abstract in order to find efficient trade measures to reduce china s energy consumption and to provide theoretical support for the climate talks between china and america we investigate the impact of sino usa trade on energy consumption from the perspective of embodied energy an environmental input output life cycle assessment eio lca model was established to calculate the total energy consumption coefficient the direct consumption coefficient and the complete consumption coefficient of the sectors of the national economies of china and america after taking into consideration the data of every sector of the national economy in sino usa trade energy embodied in the import and export trade between china and america was calculated to verify the real energy flows in sino usa trade the research results suggest the following china is the net exporter of embodied energy in sino usa trade and coal crude oil and natural gas are the major components in 1997 2011 the net exports of china s embodied energy totaled 1523 082 200 t of standard coal the amount of china s energy consumption increased by 895 527 900 t of standard coal and america s energy consumption decreased by 11 871 200 t of standard coal as a result of sino usa trade on this basis corresponding policies and recommendations are proposed

global primary energy use associated with production consumption and international trade presented in this study is a comprehensive analysis for energy use of different economic entities in global supply chains including the exploiter producer consumer intermediate trader and final trader the systems input output analysis method is adopted to trace the direct and indirect energy use associated with both intermediate production and final consumption activities in the economic system in the world economy 15 of the energy use embodied in trade turns out to be induced by final consumption and 85 is attributed to intermediate production different trading patterns for different economies are identified with the separation between energy trade for intermediate production and that for final consumption for japan with a production oriented trading pattern intermediate trade should be a top priority in local trade structure adjustment while final trade needs more attention for the government in the united states as the country is in a consumption oriented trade pattern this analysis aims to provide an in depth insight into energy sustainability as well as a sound scientific reference for policy making at the regional national and global scale

stochastic dominance and expected utility survey and analysis while stochastic dominance has been employed in various forms as early as 1932 it has only been since 1969 1970 that the notion has been developed and extensively employed in the area of economics finance agriculture statistics marketing and operations research in this survey the first second and third order stochastic dominance rules are discussed with an emphasis on the development in the area since the 1980s

bounds and prices of currency cross rate options abstract this paper derives the pricing bounds of a currency cross rate option using the option prices of two related dollar rates via a copula theory and presents the analytical properties of the bounds under the gaussian framework our option pricing bounds are useful because 1 they are general in the sense that they do not rely on the distribution assumptions of the state variables or on the selection of the copula function 2 they are portfolios of the dollar rate options and hence are potential hedging instruments for cross rate options and 3 they can be applied to generate bounds on deltas the empirical tests suggest that there are persistent and stable relationships between the market prices and the estimated bounds of the cross rate options and that our option pricing bounds obtained from the market prices of options on two dollar rates and the historical correlation of two dollar rates are highly informative for explaining the prices of the cross rate options moreover the empirical results are consistent with the predictions of the analytical properties under the gaussian framework and are robust in various aspects

climate change policy market structure and carbon leakage abstract the 1997 kyoto protocol on climate change obliges the industrialized countries to initiate the international effort of abating anthropogenic greenhouse gas ghg emissions if such an initiative is to be taken the associated competitive effects may lead to significant relocation of developed countries energy intensive production this paper examines this issue i adopt an oligopolistic structure combined with increasing returns to scale production technologies to represent the strategic interaction among the firms producing energy intensive products this representation is then embedded within a multi regional computable general equilibrium model which in turn is used for quantifying these relocational effects the results suggest that significant relocation of energy intensive industries away from the oecd may occur depending on the type of market structure with leakage rates as high as 130 in which case ghg control policies in the industrialized countries actually lead to higher global emissions

the tax paradox and weak tax neutrality we introduce the concept of weak tax neutrality that establishes that the relationship between the tax rate and the user cost of capital may be non monotonic we show that most existing corporate tax systems allow for weak neutrality that is given the tax allowances permitted by these systems it is possible that neutrality may arise for at least one positive corporate tax rate moreover we show the practical relevance of weak neutrality in realistic situations where there are several asset types and heterogeneous levels of firms debt ratios

has energy conservation been an effective policy for thailand an input output structural decomposition analysis from 1995 to 2010 abstract thailand has depended heavily on imported fossil fuels since the 1990s which hindered the nation s economic development because it created uncertainty in the nation s fuel supply an energy conservation policy was implemented in 1995 to require industries to reduce their energy intensity ei and consumption immediately this study investigates the effectiveness of the policy between 1995 and 2010 using the hybrid input output approach surprisingly ei improvement was observed in only a few sectors such as transportation non metallic paper and textile an embodied energy decomposition analysis revealed that while households were the largest energy consumer in 1995 energy consumption in exports exceeded that of households in 2000 2005 and 2010 in addition structural decomposition analysis revealed the final demand effect was the strongest factor in determining the efficacy of energy conservation whereas the energy efficiency effect was not an effective factor as expected for decreasing energy consumption policy barriers and conflicting economic plans were factors that affected the outcome of these energy policies

on stochastic dominance and decreasing absolute risk averse option pricing bounds merton perrakis and ryan levy and ritchken have established option pricing bounds under first and second stochastic dominance preferences these bounds are particularly important for valuing contingent claims when continuous trading in the claim and or underlying security does not exist this article provides option bounds under higher orders of dominance specifically option bounds are obtained by solving mathematical programs where preference structures on prices are represented by constraints for first second third and higher orders of stochastic dominance preferences the special linear structure of the mathematical programs allow analytical solutions to be obtained for the bounds for dara preferences third order stochastic dominance while being necessary is not sufficient and additional constraints must be imposed unfortunately these additional constraints are nonlinear while in this case closed form analytical solutions for the option bounds are not obtained numerical examples are presented to illustrate their strength

energy and carbon embodied in the international trade of brazil an input output approach abstract all goods and services produced in an economy are directly and or indirectly associated with energy use and according to the type of fuel utilized with co2 emissions as well international trade is an important factor in shaping the industrial structure of a country and consequently in affecting a country s energy use and co2 emissions this study applies input output techniques to the brazilian economy to evaluate the total impacts of international trade on its energy use and co2 emissions a commodity by industry io model in hybrid units energy commodities in physical units and non energy commodities in monetary units is applied to the brazilian economy in 1995 results show that total energy embodied in the exports of non energy goods of brazil equals 831 pj while total carbon embodied is 13 5 mtc these amounts are larger than the relevant amounts embodied in the imports of non energy goods respectively 679 pj and 9 9 mtc these figures are better understood by contrasting them with the total energy use and the corresponding total carbon emissions of the brazilian economy in 1995 estimated by this work 6781 pj and 99 4 mtc respectively this means that international inflows and outflows of energy embodied in non energy goods are in the order of 10 and 12 of the total energy use while inflows and outflows of carbon embodied in non energy goods are approximately 10 and 14 of the corresponding total carbon emissions of the brazilian economy in 1995 the general picture is that brazil is not only a net exporter of energy 153 pj and of carbon 3 6 mtc embodied in the non energy goods internationally traded by the country in 1995 but also that each dollar earned with exports embodied 40 more energy and 56 more carbon than each dollar spent on imports these findings suggest that brazilian policy makers should be concerned about the extra impacts international trade policy may have on energy use and carbon emissions of the country

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

evaluating the effects of embodied energy in international trade on ecological footprint in china based on sub sectoral level of economy and detailed traded items embodied energy ee in international trade flow in china is estimated during 1996 2004 and the effects of ee on sustainability are quantified by using one of the most popular indicators ecological footprint ef a framework of ef method which is more relevant to realism of specific country is proposed in this paper the results show that china is a net importer of ee during the period covered by this study except for the year from 1997 to 1999 imported exported and net imported ee tends to increase sharply along time series net imported energy would increase 38 and energy consumption would increase 2 8 in 2004 if ee were taken into account footprint energy is the most important part of ef components and is significantly affected by ee and the effects of ee on ef are similar to that of footprint energy footprint energy ef and ecological deficit of 2004 will be underestimated about 2 92 1 36 2 83 respectively if ee is not taken into the national energy budget continuous increase of ef and ecological deficit along time series indicates that china is moving away from sustainability 1 47 times chinese territories are accurately occupied by china in 1996 while 1 71 times in 2004 obviously unsustainability procedure of china is accelerated by ee the contribution of ee to ef and ecological deficit is small in absolute terms expressed in per capita but the effects on whole nation are huge if the population of china multiplies them to curb the increase of ef and ecological deficit and to achieve the goal of sustainability some policy and measures are also proposed c 2006 elsevier b v all rights reserved

stochastic dominance bounds on derivatives prices in a multiperiod economy with proportional transaction costs by applying stochastic dominance arguments upper bounds on the reservation write price of european calls and puts and lower bounds on the reservation purchase price of these derivatives are derived in the presence of proportional transaction costs incurred in trading the underlying security the primary contribution is the derivation of bounds when intermediate trading in the underlying security is allowed over the life of the option a tight upper bound is derived on the reservation write price of a call and a tight lower bound is derived on the reservation purchase price of a put these results jointly impose tight upper and lower bounds on the implied volatility

analysis of interregional industry linkage and economic distance in china evidence from the mining industry abstractthe mining industry is an important sector of the national economy which provides essential support for energy and other resources for economic development industrial linkage and economic distance are two different concepts in measuring the correlationship of different industries in this article we apply the model that combines both of them to analyse the industries significantly influence the mining industry we find that electricity and heating industry and the mining industry itself from forward linkages have greatly influenced the mining industry and the industries from backward linkages affect mining industry are changing with industrial economic transformation we also find resources can flow across several regions only after 2007 which means the role of geographical factors limiting long range transportation of resources is weakening after 2007 and we explain how resources flow among various regions during 1997 2007 based on the findings above policy implications from the empiri

co2 emissions embodied in china us trade input output analysis based on the emergy dollar ratio to gain insight into changes in co2 emissions embodied in china us trade an input output analysis based on the emergy dollar ratio edr is used to estimate embodied co2 emissions a structural decomposition analysis sda is employed to analyze the driving factors for changes in co2 emissions embodied in china s exports to the us during 2002 2007 the results of the input output analysis show that net export of co2 emissions increased quickly from 2002 to 2005 but decreased from 2005 to 2007 these trends are due to a reduction in total co2 emission intensity a decrease in the exchange rate and small imports of embodied co2 emissions the results of the sda demonstrate that total export volume was the largest driving factor for the increase in embodied co2 emissions during 2002 2007 followed by intermediate input structure direct co2 emissions intensity had a negative effect on changes in embodied co2 emissions the results suggest that china should establish a framework for allocating emission responsibilities enhance energy efficiency and improve intermediate input structure

stochastic dominance and expected utility while stochastic dominance has been employed in various forms as early as 1932 it has only been since 1969 1970 that the notion has been developed and extensively employed in the area of economics

the embodied energy in trade what role does specialization play abstract many industrialized countries are net importers of embodied energy and emissions while many developing countries are net exporters we examine the role of specialization in driving these trade patterns by conducting a spatial index decomposition analysis on the embodied energy in net exports for 41 economies the results reveal that industrialized countries have generally offshored energy intensive production which many developing countries specialize in we find that specialization on average makes the biggest contribution accounting for roughly 50 of a country s embodied energy in net exports however other factors namely energy intensity and the trade balance combine to make an equally important contribution in summary specialization despite its significant role is not the only cause of the embodied energy trade patterns observed between industrialized and developing countries

comparisons of decoupling trends of global economic growth and energy consumption between developed and developing countries abstract the development of economy in developing countries is expected to contribute mostly to the growth of world energy consumption using environment impact gdp technology igt decoupling model we carry out a comparative study on the decoupling trends of economic growth and energy consumption for both developed and developing countries in past five decades 1965 2015 the results indicate that the decoupling indices of developed countries are superior to that of developing countries the specific performances are 1 the decoupling indices of developed countries are shown to be stable and tend to approximate absolute decoupling 2 the decoupling indices of developing countries fluctuate in the relative decoupling interval on this basis this research employs grey relational analysis gra to explore the reasons resulting in the difference of decoupling indices from the perspective of technical progress industrial structure and economic growth pattern the findings show that in developed countries technical progress factor exerts greatest influence on decoupling indices followed by industrial structure and economic growth pattern in developing countries industrial structure and economic growth pattern have greater impact on decoupling indices than technical progress based on research conclusion this research offers developing countries relevant policy suggestions for energy saving and emission reduction in the future

energy intensity and embodied energy flow in australia an input output analysis abstract decoupling energy use from economic growth is critical for improving energy productivity and mitigating climate change input output databases have been increasingly utilised for consumption based energy accounting and for exploring both the direct and indirect influence of energy use this study performed an environmentally extended input output analysis of energy use in australia from 2006 to 2015 to investigate the total energy intensity of industry sectors and the embodied energy flow from sources of energy use to the final consumption of commodities between 2006 and 2015 the national direct energy intensity reduced by an average of 2 per annum nearly all industry sectoral groups reduced their total energy intensity because of direct energy intensity reduction from other or within industry sectoral groups the difference between the embodied energy use in the import and the export had widened making australia a greater net importer of embodied energy with significant outsourcing of direct energy use and associated greenhouse gas emissions despite a slight reduction in per capita direct household energy use 3 the per capita indirect energy use embodied in household commodity consumption increased by 7 as indirect household energy use is more than three times direct household energy use improving end use energy efficiency should also consider the embodied energy in commodities structural decomposition analysis shows that for the studied period population growth and per capita demand for imported commodities are two major contributors for the increased total embodied energy in australia

generalized analytical upper bounds for american option prices this paper generalizes and tightens chen and yeh s 2002 analytical upper bounds for american options under stochastic interest rates stochastic volatility and jumps where american option prices are difficult to compute with accuracy we first generalize theorem 1 of chen and yeh 2002 and apply it to derive a tighter upper bound for american calls when the interest rate is greater than the dividend yield our upper bounds are not only tight but also converge to accurate american call option prices when the dividend yield or strike price is small or when volatility is large we then propose a general theorem that can be applied to derive upper bounds for american options whose payoffs depend on several risky assets as a demonstration we utilize our general theorem to derive upper bounds for american exchange options and american maximum options on two risky assets

imbalance of carbon emissions embodied in the us japan trade temporal change and driving factors abstract in us japan trade japan ran both economic export surplus and export co2 emission surplus with the us positive net monetary exports for japan were actually a kind of economic losses of the us while positive net export co2 emissions or net co2 emissions embodied in us japan trade were regarded as pollution transfer from u s to japan however due to lack of unified measurement units and standards between the two research fields it is difficult to directly assess whether positive effects of u s via carbon transfer outweigh negative effects caused by economic losses the study transforms absolute values of net monetary exports and net export co2 emissions from 2000 to 2011 in us japan trade into two ratios the ratio of net monetary exports to gdp of u s and the ratio of net embodied co2 emissions to total co2 emissions of the us by comparison the result shows that on average net monetary exports between u s and japan accounted for 0 45 of american gdp while ratio of net export emissions to aggregate consumption based co2 emissions of u s kept about 0 20 during the research period concerned which indicated that negative effects of economic losses in u s outweighed positive effects via carbon transfer in us japan trade furthermore a structural analysis of co2 emissions embodied in us japan trade during the 11 years is given the most significant driver was emission coefficients defined as co2 emissions per unit of energy consumption the driving force of emission coefficients led to dramatic reduction in co2 flows from japan to the us and thus caused decrease of net export emissions which also explained the major reason for the low ratio of export emissions to total co2 emissions of the us finally according to sectoral distributions of co2 flows between japan and the us emission sources of two countries presented different characteristics

on the equality of two lower bounds on the call price a note this note shows that appearances to the contrary the lower bounds on the price of a call option obtained by levy and by ritchken are identical and that this common bound is never inferior to the lower bound obtained by perrakis and ryan