Template-Type: ReDIF-Paper 1.0 Number: 2006.1 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-001.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.1 Title: Determinants and Effects on Property Values of Participation in Voluntary Cleanup Programs: The Case of Colorado Author-Name: Anna Alberini Author-X-Name-First: Anna Author-X-Name-Last: Alberini Author-WorkPlace-Name: University of Maryland and Fondazione Eni Enrico Mattei Abstract: State Voluntary Cleanup Programs (VCPs) were established starting in the 1990s to encourage the environmental remediation and redevelopment of contaminated properties. These programs typically offer liability relief, subsidies and other regulatory incentives in exchange for site cleanup. This paper asks three questions: First, what type of properties are attracted to voluntary cleanup programs? Second, what is the interaction between these state programs and other incentives for remediation and economic development, such as Enterprise Zone and Brownfield Zone designations? Third, what is the effect of participation in the VCP on property values? We use data from Colorado’s VCP to answer these questions. We find that most of the properties enrolled in this program were not previously listed on EPA’s contaminated site registries, and that most applicants seek to obtain directly a “no further action” determination without undergoing remediation. The main determinants of participation are the size of the parcel and whether the surrounding land use is primarily residential, while other incentives have little effect. Properties with confirmed contamination sell at a 47% discount relative to comparable uncontaminated parcels, and participation tends to raise the property price, but this latter effect is not statistically significant. Taken together, these findings suggest that the participating properties are those with high development potential, and hint at the possibility that owners or developers may be seeking to obtain a clean bill of health from the State with only minimal or no cleanup efforts. Were these findings confirmed with data from other states, they would raise doubts about the effectiveness of voluntary programs in encouraging remediation and their usefulness in reversing some of the undesired effects of the Superfund legislation. Keywords: Brownfields, Contaminated sites, Voluntary cleanup programs, Incentives Classification-JEL: R14, Q58, K32 Creation-Date: 200601 Template-Type: ReDIF-Paper 1.0 Number: 2006.2 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-002.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.2 Title: Stabilisation Targets, Technical Change and the Macroeconomic Costs of Climate Change Control Author-Name: Valentina Bosetti Author-X-Name-First: Valentina Author-X-Name-Last: Bosetti Author-WorkPlace-Name: Fondazione Eni Enrico Mattei Author-Name: Carlo Carraro Author-X-Name-First: Carlo Author-X-Name-Last: Carraro Author-WorkPlace-Name: Università Ca’ Foscari di Venezia and Fondazione Eni Enrico Mattei Author-Name: Marzio Galeotti Author-X-Name-First: Marzio Author-X-Name-Last: Galeotti Author-WorkPlace-Name: Università di Milano and Fondazione Eni Enrico Mattei Abstract: The issue of greenhouse gas (GHG) stabilization stands on three critical open questions. Namely, what are the impacts deriving from different levels of climate change and their distribution. What are the levels at which GHG concentration should be stabilized in order to avoid unacceptable impacts. And, finally, what are the costs and what are the instruments available to reach such stabilization targets. In the present paper, we address the latter question, in the specific attempt of shedding some light on the debated role of technological progress in lowering the costs of GHG stabilization. In particular, we use an optimal growth climate-economy model, where technical change is endogenously driven by learning by researching and learning by doing. In the model, when an ambitious stabilization target has to be reached, some additional technological innovation and diffusion is induced. The magnitude of this induced effect substantially affects the costs of stabilizing greenhouse gasses and may even make a well-designed climate policy a win-win strategy. A sensitivity analysis on the model crucial parameters is performed to account for structural and parametric uncertainties on learning effects, on the relationship between knowledge accumulation and the energy and carbon intensity of the economic system, and on the crowding out of investments in the energy sector R&D with respect to other research fields. Keywords: Climate policy, Environmental modelling, Integrated assessment, Technical change Classification-JEL: H0, H2, H3 Creation-Date: 200601 Template-Type: ReDIF-Paper 1.0 Number: 2006.3 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-003.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.3 Title: Introducing Imperfect Competition in CGE Models: Technical Aspects and Implications Author-Name: Roberto Roson Author-X-Name-First: Roberto Author-X-Name-Last: Roson Author-WorkPlace-Name: Università Ca’ Foscari di Venezia Abstract: This paper considers the technical aspects and the consequences, in terms of simulation results and policy assessment, of introducing imperfect competition in a CGE model. The modifications to the standard CGE framework needed to model imperfect competition in some industries are briefly discussed. Next, the paper discusses whether, how much and why, those changes may affect the qualitative output of a typical simulation experiment. It is argued that technical choices made in designing the model structure may have a significant impact on the model behavior. This is especially evident when the output of the model, under an imperfect competition closure, is compared with that obtained under a standard closure, assuming perfect competition. As an illustration, a scenario of agricultural trade liberalization under alternative market structures is analyzed. Keywords: Computable general equilibrium models, Imperfect competition, Oligopolistic models, Economies of scale, Empirical industrial organization, Agriculture, Trade liberalization, Trade policy Classification-JEL: D58, F12, L16 Creation-Date: 200601 Template-Type: ReDIF-Paper 1.0 Number: 2006.4 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-004.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.4 Title: The Role of Community in Migration Dynamics Author-Name: Sergio Vergalli Author-X-Name-First: Sergio Author-X-Name-Last: Vergalli Author-WorkPlace-Name: University of Brescia Abstract: In this paper, we present a theoretical model that, implementing the pioneering work of Burda (1995), based on the Real Option Theory, investigates the roots of the migration dynamics. In the model the decision to migrate of each individual depends not only on the wage differential, but also on a U-shaped benefit function of a community of homogeneous ethnic individuals, modelled according to the "theory of clubs". The theoretical results are able to give an explanation to the observable "jumps" in the migration flows and to describe how the trigger for entry can change depending on the dimension of the district. The analysis of the results also sheds light on the dynamics of the districts’ development: some possible rigidities in the adjustment of the district dimension, as regards the optimal levels, could magnify the hysteresis process. Keywords: Migration, Real option, Theory of clubs, Network effect Classification-JEL: F22, H49, O15, R23 Creation-Date: 200601 Template-Type: ReDIF-Paper 1.0 Number: 2006.5 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-005.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.5 Title: Modeling Spatial Sustainability: Spatial Welfare Economics versus Ecological Footprint Author-Name: Fabio Grazi Author-X-Name-First: Fabio Author-X-Name-Last: Grazi Author-WorkPlace-Name: University of Venice Author-Name: Jeroen C.J.M. van den Bergh Author-X-Name-First: Jeroen C.J.M. Author-X-Name-Last: van den Berghhttp://www.feem.it/NR/rdonlyres/A7EFB2A0-0B8A-4D4C-B9BD-EBB7624BB2CD/1825/406.pdf Author-WorkPlace-Name: Free University Author-Name: Piet Rietveld Author-X-Name-First: Piet Author-X-Name-Last: Rietveld Author-WorkPlace-Name: Free University Abstract: A spatial welfare framework for the analysis of the spatial dimensions of sustainability is developed. It incorporates agglomeration effects, interregional trade, negative environmental externalities and various land use categories. The model is used to compare rankings of spatial configurations according to evaluations based on social welfare and ecological footprint indicators. Five spatial configurations are considered for this purpose. The exercise is operationalized with the help of a two-region model of the economy that is in line with the ‘new economic geography’. Various (counter) examples show that the footprint method is not consistent with an approach aimed at maximum social welfare. Keywords: Agglomeration effects, Trade advantages, Negative externalities, Population density, Spatial configuration, Transport Classification-JEL: F12, F18, Q56, Q57, R12 Creation-Date: 200601 Template-Type: ReDIF-Paper 1.0 Number: 2006.6 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-006.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.6 Title: The Economic Impacts of Climate Change: Evidence from Agricultural Profits and Random Fluctuations in Weather Author-Name: Michael Greenstone Author-X-Name-First: Michael Author-X-Name-Last: Greenstone Author-WorkPlace-Name: MIT Author-Name: Olivier Deschenes Author-X-Name-First: Olivier Author-X-Name-Last: Deschenes Author-WorkPlace-Name: University of California Abstract: This paper measures the economic impact of climate change on US agricultural land by estimating the effect of the presumably random year-to-year variation in temperature and precipitation on agricultural profits. Using long-run climate change predictions from the Hadley 2 Model, the preferred estimates indicate that climate change will lead to a $1.1 billion (2002$) or 3.4% increase in annual profits. The 95% confidence interval ranges from -$1.8 billion to $4.0 billion and the impact is robust to a wide variety of specification checks, so large negative or positive effects are unlikely. There is considerable heterogeneity in the effect across the country with California’s predicted impact equal to -$2.4 billion (or nearly 50% of state agricultural profits). Further, the analysis indicates that the predicted increases in temperature and precipitation will have virtually no effect on yields among the most important crops. These crop yield findings suggest that the small effect on profits is not due to short-run price increases. The paper also implements the hedonic approach that is predominant in the previous literature. We conclude that this approach may be unreliable, because it produces estimates of the effect of climate change that are very sensitive to seemingly minor decisions about the appropriate control variables, sample and weighting. Overall, the findings contradict the popular view that climate change will have substantial negative welfare consequences for the US agricultural sector. Keywords: Cost of climate change, Hedonics, Agricultural profits, Agricultural production, Crop yields Classification-JEL: Q50, Q12, Q54, Q51 Creation-Date: 200601 Template-Type: ReDIF-Paper 1.0 Number: 2006.7 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-007.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.7 Title: Firm Regulation and Profit-Sharing: A Real Option Approach Author-Name: Michele Moretto Author-X-Name-First: Michele Author-X-Name-Last: Moretto Author-WorkPlace-Name: University of Brescia Author-Name: Paola Valbonese Author-X-Name-First: Paola Author-X-Name-Last: Valbonese Author-WorkPlace-Name: University of Padova Abstract: To avoid high profit levels often experienced in countries where monopolies in public utility sectors are regulated through price-cap mechanisms, several regulatory agencies have recently introduced profit-sharing (PS) clauses aimed at obtaining price reductions to the benefit of consumers. However, the implementation of these PS clauses has often turned out to be severely con- trained by the incompleteness of the price-cap itself and the non-verifiability of firms’profits. This paper studies the properties of a second-best optimal PS mechanism designed by the regulator to induce the regulated monopolist to divert part of its profits to custormers. In a dynamic model where a reg- ulated monopolist manages a long-term franchise contract and the regulator has the option to revoke the contract if there are serious welfare losses, we first derive the welfare maximising PS mechanism under verifiability of prof- its. Subsequently, we explore the sustainability of the PS mechanism under non-verifiability of profits. In a infinite-horizon game, it is showed that the dynamic sustainability of the PS clause crucially depends upon the magni- tude of the regulator’s revocation cost: the higher this cost, the lower the profit shared and the less frequent the regulator’s PS introduction. Finally, we present the endogenous and dynamic price adjustment which follows the adoption of the investigated PS mechanism in a price-cap regulation setting. Keywords: Price-cap regulation, Profit-sharing, Real options Classification-JEL: C73, L33, L5 Creation-Date: 200601 Template-Type: ReDIF-Paper 1.0 Number: 2006.8 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-008.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.8 Title: Discount Rates in Risk v. Money and Money v. Money Tradeoffs Author-Name: Anna Alberini Author-X-Name-First: Anna Author-X-Name-Last: Alberini Author-WorkPlace-Name: University of Maryland and Fondazione Eni Enrico Mattei Author-Name: Aline Chiabai Author-X-Name-First: Aline Author-X-Name-Last: Chiabai Author-WorkPlace-Name: Fondazione Eni Enrico Mattei Abstract: We use data from a survey of residents of five Italian cities conducted in late Spring 2004 to estimate the discount rates implicit in (a) money v. future risk reductions and (b) money v. money tradeoffs. We find that the mean personal discount rate is 2% in (a) and 8.7% in (b). The latter is lower than the discount rates estimated in comparable situations in many recent studies, greater than market interest rates in Italy at the time, and exhibits modest variation with age and gender. The discount rate implicit in money v. risk tradeoffs is in line with estimates from studies in the US and Europe, and does not depend on observable individual characteristics. Keywords: Value of a statistical life, Latent risk reductions, Individual discount rates, Stated preference questions Classification-JEL: J17, I18, D91 Creation-Date: 200601 Template-Type: ReDIF-Paper 1.0 Number: 2006.9 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-009.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.9 Title: United We Vote Author-Name: Jon X. Eguia Author-X-Name-First: Jon X. Author-X-Name-Last: Eguia Author-WorkPlace-Name: California Institute of Technology Abstract: This paper studies the advantages that a coalition of agents obtains by forming a voting bloc to pool their votes and cast them all together. We identify the necessary and sufficient conditions for an agent to benefit from the formation of the voting bloc, both if the agent is a member of the bloc and if the agent is not part of the bloc. We also determine whether individual agents prefer to participate in or step out of the bloc, and we find the different optimal internal voting rules that aggregate preferences within the coalition. Keywords: Voting bloc, Coalition formation, Voting rule Classification-JEL: D72, D71 Creation-Date: 200601 Template-Type: ReDIF-Paper 1.0 Number: 2006.10 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-010.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.10 Title: A Taxonomy of Myopic Stability Concepts for Hedonic Games Author-Name: Dinko Dimitrov Author-X-Name-First: Dinko Author-X-Name-Last: Dimitrov Author-WorkPlace-Name: Bielefeld University Author-Name: Shao Chin Sung Author-X-Name-First: Shao Chin Author-X-Name-Last: Sung Author-WorkPlace-Name: Aoyama Gakuin University Abstract: We present a taxonomy of myopic stability concepts for hedonic games in terms of deviations, and discuss the status of the existence problems of stable coalition tructures. In particular, we show that contractual strictly core stable coalition tructures always exist, and provide su¢ cient conditions for the existence of con- ractually Nash stable and weak individually stable coalition structures on the class of separable games. Keywords: Coalition formation, Hedonic games, Separability, Taxonomy Classification-JEL: C71, A14, D20 Creation-Date: 200601 Template-Type: ReDIF-Paper 1.0 Number: 2006.11 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-011.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.11 Title: Tourism Specialization and Sustainability: A Long-Run Policy Analysis Author-Name: Fabio Cerina Author-X-Name-First: Fabio Author-X-Name-Last: Cerina Author-WorkPlace-Name: CRENoS and University of Cagliari Abstract: This study focuses on the dynamic evolution of a small open economy specialized in tourism based on natural resources when tourist services are supplied to foreign tourists who are crowding-averse and give positive value to the environmental quality. We analyse the steady-state properties and run several policy exercises in two versions of our model: in the first, private agents’ income is spent entirely on consumption while, in the second, agents are allowed to invest part of their income in pollution abatement technology (PAT) which artificially increases the rate of regeneration of the environmental asset. A unique locally saddle point equilibrium is found in both versions and for both the market and the centralized solution. Our main findings are that: 1) a corrective income tax raises steady state utility in both versions but is capable of leading the economy in its first-best dynamic path only when agents cannot invest in the PAT; 2) when the PAT is available to the government but not to agents, an income tax which finances abatement expenditures may increase steady state utility with respect to the market solution when the natural regeneration rate of the environment and the degree of crowding-aversion are both low enough; 3) when PAT is available, the market chooses to devote a higher fraction of income to abatement than the central planner but in both cases this fraction is positive only if the natural rate of regeneration is not too large; 4) when PAT is available an income pollution tax does not affect the dynamic path of the market economy. Keywords: Tourism specialization, Sustainability, Environmental quality, Crowding, Pollution abatement Classification-JEL: L83, O41, Q26, Q56 Creation-Date: 200601 Template-Type: ReDIF-Paper 1.0 Number: 2006.12 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-012.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.12 Title: Benchmarking in Tourism Destination, Keeping in Mind the Sustainable Paradigm Author-Name: Valentina Bosetti Author-X-Name-First: Valentina Author-X-Name-Last: Bosetti Author-WorkPlace-Name: Fondazione Eni Enrico Mattei Author-Name: Mariaester Cassinelli Author-X-Name-First: Mariaester Author-X-Name-Last: Cassinelli Author-WorkPlace-Name: Fondazione Eni Enrico Mattei Author-Name: Alessandro Lanza Author-X-Name-First: Alessandro Author-X-Name-Last: Lanza Author-WorkPlace-Name: Fondazione Eni Enrico Mattei and CRENoS, Facoltà di Scienze Politiche Abstract: Tourism destination benchmarking and the assessment of tourism management performances are a crucial and challenging task in the direction of evaluating tourism sustainability and reshaping tourism activities. However, assessing tourism management efficiency per se may not provide enough information concerning long-term performances, which is what sustainability is about. Natural resources management should therefore be included in the analysis to provide a more exhaustive picture of long-run sustainable efficiency and tourism performances. Indeed, while the environmental endowment of a site is a key feature in tourism destination comparison, what really matters is its effective management. Therefore, in this paper we assess and compare tourism destinations, not only in terms of tourism services supply, but also in terms of the performance of environmental management. The proposed efficiency assessment procedure is based on Data Envelopment Analysis (DEA). DEA is a methodology for evaluating the relative efficiency when facing multiple input and output. Although the methodology is extremely versatile, for the sake of exemplification, in this paper it is applied to the valuation of sustainable tourism management of the twenty Italian regions. Keywords: Data envelopment analysis, Sustainable tourism indicators Classification-JEL: L83, Q26 Creation-Date: 200601 Template-Type: ReDIF-Paper 1.0 Number: 2006.13 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-013.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.13 Title: Determinants of Environmental Innovation – New Evidence from German Panel Data Sources Author-Name: Jens Horbach Author-X-Name-First: Jens Author-X-Name-Last: Horbach Author-WorkPlace-Name: University of Applied Sciences Anhalt Abstract: In most cases, empirical analyses of environmental innovations based on firm-level data relied on survey data for one point in time. These surveys, especially designed for the analysis of environmental innovations, are useful because they allow for the inclusion of many explanatory variables such as different policy instruments or the influence of stake-holders and pressure groups. On the other hand, it is not possible to address the dynamic character of the environmental innovation process. This paper uses two German panel data bases, the establishment panel of the Institute for Employment Research (IAB) and the Mannheim Innovation Panel (MIP) of the Centre for European Economic Research (ZEW), to explore the determinants of environmental innovations. These data bases were not specifically collected to analyze environmental issues, but they contain questions that allow the identification of environmental innovations. We use discrete choice models for each of the data bases to analyze hypotheses derived from the theoretical (environmental) innovation literature. The econometric estimations show that the improvement of the technological capabilities (“knowledge capital”) by R&D or further education measures triggers environmental innovations – this result is confirmed by both data bases and both methods to measure environmental innovation. The hypothesis that “Innovation breeds innovation” is confirmed by the analysis of the MIP data. General and environmental innovative firms in the past are more likely to innovate in the present. Environmental regulation, environmental management tools and general organizational changes and improvements trigger environmental innovation, a result that has also been postulated by the famous Porter-hypothesis. Environmental management tools especially help to detect cost-savings (specifically material and energy savings). Following our econometric results, cost-savings are an important driving force of environmental innovation. Keywords: Environmental innovation, Panel data analysis, Discrete choice models Classification-JEL: Q55, O33, O38, C25 Creation-Date: 200601 Template-Type: ReDIF-Paper 1.0 Number: 2006.14 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-014.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.14 Title: Social Capital, Public Spending and the Quality of Economic Development: The Case of Italy Author-Name: Fabio Sabatini Author-X-Name-First: Fabio Author-X-Name-Last: Sabatini Author-WorkPlace-Name: University of Rome La Sapienza Abstract: This paper carries out an empirical assessment of the relationship between social capital and the quality of economic development in Italy. The analysis draws on a dataset collected by the author including about two hundred variables representing different aspects of economic development and four “structural” dimensions of social capital. The quality of development is measured through human development and indicators of the state of health of urban ecosystems, public services, gender equality, and labour markets, while social capital is measured through synthetic indicators representing strong family ties, weak informal ties, voluntary organizations, and political participation. The quality of development exhibits a strong positive correlation with bridging weak ties and a negative correlation with strong family ties. Particularly, the analysis shows a strong correlation between informal ties and an indicator of “social well-being” (synthesizing gender equality, public services and labour markets) and between voluntary organizations and the state of health of urban ecosystems. Active political participation proves to be irrelevant in terms of development and well-being. Finally, the role of public spending for education, health care, welfare work, and the environment protection is analysed, revealing a scarce correlation both with social capital and development indicators. Keywords: Social capital, Social networks, Public spending, Economic development, Human development, Principal component analysis Classification-JEL: O15, O18, R11, Z13 Creation-Date: 200601 Template-Type: ReDIF-Paper 1.0 Number: 2006.15 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-015.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.15 Title: The Empirics of Social Capital and Economic Development: A Critical Perspective Author-Name: Fabio Sabatini Author-X-Name-First: Fabio Author-X-Name-Last: Sabatini Author-WorkPlace-Name: University of Rome La Sapienza Abstract: This paper provides an introduction to the concept of social capital, and carries out a critical review of the empirical literature on social capital and economic development. The survey points out six main weaknesses affecting the empirics of social capital. Identified weaknesses are then used to analyze, in a critical perspective, some prominent empirical studies and new interesting researches published in the last two years. The need emerges to acknowledge, also within the empirical research, the multidimensional, context-dependent and dynamic nature of social capital. The survey also underlines that, although it has gained a certain popularity in the empirical research, the use of “indirect” indicators may be misleading. Such measures do not represent social capital’s key components identified by the theoretical literature, and their use causes a considerable confusion about what social capital is, as distinct from its outcomes, and what the relationship between social capital and its outcomes may be. Research reliant upon an outcome of social capital as an indicator of it will necessarily find social capital to be related to that outcome. This paper suggests to focus the empirical research firstly on the “structural” aspects of the concept, therefore excluding by the measurement toolbox all indicators referring to social capital’s supposed outcomes. Keywords: Social capital, Social networks, Trust, Economic development, Relation of economics to other disciplines, Relation of economics to social values Classification-JEL: A120, A130, A310, O100, Z130 Creation-Date: 200601 Template-Type: ReDIF-Paper 1.0 Number: 2006.16 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-016.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.16 Title: Corruption, Exogenous Changes in Incentives and Deterrence Author-Name: Giuseppe Di Vita Author-X-Name-First: Giuseppe Author-X-Name-Last: Di Vita Abstract: In this article we apply and extend the model elaborated by Acemoglu and Verdier in their seminal paper (2000), to examine how the economy represented in their theoretical framework responds to an exogenous change in the agent's incentive. In particular, we focus on the consequences of a famous sentence of the Italian Supreme Court in plenary session, no. 500 of 1999, in which a revolutionary interpretation of civil liability rules is introduced, allowing private agents of our economy to appear before the court to demand reimbursement for the damages suffered as a consequence of illicit behavior of the public administration. This is one of the few cases in which the judex substantially makes law in a system of civil law, and the modification in incentive whether or not to be corrupted comes from an authority that is not part of the game (the jurisdictional power). Basing our affirmations on the model, we can say that corruption may have declined in Italy since the year 2000, as a result of a change in the incentives for both private agents and bureaucrats. Keywords: Bureaucrats, Government failure, Incentives, Market failure, Public goods Classification-JEL: K13, D23, H41 Creation-Date: 200601 Template-Type: ReDIF-Paper 1.0 Number: 2006.17 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-017.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.17 Title: The Timing of National Greenhouse Gas Emission Reductions in the Presence of Other Environmental Policies Author-Name: Rob B. Dellink Author-X-Name-First: Rob B. Author-X-Name-Last: Dellink Author-WorkPlace-Name: Wageningen University Author-Name: Marjan W. Hofkes Author-X-Name-First: Marjan W. Author-X-Name-Last: Hofkes Author-WorkPlace-Name: Vrije Universiteit Abstract: This paper shows in an empirical context that substantial cost reductions can be achieved in the implementation of Dutch national climate policy by (i) targeting the policy at the stock of greenhouse gases, thus allowing polluters flexibility in their timing of emission reductions; and (ii) integrating climate policy with other policies, thereby optimising the restructuring of the economy needed to achieve environmental policy targets. A dynamic applied general equilibrium model with bottom-up information on abatement techniques is used to show that the optimal timing of GHG emission reductions tends to follow the timing for the other environmental themes with an additional emphasis on emission reductions in the later periods. The optimal mix of technical measures and economic restructuring as source of emission reductions is affected by the strictness of environmental policy targets for all themes and hence can only be derived from an integrated analysis of these policies. Keywords: Economic growth, Applied general equilibrium model, Climate change, Environmental policy Classification-JEL: D58, H23, O41, Q28 Creation-Date: 200601 Template-Type: ReDIF-Paper 1.0 Number: 2006.18 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-018.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.18 Title: Distributional Impacts of Energy-Efficiency Certificates Vs. Taxes and Standards Author-Name: Philippe Quirion Author-X-Name-First: Philippe Author-X-Name-Last: Quirion Author-WorkPlace-Name: CIRED Abstract: Energy efficiency commitments, often associated with tradable energy efficiency certificates, dubbed "white certificates", were recently implemented in the United Kingdom and Italy and will soon start in France. Energy suppliers have to fund a given quantity of energy efficiency measures, or to buy "white certificates" from other suppliers who exceed their target. We develop a partial equilibrium model to compare white certificates to other policy instruments for energy efficiency, i.e., taxes and standards. Our conclusions are: First, if white certificates are chosen, each supplier's target should be set as a percentage of the energy they sell during the commitment period rather than in absolute terms, e.g. based on past variables. Indeed the latter solution decreases sharply energy suppliers' profit since they cannot pass the cost of certificate generation on to consumers. Such a system thus risks generating a fierce opposition from these industries. Furthermore, setting individual targets independently of the evolution of market shares seems unfair. At last, this system risks creating a large rebound effect, i.e., a large increase in energy services consumption. Second, compared to taxes and standards, white certificates (with targets in percentage of energy sold) seem particularly interesting to reach a certain level of energy savings while limiting distributional effects, thus to limit oppositions to its implementation. Furthermore, they generate less rebound effect than standards and seem more able than taxes to mobilise a part of the no regret potential. However if targets are too weak there is a real risk that white certificates systems fund mostly business-as-usual energy efficiency activities, thus having little impact while delaying the implementation of other policy instruments. Keywords: White certificate, Energy efficiency certificate, Energy savings, Energy efficiency, Standard, Tax, Rebound effect, No-regret potential Classification-JEL: Q38, Q48, Q58 Creation-Date: 200601 Template-Type: ReDIF-Paper 1.0 Number: 2006.19 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-019.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.19 Title: A Weak Bargaining Set for Contract Choice Problems Author-Name: Somdeb Lahiri Author-X-Name-First: Somdeb Author-X-Name-Last: Lahiri Author-WorkPlace-Name: Institute for Financial Management and Research Abstract: In this paper, we consider the problem of choosing a set of multi-party contracts, where each coalition of agents has a non-empty finite set of feasible contracts to choose from. We call such problems, contract choice problems. The main result of this paper states that every contract choice problem has a non-empty weak bargaining set. The need for such a solution concept which is considerably weaker than the core arises, since it is well known that even for very simple contract choice problems, the core may be empty. We also show by means of an example that the bargaining set due to Mas-Colell (1989), as well as a weaker version of it, may be empty for contract choice problems, thereby implying that the weakening we suggest is in some ways “tight” Keywords: Weak bargaining set, Contract choice, NTU game, Matching Classification-JEL: C78, D71 Creation-Date: 200601 Template-Type: ReDIF-Paper 1.0 Number: 2006.20 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-020.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.20 Title: Examining the Factors Influencing Environmental Innovations Author-Name: Massimiliano Mazzanti Author-X-Name-First: Massimiliano Author-X-Name-Last: Mazzanti Author-WorkPlace-Name: University of Ferrara Author-Name: Roberto Zoboli Author-X-Name-First: Roberto Author-X-Name-Last: Zoboli Author-WorkPlace-Name: CERIS-CNR Abstract: Technological innovation is a key factor for achieving a better environmental performance of firms and the economy as a whole, to the extent that it helps to increase the material/energy efficiency of production processes and to reduce emission/effluents associated to outputs. Environmental innovation may spur from exogenous driving forces, like policy intervention, and/or from endogenous factors associated to firm market and management strategies. Despite the crucial importance of research in this field, empirical evidence at firm microeconomic level, for various reasons, is still scarce. Microeconomic-based analysis is needed in order to assess what forces are lying behind environmental innovation at the level of the firm, where innovative practices emerge and are adopted. The paper exploits information deriving from two surveys conducted on a sample of manufacturing firms in Emilia Romagna region -Northern Italy- in 2002 and 2004, located in a district-intense local production system. New evidence is provided by testing a set of hypotheses, concerning the influence of: (i) firm structural variables; (ii) environmental R&D; (iii) environmental policy pressure and regulatory costs; (iv) past firm performances; (v) networking activities, (vi) other non-environmental techno-organizational innovations and (vii) quality/nature of industrial relations. We estimate input and output-based environmental innovation reduced form specifications in order to test the set of hypotheses. The applied investigation shows that environmental innovation drivers, both at input and output level, are found within exogenous factors and endogenous elements concerning the firm and its activities/strategies within and outside its natural boundaries. In the present case study, the usual structural characteristics of the firm and performances appear to matter less than R&D, induced costs, networking, organisational flatness and innovative oriented industrial relations. Environmental Policies and environmental voluntary auditing schemes exert some relevant direct and indirect effects on innovation, although evidence is mixed and further research is particularly needed. Although this new empirical evidence is focussing on a specific industrial territory, we provide food for discussion on firm environmental innovation strategies, and research suggestions for further empirical work. Keywords: Environmental innovation, Environmental R&D, Manufacturing sector, Local system, Environmental policy, Networking Classification-JEL: C21, L60, O13, O30, Q20, Q58 Creation-Date: 200601 Template-Type: ReDIF-Paper 1.0 Number: 2006.21 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-021.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.21 Title: Non-pecuniary Work Incentive and Labor Supply Author-Name: Y. Hossein Farzin Author-X-Name-First: Y. Hossein Author-X-Name-Last: Farzin Author-WorkPlace-Name: University of California Author-Name: Ken-Ichi Akao Author-X-Name-First: Ken-Ichi Author-X-Name-Last: Akao Author-WorkPlace-Name: Waseda University Abstract: Recognizing that people value employment not only to earn income to satisfy their consumption needs, but also as a means to gain socio-psychological (nonpecuniary) benefits, we show that once nonpecuniary work incentives are incorporated into standard labor supply theory, (i) the wage rate under-estimates (over-estimates) the true value of nonwork/leisure time when work has nonpecuniary benefits (costs), (ii) nonpecuniary benefits can be a substitute for monetary wages as work incentives, (iii) at very low wage rates, work can become a net source of utility, and (iii) the shape of labor supply curve differs from standard theory. We also identify conditions under which a greater nonpecuniary work incentive generates a larger individual labor supply, and examine the effects of non-wage income on labor supply both for paid and voluntary work. Keywords: Nonpecuniary incentives, Labor supply, Non-wage income, Voluntary work Classification-JEL: D62, J22, I31 Creation-Date: 200602 Template-Type: ReDIF-Paper 1.0 Number: 2006.22 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-022.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.22 Title: On the Robustness of Robustness Checks of the Environmental Kuznets Curve Author-Name: Marzio Galeotti Author-X-Name-First: Marzio Author-X-Name-Last: Galeotti Author-WorkPlace-Name: Fondazione Eni Enrico Mattei Author-Name: Matteo Manera Author-X-Name-First: Matteo Author-X-Name-Last: Manera Author-WorkPlace-Name: University of Milan-Bicocca and Fondazione Eni Enrico Mattei Author-Name: Alessandro Lanza Author-X-Name-First: Alessandro Author-X-Name-Last: Lanza Author-WorkPlace-Name: Eni S.p.A. and Fondazione Eni Enrico Mattei Abstract: Since its first inception in the debate on the relationship between environment and growth in 1992, the Environmental Kuznets Curve has been subject to continuous and intense scrutiny. The literature can be roughly divided in two historical phases. Initially, after the seminal contributions, additional work aimed to extend the investigation to new pollutants and to verify the existence of an inverted-U shape as well as assessing the value of the turning point. The following phase focused instead on the robustness of the empirical relationship, particularly with respect to the omission of relevant explanatory variables other than GDP, alternative datasets, functional forms, and grouping of the countries examined. The most recent line of investigation criticizes the Environmental Kuznets Curve on more fundamental grounds, in that it stresses the lack of sufficient statistical testing of the empirical relationship and questions the very existence of the notion of Environmental Kuznets Curve. Attention is drawn in particular on the stationarity properties of the series involved – per capita emissions or concentrations and per capita GDP – and, in case of unit roots, on the cointegration property that must be present for the Environmental Kuznets Curve to be a well-defined concept. Only at that point can the researcher ask whether the long-run relationship exhibits an inverted-U pattern. On the basis of panel integration and cointegration tests for sulphur, Stern (2002, 2003) and Perman and Stern (1999, 2003) have presented evidence and forcefully stated that the Environmental Kuznets Curve does not exist. In this paper we ask whether similar strong conclusions can be arrived at when carrying out tests of fractional panel integration and cointegration. As an example we use the controversial case of carbon dioxide emissions. The results show that more EKCs come back into life relative to traditional integration/cointegration tests. However, we confirm that the EKC remains a fragile concept. Keywords: Environment, Growth, CO2 Emissions, Panel data, Fractional integration, Panel cointegration tests Classification-JEL: O13, Q30, Q32, C12, C23 Creation-Date: 200602 Template-Type: ReDIF-Paper 1.0 Number: 2006.23 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-023.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.23 Title: When is it Optimal to Exhaust a Resource in a Finite Time? Author-Name: Y. Hossein Farzin Author-X-Name-First: Y. Hossein Author-X-Name-Last: Farzin Author-WorkPlace-Name: University of California Author-Name: Ken-Ichi Akao Author-X-Name-First: Ken-Ichi Author-X-Name-Last: Akao Author-WorkPlace-Name: Waseda University Abstract: Exhaustion of a natural resource stock may be a rational choice for an individual and/or a community, even if a sustainable use for the resource is feasible and the resource users are farsighted and well informed on the ecosystem. We identify conditions under which it is optimal not to sustain resource use. These conditions concern the discounting of future benefits, instability of social system or ecosystem, nonconvexity of natural growth function, socio-psychological value of employment, and strategic interaction among resource users. The identification of these conditions can help design policies to prevent unsustainable patterns of resource use. Keywords: Renewable resource management, Sustainability, Finite-time exhaustion, Optimal path, Policy implications Classification-JEL: Q20 Creation-Date: 200602 Template-Type: ReDIF-Paper 1.0 Number: 2006.24 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-024.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.24 Title: Non-pecuniary Value of Employment and Natural Resource Extinction Author-Name: Y. Hossein Farzin Author-X-Name-First: Y. Hossein Author-X-Name-Last: Farzin Author-WorkPlace-Name: University of California Author-Name: Ken-Ichi Akao Author-X-Name-First: Ken-Ichi Author-X-Name-Last: Akao Author-WorkPlace-Name: Waseda University Abstract: We assume that people value employment not only to earn income to satisfy their consumption needs but also as a means of community/social involvement that provides socio-psychological (non-pecuniary) benefits. We show that the latter incentive can encourage full employment harvesting resources and explain why poor resource-based communities may exhaust a natural resource in a finite time even if there is a sustainable path of resource consumption available. We show that communities could sustain their natural resources by using outside-the-community employment and economic diversification, but, to be effective, such policies must ensure that the outside wage rate and the initial capital stock are above certain minimum levels, which will be higher the longer these policies are delayed. Keywords: Non-pecuniary effects, Employment value, Resource extinction, Sustainability Classification-JEL: E24, O12, O13, Q28 Creation-Date: 200602 Template-Type: ReDIF-Paper 1.0 Number: 2006.25 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-025.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.25 Title: Analysis and Evaluation of Ecosystem Resilience: An Economic Perspective Author-Name: Lucia Vergano Author-X-Name-First: Lucia Author-X-Name-Last: Vergano Author-WorkPlace-Name: Università degli studi di Pavia Author-Name: Paulo A.L.D. Nunes Author-X-Name-First:Paulo A.L.D. Author-X-Name-Last: Nunes Author-WorkPlace-Name: University of Venice and Fondazione Eni Enrico Mattei Abstract: This paper focuses on the analyses and evaluation of resilience anchored in an economic perspective. Resilience, as well as most of the benefits provided by ecosystems, is not priced on current markets. However, this does not mean that resilience is of no value for humans. On the contrary, the interest of using an economic perspective, and the respective scientific methodology, will be put forward in terms of resilience relevance for ecosystems’ life and functioning, and its impact on human welfare. The economic perspective is anchored in an anthropocentric analysis meaning that resilience is evaluated in terms of provision of natural capital benefits. These, in turn, are interpreted as an insurance against the risk of ecosystem malfunctioning and the consequent interruption of the provision of goods and services to humans. For this analysis, we make use of a conceptual framework so as to identify and describe the different value components of resilience. Finally, we present an illustration that tackles the economic analysis and discussion of resilience benefits in the context of the Venice Lagoon. Keywords: Ecosystems’ resilience, Ecosystems’ thresholds, Natural insurance capital, Economic perspective, Economic value Classification-JEL: D62, H41, Q25, Q28, Q51 Creation-Date: 200602 Template-Type: ReDIF-Paper 1.0 Number: 2006.26 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-026.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.26 Title: Using Discrete Choice Experiments to Derive Individual-Specific WTP Estimates for Landscape Improvements under Agri-Environmental Schemes: Evidence from the Rural Environment Protection Scheme in Ireland Author-Name: Danny Campbell Author-X-Name-First: Danny Author-X-Name-Last: Campbell Author-WorkPlace-Name: Queen’s University Belfast Author-Name: W. George Hutchinson Author-X-Name-First: W. George Author-X-Name-Last: Hutchinson Author-WorkPlace-Name: Queen’s University Belfast Author-Name: Riccardo Scarpa Author-X-Name-First: Riccardo Author-X-Name-Last: Scarpa Author-WorkPlace-Name: University of Waikato and University of York Abstract: Reported in this paper are the findings from two discrete choice experiments that were carried out to address the value of a number of farm landscape improvement measures within the Rural Environment Protection (REP) Scheme in Ireland. Image manipulation software is used to prepare photorealistic simulations representing the landscape attributes across three levels to accurately represent what is achievable within the Scheme. Using a mixed logit specification willingness to pay (WTP) distributions based on the parameter estimates obtained from the individual conditional distributions are derived. These estimates are subsequently adjusted and combined to account for baselines and levels of improvement resulting from the implementation of the REP Scheme. Individual-specific WTP estimates are thus obtained for the contribution of the Scheme to rural landscapes and are subsequently contrasted with the average cost of the Scheme across the Irish adult population. Results indicate that the Scheme contributes substantial benefits to rural landscapes. Keywords: Agri-environment, Discrete choice experiments, Individual-specific WTP, Mixed logit Classification-JEL: Q51, Q24 Creation-Date: 200602 Template-Type: ReDIF-Paper 1.0 Number: 2006.27 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-027.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.27 Title: Estimating Feedback Effect in Technical Change: A Frontier Approach Author-Name: Vincent M. Otto Author-X-Name-First: Vincent M. Author-X-Name-Last: Otto Author-WorkPlace-Name: Massachusetts Institute of Technology Author-Name: Timo Kuosmanen Author-X-Name-First: Timo Author-X-Name-Last: Kuosmanen Author-WorkPlace-Name: Agrifood Research Finland Author-Name: Ekko C. van Ierland Author-X-Name-First: Ekko C. Author-X-Name-Last: van Ierland Author-WorkPlace-Name: Environmental Economics and Natural Resources University Abstract: This study examines whether today’s technical change depends on yesterday’s technical change. We propose to investigate this feedback effect by using the technical-change component of the Malmquist productivity index. This approach can overcome some problems in alternative patent-citation approaches. We apply the approach by estimating the feedback effect from production data of 25 OECD countries for 1980 through 1997. Our model yields evidence on a positive feedback effect with delays up till eight years. These findings are in line with patent-citation studies and bring us closer to a measure of the social returns to R&D. Keywords: Cross-country comparisons, Data envelopment analysis (DEA), Feedback effect, Malmquist productivity index, Technical change, Two-stage semiparametric estimation Classification-JEL: O47, O30, D24 Creation-Date: 200602 Template-Type: ReDIF-Paper 1.0 Number: 2006.28 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-028.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.28 Title: Uniqueness and Indeterminacy of Equilibria in a Model with Polluting Emissions Author-Name: Giovanni Bella Author-X-Name-First: Giovanni Author-X-Name-Last: Bella Author-WorkPlace-Name: University of Cagliari Abstract: Is pollution a dirty word? To answer this question we develop an endogenous growth model à la Rebelo (1991) where dirtiness becomes a fundamental choice variable for the economy to grow. Conclusions to our analysis say that a positive sustainable economic growth is attainable only if polluting production activities are taken into account. Moreover, transitional dynamics points out that local stability and uniqueness of equilibria are also achieved. Keywords: Environmental quality, Endogenous economic growth, Pollution-augmenting technology Classification-JEL: O41, Q01, Q32 Creation-Date: 200602 Template-Type: ReDIF-Paper 1.0 Number: 2006.29 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-029.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.29 Title: The Asymmetric Effects of Oil Shocks on Output Growth: A Markov-Switching Analysis for the G-7 Countries Author-Name: Matteo Manera Author-X-Name-First: Matteo Author-X-Name-Last: Manera Author-WorkPlace-Name: University of Milan-Bicocca and Fondazione Eni Enrico Mattei Author-Name: Alessandro Cologni Author-X-Name-First: Alessandro Author-X-Name-Last: Cologni Author-WorkPlace-Name: IMT Institute for Advanced Studies Abstract: In this paper we specify and estimate different Markov-switching (MS) regime autoregressive models. The empirical performance of the univariate MS models used to describe the switches between different economic regimes for the G-7 countries is in general not satisfactory. We extend these models to verify if the inclusion of asymmetric oil shocks as an exogenous variable improves the ability of each specification to identify the different phases of the business cycle for each country under scrutiny. Following the wide literature on this topic, we have considered six different definitions of oil shocks: oil price changes, asymmetric transformations of oil price changes, oil price volatility, and oil supply conditions. We measure the persistence of each economic regime, as well as the ability of each MS model to detect the business cycle dates as described by widely acknowledged statistical institutions. Our empirical findings can be summarized as follows. First, the null hypothesis of linearity against the alternative of a MS specification is always rejected by the data. This suggests that regime-dependent models should be used if a researcher is interested in obtaining statistically adequate representations of the output growth process. Second, three-regime MS models typically outperform the corresponding two-regime specifications in describing the business cycle features for each country. Third, the introduction of different oil shock specifications is never rejected. Fourth, positive oil price changes, net oil price increases and oil price volatility are the oil shock definitions which contribute to a better description of the impact of oil on output growth. Finally, models with exogenous oil variables generally outperform the corresponding univariate specifications which exclude oil from the analysis. Keywords: Oil shocks, Output growth, Markov-switching models Classification-JEL: E31, E32, E52, Q41 Creation-Date: 200602 Template-Type: ReDIF-Paper 1.0 Number: 2006.30 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-030.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.30 Title: Social Capital and Labour Productivity in Italy Author-Name: Fabio Sabatini Author-X-Name-First: Fabio Author-X-Name-Last: Sabatini Author-WorkPlace-Name: University of Rome La Sapienza Abstract: This paper carries out an empirical assessment of the relationship between social capital and labour productivity in small and medium enterprises in Italy. By means of structural equations models, the analysis investigates the effect of different aspects of the multifaceted concept of social capital. The bonding social capital of strong family ties and the bridging social capital shaped by informal ties connecting friends and acquaintances are proved to exert a negative effect on labour productivity, the economic performance, and human development. On the contrary, the linking social capital of voluntary organizations positively influences such outcomes. Keywords: Labour productivity, Small and medium enterprises, Social capital, Social networks, Structural equations models Classification-JEL: J24, R11, O15, O18, Z13 Creation-Date: 200602 Template-Type: ReDIF-Paper 1.0 Number: 2006.31 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-031.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.31 Title: Predicting one Shot Play in 2x2 Games Using Beliefs Based on Minimax Regret Author-Name: Andrea Gallice Author-X-Name-First: Andrea Author-X-Name-Last: Gallice Author-WorkPlace-Name: European University Institute Abstract: We present a simple procedure that selects the strategies most likely to be played by inexperienced agents who interact in one shot 2x2 matching pennies games. As a first step we axiomatically describe players’ beliefs. We find the minimax regret criterion to be the simplest functional form that satisfies all the axioms. Then we hypothesize players act as if they were best responding to the belief their opponent plays accordino to minimax regret. When compared with existing experimental evidences about one shot matching pennies games, the procedure correctly indicates the choices of around 80% of the players. Applications to other classes of games are also explored. Keywords: Predictions, Minimax regret, Beliefs, Matching pennies, Experiments Classification-JEL: C72, C91 Creation-Date: 200602 Template-Type: ReDIF-Paper 1.0 Number: 2006.32 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-032.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.32 Title: Assessing the Risk of Oil Spills in the Mediterranean: the Case of the Route from the Black Sea to Italy Author-Name: Andrea Bigano Author-X-Name-First: Andrea Author-X-Name-Last: Bigano Author-WorkPlace-Name: Fondazione Eni Enrico Mattei Author-Name: Paul Sheehan Author-X-Name-First: Paul Author-X-Name-Last: Sheehan Author-WorkPlace-Name: Fondazione Eni Enrico Mattei and École Polytechnique Fédérale de Lausanne Abstract: Recent major spills on European coasts have highlighted the primary policy relevance for the EU of oil spills. This paper assesses the risks related to carrying oil to the EU along the route from the Russian Black Sea coast to Sicily, Italy (one of the most congested and strategically relevant European import routes). We develop a methodology based on Fault Tree Analysis, and we apply it to the most likely causes of an oil spill. We couple the resulting probabilities with data on expected spill size, types of oil carried and cleanup costs, to estimate expected costs for cleanup and loss of cargo. The route analysed appears to be a risky one; there is a “high” to “very high” risk of a spill along this route. The Turkish Straits turn out to be the major danger point; however, there is no obvious hierarchy amongst the other sites along the route. Keywords: Oil spills, Cleanup costs, Risk analysis Classification-JEL: Q32, Q51, Q52, Q53 Creation-Date: 200602 Template-Type: ReDIF-Paper 1.0 Number: 2006.33 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-033.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.33 Title: Uncovering the Macrostructure of Tourists’ Preferences. A Choice Experiment Analysis of Tourism Demand to Sardinia Author-Name: Rinaldo Brau Author-X-Name-First: Rinaldo Author-X-Name-Last: Brau Author-WorkPlace-Name: University of Cagliari Author-Name: Davide Cao Author-X-Name-First: Davide Author-X-Name-Last: Cao Author-WorkPlace-Name: CRENoS Abstract: This paper studies the preferences of tourists visiting the island of Sardinia (Italy), by means of a choice modelling approach. The focus is on some specific demand-enhancing effects which should confirm the feasibility of implementing sustainable tourism policies. Multinomial logit estimations reveal the strong negative effects resulting from the congestion of tourist attractions and the major transformation of coastal environments. On the other hand, recreational services and the proximity of accommodation to the beaches also seem to be important. The computation of willingness to pay measures and choice probabilities for hypothetical destinations illustrate how this kind of approach can provide useful information in determining decision processes by policy makers and development agencies. Keywords: Tourism demand, Green preferences, Choice experiments, Stated preferences Classification-JEL: Q56, L83, C25 Creation-Date: 200602 Template-Type: ReDIF-Paper 1.0 Number: 2006.34 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-034.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.34 Title: Cooperation, Stability and Self-Enforcement in International Environmental Agreements: A Conceptual Discussion Author-Name: Henry Tulkens Author-X-Name-First: Henry Author-X-Name-Last: Tulkens Author-WorkPlace-Name: Center for operations research and econometrics (CORE) Author-Name: Parkash Chander Author-X-Name-First: Parkash Author-X-Name-Last: Chander Author-WorkPlace-Name: National University of Singapore Abstract: In essence, any international environmental agreement (IEA) implies cooperation of a form or another. The paper seeks for logical foundations of this. It first deals with how the need for cooperation derives from the public good aspect of the externalities involved, as well as with where the source of cooperation lies in cooperative game theory. In either case, the quest for efficiency is claimed to be at the root of cooperation. Next, cooperation is considered from the point of view of stability. After recalling the two competing concepts of stability in use in the IEA literature, new insights on the nature of the gamma core in general are given as well as of the Chander-Tulkens solution within the gamma core. Free riding is also evaluated in relation with the alternative forms of stability under scrutiny. Finally, it is asked whether with the often mentioned virtue of “self enforcement” any conceptual gain is achieved, different from what is meant by efficiency and stability. A skeptical answer is offered, as a reply to Barrett’s (2003) attempt at giving the notion a specific content. Keywords: International Environmental Agreements, Cooperation, Stability, Self-enforcement Classification-JEL: C6, C7, C71, D62, H23, Q58 Creation-Date: 200602 Template-Type: ReDIF-Paper 1.0 Number: 2006.35 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-035.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.35 Title: Environment, Human Development and Economic Growth Author-Name: Valeria Costantini Author-X-Name-First: Valeria Author-X-Name-Last: Costantini Author-WorkPlace-Name: Roma Tre University Author-Name: Salvatore Monni Author-X-Name-First: Salvatore Author-X-Name-Last: Monni Author-WorkPlace-Name: Roma Tre University Abstract: Over the last few years, environmental issues have entered into policy design, particularly development and growth policies. Natural resources are considered necessary production inputs and environmental quality is considered a welfare determinant. The integration of environmental issues into economic growth and development theories and empirics is currently widely analyzed in the literature. The effects of natural resources endowment on economic growth are mainly analyzed through the so-called Resource Curse Hypothesis (RCH) whereas the effects of economic growth on environmental quality are part of the Environmental Kuznets Curve (EKC). Furthermore, recent contributions on RCH and EKC have shown the important role of institutions and human development dimensions in building a sustainable development path. In this paper, we attempt to analyze the causal relationships between economic growth, human development and sustainability combining the RCH and EKC models and adopting a human development pers ective. Keywords: Natural Resources, Sustainability, Human Development, Trade Classification-JEL: O15, Q01, Q56 Creation-Date: 200602 Template-Type: ReDIF-Paper 1.0 Number: 2006.36 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-036.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.36 Title: Instinctive and Cognitive Reasoning: A Study of Response Times Author-Name: Ariel Rubinstein Author-X-Name-First: Ariel Author-X-Name-Last: Rubinstein Author-WorkPlace-Name: Tel Aviv University Abstract: Lecture audiences and students were asked to respond to virtual decision and game situations at gametheory.tau.ac.il. Several thousand observations were collected and the response time for each answer was recorded. There were significant differences in response time across responses. It is suggested that choices made instinctively, that is, on the basis of an emotional response, require less response time than choices that require the use of cognitive reasoning. Keywords: Response Times, Instinctive and Cognitive, Reasoning, Experimental Game Theory Classification-JEL: C9 Creation-Date: 200602 Template-Type: ReDIF-Paper 1.0 Number: 2006.37 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-037.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.37 Title: Choosing to Have Less Choice Author-Name: Maria Salgano Author-X-Name-First: Maria Author-X-Name-Last: Salgano Author-WorkPlace-Name: Northwestern University Abstract: This paper investigates choice between opportunity sets. I argue that individuals may prefer to have fewer options for two reasons: First, smaller choice sets may provide information and reduce the need for the agent to contemplate the alternatives. Second, contemplation costs may be increasing in the size of the choice set, making smaller sets more desirable even when they do not provide any information to the agent. I identify which of these reasons drives individual behavior in a laboratory experiment. I find strong support for both the information and cognitive overload arguments. The effects do not disappear as participants gain experience with the task. Applications of these results include firms’ choices of product variety, as costs increase with the number of products offered, and the design of government policies, such as the Medicare Drug Discount Card Program, in which older citizens can choose among numerous cards for discounts in prescription drugs. Keywords: Choice, Opportunity Sets Classification-JEL: C9, C91 Creation-Date: 200602 Template-Type: ReDIF-Paper 1.0 Number: 2006.38 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-038.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.38 Title: Does Envy Destroy Social Fundamentals? The Impact of Relative Income Position on Social Capital Author-Name: Benno Torgler Author-X-Name-First: Benno Author-X-Name-Last: Torgler Author-WorkPlace-Name: Yale Center for International and Area Studies Author-Name: Justina A.V. Fischer Author-X-Name-First: Justina A.V. Author-X-Name-Last: Fischer Author-WorkPlace-Name: Swiss Institute for International Economics and Applied Economic Research (SIAW) Abstract: Research evidence on the impact of relative income position on individual attitudes and behaviour is sorely lacking. Therefore, this paper assesses such positional impact on social capital by applying 14 different measurements to International Social Survey Programme data from 25 countries. We find support for a positional concern effect or ‘envy’ whose magnitude in several cases is quite substantial. The results indicate that such an effect is non-linear. In addition, we find an indication that absolute income level is also relevant. Lastly, changing the reference group (regional versus national) produces no significant differences in the results. Keywords: Relative Income Position, Envy, Positional Concerns, Social Capital, Social Norms, Happiness Classification-JEL: Z130, H260, I310, D000, D600 Creation-Date: 200602 Template-Type: ReDIF-Paper 1.0 Number: 2006.39 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-039.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.39 Title: Relative Income Position and Performance: An Empirical Panel Analysis Author-Name: Benno Torgler Author-X-Name-First: Benno Author-X-Name-Last: Torgler Author-WorkPlace-Name: Yale Center for International and Area Studies Author-Name: Sascha L. Schmidt Author-X-Name-First: Sascha L. Author-X-Name-Last: Schmidt Author-WorkPlace-Name: University of St. Gallen Author-Name: Bruno S. Frey Author-X-Name-First: Bruno S. Author-X-Name-Last: Frey Author-WorkPlace-Name: University of Zurich Abstract: Many studies have established that people care a great deal about their relative economic position and not solely, as standard economic theory assumes, about their absolute economic position. However, behavioral evidence is rare. This paper provides an empirical analysis on how individuals’ relative income position affects their performance. Using a unique data set for 1114 soccer players over a period of eight seasons (2833 observations), our analysis suggests that the larger the income differences within a team, the worse the performance of the soccer players is. The more the players are integrated in a particular social environment (their team), the more evident this negative effect is. Keywords: Relative Income, Positional Concerns, Envy, Performance, Social Integration Classification-JEL: D00, D60, L83 Creation-Date: 200602 Template-Type: ReDIF-Paper 1.0 Number: 2006.40 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-040.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.40 Title: Taxing Tourism in Spain: Results and Recommendations Author-Name: Xavier Labandeira Author-X-Name-First: Xavier Author-X-Name-Last: Labandeira Author-WorkPlace-Name: University of Vigo Author-Name: Alberto Gago Author-X-Name-First: Alberto Author-X-Name-Last: Gago Author-WorkPlace-Name: University of Vigo Author-Name: Fidel Picos Author-X-Name-First: Fidel Author-X-Name-Last: Picos Author-WorkPlace-Name: University of Vigo Author-Name: Miguel Rodríguez Author-X-Name-First: Miguel Author-X-Name-Last: Rodríguez Author-WorkPlace-Name: University of Vigo Abstract: This paper analyses the foundations, possible applications and the effects of tourism taxation in Spain. The article begins with an analysis of the economic and environmental reasons for taxing tourism, which would seem to call for taxes based on the principle of benefit, for either revenue or corrective purposes. Subsequently, we describe the praxis of tourism taxation in Spain, with special mention being given to the now repealed Balearic ecotasa. Finally, the effects of two fiscal modifications with revenue or corrective objectives are studied through the use of an applied general equilibrium model developed for the Spanish economy. We thus see that a 10% tax on lodging brings in significant public receipts, increases social welfare and has no effect on the environment. On the other hand, an increase of VAT rates on tourism-related sectors could have the same effects on tourist expenditure but at the costs of greater impact for Spain’s economy. Keywords: Taxes, Tourism, Environment, Spain Classification-JEL: H22, L83, Q28 Creation-Date: 200602 Template-Type: ReDIF-Paper 1.0 Number: 2006.41 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-041.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.41 Title: An Accidental Oil Spill Along the Belgian Coast: Results from a CV Study Author-Name: Karl van Biervliet Author-X-Name-First: Karl Author-X-Name-Last: van Biervliet Author-WorkPlace-Name: ECOLAS Author-Name: Dirk Le Roy Author-X-Name-First: Dirk Author-X-Name-Last: Le Roy Author-WorkPlace-Name: ECOLAS Author-Name: Paulo A.L.D. Nunes Author-X-Name-First: Paulo A.L.D. Author-X-Name-Last: Nunes Author-WorkPlace-Name: University of Venice and Fondazione Eni Enrico Mattei Abstract: This paper offers an economic assessment of the loss of non-use values resulting from different oil spill scenarios along the Belgian Coast. Estimation results show that if no oil spill prevention policy action is undertaken, a significant welfare loss may result. As a matter of fact, contingent valuation estimation results show such a welfare loss ranges from 120 million Euro to 606 million Euro, depending on the size and the frequency of the oil spill under consideration. Therefore, any investment program targeted at the prevention of oil spills, and its damage on the marine environment, can be clearly defended from a cost-benefit perspective as long as its cost is no higher than 120 million Euro. Keywords: Oil Spill, Prevention Scenario, Contingent Valuation, Cost Benefit Analysis Classification-JEL: Q51, Q53, Q54, Q58 Creation-Date: 200603 Template-Type: ReDIF-Paper 1.0 Number: 2006.42 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-042.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.42 Title: Endogenous Technology and Tradable Emission Quotas Author-Name: Michael Hoel Author-X-Name-First: Michael Author-X-Name-Last: Hoel Author-WorkPlace-Name: University of Oslo Author-Name: Rolf Golombek Author-X-Name-First: Rolf Author-X-Name-Last: Golombek Author-WorkPlace-Name: Frisch Centre Abstract: We study an international climate agreement that assigns emission quotas to each participating country. Unlike the simplest models in the literature, we assume that abatement costs are affected by R&D activities undertaken in all firms in all countries, i.e. abatement technologies are endogenous. In line with the Kyoto agreement we assume that the international climate agreement does not include R&D policies. We show that for a second-best agreement, marginal costs of abatement should exceed the Pigovian level. Moreover, marginal costs of abatement differ across countries in the second-best quota agreement with heterogeneous countries. In other words, the second-best outcome cannot be achieved if emission quotas are tradable. Keywords: Climate Policy, International Climate Agreements, Emission Quotas, Technology Spillovers Classification-JEL: H23, O30, Q20, Q25, Q28 Creation-Date: 200603 Template-Type: ReDIF-Paper 1.0 Number: 2006.43 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-043.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.43 Title: The Role of Agglomeration and Technology in Shaping Firm Strategy and Organization Author-Name: Giulio Cainelli Author-X-Name-First: Giulio Author-X-Name-Last: Cainelli Author-WorkPlace-Name: Università degli Studi di Bari Author-Name: Donato Iacobucci Author-X-Name-First: Donato Author-X-Name-Last: Iacobucci Author-WorkPlace-Name: Università Politecnica delle Marche Abstract: Over the last few years a growing number of contributions have shown that the presence of business groups, i.e. sets of firms legally distinct but belonging to the same owner(s), is significant. From a theoretical point of view, this presence poses the question of whether the group or the single legal unit should be considered as the elementary unit in economic analysis: i.e., what is generally meant in microeconomic theory by ‘firm’. In this paper we consider the group as the appropriate unit to delimit the firm’s boundary, i.e. as the ‘observed’ organizational form adopted by firms when they grow in size. Starting from this hypothesis, the main aim of this paper is to analyse the role of structural variables, such as spatial agglomeration and technology, in determining some features of business groups’ strategy and organization. Specifically, the analysis concerns the presence and organizational specificity of business groups based on their membership of industrial districts (as a proxy for spatial agglomeration) and to the role of spatial agglomeration and technology in vertical integration strategies. To conduct the analysis, we take advantage of a new and large data-set at firm and business group level, recently developed by ISTAT (the Italian National Statistical Institute). The data-set, referring to 2001, covers all manufacturing firms organized as joint-stock companies. Keywords: Business Groups, Agglomeration, Technology, Organisation and Strategy Classification-JEL: L22, R12 Creation-Date: 200603 Template-Type: ReDIF-Paper 1.0 Number: 2006.44 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-044.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.44 Title: Climate Change and Extreme Events: An Assessment of Economic Implications Author-Name: Roberto Roson Author-X-Name-First: Roberto Author-X-Name-Last: Roson Author-WorkPlace-Name: Università Ca’ Foscari di Venezia Author-Name: Alvaro Calzadilla Author-X-Name-First: Alvaro Author-X-Name-Last: Calzadilla Author-WorkPlace-Name: EEE Programme at the Abdus Salam ICTP Author-Name: Francesco Pauli Author-X-Name-First: Francesco Author-X-Name-Last: Pauli Author-WorkPlace-Name: University of Padua Abstract: We use a general equilibrium model of the world economy, and a regional economic growth model, to assess the economic implications of vulnerability from extreme meteorological events, induced by the climate change. In particular, we first consider the impact of climate change on ENSO and NAO oceanic oscillations and, subsequently, the implied variation on regional expected damages. We found that expected damages from extreme events are increasing in the United States, Europe and Russia, and Russia, and decreasing in energy exporting countries. Two economic implications are taken into account: (1) short-term impacts, due to changes in the demand structure, generated by higher/lower precautionary saving, and (2) variations in regional economic growth paths. We found that indirect short-term effects (variations in savings due to higher or lower likelihood of natural disasters) can have an impact on regional economics, whose order of magnitude is comparable to the one of direct damages. On the other hand, we highlight that higher vulnerability from extreme events translates into higher volatility in the economic growth path, and vice versa. Keywords: Climate Change, Extreme Events, Computable General Equilibrium Models, Precautionary Savings, Economic Growth Classification-JEL: D58, D91, Q54 Creation-Date: 200603 Template-Type: ReDIF-Paper 1.0 Number: 2006.45 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-045.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.45 Title: Effects of Great Barrier Reef Degradation on Recreational Demand: A Contingent Behaviour Approach Author-Name: Peter C. Roebeling Author-X-Name-First: Peter C. Author-X-Name-Last: Roebeling Author-WorkPlace-Name: CSIRO Sustainable Ecosystems Author-Name: M.E. Kragt Author-X-Name-First: M.E. Author-X-Name-Last: Kragt Author-WorkPlace-Name: University and Research Centre Author-Name: A. Ruijs Author-X-Name-First: A. Author-X-Name-Last: Ruijs Author-WorkPlace-Name: University and Research Centre Abstract: Degradation of coral reefs may affect the number of tourists visiting the reef and, consequently, the economic sectors that rely on healthy reefs for their income generation. A Contingent Behaviour approach is used to estimate the effect of reef degradation on demand for recreational dive and snorkel trips, for a case study of the Great Barrier Reef (GBR) in Australia. We assessed how reef degradation affects GBR tourism and to what extent reef-trip demand depends on the visitors’ socio-economic characteristics. A count data model is developed, and results indicate that an average visitor would undertake about 60% less reef trips per year given a combined 80%, 30% and 70% decrease in coral cover, coral diversity and fish diversity, respectively. This corresponds to a decrease in tourism expenditure for reef trips to the Great Barrier Reef Marine Park of about A$ 136 million per year. Keywords: Coral Reef, Recreation, Contingent Behaviour Model, Count Data Models Classification-JEL: Q25, Q26, Q51 Creation-Date: 200603 Template-Type: ReDIF-Paper 1.0 Number: 2006.46 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-046.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.46 Title: Network Analysis, Creative System Modelling and Decision Support: The NetSyMoD Approach Author-Name: Carlo Giupponi Author-X-Name-First: Carlo Author-X-Name-Last: Giupponi Author-WorkPlace-Name: Universita' degli Studi di Milano Author-Name: R. Camera Author-X-Name-First: R. Author-X-Name-Last: Camera Author-WorkPlace-Name: Fondazione Eni Enrico Mattei Author-Name: A. Fassio Author-X-Name-First: A. Author-X-Name-Last: Fassio Author-WorkPlace-Name: Fondazione Eni Enrico Mattei Author-Name: A. Lasut Author-X-Name-First: A. Author-X-Name-Last: Lasut Author-WorkPlace-Name: Fondazione Eni Enrico Mattei Author-Name: J. Mysiak Author-X-Name-First: J. Author-X-Name-Last: Mysiak Author-WorkPlace-Name: Fondazione Eni Enrico Mattei Author-Name: A. Sgobbi Author-X-Name-First: A. Author-X-Name-Last: Sgobbi Author-WorkPlace-Name: Fondazione Eni Enrico Mattei Abstract: This paper presents the NetSyMoD approach – where NetSyMod stands for Network Analysis – Creative System Modelling – Decision Support. It represents the outcome of several years of research at FEEM in the field of natural resources management, environmental evaluation and decision-making, within the Natural Resources Management Research Programme. NetSyMoD is a flexible and comprehensive methodological framework, which uses a suite of support tools, aimed at facilitating the involvement of stakeholders or experts in decision-making processes. The main phases envisaged for the process are: (i) the identification of relevant actors, (ii) the analysis of social networks, (iii) the creative system modelling and modelling of the reality being considered (i.e. the local socio-economic and environmental system), and (iv) the analysis of alternative options available for the management of the specific case (e.g. alternative projects, plans, strategies). The strategies for participation are necessarily context-dependent, and thus not all the NetSyMod phases may be needed in every application. Furthermore, the practical solutions for their implementation may significantly differ from one case to another, depending not only on the context, but also on the available resources (human and financial). The various applications of NetSyMoD have nonetheless in common the same approach for problem analysis and communication within a group of actors, based upon the use of creative thinking techniques, the formalisation of human-environment relationships through the DPSIR framework, and the use of multi-criteria analysis through the mDSS software. Keywords: Social Network, Integrated Analysis, Participatory Modelling, Decision Support Classification-JEL: Q01, Q25, Q28, Q5 Creation-Date: 200603 Template-Type: ReDIF-Paper 1.0 Number: 2006.47 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-047.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.47 Title: Measurement and Spatial Effects of the Immigrant Created Cultural Diversity in Sydney Author-Name: Walter F. Lalich Author-X-Name-First: Walter F. Author-X-Name-Last: Lalich Author-WorkPlace-Name: Macquarie University Abstract: This paper analyses the contribution to the creation of a culturally diverse Sydney landscape by ethnic communities following the arrival of over a million and half non-English speaking settlers since 1948. Through fragmented collective actions, around 450 communal places were established to satisfy collectively perceived needs: places of worship, social and sports clubs, schools, childcare and aged care. Immigrants organised to overcome problems of social deprivation and scarcity of public places. They created needed collective goods on their own, through mutuality and compensated for their own meagre material resources with engendered social capital, time and energy. The diversity and intensity of development reflects differences in the perception of the settlement needs, urgency and aims within diverse ethnic groups. Immigrants enhanced the quality of life and developed a liveable city. Collected data inform on the outcome, developed capacities, investment patterns, annual income and expenditure, usage, management and employment patterns, gender and youth participation, functions and generated activities. Keywords: Settlement, Ethnic, Collective Goods, Communal Places, Spatial Clusters Classification-JEL: D71, E22, F22, I31, J15, J17, L31, Z13 Creation-Date: 200604 Template-Type: ReDIF-Paper 1.0 Number: 2006.48 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-048.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.48 Title: Cultural Diversity Determining the Memory of a Controversial Social Event Author-Name: Elena Paspalanova Author-X-Name-First: Elena Author-X-Name-Last: Paspalanova Author-WorkPlace-Name: New Bulgarian University Abstract: A social event from the near past socio-political policy in Bulgaria – “State policy of changing the names of Turkish population living in Bulgaria” as a major element of the state revival process aiming at exterminating the ethnic differences in Bulgaria – was chosen to study the influence of cultural diversity on memories of that event. The study aims at revealing the hypothesized complex structure of indicators of cultural diversity, which determines memory of the social event. In respect to the controversial event being an object of the memory, the following indices of cultural diversity are chosen: Ethnicity (Bulgarians vs Turks), Religion (Christian Orthodox vs Muslim), Maternal language (Bulgarian vs Turkish), National identity (Bulgarian / Turkish vs European). The research focuses on the “cultural” characteristics of the self as an “experiencer” / “rememberer” as well, namely social orientation (individualistic vs collectivistic). A final set of control variables is the panel of socio-demographic characteristics (gender, age, educational level, and monthly income) included in order to clarify the expected multifaceted picture of the cultural diversity influencing the memory of a social event. Keywords: Controversial Event, Memory, Individualism, Collectivism, Cultural Diversity Indices Creation-Date: 200604 Template-Type: ReDIF-Paper 1.0 Number: 2006.49 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-049-1.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.49 Title: Perceived Diversity of Complex Environmental Systems: Multidimensional Measurement and Synthetic Indicators Author-Name: Ugo Gasparino Author-X-Name-First: Ugo Author-X-Name-Last: Gasparino Author-WorkPlace-Name: Fondazione Eni Enrico Mattei Author-Name: Barbara Del Corpo Author-X-Name-First: Barbara Author-X-Name-Last: Del Corpo Author-WorkPlace-Name: Fondazione Eni Enrico Mattei Author-Name: Dino Pinelli Author-X-Name-First: Dino Author-X-Name-Last: Pinelli Author-WorkPlace-Name: University of Bologna Abstract: The general attitude towards the sustainable management of environmental resources is evolving towards the implementation of ‘participatory’ (as opposed to the classical ‘command and control’) and, especially at local scale, ‘bottom up’ (as opposed to the classical ‘top down’) approaches. This progress pushes a major interest in the development and application of methodologies able to ‘discover’ and ‘measure’ how environmental systems tend to be perceived by the different Stakeholders. Due to the ‘nature’ of the investigated systems, often too ‘complex’ to be treated through a classical deterministic approach, as typical for ‘hard’ physical/mathematical sciences, any ‘measurement’ has necessarily to be multidimensional. In the present report an approach, more typical of ‘soft’ social sciences, is presented and applied to the analysis of the sustainable management of water resources in seven Southern and Eastern Mediterranean Watersheds. The methodology is based on the development and analysis (explorative factor analysis, multidimensional scaling) of a questionnaire and is aimed at the ‘discovery’ and ‘measurement’ of a latent multidimensional ‘underlying structure’ (‘conceptual map’). It is the opinion of the authors, that the identification of a set of ‘consistent’, ‘independent’, ‘bottom up’ and ‘shared’ synthetic indicators (aggregated indices) could be strongly facilitated by the interpretation of the dimensions of the emerging ‘underlying structure’. Keywords: Participative Approach, Cognitive Map, Factor Analysis, Indicators of Sustainability, Sustainable Water, Management Classification-JEL: C13, C42, D74, Q01, Q25 Creation-Date: 200604 Template-Type: ReDIF-Paper 1.0 Number: 2006.50 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-050.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.50 Title: Impact of Cultural Differences on Knowledge Transfer in British, Hungarian and Polish Enterprises Author-Name: Aleksandra Hauke Author-X-Name-First: Aleksandra Author-X-Name-Last: Hauke Author-WorkPlace-Name: University of Economics Abstract: The aim of the article is to verify the hypothesis, that despite the cultural differences existing among Great Britain, Hungary and Poland, all enterprises put much effort to ensure good conditions for knowledge sharing by their employees. It consists of two major parts. In the first one, the theoretical concepts of culture and knowledge are presented. In the second part, the interpretation of results obtained in research on macro and micro level analyses in three European countries are shown. The macro level analysis is based on the differences in cultural dimensions presented by G. Hofstede and R. Gestland while the micro level analysis is conducted based on the results of empirical investigation carried out by International Research Group: Marketing in the XXI century, among companies operating in Great Britain, Hungary and Poland. Results obtained through this survey are compared with cultural dimensions in order to see how significant the distance between the received theory and empirical investigation is. Keywords: Cultural Differences, Knowledge Transfer Classification-JEL: L10 Creation-Date: 200604 Template-Type: ReDIF-Paper 1.0 Number: 2006.51 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-051.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.51 Title: The Challenges of Data Comparison and Varied European Concepts of Diversity Author-Name: Katherine Marquand Forsyth Author-X-Name-First: Katherine Marquand Author-X-Name-Last: KForsyth Author-WorkPlace-Name: Istituto Psicoanalitico per le Ricerche Sociali (I.P.R.S.) Author-Name: Vanja M. K. Stenius Author-X-Name-First: Vanja M. K. Author-X-Name-Last: Stenius Author-WorkPlace-Name: Istituto Psicoanalitico per le Ricerche Sociali (I.P.R.S.) Abstract: Immigration to Germany, Italy and Finland represent different stages of the ‘new migration’ to Europe. The scale and types of immigration also differ between the three. Though each country is experiencing different stages of immigration, they all recognize the necessity to better integrate foreign minors. The three countries seem to have only recently started to regard themselves as countries of immigration. As a result, their policies towards foreign minors seem to be based on tolerating, not integrating them. The presence of foreign minors in the juvenile justice system is a reflection on their approaches and attitudes towards immigrants. Therefore, we set out on an 18-month project funded by the European Commission to study how being ‘foreign’ affects the treatment of minors in the penal systems in Italy, Germany and Finland. The project is called “INTO: Inside the Outsiders: Deviant Immigrant Minors and Integration Strategies in European Justice Systems.” In this paper, we will present the difficulties encountered when creating comparable data in terms of contrasting labels for and definitions of the target group and data collection as well as the solutions created for addressing these difficulties. At the outset of the project, it became clear that the terms used to define the target group had different meanings for each of the partners and one term was not deemed sufficient for use in all three contexts, both due to the immigration history in each country and due to the counting methods used by the data collection institutions in each country (National Censuses, Justice Systems, etc.). In the project proposal, we defined ‘immigrant minors’ as including two categories of children: 1) those born in the host country and are either naturalised citizens, hold dual citizenship or are permanent residents 2) children who immigrated to the host country with their family or by themselves. Yet statistical data in each country uses multiple and diverse terms to describe our target group – foreign minors, migrants, ethnic minorities, foreign citizens, etc. Clearly, this made the collection and comparison of three different sets of national statistics quite challenging. The diverse terminology and categorisation of ‘immigrant minors’ in the three countries made it difficult to find directly comparable statistics. The discussion of how to resolve this ‘technical’ difficultly revealed the different conceptions of what it means to be an ‘immigrant’ and a ‘minor’ in each country and within their respective social and judicial systems. This discussion reflected each country’s individual conceptions and laws regarding citizenship as well as their past and present approaches to integration. We argue that despite their different labels, social class and rights, foreigners, ethnic minorities and migrants share similar social conditions. Foreigners, even when they become citizens, still experience social constraints and suffer in the process of cultural integration. Migrants, who must overcome the legal and economic challenges and risks of migrating, have difficulty fully integrating into the host society. The second generation seems to experience greater frustration from their continued exclusion. Ethnic minorities are often identifiable and visibly different from the majority which prevents their full integration despite being long-established in a country. They all remain ‘foreign’ from the perspective of the autochthonous population. And when examining discrimination, we find that these terms often overlap and are used interchangeably. Given this background, it is no wonder that there are difficulties in addressing this ‘new migration’ to Europe. The social conflicts arising from the recent migration, during the last fifty years (at most), cannot be easily understood in terms of class, racial or ethnic conflict. While we might say the subjects of this conflict belong to a socially disadvantaged group or that our societies are quick to discriminate against them, we cannot, since the situation is still not clear. What is clear is that it will continue to be difficult to study these difficult issues in a European setting if we lack of adequate, comparable data collection techniques in Europe. However, refining the techniques will require serious reflection and discussion of the terms currently in use and of the theoretical approaches to immigration in each of the European member states. This is a reflection we intend to begin in this paper. Keywords: Diversity, Immigrant Minors, Marginalisation, Criminality Classification-JEL: Creation-Date: 200604 Template-Type: ReDIF-Paper 1.0 Number: 2006.52 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-052.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.52 Title: Rethinking the Gains from Immigration: Theory and Evidence from the U.S. Author-Name: Gianmarco I.P. Ottaviano Author-X-Name-First: Gianmarco I.P. Author-X-Name-Last: Ottaviano Author-WorkPlace-Name: University of Bologna Author-Name: Giovanni Peri Author-X-Name-First: Giovanni Author-X-Name-Last: Peri Author-WorkPlace-Name: University of California, Davis and NBER Abstract: The standard empirical analysis of immigration, based on a simple labor demand and labor supply framework, has emphasized the negative impact of foreign born workers on the average wage of U.S.-born workers (particularly of those without a high school degree). A precise assessment of the average and relative effects of immigrants on U.S. wages, however, needs to consider labor as a differentiated input in production. Workers of different educational and experience levels are employed in different occupations and are therefore imperfectly substitutable. When taking this approach, one realizes that foreign-born workers are “complements” of U.S.-born workers in two ways. First, foreign-born residents are relatively abundant in the educational groups in which natives are scarce. Second, their choice of occupations for given education and experience attainments is quite different from that of natives. This implies that U.S.- and foreign-born workers with similar education and experience levels are imperfectly substitutable. Accounting carefully for these complementarities and for the adjustment of physical capital induced by immigration, the conventional finding of immigration’s impact on native wages is turned on its head: overall immigration over the 1980- 2000 period significantly increased the average wages of U.S.-born workers (by around 2%). Considering its distribution across workers, such an effect was positive for the wage of all native workers with at least a high school degree (88% of the labor force in year 2000), while it was null to moderately negative for the wages of natives without a high school degree. Keywords: Foreign-Born, Skill Complementarities, Wages, Gains from Migration Classification-JEL: F22, J61, J31 Creation-Date: 200604 Template-Type: ReDIF-Paper 1.0 Number: 2006.53 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-053.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.53 Title: From Statistical to Geolinguistic Data: Mapping and Measuring Linguistic Diversity Author-Name: Monica Barni Author-X-Name-First: Monica Author-X-Name-Last: Barni Author-WorkPlace-Name: Università per Stranieri di Siena Abstract: The aim of this paper is describing a new methodology for mapping and measuring linguistic diversity in a territory. The three methods that have been created by the Centro di eccellenza della ricerca Osservatorio linguistico permanente dell’italiano diffuso fra stranieri e delle lingue immigrate in Italia at the Università per Stranieri di Siena are the following: - the Toscane favelle model, a procedural application which passes from quantitative statistical data to a demolinguistic paradigm; - the Monterotondo-Mentana model. The surveys of quantitative and qualitative data are carried out using traditional tools (questionnaires, audio and video recordings) as well as advanced technologies; - the Esquilino model. Digital maps are created which present the distribution of the immigrant languages through the presence of signs in linguistic landscape. The final objective is putting together the data surveyed by the three methods in order to have a “speaking” territory, in which each point surveyed identifies the languages spoken and the various linguistic manifestations. Keywords: Language Contact, Linguistic Diversity, Immigrant Languages, Geolinguistic Data, New Methodologies in Sociolinguistic Research Classification-JEL: I28 Creation-Date: 200604 Template-Type: ReDIF-Paper 1.0 Number: 2006.54 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-054.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.54 Title: Economic Integration and Similarity in Trade Structures Author-Name: Lucia Tajoli Author-X-Name-First: Lucia Author-X-Name-Last: Tajoli Author-WorkPlace-Name: Politecnico di Milano Author-Name: Lucia De Benedictis Author-X-Name-First: Luca Author-X-Name-Last: De Benedictis Author-WorkPlace-Name: Università di Macerata Abstract: In this paper we look at the similarity of trade structures in an integrating area. In particular, we analyse the export flows toward the EU market of four of the so-called “accession countries" of Central and Eastern Europe by comparing them to those of the pre-2004 members of the European Union (EU15). From a methodological point of view, we evaluate the appropriateness of different classes of similarity indices - correlation indices and distance metrics - opting for the use of the Bray-Curtis semi-metric to assess changes in the trade similarity. We examine its evolution over time - from 1989 to 2001 - considering both self-similarity (how the export composition of a CEEC has changed with respect to the beginning of the transition process) and EU-similarity (if and how the export composition of a CEEC has changed with respect to the EU15 export composition). Finally, we use EU-similarity matrices to test if the dynamics of sectoral distribution of total exports of Poland, Hungary, Romania, and Bulgaria to the EU is related to the role acquired by processed trade in the 1990s. Using a nonparametric Mantel test we give evidence that: (1) processed trade is crucial in explaining changes in the overall structure of exports of transition countries, and (2) that greater economic integration in terms of trade flows and processing trade does not always lead to greater export similarity between the CEECs and the EU15 member States. Keywords: EU, CEECs, Transition, Similarity, Nonparametrics Classification-JEL: F3, F42 Creation-Date: 200604 Template-Type: ReDIF-Paper 1.0 Number: 2006.55 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-055.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.55 Title: “God’s little acre” and “Belfast Chinatown”: Diversity and Ethnic Place Identity in Belfast Author-Name: Suzanna Chan Author-X-Name-First: Suzanna Author-X-Name-Last: Chan Author-WorkPlace-Name: University of Ulster Abstract: For members of ethnic minorities in Northern Ireland, place making can mean negotiating challenges posed by tensions between the two majority communities of Catholic, nationalist, republican and Protestant, unionist, loyalist; tensions which are reflected in contests over place identity. In Belfast, the Chinese Welfare Association (CWA) has undertaken two building projects to service the needs of the Chinese community and to promote diversity, engaging in close consultation with local communities. Hong Ling Gardens Chinese Sheltered Housing Scheme provides culturally sensitive sheltered accommodation for Chinese elders. The second building will provide a Chinese Community and Resource Centre, and construction is planned to commence in December 2006. This paper highlights how the CWA has met challenges posed by territoriality, and anxieties in relation to perceived changes in politico-cultural place identities, within the complexities of Northern Ireland. It uses semi-structured interviews, cultural and social theory, consultation of meeting reports, and empirical observation. Keywords: Northern Ireland, Diversity, Chinese Community, Place Identity, Racism Classification-JEL: Creation-Date: 200604 Template-Type: ReDIF-Paper 1.0 Number: 2006.56 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-056.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.56 Title: Cultural Diversity in People’s Attitudes and Perceptions Author-Name: Diana Petkova Author-X-Name-First: Diana Author-X-Name-Last: Petkova Author-WorkPlace-Name: Sofia University ‘St. Kliment Ohridski’ Abstract: This paper shares the approach of social constructivism, and maintains that diversity should be examined not ‘par excellence’, as an entity in itself, but as reflected in people’s minds and expressed in their attitudes and perceptions. On the basis of an empirical Bulgarian-Finnish intercultural research the paper states that diversity is not essential, given and unproblematic. Rather, it undergoes constant evolution. What is considered now ‘different’ can in future be seen as more or less ‘similar’. The informants characterized people with a religious, ethnic or racial background, other than theirs, as ‘distant’ and ‘different’, while people belonging to groups with the same origin were designated as ‘similar’ and ‘close’. This means that cultural diversity can also be translated into a social-psychological distance. Thus diversity is context-bound and cultural groups are always seen and appraised from the perspective of one’s own particular cultural paradigm. Keywords: Diversity, ‘Self’, ‘Other’, Attitudes, Perceptions Classification-JEL: Z, Z19 Creation-Date: 200604 Template-Type: ReDIF-Paper 1.0 Number: 2006.57 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-057.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.57 Title: From Outsiders to On-Paper Equals to Cultural Curiosities? The Trajectory of Diversity in the USA Author-Name: John J. Betancur Author-X-Name-First: John J. Author-X-Name-Last: Betancur Author-WorkPlace-Name: University of Illinois at Chicago Abstract: This paper examines the genesis and trajectory of diversity in the USA. It argues that unfortunately diversity was more a product of market interests and differential processes in the recruitment of workers at different times and for different purposes than a smooth process of incorporation of immigrant groups from different cultures and continents. At the end, diversity assumed a highly hierarchical form with blacks at the bottom and whites at the top within a framework of manifest destiny and inequality. Confronting an unequal status, non-whites engaged in group-based struggles that transformed them into political communities and the process into a social struggle. The paper concludes with a call for European countries to learn from this experience and try to preempt it by moving to incorporate newcomers in such a way that they become fully contributing members of the societies they enter within a mutually transforming process Keywords: Diversity, Race Relations, Racial Politics, Immigrants, Identity Formation Classification-JEL: Creation-Date: 200604 Template-Type: ReDIF-Paper 1.0 Number: 2006.58 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-058.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.58 Title: Cultural Diversity A Glimpse Over the Current Debate in Sweden Author-Name: Kiflemariam Hamde Author-X-Name-First: Kiflemariam Author-X-Name-Last: Hamde Author-WorkPlace-Name: Umeå University Abstract: A year and a half ago, the Swedish government decided 2006 to be The Year for Cultural Diversity (Agenda för Mångkultur, 2005). The general purpose, according to the directive, is to facilitate the possibilities for all citizens to participate in all aspects of the cultural life by enhancing appropriate arenas for different traditions (Agenda för Mångkultur, 2005). This policy decision was not a surprise to both observers and participants of the diversity debate. There has been a growing interest in the virtues of diversity for business effectiveness and success (mångfald.com), heightened scrutiny of institutional and organizational life by the mass media, and legitimizing debates by political parties which had always had some form of concern for diversity, if not for its own sake, at least for capitalizing on the legitimacy of diversity politics in the expectation of local and parliament elections next September. The proclamation of 2006 as a Year for Cultural diversity thus comes naturally from the broadened debates and organizational programs, each actor trying to get legitimacy by using the concept of cultural diversity to suit the demands of the times. Indeed, cultural diversity has become a priority agenda for any legitimate actor, at least in terms of programs and polices, if not in action. Moreover, the coordinator of the 2006 Cultural Year consistently promised in the mass media that this would be “the starting point”, and not merely a celebratory performance (VK, 28 October 2005; DN 3 January 2006). Already, what are called as the Cultural diversity consultants had worked since 2003 in eight counties as a partial preparation for this year, and to raise the consciousness of relevant actors in the field of culture and cultural institutions, especially those financed by state money. Private cultural associations, however, are invited to participate during the diversity year but they were not invited to co-design the contents of the diversity year. This paper is concerned with describing the concept of diversity as used by the different actors in this context, and also examines the background that has led to the decision of the Cultural Year. An implicit concern is scrutinizing whether in fact this year would be a starting point for more deeply engaged diversity programs and actions or a symbolic act of window dressing. The concerned actors base the paper on accounting the background to the Diversity debate in Sweden, and the different expected programs and agendas. As such, the paper is based on analysis of documents and agendas, interviews with different actors and two multicultural consultants at the county level. Additionally, the author also participated in a couple of seminars and conferences and video-filmed some of the speeches by different presenters to capture the patterns of the debate/discourse on Cultural diversity. Implicit discussion is whether the current interest on diversity may lead to its institutionalization in the Swedish society organizations (Scott 1995, Hamde, 2002), or it simply is a ‘traveling’ idea to appear occasionally and then occur in fashion-like manner as many management ideas (Czarniawska & Joerges, 1996). As pointed out in the sub-title this paper brings provides only a mere glimpse at the huge subject and the debate. Keywords: : Actors, cultural diversity, institutionalization, multicultural consultants, multicultural year, Swedish debate Classification-JEL: Creation-Date: 200604 Template-Type: ReDIF-Paper 1.0 Number: 2006.59 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-059.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.59 Title: Indicators of Migrants’ Socio-Professional Integration Author-Name: Emilio Gregori Author-X-Name-First: Emilio Author-X-Name-Last: Gregori Author-WorkPlace-Name: Social Research Institute Abstract: Understanding and monitoring the diversity which lies under migrants’ socio-professional integration trends is a challenge that both Governments and local administrations must be able to face. This paper is about a research project, developed under the EU initiative Equal, consisting in the establishment of a set of indicators of professional and social integration of migrant people in Italy, based on data collected from administrative and official sources. This work was carried out starting from a literature analysis of both theoretical and empirical experiences in the Italian context. The problem of the theoretical concept of migrants, foreigners and integration was discussed, as well as the matters concerning the dimensions of professional integration, the reliability of sources, the methodology, the operating definition of indicators and above all the correct interpretation of quantitative results, from the point of view of the level of integration. The set of indicators was empirically implemented for a first validation at a national, regional and local level, building annual time series from 1996 to 2001. Studying socio-economic migrants integration is a key challenge in order to offer tools for the implementation of policies able to promote equal opportunities of access and mobility in the labour market. Active policy promotion, i.e. the support of foreign people in the acquisition of the basic linguistic skills and in lifelong-learning, is a useful way not only to promote occupation but also to prevent discrimination problems in the workplace: the correct implementation of these policies is possible only if based on multidimensional analysis of migrants placement in the labour market. Keywords: Indicators, Migrants, Integration Classification-JEL: J15 Creation-Date: 200604 Template-Type: ReDIF-Paper 1.0 Number: 2006.60 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-060.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.60 Title: Unity in Diversity Through Art? Joseph Beuys’ Models of Cultural Dialogue Author-Name: Christa-Maria Lerm Hayes Author-X-Name-First: Christa-Maria Author-X-Name-Last: Lerm Hayes Author-WorkPlace-Name: University of Ulster Abstract: This essay proposes the artist Joseph Beuys and his work as paradigmatic for art that through its own diversity of approach can show possibilities for addressing diverse audiences, diverging receptions and modes of participation. It arises from a symposium on the occasion of the 20th anniversary of the artist’s death held at the Goethe Institut Dublin, 23 January 2006. The argument focuses on Beuys practice from his Ulysses-Extension to the Migration Workshop at documenta 6, 1977, the FIU, as well as his work (and legacy) in Ireland. Relevant theories include Ecos openness and Adorno’s negative and positive representation, since Beuys works relationship to the Holocaust and trauma turns out to be central. Beuys is offered as predecessor of current discourse such as Bourriaud’s Relational Aesthetics and Documenta11. The article concludes with a new theoretization of participation in culture, Irit Rogoff’s Looking Away. It is supported by Beuys multi-layered, diversity-sustaining practice. Keywords: Cultural Dialogue, Joseph Beuys, Diversity, Reception, Participation, Migration, documenta, FIU, Ireland, Openness, Holocaust, Trauma, Relational Aesthetics Classification-JEL: Z13, Z19 Creation-Date: 200604 Template-Type: ReDIF-Paper 1.0 Number: 2006.61 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-061.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.61 Title: Ethnic Minorities Rewarded: Ethnostratification on the Wage Market in Belgium Author-Name: Sara Vertommen Author-X-Name-First: Sara Author-X-Name-Last: Vertommen Author-WorkPlace-Name: Catholic University Leuven Author-Name: Albert Martens Author-X-Name-First: Albert Author-X-Name-Last: Martens Author-WorkPlace-Name: Catholic University Leuven Abstract: Several previous researches have confirmed the hypothesis of ethnostratification, which holds that the labour market is divided into different ethnic layers. While people of a European origin are over-represented in the top layers (the primary market), people with non-European roots and/or nationalities are more concentrated in bottom layers (the secondary market). Relative to the primary market, this secondary market is characterized by a higher chance of unemployment, lower wages, poorer working conditions and greater job insecurity. This paper deals with a very important condition of work: the wage. Does origin have an impact on the level of wage? We make a distinction between nine origin groups: Belgians, North en West Europeans, South Europeans (from Greece, Spain, Portugal), Italians, East Europeans, Moroccans, Turks, Sub Sahara Africans and Asians. The first part of this article briefly describes the database used for the analyses and presents a few general figures for the total Belgian population. In the second part we examine the impact of origin on wage levels. For each origin group we will give an overview of the average daily wages and the partition over the wage classes. For the “weaker” populations, gender and age are taken into account. Finally, by means of a regression analysis, we will examine the influence of origin while controlling a few other variables that may influence the wage level. Keywords: Origin, Wage Levels and Distributions, Ethnostratification, Valuable Database Classification-JEL: J31, J21, J71 Creation-Date: 200604 Template-Type: ReDIF-Paper 1.0 Number: 2006.62 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-062.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.62 Title: Diversity and Pluralism: An Economist's View Author-Name: Nicola Genovese Author-X-Name-First: Nicola Author-X-Name-Last: Genovese Author-WorkPlace-Name: University of Messina Author-Name: Maria Grazia La Spada Author-X-Name-First: Maria Grazia Author-X-Name-Last: La Spada Author-WorkPlace-Name: University of Messina Abstract: The problems about diversity concern various themes. We will show that the economic theory can contribute by itself to the debate in progress. It could seem paradoxical, but what is called the “dismal science” can serve to attenuate some pessimistic attitudes, putting in prominence a perspective for humanity which is desired. To introduce such contribution, we have examined some essential characteristics of neoclassic theory, regarding the typical features of the individual which it assumes and the principle of “rationality”. Our analysis emphasizes the importance of the economy of market which prevails on other economic systems and makes possible the realization of a “culturally sustainable development”. It also examines the economic benefits of diversity both on the function production and the possibility to have a dynamic demand of goods. The difference between integration and homogenization will be treated and also the importance of international commerce and direct investments. Keywords: Neoclassical Theory and Diversity, Productive Benefits of Ethnic Diversity, Cultural Pluralism Classification-JEL: D2, O3, O31 Creation-Date: 200604 Template-Type: ReDIF-Paper 1.0 Number: 2006.63 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-063.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.63 Title: Italian Schools and New Linguistic Minorities: Nationality Vs. Plurilingualism. Which Ways and Methodologies for Mapping these Contexts? Author-Name: Carla Bagna Author-X-Name-First: Carla Author-X-Name-Last: Bagna Author-WorkPlace-Name: Università per Stranieri di Siena Abstract: According to the latest findings of the MIUR (Ministry of Education, University and Research), Alunni con cittadinanza non italiana 2004-2005 (MIUR, October 2005), 4.2% of the school population in Italy is made up of non-Italian citizens, with no reference to students who have one Italian parent or adopted children. These findings show that schools have become multilingual, not so much or solely because of the proposed linguistic offerings, nor for the linguistic heritage of Italian-speakers, which alternates among dialect, regional Italian and standard Italian, but mostly because of the dimension created by the contacts developed between different linguistic and cultural heritages. The paper aims at emphasizing and showing different ways for mapping the role played and the weight exercised by these “new linguistic minorities” – (defined as such) so-called because they are related to immigrant settlements in the territory and, hence, “immigrant languages” – in redefining the linguistic landscape of a school and of a territory. Keywords: Language Contact, Immigrant Languages, School System, Linguistic-Cultural Identity Classification-JEL: I, I2, I21 Creation-Date: 200604 Template-Type: ReDIF-Paper 1.0 Number: 2006.64 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-064.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.64 Title: Understanding “Diversity in Organizations” Paradigmatically and Methodologically Author-Name: Vedran Omanovic Author-X-Name-First: Vedran Author-X-Name-Last: Omanovic Author-WorkPlace-Name: The University of Gothenburg Abstract: This paper is part of a larger dissertation project named: A Production of Diversity: Appearances, Ideas, Interests, Actions, Contradictions and Praxis. In this dissertation project, which is planned to be completed by the first half of 2006, I have attempted to describe, understand and analyse a process of diversity production at a large manufacturing company, which is located in Sweden and owned by a large American company (for the reason of confidentiality the name of the studied company, which is a large, technical-oriented company, has been changed and some of the information is modified, while another cannot be offered because it would expose the company. The studied manufacturing company will from now be called Diversico). My ambition with this paper is to call attention to different paradigmatical and methodological ways of understanding and studying “diversity in organizations”. A starting-point for my discussion here is an assumption that researchers, by exploring different social phenomena (including “diversity in organizations”), bring their different sets of assumptions to what the studied phenomenon is (or could be) but also at the same time make assumptions on what organizations are (or could be). In other words, researchers, by studying “diversity in organizations” (as well as other social phenomena) construct ideas of diversity by positioning this phenomenon differently, asking different questions or designing research projects differently. In that sense I try to actively engage in both showing some benefits and limits in the present literature and searching for new theoretical and methodological possibilities. In that sense, I give some empirical illustrations inspired by one of these other possibilities. More concretely, I show how my study fulfils images of diversity as actively produced and positioned significant issues, and as domination of particular sectional interests. Furthermore I give illustrations of universalization and naturalization of some aspects of diversity, as identified in the studied process of diversity production at the manufacturing company. Keywords: Diversity, Critical Theory, Social-Historical Context and Domination Classification-JEL: Creation-Date: 200604 Template-Type: ReDIF-Paper 1.0 Number: 2006.65 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-065.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.65 Title: Identifying and Assessing the Development of Populations of Undocumented Migrants: The Case of Undocumented Poles and Bulgarians in Brussels Author-Name: Mila Paspalanova Author-X-Name-First: Mila Author-X-Name-Last: Paspalanova Author-WorkPlace-Name: Catholic University of Leuven Abstract: The stocks of undocumented migrants residing on the territory of Europe and the continuous flows of clandestine migrants are currently one of the "hottest" social and political topics. Even though the issue of irregular migration is on the top of many political and academic agendas the knowledge about who the undocumented migrants are, how they can be identified and how their population in a country develops numerically, remains limited. In this context, the aim of the current paper is twofold. In the first place, snowball sampling will be introduced as a technique for identifying undocumented migrants on the territory of a country and in the second, the empirical results from sampling and assessing the stability of the populations of undocumented Poles and Bulgarians in Brussels will be presented. Keywords: Snowball Sampling, Undocumented Migrants Classification-JEL: C89 Creation-Date: 200604 Template-Type: ReDIF-Paper 1.0 Number: 2006.66 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-066.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.66 Title: Diversities in Diversity: Exploring Moroccan Migrants’ Livelihood in Genoa Author-Name: Roberto Alzetta Author-X-Name-First: Roberto Author-X-Name-Last: Alzetta Author-WorkPlace-Name: University College London UCL Abstract: It is a largely accepted idea that complexity and recent global phenomena have generated a multi-layered diversification process in Western societies. Migration phenomena are largely responsible for this process both in receiving European societies as well as in original sending countries. Migration has been and continues to be a ubiquitous human experience. Yet, while this fact has aided the understanding of the world as something other than a mosaic of distinct cultural spaces with clearly demarcated borders, it has not decreased the incomprehension, fear and suspicion with which non–European migrants are often greeted within the industrialised cities of Europe. This article deals with one aspect of this process that seems to be quite underestimated in media, public opinion and academia. It is the idea that “ethnicity” can be approached, explored and investigated as a heterogeneous and multi-faced form of diversity itself. This is what can be defined as “diversities within diversity”. Departing from the presentation of an empirical research in Genoa it will be possible to analyse these phenomena at two different levels: namely, in terms of methods and methodology. By focusing on the idea of livelihood and employing an approach based on “Tracing” techniques, different ways of acting and being Moroccan migrants in Genoa will be revealed, presented and discussed. This method newly integrates both quantitative and qualitative information. It will allow us to analyse the experience of livelihood in a way that will reveal the simultaneous existence of many underlying different invisible and unconscious social constructions as well as visible concrete and conscious expressions of everyday life. Disclosing how the same people in the same local context produce different “adaptive” strategies and lifestyles will lead to outline a potential conceptual methodological framework of reference based on an open/close principle. In this case ideas of openness and closeness will be assumed in a dialectical double-faced process. It is not only a matter of how systems can be defined open or closed by themselves, but also how the encounter and interplay of many different systems – generation of diversity - establish the conditions and limits within which different individuals can reproduce their culture as social actors- production of diversities. After having discussed the methodological implications of this approach it will be possible to draw some final theoretical considerations. If we believe that new ways of investigating social phenomena are a determinant in the way we describe, analyze, explain and understand their complexity, we should recognize that not only theory might generate and define what we call social reality but also vice-versa. Approaching the world out there in new ways might result in rethinking and adjusting the conceptual taxonomies that drive social scholars in their search for gaining and catching social reality. This principle becomes crucial if we want social sciences to be heuristically oriented, in other words if we want to develop the capacity to hand back positive analytical readings and comparisons of social phenomena as well as useful recommendations for policy makers. Keywords: Migration, Italy, Morocco, Methodology, Tracing, Open/close Model Classification-JEL: F22, O15, J15, O18 Creation-Date: 200604 Template-Type: ReDIF-Paper 1.0 Number: 2006.67 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-067.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.67 Title: Multivariate and Multicriteria Evaluation of Labour Market Situation Author-Name: Monika Sedenkova Author-X-Name-First: Monika Author-X-Name-Last: Sedenkova Author-WorkPlace-Name: VSB – Technical University Author-Name: Jiri Horak Author-X-Name-First: Jiri Author-X-Name-Last: Horak Author-WorkPlace-Name: VSB – Technical University Abstract: Nowadays the analysts of labour markets have a lot of different data and indicators that can be used for the evaluation of the labour market and monitor its development. But such a great number of monitoring determinants can create problems both with the evaluation and with the description of the situation of the labour market. Thus it is necessary to select a limited number of important indicators. A tool that can help with the selection of these indicators is a method of multidimensional statistics – multivariate analysis. In some cases it is necessary to use only one complex indicator that can evaluate the labour market from a lot of aspects. For a solution we can use multicriteria evaluation. These methods are described in this paper. We recommend a procedure for the in-depth study of the labour market situation. Keywords: Labour Market, GIS, Factor Analysis, Multicriteria Evaluation Classification-JEL: C, C3, C30 Creation-Date: 200604 Template-Type: ReDIF-Paper 1.0 Number: 2006.68 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-068.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.68 Title: Construction and Import of Ethnic Categorisations: “Allochthones” in The Netherlands and Belgium Author-Name: Dirk Jacobs Author-X-Name-First: Dirk Author-X-Name-Last: Jacobs Author-WorkPlace-Name: Université Libre de Bruxelles Author-Name: Andrea Rea Author-X-Name-First: Andrea Author-X-Name-Last: Rea Author-WorkPlace-Name: Université Libre de Bruxelles Abstract: Schematically one can distinguish two traditions related to ethnic statistics in Europe. In France, Germany and most southern European countries, the dominant statistical categorisations merely distinguish individuals on the basis of their nationality. In contrast, most northern European countries have been producing data on the ethnic and/or foreign origin of their populations. Belgium is caught somewhere in between these two traditions. The French speaking part of Belgium tends to follow the French tradition of refusing ethnic categorisation, while the Flemish (the Dutch speaking part) try to copy the Dutch model in distinguishing “allochthones” and “autochthones”. This contribution wants to offer an analysis of the construction of ethnic categories as it has been undertaken in the Dutch context. It equally wants to shed light on how the category of “allochthones” has been (partially) imported into the Belgian context and what the consequences are. Keywords: Ethnic Categorisation, Statistics, “Allochthones”, the Netherlands, Belgium Classification-JEL: B40 Creation-Date: 200604 Template-Type: ReDIF-Paper 1.0 Number: 2006.69 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-069.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.69 Title: Does Diversity Drive Down Trust? Author-Name: Eric M. Uslaner Author-X-Name-First: Eric M. Author-X-Name-Last: Uslaner Author-WorkPlace-Name: University of Maryland Abstract: Some researchers claim that diverse populations lead to less trust. Generalized trust is a core value that leads to positive outcomes in societies--from greater tolerance of minority groups and immigrants and willingness to do good deeds, to less corruption, more social welfare and education spending, more open markets, and better functioning government. Generalized trust fundamentally rests upon a foundation of respect for diversity, but at the same time arguing that societies have a common culture. It is the idea that people have a shared fate. Generalized trust rests upon a foundation of economic equality. Yet some claim that diversity leads to less trust rather than more trust. Trusting people who are different from yourself is atypical of most people, they claim. I dispute this--arguing that generalized trust is largely unrelated to population diversity. It is not diversity that matters--it is how populations are distributed. I show that trust is lower not in diverse societies, but rather in societies with large minority groups that are segregated from the majority groups. Minority residential segregation leads to less trust because it leads to less interaction across different groups in society--and leads minorities to associate only with each other, to form their own political organizations, and to see their fate as less dependent upon majority groups. I then discuss how economic inequality and the rule of law shape the relationship between trust and minority residential segregation. Keywords: Trust, Diversity, Corruption Classification-JEL: Z13, O57, D73 Creation-Date: 200604 Template-Type: ReDIF-Paper 1.0 Number: 2006.70 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-070.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.70 Title: Visibility & Invisibility of Communities in Urban Systems Author-Name: Paula Mota Santos Author-X-Name-First: Paula Author-X-Name-Last: Mota Santos Author-WorkPlace-Name: University Fernando Pessoa Author-Name: João Borges de Sousa Author-X-Name-First: João Author-X-Name-Last: Borges de Sousa Author-WorkPlace-Name: Porto University Abstract: Information on the presence of Chinese and Ukrainian communities in Portugal, and namely in Greater Porto (northern Portugal) will be presented to then investigate how recent work on evolving networks might be a helpful tool in analysing the integration of migrant communities in urban systems, namely in helping to understand if the differential relationships between ‘nodes’ and ‘vertices’ might help to account for the higher and lesser visibility of these two communities within Greater Porto. Keywords: Chinese, Ukrainian, Migrant Communities, Self Evolving Networks Classification-JEL: O15, O18, Z13 Creation-Date: 200604 Template-Type: ReDIF-Paper 1.0 Number: 2006.71 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-071.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.71 Title: Eliciting the Demand for Long Term Care Coverage: A Discrete Choice Modelling Analysis Author-Name: Rinaldo Brau Author-X-Name-First: Rinaldo Author-X-Name-Last: Brau Author-WorkPlace-Name: University of Cagliari Author-Name: Matteo Lippi Bruni Author-X-Name-First: Matteo Author-X-Name-Last: Lippi Bruni Author-WorkPlace-Name: University of Bologna Abstract: We evaluate the demand for long term care (LTC) insurance prospects in a stated preference context, by means of the results of a choice experiment carried out on a representative sample of the Emilia-Romagna population. Choice modelling techniques have not been used yet for studying the demand for LTC services. In this paper these methods are first of all used in order to assess the relative importance of the characteristics which define some hypothetical insurance programmes and to elicit the willingness to pay for some LTC coverage prospects. Moreover, thanks to the application of a nested logit specification with ‘partial degeneracy’, we are able to model the determinants of the preference for status quo situations where no systematic cover for LTC exists. On the basis of this empirical model, we test for the effects of a series of socio-demographic variables as well as personal and household health state indicators. Keywords: Health Insurance, Long Term Care, Choice Experiments, Nested Logit Models Classification-JEL: I11, I18, H40, C25 Creation-Date: 200605 Template-Type: ReDIF-Paper 1.0 Number: 2006.72 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-072.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.72 Title: Coalition Formation in Simple Games: The Semistrict Core Author-Name: Dinko Dimitrov Author-X-Name-First: Dinko Author-X-Name-Last: Dimitrov Author-WorkPlace-Name: Bielefeld University Author-Name: Claus-Jochen Haake Author-X-Name-First: Claus Author-X-Name-Last:Jochen Haake Author-WorkPlace-Name: Bielefeld University Abstract: We consider the class of proper monotonic simple games and study coalition formation when an exogenous share vector and a solution concept are combined to guide the distribution of coalitional worth. Using a multiplicative composite solution, we induce players' preferences over coalitions in a hedonic game, and present conditions under which the semistrict core of the game is nonempty. Keywords: Coalition Formation, Paradox of Smaller Coalitions, Semistrict Core, Simple Games, Winning Coalitions Classification-JEL: D72, C71 Creation-Date: 200605 Template-Type: ReDIF-Paper 1.0 Number: 2006.73 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-073.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.73 Title: On The Economic Value of Repeated Interactions Under Adverse Selection Author-Name: Lorenzo Rocco Author-X-Name-First: Lorenzo Author-X-Name-Last: Rocco Author-WorkPlace-Name: Università di Padova Author-Name: Ottorino Chillem Author-X-Name-First: Ottorino Author-X-Name-Last: Chillem Author-WorkPlace-Name: Università di Padova Abstract: The paper studies, in a repeated interaction setting, how the presence of cooperative agents in a heterogeneous community organized in groups affects efficiency and group stability. The paper expands on existing literature by assuming that each type can profitably mimic other types. It is shown that such enlargement of profitable options prevents group stabilization in the single group case. Stabilization can be obtained with many groups, but its driver is not the efficiency gain due to the presence of cooperative individuals. Rather, stabilization is the result of free riding opportunities. Keywords: Adverse Selection, Group Stability, Altruism Classification-JEL: D64, D71, D82 Creation-Date: 200605 Template-Type: ReDIF-Paper 1.0 Number: 2006.74 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-074.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.74 Title: Bounded Rationality and Repeated Network Formation Author-Name: Nicolas Querou Author-X-Name-First: Nicolas Author-X-Name-Last: Querou Author-WorkPlace-Name: Queen's University Belfast Author-Name: Sylvain Beal Author-X-Name-First: Sylvain Author-X-Name-Last: Beal Author-WorkPlace-Name: CREUSET, University of Saint-Etienne Abstract: We define a finite-horizon repeated network formation game with consent, and study the differences induced by different levels of individual rationality. We prove that perfectly rational players will remain unconnected at the equilibrium, while nonempty equilibrium networks may form when, following Neyman (1985), players are assumed to behave as finite automata. We define two types of equilibria, namely the Repeated Nash Network (RNN), in which the same network forms at each period, and the Repeated Nash Equilibrium (RNE), in which different networks may form. We state a sufficient condition under which a given network may be implemented as a RNN. Then, we provide structural properties of RNE. For instance, players may form totally different networks at each period, or the networks within a given RNE may exhibit a total order relationship. Finally we investigate the question of efficiency for both Bentham and Pareto criteria. Keywords: Repeated Network Formation Game, Two-sided Link Formation Costs, Bounded Rationality, Automata Classification-JEL: C72 Creation-Date: 200605 Template-Type: ReDIF-Paper 1.0 Number: 2006.75 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-075.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.75 Title: Bilateral Commitment Author-Name: Guillaume Haeringer Author-X-Name-First: Guillaume Author-X-Name-Last: Haeringer Author-WorkPlace-Name: Universitat Autònoma de Barcelona Author-Name: Sophie Bade Author-X-Name-First: Sophie Author-X-Name-Last: Bade Author-WorkPlace-Name: Penn State University Author-Name: Ludovic Renou Author-X-Name-First: Ludovic Author-X-Name-Last: Renou Author-WorkPlace-Name: Napier Building Abstract: We consider non-cooperative environments in which two players have the power to commit but cannot sign binding agreements. We show that by committing to a set of actions rather than to a single action, players can implement a wide range of action profiles. We give a complete characterization of implementable profiles and provide a simple method to find them. Profiles implementable by bilateral commitments are shown to be generically inefficient. Surprisingly, allowing for gradualism (i.e., step by step commitment) does not change the set of implementable profiles. Keywords: Commitment, Self-enforcing, Treaties, Inefficiency, Agreements, Pareto-improvement Classification-JEL: C70, C72, H87 Creation-Date: 200605 Template-Type: ReDIF-Paper 1.0 Number: 2006.76 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-076.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.76 Title: Evaluation of Parties and Coalitions After Parliamentary Elections Author-Name: Andranik Tangian Author-X-Name-First: Andranik Author-X-Name-Last: Tangian Author-WorkPlace-Name: Hans Boeckler Foundation Abstract: Five leading German political parties and their coalitions are evaluated with regard to party manifestos and results of the 2005 parliamentary elections. For this purpose, the party manifestos are converted into Yes/No answers to 95 topical questions (Relax the protection against dismissals? Close nuclear power plants? etc.). On each question, every party represents its adherents as well as those of the parties with the same position. Therefore, a party usually represents a larger group than its voters. The popularity of a party is understood to be the percentage of the electorate represented, averaged on all the 95 questions. The universality of a party is the frequency of representing a majority of electors. The questions are considered either unweighted, or weighted by an expert, or weighted by the number of GOOGLE-results for given keywords (the more important the question, the more documents in the Internet). The weighting however plays a negligible role because the party answers are backed up by the party ``ideology'' which determines a high intra-question correlation. The SPD (Social-Democratic Party) did not receive the highest percentage of votes, remains nevertheless the most popular and the most universal German party. A comparison of the election results with the position of German Trade Union Federation (DGB) reveals its high representativeness as well. Finally, all coalitions with two and three parties are also evaluated. The coalition CDU/SPD (which is currently in power) is the most popular, and the coalition SPD/Green/Left-Party (which failed due to personal conflicts) is the most universal. Keywords: Parliamentary Election, Fractions, Coalitions, Theory of Voting, Mathematical Theory of Democracy, Indices of Popularity and Universality, German Trade Union Federation (DGB) Classification-JEL: D71 Creation-Date: 200605 Template-Type: ReDIF-Paper 1.0 Number: 2006.77 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-077.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.77 Title: Applications of Relations and Graphs to Coalition Formation Author-Name: Agnieszka Rusinowska Author-X-Name-First: Agnieszka Author-X-Name-Last: Rusinowska Author-WorkPlace-Name: Radboud University Nijmegen Author-Name: Rudolf Berghammer Author-X-Name-First: Rudolf Author-X-Name-Last: Berghammer Author-WorkPlace-Name: University of Kiel Author-Name: Harrie de Swart Author-X-Name-First: Harrie Author-X-Name-Last: de Swart Author-WorkPlace-Name: Tilburg University Abstract: A stable government is by definition not dominated by any other government. However, it may happen that all governments are dominated. In graph-theoretic terms this means that the dominance graph does not possess a source. In this paper we are able to deal with this case by a clever combination of notions from different fields, such as relational algebra, graph theory, social choice and bargaining theory, and by using the computer support system RelView for computing solutions and visualizing the results. Using relational algorithms, in such a case we break all cycles in each initial strongly connected component by removing the vertices in an appropriate minimum feedback vertex set. So, we can choose an un-dominated government. To achieve unique solutions, we additionally apply social choice rules. The main parts of our procedure can be executed using the RelView tool. Its sophisticated implementation of relations allows to deal with graph sizes that are sufficient for practical applications of coalition formation. Keywords: Graph Theory, RELVIEW, Relational Algebra, Dominance, Stable Government Classification-JEL: D85, C63, C88, D71, D72 Creation-Date: 200605 Template-Type: ReDIF-Paper 1.0 Number: 2006.78 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-078.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.78 Title: Eight Degrees of Separation Author-Name: Paolo Pin Author-X-Name-First: Paolo Author-X-Name-Last: Pin Author-WorkPlace-Name: Università Ca’Foscari Venezia Abstract: The paper presents a model of network formation where every connected couple gives a contribution to the aggregate payoff, eventually discounted by their distance, and the resources are split between agents through the Myerson value. As equilibrium concept we adopt a refinement of pairwise stability. The only parameters are the number N of agents and a constant cost k for every agent to maintain any single link. This setup shows a wide multiplicity of equilibria, all of them connected, as k ranges over non trivial cases. We are able to show that, for any N, when the equilibrium is a tree (acyclical connected graph), which happens for high k, and there is no decay, the diameter of such a network never exceeds 8 (i.e. there are no two nodes with distance greater than 8). Adopting no decay and studying only trees, we facilitate the analysis but impose worst–case scenarios: we conjecture that the limit of 8 should apply for any possible non–empty equilibrium with any decay function. Keywords: Network Formation, Myerson Value Classification-JEL: D85 Creation-Date: 200605 Template-Type: ReDIF-Paper 1.0 Number: 2006.79 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-079.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.79 Title: How (not) to Choose Peers in Studying Groups Author-Name: Thomas Gall Author-X-Name-First: Thomas Author-X-Name-Last: Gall Author-WorkPlace-Name: University of Bonn Author-Name: Roland Amann Author-X-Name-First: Roland Author-X-Name-Last: Amann Author-WorkPlace-Name: University of Konstanz Abstract: This paper analyzes social group formation when agents are subject to peer effects within groups increasing human capital and instantaneous utility. When agents are heterogeneous on two dimensions, ability and social skills, and monetary payments are not feasible the model predicts segregation at the top and at the bottom of the attribute space and bunching for heterogeneous intermediate types. Groups may be heterogeneous in taste types and more heterogeneous types are more likely to participate. The equilibrium allocation does not induce cost-efficient human capital accumulation. Introducing ability tracking may produce beneficial results despite decreasing differences in human capital production. Keywords: Education, Peer-effects, Matching, Group Formation Classification-JEL: I21, C78, D51 Creation-Date: 200605 Template-Type: ReDIF-Paper 1.0 Number: 2006.80 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-080.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.80 Title: Inequity Aversion May Increase Inequity Author-Name: Maria Montero Author-X-Name-First: Maria Author-X-Name-Last: Montero Author-WorkPlace-Name: University of Nottingham Abstract: Inequity aversion models have been used to explain equitable payoff divisions in bargaining games. I show that inequity aversion can actually increase the asymmetry of payoff division if unanimity is not required. This is due to the analogy between inequity aversion and risk aversion. Inequity aversion may also affect comparative statics: the advantage of being proposer can decrease as players become more impatient. Keywords: Noncooperative Bargaining, Coalition Formation, Inequity Aversion Classification-JEL: A13, C78 Creation-Date: 200605 Template-Type: ReDIF-Paper 1.0 Number: 2006.81 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-081.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.81 Title: Directed Technical Change and Climate Policy Author-Name: Vincent M. Otto Author-X-Name-First: Vincent M. Author-X-Name-Last: Otto Author-WorkPlace-Name: Wageningen University and MIT Author-Name: Andreas Löschel Author-X-Name-First: Andreas Author-X-Name-Last: Löschel Author-WorkPlace-Name: European Commission Author-Name: John Reilly Author-X-Name-First: John Author-X-Name-Last: Reilly Author-WorkPlace-Name: Joint Program on the Science and Policy of Global Change Abstract: This paper studies the cost effectiveness of climate policy if there are technology externalities. For this purpose, we develop a forward-looking CGE model that captures empirical links between CO2 emissions associated with energy use, directed technical change and the economy. We find the cost-effective climate policy to include a combination of R&D subsidies and CO2 emission constraints, although R&D subsidies raise the shadow value of the CO2 constraint (i.e. CO2 price) because of a strong rebound effect from stimulating innovation. Furthermore, we find that CO2 constraints differentiated toward CO2-intensive sectors are more cost effective than constraints that generate uniform CO2 prices among sectors. Differentiated CO2 prices, through technical change and concomitant technology externalities, encourage growth in the non-CO2 intensive sectors and discourage growth in CO2-intensive sectors. Thus, it is cost effective to let the latter bear relatively more of the abatement burden. This result is robust to whether emission constraints, R&D subsidies or combinations of both are used to reduce CO2 emissions. Keywords: Directed Technical Change, Climate Policy, Computable General Equilibrium Model, R&D Classification-JEL: D58, H21, H23, O33, O38 Creation-Date: 200606 Template-Type: ReDIF-Paper 1.0 Number: 2006.82 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-082.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.82 Title: Riding the Waves of Reforms in Corporate Law, an Overview of Recent Improvements in Italian Corporate Codes of Conduct Author-Name: Nicoletta Ferro Author-X-Name-First: Nicoletta Author-X-Name-Last: Ferro Author-WorkPlace-Name: Fondazione Eni Enrico Mattei Abstract: In the past only a few of the major Italian companies spontaneously adopted self- regulatory tools such as codes of corporate conduct or codes of ethics, claiming the set of values that should guide their conduct and their shareholders and stakeholders were called to comply with. As a reaction to national corporate scandals such as those involving Cirio and Parmalat, things started to change as the need for corporate governance reforms was felt at the institutional as well as at the corporate level. This new wave was mainly due to the enactment of Legislative Decree no. 231 of June 8 2001 by Italian Legislators that marked an important turning point for the Italian corporate regulatory framework as it made codes of ethics and codes of conduct a legal requirement for Italian companies rather than an additional public relations tool as they were generally considered by the business environment. The aim of this paper is to fill the information gap on the Italian corporate codes scenario and to foster the dissemination of knowledge about the current situation, giving an introductory sketch on Leg. Decree. 231/2001. Keywords: Code of Corporate Conduct , Codes of Ethics, Corporate Governance, Corporate Law Classification-JEL: F23, M14 Creation-Date: 200606 Template-Type: ReDIF-Paper 1.0 Number: 2006.83 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-083.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.83 Title: Coalition Governments in a Model of Parliamentary Democracy Author-Name: Siddhartha Bandyopadhyay Author-X-Name-First: Siddhartha Author-X-Name-Last: Bandyopadhyay Author-WorkPlace-Name: University of Birmingham Author-Name: Mandar Oak Author-X-Name-First: Mandar Author-X-Name-Last: Oak Author-WorkPlace-Name: Williams College Abstract: We analyze the relative importance of party ideology and rents from office in the formation of coalitions in a parliamentary democracy. In equilibrium, the types of coalitions that are formed may be minimal winning, minority or surplus and they may be ideologically `disconnected'. The coalitions that form depend upon the relative importance of rents of office and seat shares of the parties. If rents are high, governments cannot be surplus. With low rents or the formateur close to the median, minority governments occur for a wider ideological dispersion. Further, there is a non-monotonic relationship between connectedness of coalitions and rents. Keywords: Coalitions, Ideology, Rents Classification-JEL: C72, D72, H19 Creation-Date: 200606 Template-Type: ReDIF-Paper 1.0 Number: 2006.84 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-084.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.84 Title: Valence Advantages and Public Goods Consumption: Does a Disadvantaged Candidate Choose an Extremist Position? Author-Name: Raphaël Soubeyran Author-X-Name-First: Raphaël Author-X-Name-Last: Soubeyran Author-WorkPlace-Name: Université de la Mediterrannée Abstract: Does a disadvantaged candidate always choose an extremist program? When does a less competent candidate have an incentive to move to extreme positions in order to differentiate himself from the more competent candidate? If the answer to these questions were positive, as suggested in recent work (Ansolabehere and Snyder (2000), Aragones and Palfrey (2002), Groseclose (1999), and Aragones and Palfrey (2003)), this would mean that extremist candidates are bad politicians. We consider a two candidates electoral competition over public consumption, with a two dimensional policy space and two dimensions of candidates heterogeneity. In this setting, we show that the conclusion depends on candidates relative competences over the two public goods and distinguish between two types of advantages (an absolute advantage and comparative advantage in providing the two public goods). Keywords: Candidate Quality, Extremism, Public Goods Consumption Classification-JEL: C72, D72 Creation-Date: 200606 Template-Type: ReDIF-Paper 1.0 Number: 2006.85 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-085.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.85 Title: Pigou’s Dividend versus Ramsey’s Dividend in the Double Dividend Literature Author-Name: Miguel Rodríguez Author-X-Name-First: Miguel Author-X-Name-Last: Rodríguez Author-WorkPlace-Name: Universidade de Vigo Author-Name: Eduardo L. Giménez Author-X-Name-First: Eduardo L. Author-X-Name-Last: Giménez Author-WorkPlace-Name: Universidade de Vigo Abstract: This paper deals with the welfare analysis of green tax reforms. The aims of this paper are to highlight misinterpretations of policy assessments in the double dividend literature, to specify which of the efficiency costs and benefits should be ascribed to each dividend, and then, to propose a definition for the first dividend and the second dividend. We found the Pigou’s dividend more appropriate for policy guidance, in contrast to the Ramsey’s dividend usually found in mainstream literature. Therefore, we take up some authors’ recent claims about the need of unambiguous and operative definitions of these dividends both for empirical purposes, and political advice. Finally, the paper analyzes a green tax reform for the US economy to illustrate the advantages of our definitions for policy assessment. The new definitions proposed in this paper i) overcome some shortcoming of the mainstream current definitions in the literature regarding overestimation of the efficiency costs; and, ii) provide information by themselves and not as a partial view of the whole picture. Keywords: Double Dividend, Green Tax Reforms, Ramsey’s Dividend, Pigou’s Dividend Classification-JEL: H23, Q58 Creation-Date: 200606 Template-Type: ReDIF-Paper 1.0 Number: 2006.86 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-086.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.86 Title: The Impact of Climate Change on Domestic and International Tourism: A Simulation Study Author-Name: Andrea Bigano Author-X-Name-First: Andrea Author-X-Name-Last: Bigano Author-WorkPlace-Name: Fondazione Eni Enrico Mattei Author-Name: Jacqueline M. Hamilton Author-X-Name-First: Jacqueline M. Author-X-Name-Last: Hamilton Author-WorkPlace-Name: Hamburg University and Centre for Marine and Atmospheric Science Author-Name: Richard S.J. Tol Author-X-Name-First: Richard S.J. Author-X-Name-Last: Tol Author-WorkPlace-Name: Hamburg University, Vrije Universiteit and Carnegie Mellon University Abstract: We use an updated and extended version of the Hamburg Tourism Model to simulate the effect of development and climate change on tourism. Model extensions are the explicit modelling of domestic tourism and the inclusion of tourist expenditures. We also use the model to examine the impact of sea level rise on tourism demand. Climate change would shift patterns of tourism towards higher altitudes and latitudes. Domestic tourism may double in colder countries and fall by 20% in warmer countries (relative to the baseline without climate change). For some countries international tourism may treble whereas for others it may cut in half. International tourism is more (less) important than is domestic tourism in colder (warmer) places. Therefore, climate change may double tourist expenditures in colder countries, and halve them in warmer countries. In most places, the impact of climate change is small compared to the impact of population and economic growth. The quantitative results are sensitive to parameter choices, but the qualitative pattern is robust. Keywords: Climate Change, International Tourism, Domestic Tourism Classification-JEL: L83, Q54 Creation-Date: 200606 Template-Type: ReDIF-Paper 1.0 Number: 2006.87 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-087.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.87 Title: Riding the Waves of Reforms in Corporate Law, an Overview of Recent Improvements in Italian Corporate Codes of Conduct Author-Name: Fabio Sabatini Author-X-Name-First: Fabio Author-X-Name-Last: Sabatini Author-WorkPlace-Name: Università di Roma La Sapienza Abstract: This paper provides an exploratory analysis on the relationship between educational qualification and work status in Italy, with a particular focus on entrepreneurs and self-employed workers. Rough data are drawn from four waves (1995, 1998, 2002, and 2004) of the Survey of Household Income and Wealth (SHIW) carried out by the Bank of Italy. Stylised facts emerging from the empirical evidence are the surprisingly low level of educational qualification exhibited by employers and the tendency of workers holding higher levels of educational qualification not to choose to undertake an entrepreneurial activity. Such workers generally become members of the arts and professions, or take up a career as high-level employees. Keywords: Education, Work status, Employment, Self-employment, Entrepreneurship, Human capital Classification-JEL: I21, J23, J24, M13 Creation-Date: 200606 Template-Type: ReDIF-Paper 1.0 Number: 2006.88 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-088.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.88 Title: The Polluter Pays Principle and Cost-Benefit Analysis of Climate Change: An Application of Fund Author-Name: Richard S.J. Tol Author-X-Name-First: Richard S.J. Author-X-Name-Last: Tol Author-WorkPlace-Name: Hamburg University, Vrije Universiteit and Carnegie Mellon University Abstract: I compare and contrast five climate scenarios: (1) no climate policy; (2) non-cooperative cost-benefit analysis (NC CBA); (3) NC CBA with international permit trade; (4) NC CBA with joint and several liability for climate change damages; and (5) NC CBA with liability proportional to a country’s share in cumulative emissions. As estimates of the marginal damage costs are low, standard NC CBA implies only limited emission abatement. With international permit trade, emission abatement is even less, as the carbon tax is reduced in countries with fast-growing emissions, and because a permit market ignores the positive, dynamic externalities of abatement. Proportional liability shifts abatement effort towards the richer countries, but away from the fast-growing economies; again, long-term, global emission abatement is reduced. Joint and several liability would lead to more stringent climate policy. These findings are qualitatively robust to the size and accounting of climate change impacts, to the definition of liability, and to the baseline scenario Keywords: Climate Change, Cost-benefit Analysis, Liability, Permit Trade Classification-JEL: Q540 Creation-Date: 200606 Template-Type: ReDIF-Paper 1.0 Number: 2006.89 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-089.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.89 Title: The White House and the Kyoto Protocol: Double Standards on Uncertainties and Their Consequences Author-Name: Philippe Tulkens Author-X-Name-First: Philippe Author-X-Name-Last: Tulkens Author-WorkPlace-Name: TERI School of Advanced Studies Author-Name: Henry Tulkens Author-X-Name-First: Henry Author-X-Name-Last: Tulkens Author-WorkPlace-Name: CORE, Université Catholique de Louvain Abstract: This paper compares the level of uncertainty widely reported in climate change scientific publications with the level of uncertainty of the costs estimates of implementing the Kyoto Protocol in the United States. It argues that these two categories of uncertainties were used and ignored, respectively, in the policy making process in the US so as to challenge the scientific basis on the one hand and on the other hand to assert that reducing emissions would hurt the economy by an amount stated without any qualification. The paper reviews the range of costs estimates published since 1998 on implementing the Kyoto Protocol in the US. It comments on the significance of these cost estimates and identifies a decreasing trend in the successive estimates. This implies that initially some of the most influential economic model-based assessments seem to have overestimated the costs, an overestimation that may have played a significant role in the US decision to withdraw from the Protocol. The paper concludes with advocating that future economic estimates always include uncertainty ranges, so as to be in line with a basic transparency practice prevailing in climate science. Keywords: United States, Kyoto Protocol, Cost Estimates, Uncertainties Classification-JEL: Q5, Q54, Q58, C82 Creation-Date: 200606 Template-Type: ReDIF-Paper 1.0 Number: 2006.90 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-090.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.90 Title: Proportionality of Willingness to Pay to Small Risk Changes – The Impact of Attitudinal Factors in Scope Tests Author-Name: Andrea M. Leiter Author-X-Name-First: Andrea M. Author-X-Name-Last: Leiter Author-WorkPlace-Name: alpS GmbH - Center for Natural Hazard Management Author-Name: Gerald J. Pruckner Author-X-Name-First: Gerald J. Author-X-Name-Last: Pruckner Author-WorkPlace-Name: University Linz Abstract: Sensitivity (proportionality) of willingness to pay to (small) risk changes is often used as a criterion to test for valid measures of economic preferences. In a contingent valuation (CV) study conducted in Austria in February 2005 1,005 respondents were asked their willingness to pay (WTP) for preventing an increase in risk by 1/42,500 and 3/42,500, respectively. WTP for the higher risk variation is significantly higher than WTP for the lower risk change. We find evidence that those respondents who have personal experience with avalanches combine the information about future risk increase, provided in the survey, with the observed number of mortal avalanche accidents in the past. The proportionality of WTP holds if such prior experiences are taken into account and the influence of attitudinal factors in scope tests are controlled for. Keywords: Contingent Valuation, Willingness to Pay, Scope Test, Sensitivity of WTP Classification-JEL: D81, J17, Q54 Creation-Date: 200606 Template-Type: ReDIF-Paper 1.0 Number: 2006.91 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-091.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.91 Title: When Inertia Generates Political Cycles Author-Name: Raphäel Soubeyran Author-X-Name-First: Raphäel Author-X-Name-Last: Soubeyran Author-WorkPlace-Name: GREQAM Abstract: We propose a simple infinite horizon of repeated elections with two candidates. Furthermore we suppose that the government policy presents some degree of inertia, i.e. a new government cannot completely change the policy implemented by the incumbent. When the policy inertia is strong enough, no party can win the election a consecutive infinite number of times. Keywords: Political Cycles, Inertia Classification-JEL: D72, H7 Creation-Date: 200606 Template-Type: ReDIF-Paper 1.0 Number: 2006.92 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-092.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.92 Title: Can R&D-Inducing Green Tariffs Replace International Environmental Regulations? Author-Name: Alireza Naghavi Author-X-Name-First: Alireza Author-X-Name-Last: Naghavi Author-WorkPlace-Name: University of Modena Abstract: This paper investigates the link between trade and environment by exploring the effects of green tariffs on the location of firms, innovation and the environment. It shows that tariffs levied on polluting goods could result in less global pollution than harmonization of environmental standards by inducing more pollution abatement R&D, generating lower unit emissions from production, and reducing competition. Green tariffs reduce pollution by (1) shifting production to the region where environmental standards are respected, (2) strategically inducing abatement R&D by the Northern firm by granting the latter a higher market share, (3) creating abatement R&D by deterring delocation. Keywords: Environmental Standards, Multinationals, Location of Firms, Pollution Abatement R&D, Green Tariffs Classification-JEL: F13, F18, F23, H23, Q21, R38 Creation-Date: 200606 Template-Type: ReDIF-Paper 1.0 Number: 2006.93 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-093.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.93 Title: Reconsidering The Impact of Environment on Long-Run Growth When Pollution Influences Health and Agents Have Finite-Lifetime Author-Name: Xavier Pautrel Author-X-Name-First: Xavier Author-X-Name-Last: Pautrel Author-WorkPlace-Name: Université de Nantes Abstract: Using an overlapping generation model à la Blanchard (1985) with human capital accumulation, this article demonstrates that the influence of environment on optimal growth in the long-run may be explained by the detrimental effect of pollution on life expectancy. It also shows that, in such a case, greener preferences are growth- and welfare-improving even if the ability of the agents to learn is independent to pollution and utility is additively separable. Finally, it establishes that it is possible to implement a win-win environmental policy. Keywords: Growth, Environment, Overlapping Generations, Human Capital, Health Classification-JEL: E62, I21, O41, Q28 Creation-Date: 200606 Template-Type: ReDIF-Paper 1.0 Number: 2006.94 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-094.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.94 Title: Carbon Leakage Revisited: Unilateral Climate Policy with Directed Technical Change Author-Name: Corrado Di Maria Author-X-Name-First: Corrado Author-X-Name-Last: Di Maria Author-WorkPlace-Name: CentER and Tilburg University Author-Name: Edwin van der Werf Author-X-Name-First: Edwin Author-X-Name-Last: van der Werf Author-WorkPlace-Name: CentER and Tilburg University Abstract: A common critique to the Kyoto Protocol is that the reduction in emissions of CO2 by countries who comply with it will be (partly) offset by the increase in emissions on the part of other countries (carbon leakage). This paper analyzes the effect of technical change on carbon leakage in a two-country model where only one of the countries enforces an exogenous cap on emissions. Climate policy induces changes in relative prices, which cause carbon leakage through a terms-of-trade effect. However, these changes in relative prices in addition affect the incentives to innovate in different sectors. We allow entrepreneurs to choose the sector for which they innovate (directed technical change). This leads to a counterbalancing induced-technology effect, which always reduces carbon leakage. We therefore conclude that the leakage rates reported in the literature so far may be too high, as these estimates neglect the effect of relative price changes on the incentives to innovate. Keywords: Climate Policy, Carbon Leakage, Directed Technical Change, International Trade Classification-JEL: F18, O33, Q54, Q55 Creation-Date: 200606 Template-Type: ReDIF-Paper 1.0 Number: 2006.95 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-095.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.95 Title: Comparing Tax and Tax Reallocations Payments in Financing Rail Noise Abatement Programs: Results from a CE valuation study in Italy Author-Name: Paulo A.L.D. Nunes Author-X-Name-First: Paulo A.L.D. Author-X-Name-Last: Nunes Author-WorkPlace-Name: Ca’ Foscari University of Venice and Fondazione Eni Enrico Mattei Author-Name: Chiara M. Travisi Author-X-Name-First: Chiara M. Author-X-Name-Last: Travisi Author-WorkPlace-Name: Politecnico of Milano and Fondazione Eni Enrico Mattei Abstract: The paper examines the use of choice experiments (CE) to assess the economic value of alternative rail noise reduction interventions on the so-called Brennero railway, Italy. The novelty of this paper is threefold. To our knowledge, this is the first study on the valuation of noise conducted in Italy and it is the first example of CE applied in the field of rail noise valuation. Second, we consider not only the economic value assessment of noise reduction but also how this reduction is achieved, ranging from policy instruments such as barriers or train technology. Third, the paper provides an original contribution in the valuation literature since we test formally the econometric robustness of the CE estimates under three payment vehicles. In fact, we consider (a) a special regional tax, (b) reallocation of financial resource within the provincial budget on the public transport sector, and (c) reallocation of financial resource of the provincial budget from the administration and entertainment sector. Test results are mixed. Welfare analysis and policy implications of valuing rail noise reduction programs using different payment vehicles are discussed. Keywords: Choice Experiment, Noise Abatement, Tax, Tax Reallocation, Formal Testing, Welfare Analysis Classification-JEL: C0, R41 Creation-Date: 200606 Template-Type: ReDIF-Paper 1.0 Number: 2006.96 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-096.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.96 Title: Valuing Environmental Factors in Cost-Benefit Analysis Using Data Envelopment Analysis Author-Name: Timo Kuosmanen Author-X-Name-First: Timo Author-X-Name-Last: Kuosmanen Author-WorkPlace-Name: MTT Agrifood Research Finland Abstract: Environmental cost-benefit analysis (ECBA) refers to social evaluation of investment projects and policies that involve significant environmental impacts. Valuation of the environmental impacts in monetary terms forms one of the critical steps in ECBA. We propose a new approach for environmental valuation within ECBA framework that is based on data envelopment analysis (DEA) and does not demand any price estimation for environmental impacts using traditional revealed or stated preference methods. We show that DEA can be modified to the context of CBA by using absolute shadow prices instead of traditionally used relative prices. We also discuss how the approach can be used for sensitive analysis which is an important part of ECBA. We illustrate the application of the DEA approach to ECBA by means of a hypothetical numerical example where a household considers investment to a new sport utility vehicle. Keywords: Cost-Benefit Analysis, Data Envelopment Analysis, Eco-Efficiency, Environmental Valuation, Environmental Performance, Performance Measurement Classification-JEL: C61, D61, Q51 Creation-Date: 200606 Template-Type: ReDIF-Paper 1.0 Number: 2006.97 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-097.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.97 Title: Intellectual Property Rights and Entry into a Foreign Market: FDI vs. Joint Ventures Author-Name: Alireza Naghavi Author-X-Name-First: Alireza Author-X-Name-Last: Naghavi Author-WorkPlace-Name: Università di Modena e Reggio Emilia Author-Name: Dermot Leahy Author-X-Name-First: Dermot Author-X-Name-Last: Leahy Author-WorkPlace-Name: University College Dublin Abstract: We study the effect of the intellectual property rights (IPR) regime of a host country (South) on a multinational's decision between serving a market via greenfield foreign direct investment to avoid the exposure of its technology or entering a joint venture (JV) with a local firm, which allows R&D spillovers under imperfect IPRs. JV is the equilibrium market structure when R&D intensity is moderate and IPRs strong. The South can gain from increased IPR protection by encouraging a JV, whereas policies to limit foreign ownership in a JV gain importance in technology intensive industries as complementary policies to strong IPRs. Keywords: Joint Ventures, Intellectual Property Rights, Technology Transfer, R&D Spillovers, FDI Policy Classification-JEL: O34, F23, O32, F13, L24, O24 Creation-Date: 200606 Template-Type: ReDIF-Paper 1.0 Number: 2006.98 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-098.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.98 Title: The Impact of Population on CO2 Emissions: Evidence From European Countries Author-Name: Inmaculada Martínez-Zarzoso Author-X-Name-First: Inmaculada Author-X-Name-Last: Martínez-Zarzoso Author-WorkPlace-Name: Universitat Jaume I Author-Name: Aurelia Bengochea-Morancho Author-X-Name-First: Aurelia Author-X-Name-Last: Bengochea-Morancho Author-WorkPlace-Name: Universitat Jaume I Author-Name: Rafael Morales-Lage Author-X-Name-First: Rafael Author-X-Name-Last: Morales-Lage Author-WorkPlace-Name: Universitat Jaume I Abstract: This paper analyses the impact of population growth on CO2 emissions in European Union countries. Traditionally, researchers have assumed a unitary elasticity of emissions with respect to population growth. In this study population is treated as a predictor in the model, instead of being included as part of the dependent variable (per capita emissions), thus relaxing the above-mentioned assumption of unitary elasticity. We also contribute to the existing literature by taking into account the presence of heterogeneity in the sample and considering a dynamic specification. The sample covers the period 1975- 1999 for the current European Union members. Our results show that the impact of population growth on emissions is more than proportional for recent accession countries whereas for old EU members, the elasticity is lower than unity and non significant when the properties of the time series and the dynamics are correctly specified. The different impact of population change on CO2 emissions for the current EU members should therefore be taken into account in future discussions of climate change policies within the EU. Keywords: CO2 Emissions, European Union, Panel Data, Population Growth Classification-JEL: Q25, Q4, Q54 Creation-Date: 200606 Template-Type: ReDIF-Paper 1.0 Number: 2006.99 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-099.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.99 Title: Privatization and Efficiency: from Principals and Agents to Political Economy Author-Name: Alberto Cavaliere Author-X-Name-First: Alberto Author-X-Name-Last: Cavaliere Author-WorkPlace-Name: Università di Pavia Abstract: We survey the theoretical literature on privatization and efficiency by tracing its evolution from the applications of agency theory to recent contributions in the field of political economy. The first ones extend the theory of regulation with incomplete information to address privatization issues, comparing State Owned Entreprises (SOEs) with private regulated firms. The benefits of privatization may either derive from the constraints it places on malevolent agents or to the impossibility of commitment by a benevolent government because of incomplete contracts. Contributions dealing with political economy issues separate privatization from restructuring decisions. They either explore bargaining between managers and politicians or analyze the impact of privatization shaped by political preferences on efficiency. The theoretical results regarding the relation between privatization and efficiency do not lead to any definitive conclusion. Privatization may increase productive efficiency when restructuring takes place whereas its effects on allocative efficiency still remain uncertain. Keywords: Regulation, Imperfect Information, Political Preferences Classification-JEL: L33, D82, P26 Creation-Date: 200606 Template-Type: ReDIF-Paper 1.0 Number: 2006.100 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-100.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.100 Title: Multi-Sectoral Uses of Water & Approaches to DSS in Water Management in the NOSTRUM Partner Countries of the Mediterranean Author-Name: Khaled Abu-Zeid Author-X-Name-First: Khaled Author-X-Name-Last: Abu-Zeid Author-WorkPlace-Name: CEDARE Author-Name: Sameh Afifi Author-X-Name-First: Sameh Author-X-Name-Last: Afifi Author-WorkPlace-Name: CEDARE Abstract: Agriculture contributes an average of about 10% to the GDP of the partner countries of the Mediterranean involved in the project NOSTRUM. On the other hand, industry contributes an average of about 30% in these countries. It is to remark that in almost all countries the weight of industry accounts between 20% and 30% of the national economy, with the exception of Algeria, where this weight is at about 60%, mainly imputable to the great development of oil extraction and energy sector. In the majority of participating countries, agriculture sector is the greatest consumer of water (more than 65% of total water consumption). Although the case from France where agriculture water use is only about 10% of total water consumption and Italy with around 45%, but this may be due to the fact that most countries reporting for their agricultural water consumption do not include the amount of rain-fed to cultivated lands as a part of their agriculture water use. Most agriculture water use is limited to irrigation water from streams/rivers and groundwater. Rain-fed cultivated-lands in France is almost 90% of its total cultivated area. For Croatia, data given in National Report indicate a 0% of water use for agriculture. The average of water use for agriculture for all the basin is of 62.3% but with a great scatter expressed by a high standard deviation (26.8%) that reflects a wide variation range of water use for agriculture among different countries. The average of water use for agriculture is weakly less on northern countries (52.7%) than on southern countries (75.2) but the twice values are still on the range of the average of the all basin and cannot be taken as indication of difference between north and south. Integrated Water Resources Management (IWRM) plans are currently developed and implemented by various countries to organize the multi-sectoral water uses. On the other hand, the need for Decision Support System (DSS) as a tool in developing and implementing Integrated Water Resources Management (IWRM) is in growing demand. In spite of the great potential for the research and the development of DSS, the utilization of DSS in water management is not widely spread in the partner countries. In some countries, DSS was planned and developed at the scale of territorial integrated water management. Integration of DSS application to the existing IWRM systems at the partner countries would assist in satisfying the water related Millennium Development Goals (MDGs). Keywords: Integrated Water Resources Management, Decision Support Systems, Mediterranean Basin Classification-JEL: O21, Q01, Q25 Creation-Date: 200606 Template-Type: ReDIF-Paper 1.0 Number: 2006.101 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-101.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.101 Title: Participatory Approach in Decision Making Processes for Water Resources Management in the Mediterranean Basin Author-Name: Carlo Giupponi Author-X-Name-First: Carlo Author-X-Name-Last: Giupponi Author-WorkPlace-Name: Università degli Studi di Milano and Fondazione Eni Enrico Mattei Author-Name: Jaroslav Mysiak Author-X-Name-First: Jaroslav Author-X-Name-Last: Mysiak Author-WorkPlace-Name: Fondazione Eni Enrico Mattei Author-Name: Jacopo Crimi Author-X-Name-First: Jacopo Author-X-Name-Last: Crimi Author-WorkPlace-Name: Fondazione Eni Enrico Mattei Abstract: This paper deals with the comparative analysis of different policy options for water resources management in three south-eastern Mediterranean countries. The applied methodology follows a participatory approach throughout its implementation and is supported by the use of three different software packages dealing with water allocation budget, water quality simulation, and Multi Criteria Analysis, respectively. The paper briefly describes the general objectives of the SMART project and then presents the three local case studies, the valuation objectives and the applied methodology - developed as a general replicable framework suitable for implementation in other decision-making processes. All the steps needed for a correct implementation are therefore described. Following the conceptualisation of the problem, the choice of the appropriate indicators as well as the calculation of their weighting and value functions are detailed. The paper concludes with the results of the Multi Criteria and the related Sensitivity Analyses performed, showing how the different policy responses under consideration can be assessed and furthermore compared through case studies thanks to their relative performances. The adopted methodology was found to be an effective operational approach for bridging scientific modelling and policy making by integrating the model outputs in a conceptual framework that can be understood and utilised by non experts, thus showing concrete potential for participatory decision making. Keywords: Scientific Advice, Policy-Making, Participatory Modelling, Decision Support Classification-JEL: Q01, Q25, Q28, Q5 Creation-Date: 200608 Template-Type: ReDIF-Paper 1.0 Number: 2006.102 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-102.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.102 Title: Klum@Gtap: Introducing Biophysical Aspects of Land-Use Decisions Into a General Equilibrium Model A Coupling Experiment Author-Name: Kerstin Ronneberger Author-X-Name-First: Kerstin Author-X-Name-Last: Ronneberger Author-WorkPlace-Name: Deutsches Klimarechenzentrum GmbH Author-Name: Maria Berrittella Author-X-Name-First: Maria Author-X-Name-Last: Berrittella Author-WorkPlace-Name: University of Palermo Author-Name: Francesco Bosello Author-X-Name-First: Francesco Author-X-Name-Last: Bosello Author-WorkPlace-Name: Fondazione Eni Enrico Mattei and International Centre for Theoretical Physics Author-Name: Richard S.J. Tol Author-X-Name-First: Richard S.J. Author-X-Name-Last: Tol Author-WorkPlace-Name: Princeton University, Vrije Universiteit and Hamburg University Abstract: In this paper the global agricultural land use model KLUM is coupled to an extended version of the computable general equilibrium model (CGE) GTAP in order to consistently assess the integrated impacts of climate change on global cropland allocation and its implication for economic development. The methodology is innovative as it introduces dynamic economic land-use decisions based also on the biophysical aspects of land into a state-of-the-art CGE; it further allows the projection of resulting changes in cropland patterns on a spatially more explicit level. A convergence test and illustrative future simulations underpin the robustness and potentials of the coupled system. Reference simulations with the uncoupled models emphasize the impact and relevance of the coupling; the results of coupled and uncoupled simulations can differ by several hundred percent. Keywords: Land-Use Change, Computable General Equilibrium Modeling, Integrated Assessment, Climate Change Classification-JEL: C68, Q15 Creation-Date: 200608 Template-Type: ReDIF-Paper 1.0 Number: 2006.103 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-103.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.103 Title: Identity and Self-Other Differentiation in Work and Giving Behaviors: Experimental Evidence Author-Name: Avner Ben-Ner Author-X-Name-First: Avner Author-X-Name-Last: Ben-Ner Author-WorkPlace-Name: University of Minnesota Author-Name: Brian P. McCall Author-X-Name-First: Brian P. Author-X-Name-Last: McCall Author-WorkPlace-Name: University of Minnesota Author-Name: Massoud Stephane Author-X-Name-First: Massoud Author-X-Name-Last: Stephane Author-WorkPlace-Name: University of Minnesota Author-Name: Hua Wang Author-X-Name-First: Hua Author-X-Name-Last: Wang Author-WorkPlace-Name: University of Minnesota Abstract: We show that the distinction between Self and Other, ‘us’ and ‘them,’ or in-group and out-group, affects significantly economic and social behavior. In a series of experiments with approximately 200 Midwestern students as our subjects, we found that they favor those who are similar to them on any of a wide range of categories of identity over those who are not like them. Whereas family and kinship are the most powerful source of identity in our sample, all 13 potential sources of identity in our experiments affect behavior. We explored individuals’ willingness to give money to imaginary people, using a dictator game setup with hypothetical money. Our experiments with hypothetical money generate essentially identical data to our experiments with actual money. We also investigated individuals’ willingness to share an office with, commute with, and work on a critical project critical to their advancement with individuals who are similar to themselves (Self) along a particular identity dimension than with individuals who are dissimilar (Other). In addition to family, our data point to other important sources of identity such as political views, religion, sports-team loyalty, and music preferences, followed by television-viewing habits, dress type preferences, birth order, body type, socio-economic status and gender. The importance of the source of identity varies with the type of behavior under consideration. Keywords: Identify, Diversity, Experimental Economics, Conflict Creation-Date: 200608 Template-Type: ReDIF-Paper 1.0 Number: 2006.104 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-104.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.104 Title: Economic Valuation of Oceanographic Forecasting Services: A Cost-Benefit Exercise Author-Name: Aline Chiabai Author-X-Name-First: Aline Author-X-Name-Last: Chiabai Author-WorkPlace-Name: Fondazione Eni Enrico Mattei Author-Name: Paulo A.L.D. Nunes Author-X-Name-First: Paulo A.L.D. Nunes Author-X-Name-Last: Nunes Author-WorkPlace-Name: Fondazione Eni Enrico Mattei Abstract: This paper provides an assessment of the economic value of the oceanographic services provided by the Mediterranean operational forecasting system, MFSTEP. The main purpose of this exploratory study is to carry out a cost-benefit analysis for different development scenarios, by comparing the costs associated with the project implementation with the private benefits that arise from delivering its products on the market. As far as the costs are concerned, a total cost assessment has been performed by identifying, classifying and estimating the wide range of inputs that have been allocated both to the project development and maintenance. Against this context, a cost questionnaire has been designed and administered to all MFSTEP partners. In addition, the study focuses on an end-users analysis in order to examine end-users’ attitudes and interests for the forecasting products, their needs and satisfaction. As before, we make the use of a survey. Finally, this questionnaire is characterized by exploring the use of the contingent valuation approach so as to address and estimate the private benefits derived from the provision of the MFSTEP products. Estimation results show that the mean willingness to pay for accessing the forecasting products amounts to 65 euro per download. Cost-benefit analysis reveals that, from a market perspective relying on the profit maximisation, a total of 163 downloads per day are required for total maintenance costs recovery, whereas 90 downloads per day are required to recover personnel maintenance costs. Finally, 33 downloads per day are required so as to recover durable equipment maintenance costs. Keywords: Cost-Benefit Analysis, Contingent Valuation, Survey Design, Willingness to Pay, Cost Assessment, Observing and Modelling Oceanographic System Classification-JEL: D60, D61, D12 Creation-Date: 200608 Template-Type: ReDIF-Paper 1.0 Number: 2006.105 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-105.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.105 Title: Water Infrastructures Facing Sustainable Development Challenges: Integrated Evaluation of Impacts of Dams on Regional Development in Morocco Author-Name: Paola Minoia Author-X-Name-First: Paola Author-X-Name-Last: Minoia Author-WorkPlace-Name: Università Ca’ Foscari di Venezia Author-Name: Anna Brusarosco Author-X-Name-First: Anna Author-X-Name-Last: Brusarosco Author-WorkPlace-Name: Università Ca’ Foscari di Venezia Abstract: During the past century, large hydraulic infrastructures have been considered as the most effective tools for increasing water supply and rationalise water management. According to this approach, large infrastructures are seen as catalysts for territorial development and economic progress. More recently, international surveys of results of water supply policies and performances of large dams, show that these structures need to be integrated in more comprehensive Integrated Water Resource Management strategies at catchments’ scale, to promote equitable and sustainable regional development. The aim of this communication is to present the role of large hydraulic infrastructures within the regional development dynamics with particular attention to the Sebou basin in Morocco, in order to assess some relevant impacts on local communities and their ecosystems. The Sebou region is one of the most important basins in Morocco, in the context of the national strategies and policies of management of water resources, established by the Water Law of 1995. The development of hydraulic infrastructures in the Sebou Basin begun in 1935, with construction of a complex of ten large dams and nine small dams, to provide water for agriculture, domestic and industrial use, and to generate hydropower and control floods, in line with the national water policies that, from the 1960s onwards, looked at large dams as core infrastructures for regional development. A critical view will be given about the coherence of this strategy with the sustainability principles. Keywords: Water Policy, Morocco, Dams, Sustainable Development, Impacts Classification-JEL: Q25, Q28, H76 Creation-Date: 200608 Template-Type: ReDIF-Paper 1.0 Number: 2006.106 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-106.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.106 Title: Endogenous Price Mechanisms,Capture and Accountability Rules: Theory and Evidence Author-Name: Carmine Guerriero Author-X-Name-First: Carmine Author-X-Name-Last: Guerriero Author-WorkPlace-Name: University of Cambridge Abstract: This paper analyzes the constitutional determinants of cost reimbursement rules. In order to design the optimal incentive schemes, a possibly partisan planner will take into account the market cost structure, the institutional design of the supervision hierarchical structure and its technology. I employ electricity data from the U.S. electric power market to test the model’s predictions. The evidence shows that reforms from low powered incentive scheme (COS) to high powered one (PBR) are linked to high cost industries, the presence of elected supervisors, high inter-party platform distance and large (slim) majority when the reformer is Republican (Democratic). Moreover, there is some evidence in the data that performance-based regulation lowers regulated prices. Keywords: Industrial Policy, Political Economy, Regulation and Incentives Classification-JEL: L51, D72, D82, H11 Creation-Date: 200608 Template-Type: ReDIF-Paper 1.0 Number: 2006.107 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-107.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.107 Title: Understanding Long-Term Energy Use and Carbon Dioxide Emissions in the Usa Author-Name: Richard S.J. Tol Author-X-Name-First: Richard S.J. Author-X-Name-Last: Tol Author-WorkPlace-Name: Princeton University, Vrije Universiteit and Hamburg University Author-Name: Stephen W. Pacala Author-X-Name-First: Stephen W. Author-X-Name-Last: Pacala Author-WorkPlace-Name: Princeton University Author-Name: Robert Socolow Author-X-Name-First: Robert Author-X-Name-Last: Socolow Author-WorkPlace-Name: Princeton University Abstract: We compile a database of energy uses, energy sources, and carbon dioxide emissions for the USA for the period 1850-2002. We use a model to extrapolate the missing observations on energy use by sector. Overall emission intensity rose between 1850 and 1917, and fell between 1917 and 2002. The leading cause for the rise in emission intensity was the switch from wood to coal, but population growth, economic growth, and electrification contributed as well. After 1917, population growth, economic growth and electrification pushed emissions up further, and there was no net shift from fossil to non-fossil energy sources. From 1850 to 2002, emissions were reduced by technological and behavioural change (particularly in transport, manufacturing and households), structural change in the economy, and a shift from coal to oil and gas. These trends are stronger than electrification, explaining the fall in emissions relative to GDP. Keywords: Carbon Dioxide Emissions, Decomposition, Environmental Kuznets Curve, USA, History Classification-JEL: Q5,Q4, Q0 Creation-Date: 200608 Template-Type: ReDIF-Paper 1.0 Number: 2006.108 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-108.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.108 Title: The Recent Evolution and Impact of Tourism in the Mediterranean: The Case of Island Regions, 1990-2002 Author-Name: Jaume Garau Taberner Author-X-Name-First: Jaume Author-X-Name-Last: Garau Taberner Author-WorkPlace-Name: Universitat de les Illes Balears Author-Name: Carles Manera Author-X-Name-First: Carles Author-X-Name-Last: Manera Author-WorkPlace-Name: Universitat de les Illes Balears Abstract: This paper aims to analyse one of the world’s top tourist destinations, the Mediterranean, and, more specifically, the evolution and impact of mass tourism on its western islands (Corsica, Sardinia, Sicily, Malta and the Balearic Islands) throughout the final decade of the 20th century. Firstly a general overview of world tourism is given, followed by an analysis of tourism in the Mediterranean. In continuation, an in-depth study is made of the evolution and impact of tourism on the aforementioned islands. Finally, the economic impact of tourism specialisation is examined in these island regions. Keywords: Mediterranean, Balearic Islands, Malta, Sardinia, Sicily, Corsica, Destination Lifecycle, Mass Tourism, IMEDOC Classification-JEL: L83, N70 Creation-Date: 200608 Template-Type: ReDIF-Paper 1.0 Number: 2006.109 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-109.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.109 Title: Dependent Controllers and Regulation Policies: Theory and Evidence Author-Name: Carmine Guerriero Author-X-Name-First: Carmine Author-X-Name-Last: Guerriero Author-WorkPlace-Name: University of Cambridge Abstract: This paper analyzes the effects of supervisors’ (i.e., regulators and judges) selection rules on regulated prices. A checks and balances’ regulatory review process strengthens the role of the judicial power and election increases the populism of implicitly motivated supervisors. Election arises when the risk related to expropriation of sunk investments and the inter-party distance are lower. Employing U.S. electric power market’s data, the empirical evidence strongly confirms these predictions. Indeed, when treated as endogenous, only the election of administrative law judges and not the one of regulators significantly lowers the level of electricity rates. Moreover a more effective supervision technology shows a marginal negative effect on regulated rates as well. Keywords: Election, Agency, Judges, Regulation, Electricity Classification-JEL: K23, L51, Q43 Creation-Date: 200608 Template-Type: ReDIF-Paper 1.0 Number: 2006.110 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-110.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.110 Title: Mapping Diversity in Milan. Historical Approaches to Urban Immigration Author-Name: John Foot Author-X-Name-First: John Author-X-Name-Last: Foot Author-WorkPlace-Name: University College London Abstract: An historical and spatial approach is crucial to the understanding of any city. Waves of immigration and population movements from different sources have constructed the cultural mix of this financial, industrial and market city over time. To focus just on the new foreign immigration into Milan over the last 25 years or so risks omitting the deep historical fissures created by previous (and bigger) waves of population movements – the traces left by these populations in the urban fabric and their role in subjective experience. Moreover, the historical and spatial comparison of various types and moments of population movement can help us to understand the changes to this city at macro and micro-levels. This paper uses a mixture of approaches in order to understand and map diversity in Milan, its province and its region. It is intended as a discussion paper to be looked at in conjunction with the work and arguments laid out in other research projects and published work. Methodologies used in this paper range from straightforward historical research (using documents and archives) to photography, micro-history (the examination of one small area – in this case one housing block) and oral historical interviews. Keywords: Immigration, Urban Space, Periphery (Periferia), Memory, Housing Creation-Date: 200608 Template-Type: ReDIF-Paper 1.0 Number: 2006.111 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-111.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.111 Title: Foreigners and the City: An Historiographical Exploration for the Early Modern Period Author-Name: Donatella Calabi Author-X-Name-First: Donatella Author-X-Name-Last: Calabi Author-WorkPlace-Name: Università IUAV di Venezia Abstract: This paper will focus on the physical traces left by different minorities in the European city of the early modern age. Looking to the urban context in the main important ports and commercial centers we can find violent conflicts, traditional uses, as well as new urban strategies by the governors to keep together (for economic and social purposes) city-dwellers and foreigners. The invention of specific buildings and the effect on the architectural language is often quite visible and a mean of cultural exchanges. Keywords: City, History of Architecture, Modern Age, Foreigners, Minorities Creation-Date: 200609 Template-Type: ReDIF-Paper 1.0 Number: 2006.112 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-112-1.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.112 Title: Energy Demand and Temperature: A Dynamic Panel Analysis Author-Name: Andrea Bigano Author-X-Name-First: Andrea Author-X-Name-Last: Bigano Author-WorkPlace-Name: Fondazione Eni Enrico Mattei Author-Name: Francesco Bosello Author-X-Name-First: Francesco Author-X-Name-Last: Bosello Author-WorkPlace-Name: Fondazione Eni Enrico Mattei and EEE Programme, International Centre for Theoretical Physics Author-Name: Giuseppe Marano Author-X-Name-First: Giuseppe Author-X-Name-Last: Marano Author-WorkPlace-Name: Fondazione Eni Enrico Mattei Abstract: This paper is a first attempt to investigate the effect of climate on the demand for different energy vectors from different final users. The ultimate motivation for this is to arrive to a consistent evaluation of the impact of climate change on key consumption goods and primary factors such as energy vectors. This paper addresses these issues by means of a dynamic panel analysis of the demand for coal, gas, electricity, oil and oil products by residential, commercial and industrial users in OECD and (a few) non-OECD countries. It turns out that temperature has a very different influence on the demand of energy vectors as consumption goods and on their demand as primary factors. In general, residential demand responds negatively to temperature increases, while industrial demand is insensitive to temperature increases. As to the service sector, only electricity demand displays a mildly significant negative elasticity to temperature changes. Keywords: Energy Demand, Temperature, Dynamic Panels Classification-JEL: C3, Q41, Q54 Creation-Date: 200609 Template-Type: ReDIF-Paper 1.0 Number: 2006.113 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-113.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.113 Title: Paying for Permanence: Public Preferences for Contaminated Site Cleanup Author-Name: Anna Alberini Author-X-Name-First: Anna Author-X-Name-Last: Alberini Author-WorkPlace-Name: University of Maryland Author-Name: Stefania Tonin Author-X-Name-First: Stefania Author-X-Name-Last: Tonin Author-WorkPlace-Name: University of Venice-IUAV Author-Name: Margherita Turvani Author-X-Name-First: Margherita Author-X-Name-Last: Turvani Author-WorkPlace-Name: University of Venice-IUAV Author-Name: Aline Chiabai Author-X-Name-First: Aline Author-X-Name-Last: Chiabai Author-WorkPlace-Name: Fondazione Eni Enrico Mattei Abstract: We use conjoint choice questions to investigate people’s preferences for income and reductions in mortality risks delivered by contaminated site remediation policies. Our survey is self-administered using the computer by residents of four cities in Italy with severely contaminated sites. We estimate the Value of a Statistical Life to be about €5.6 million for an immediate risk reduction. If the risk reduction takes place 20 years from now, however, the implied VSL is about €1.26 million. The discount rate implicit in the responses to the conjoint choice questions is about 7%. People are willing to pay for permanent risk reductions, but not just any amount. Risk reductions in the nearer future are valued more highly than risk reductions in the more distant future. We also find that the VSL is “individuated,” in the sense that it depends on observable individual characteristics of the respondents, familiarity with contaminated sites, concern about the health effects of exposure to toxicants, having a family member with cancer, perceived usefulness of possible government actions, and the respondent’s beliefs about the goals of government remediation programs. Additional questions suggest that respondents discount lives, and do so at a discount rate in the ballpark of that implicit in their risk v. money tradeoffs. Keywords: Value of a Statistical Life, Latent Risk Reductions, Individual Discount Rates, Conjoint Choice Questions, Contaminated Sites, Remediation Classification-JEL: J17,I18, K32, Q51, Q53 Creation-Date: 200609 Template-Type: ReDIF-Paper 1.0 Number: 2006.114 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-114.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.114 Title: Global Climate Change, Technology Transfer and Trade with Complete Specialization Author-Name: Dirk T.G. Rübbelke Author-X-Name-First: Dirk T.G. Author-X-Name-Last: Rübbelke Author-WorkPlace-Name: Chemnitz University of Technology Author-Name: Vivekananda Mukherjee Author-X-Name-First: Vivekananda Author-X-Name-Last: Mukherjee Author-WorkPlace-Name: Jadavpur University Abstract: The paper develops a model in which a country with better technology for abatement of Green House Gas (GHG) emission (the North) commits to an international protocol to keep the global GHG emission within a specified limit while it helps the mitigation effort in the other country (the South) with unconditional transfer of abatement technology. It finds out in the autarkic (‘no trade’) equilibrium the technology transfer offer from the North is always accepted by the South. The North may offer either a partial or a complete technology transfer. If partial technology transfer is offered it finds out the determinants of the extent of technology transfer. Then it compares the autarkic equilibrium with equilibrium where trade with complete specialization occurs and finds out that trade limits the scope of technology transfer as an instrument for mitigation of global GHG emission. Keywords: GHG Emission, Mitigation, Technology Transfer, Trade Classification-JEL: F18, F35, Q54, Q56 Creation-Date: 200609 Template-Type: ReDIF-Paper 1.0 Number: 2006.115 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-115.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.115 Title: A Future for the Dead Sea Basin: Water Culture among Israelis, Palestinians and Jordanians Author-Name: Clive Lipchin Author-X-Name-First: Clive Author-X-Name-Last: Lipchin Author-WorkPlace-Name: Arava Institute For Environmental Studies Abstract: The Dead Sea basin plays a major role for regional economic development (industry, tourism and agriculture) in the Middle East. This potential is threatened by the steady disappearance of the Dead Sea. Since around 1930 the water level of the Dead Sea has fallen by about 25 m, about half of this alone in the last 20 years. The Dead Sea is a transboundary resource shared by Israel, the Palestinian Authority and Jordan. The Dead Sea is the terminal point of the Jordan River watershed and as such, it serves as a barometer for the health of the overall system. Its rapid decline reflects the present water management strategies of the riparian and upstream countries. This includes the different water cultures of the three countries. Throughout history, the Dead Sea basin has served as a source of refuge and inspiration for followers of Judaism, Christianity and Islam. Today, the religious significance of the Dead Sea is being overshadowed by its rapid disappearance. This may be explained in part by the water cultures of the three countries that influence water policy in the region. Ideology, together with culture and tradition, such as that of Zionism in Israel, has played a central role in water development in the region. In many cases, this has been at the expense of the environment. Elements pertaining to environmental security and water culture and tradition, whereby a sustainably managed environment provides for social, economic as well as environmental benefits are evident with regards the Dead Sea. The decline for example, undermines its potential as a tourist destination, despite the enormous investment in hotel and resort infrastructures in Israel and in Jordan. The decline also raises ethical issues about the exploitation of water resources by present generations at the expense of this natural heritage to future generations. This paper provides an analysis of a European Union funded project whose aims are to synthesize and assess existing physical and socio-economic data and to assess options for a better future for the Dead Sea. It will identify the patterns of water supply and use in the region, and the factors that control these patterns, including those of water culture. The underlying assumption is that solutions for a more sustainable development than today’s scenario will not come from simply providing "more water for more development", but from a new land and water management system, indeed ethic, that is sensitive to social, cultural and ecological resources thereby providing security and stability across cultures, economic sectors and nations. Keywords: Water Culture, Dead Sea, Stakeholder Analysis Classification-JEL: Q25, Q56, Q58 Creation-Date: 200609 Template-Type: ReDIF-Paper 1.0 Number: 2006.116 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-116.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.116 Title: The Allocation of European Union Allowances: Lessons, Unifying Themes and General Principles Author-Name: Barbara K. Buchner Author-X-Name-First: Barbara K. Author-X-Name-Last: Buchner Author-WorkPlace-Name: Fondazione Eni Enrico Mattei Author-Name: Carlo Carraro Author-X-Name-First: Carlo Author-X-Name-Last: Carraro Author-WorkPlace-Name: Fondazione Eni Enrico Mattei and University of Venice Author-Name: A. Denny Ellerman Author-X-Name-First: A. Denny Author-X-Name-Last: Ellerman Author-WorkPlace-Name: Senior Lecturer at MIT Abstract: This paper is the concluding chapter of Rights, Rents and Fairness: Allocation in the European Emissions Trading Scheme, edited by the co-authors and forthcoming from Cambridge University Press. The main objective of this paper is to distill the lessons and general principles to be learnt from the allocation of allowances in the European Union Emission Trading Scheme (EU ETS), i.e. in the world’s first experience with allocating carbon allowances to sub-national entities. We discuss the lessons that emerge from this experience and make some comments on what seem to be more general principles informing the allocation process and on what are the global implications of the EU ETS. As has become obvious during the first allocation phase, the diversity of experience among the Member States is considerable, so that it must be understood that these lessons and unifying themes are drawn from the experience of most of the Member States, not necessarily from all. Lessons and unifying observations are grouped in three categories: those concerning the conditions encountered, the processes employed, and the actual choices. Keywords: Climate Change, Emission Trading, Allocation, Fairness, EU Policy Classification-JEL: C72, H23, Q25, Q28 Creation-Date: 200609 Template-Type: ReDIF-Paper 1.0 Number: 2006.117 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-117.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.117 Title: Carbon Dioxide Emission Scenarios for the Usa Author-Name: Richard S.J. Tol Author-X-Name-First: Richard S.J. Author-X-Name-Last: Tol Author-WorkPlace-Name: Hamburg University Abstract: A model of carbon dioxide emissions of the USA is presented. The model consists of population, income per capita, economic structure, final and primary energy intensity per sector, primary fuel mix, and emission coefficients. The model is simple enough to be calibrated to observations since 1850. The model is used to project emissions until 2100. Best guess carbon dioxide emissions are in the middle of the IPCC SRES scenarios, but incomes and energy intensities are on the high side, while carbon intensities are on the low side. The confidence interval suggests that the SRES scenarios do not span the range of not-implausible futures. Although the model can be calibrated to reflect structural changes in the economy, it cannot anticipate such changes. The data poorly constrain crucial scenario elements, particularly energy prices. This suggests that the range of future emissions is wider still. Keywords: Climate Change, Emissions Scenarios, USA Classification-JEL: Q540 Creation-Date: 200609 Template-Type: ReDIF-Paper 1.0 Number: 2006.118 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-118.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.118 Title: A further step into the ELGH and TLGH for Spain and Italy Author-Name: Isabel Cortés_Jiménez Author-X-Name-First: Isabel Author-X-Name-Last: Cortés_Jiménez Author-WorkPlace-Name: Universitat de Barcelona Author-Name: Manuela Pulina Author-X-Name-First: Manuela Author-X-Name-Last: Pulina Author-WorkPlace-Name: Università di Sassari Abstract: Nowadays many developing countries focus on economic policies for promoting international tourism and exports expansion as a potential source of economic growth of the country. However, the understanding of the relationship between exports and economic growth is still ongoing. When treating the relationship between tourism and economic growth, considering tourism as a non-traditional export few studies have been published to date. This paper has the objective to assess if exports and tourism have really promoted growth by means of the export-led growth hypothesis (ELGH) and the tourism-led growth hypothesis (TLGH). The cases under analysis are Spain and Italy, two of the most important countries worldwide regarding the expansion of tourism. Cointegration techniques and the multivariate Granger causality test are applied. Results reveal that exports cause economic growth in the long-term for both countries, whilst only for Spain tourism appears as a factor which influences economic growth in the lon-run. Keywords: Economic Growth, Exports, Tourism, Cointegration, Multivariate Granger Causality, Spain, Italy Classification-JEL: L83, C32, O49 Creation-Date: 200609 Template-Type: ReDIF-Paper 1.0 Number: 2006.119 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-119.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.119 Title: Estimating the Value of Safety with Labor Market Data: Are the Results Trustworthy? Author-Name: Beat Hintermann Author-X-Name-First: Beat Author-X-Name-Last: Hintermann Author-WorkPlace-Name: University of Maryland Author-Name: Anna Alberini Author-X-Name-First: Anna Author-X-Name-Last: Alberini Author-WorkPlace-Name: University of Maryland Author-Name: Anil Markandya Author-X-Name-First: Anil Author-X-Name-Last: Markandya Author-WorkPlace-Name: University of Bath and Fondazione Eni Enrico Mattei Abstract: We use a panel dataset of UK workers to look for evidence of compensating wage differentials for workplace risk. Risk data are available at the four-digit industry level or at the three-digit occupation level. We discuss various econometric problems associated with the hedonic wage approach, namely measurement error, instability of the estimates to specification changes, and endogeneity. We find that if we assume a classical measurement error, the true risk signal would be completely drowned out in our data, which would imply a severe downward bias of the OLS coefficient on risk. But this prediction is at odds with our OLS estimates of the VSL, which are large, especially for blue collar workers. Further, the coefficient on risk changes varies dramatically with the inclusion or exclusion of industry and/or occupation dummies, as well as with the addition of nonfatal risk. When we instrument for risk, which we treat as endogenous with wage, and apply 2SLS or a procedure suggested by Garen (1988), we find negative associations between risk and wages for all workers, which is against the notion of compensating wage differentials, or, for blue-collar workers, extremely large VSL figures. Finally, we exploit the panel nature of our data to apply various estimation procedures (the “within” estimator, GLS and the Hausman-Taylor procedure) that correct for unobserved heterogeneity and endogeneity. The coefficient on risk is usually negative and insignificant for the sample of all workers, which once again questions the notion of compensating wage differentials. For blue-collar workers we obtain reasonable VSLs, but the association between risk and wages is not statistically significant. We conclude that if compensating differentials for risk exist, measurement error, other econometric problems, and the changing nature of labor markets prevent us from observing them. We also conclude that models and techniques for panel data that account for unobserved heterogeneity and endogeneity seem more reliable than the techniques typically employed with cross-sectional data. Keywords: Value of Life, Labor Market, Wage Hedonics Classification-JEL: H43, J17, J28, J31 Creation-Date: 200609 Template-Type: ReDIF-Paper 1.0 Number: 2006.120 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-120.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.120 Title: Air Pollution Costs in Ukraine Author-Name: Elena Strukova Author-X-Name-First: Elena Author-X-Name-Last: Strukova Author-WorkPlace-Name: World Bank Author-Name: Alexander Golub Author-X-Name-First: Alexander Author-X-Name-Last: Golub Author-WorkPlace-Name: Environmental Defense Author-Name: Anil Markandya Author-X-Name-First: Anil Author-X-Name-Last: Markandya Author-WorkPlace-Name: Fondazione Eni Enrico Mattei Abstract: The paper presents estimation of the health losses from urban air pollution in Ukraine. The methodology developed by US EPA and adjusted in Russia for Eastern European transition countries was applied for health risk assessment. PM2.5 was identified as the major source of human health risk, based on experience from the Russian studies. In the absence of reliable computed concentrations of PM2.5, the study was based on monitoring data of total suspended particle (TSP) emissions in Ukraine. Additional cases of mortality and morbidity were calculated based on reporting data on TSP concentration that was recalculated into PM2.5. Then the concentration–response function was applied to estimate individual risk. Next, individual risk was applied to the population exposed to the concentration reported for each city included in the analysis (we selected most polluted cities). For each city we considered individual data on baseline mortality and morbidity and population structure. In total, air pollution related mortality represents about 6 percent of total mortality in Ukraine. In Russia the corresponding indicator totals about 4 percent. The relative mortality risk attributed to air pollution calculated per 100 000 population in both countries is about 55-59 cases. Since applied method is sensitive to the primary data uncertainties we conducted sensitivity analysis applying Monte-Carlo method. Economic damage related to mortality risk was estimated at about 4 percent of GDP. There was no relevant WTP study in Ukraine therefore we applied the benefit-transfer method in order to estimate VSL, since mortality attributed to air pollution is major component of health losses (about 94 percent). In order to compare and aggregate mortality and morbidity risks we recalculated them in DALY. Then morbidity represents about 30 percent of total air pollution health load. Data on baseline morbidity is less reliable than data on baseline mortality; therefore the morbidity risk estimates are more uncertain than mortality estimates. It is likely that morbidity risk is underestimated. Regardless of uncertainties mentioned above and some problems with reported data we can conclude that the mortality risk attributed to air pollution is significant. Therefore, costs of air pollution in Ukraine are sizable and in the nearest future may offset the economic growth. Recovery of the Ukrainian economy based on restoration of polluting industries may lead to stagnation since mortality and morbidity risks not only puts burden on the economy, but also reduce labor force. Keywords: Air Pollution, Ukraine, Environmental Damages Classification-JEL: Q53, I10, I18 Creation-Date: 200609 Template-Type: ReDIF-Paper 1.0 Number: 2006.121 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-121.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.121 Title: A Bayesian Approach to the Estimation of Environmental Kuznets Curves for CO2 Emissions Author-Name: Massimiliano Mazzanti Author-X-Name-First: Massimiliano Author-X-Name-Last: Mazzanti Author-WorkPlace-Name: University of Ferrara Author-Name: Antonio Musolesi Author-X-Name-First: Antonio Author-X-Name-Last: Musolesi Author-WorkPlace-Name: CERIS DSE CNR Author-Name: Roberto Zoboli Author-X-Name-First: Roberto Author-X-Name-Last: Zoboli Author-WorkPlace-Name: CERIS DSE CNR Abstract: This paper investigates the EKC curves for CO2 emissions in a panel of 109 countries during the period 1959-2001. The length of the series makes the application of a heterogeneous estimator suitable from an econometric point of view. The results, based on the hierarchical Bayes estimator, show that different EKC dynamics are associated with the different sub samples of countries considered. On average, more industrialized countries show an EKC evidence in quadratic specifications, which are nevertheless probably evolving into an N shape, emerging from cubic specifications. Less developed countries consistently show that CO2 emissions still rise positively with income, though some signals of an EKC path arise. Keywords: Environmental Kuznets Curve, CO2 Emissions, Bayesian Approach, Heterogeneous Panels Classification-JEL: C23, Q25 Creation-Date: 200610 Template-Type: ReDIF-Paper 1.0 Number: 2006.122 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-122.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.122 Title: Unraveling the World-Wide Pollution Haven Effect Author-Name: Jean-Marie Grether Author-X-Name-First: Jean-Marie Author-X-Name-Last: Grether Author-WorkPlace-Name: University of Neuchâtel Author-Name: Nicole A. Mathys Author-X-Name-First: Nicole A. Author-X-Name-Last: Mathys Author-WorkPlace-Name: University of Lausanne Author-Name: Jaime de Melo Author-X-Name-First: Jaime Author-X-Name-Last: de Melo Author-WorkPlace-Name: University of Geneva and CEPR Abstract: This paper contributes to the debate on the existence of pollution haven effects by systematically measuring the pollution content of trade (measured by the polluction content of imports (PCI)) and decomposing it into three components: a ‘deep’ (i.e. unrelated to the environmental debate) component and two components (factor endowments and environmental policies) that occupy centerstage in the debate on trade and the environment. The decomposition is carried out for 1986-88 for an extensive data set covering 10 pollutants, 48 countries and 79 ISIC 4-digit sectors. Illustrative decompositions presented for 3 of the 10 pollutants in the data set indicate a significant pollution haven effect and highlight the role of factor endowments in each region’s PCI. However, because the bulk of trade is intra-regional with a high North-North share, these effects are small relative to the ‘deep’ determinants of the worldwide pollution content of trade. Keywords: Trade and the Environment, Pollution Haven Classification-JEL: F18 Creation-Date: 200610 Template-Type: ReDIF-Paper 1.0 Number: 2006.123 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-123.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.123 Title: Entry and Exit Strategies in Migration Dynamics Author-Name: Sergio Vergalli Author-X-Name-First: Sergio Author-X-Name-Last: Vergalli Author-WorkPlace-Name: University of Brescia Abstract: This work is devoted to study the role of combined entry and exit strategies in the migration process. We develop a real option model in which the community of immigrants in the host country is described as a club and the immigrants benefits is a U-shaped function, depending on the dimension of the district. There exist two threshold levels: the first one triggers the migration choice, while the second triggers the return to the country of origin. The theoretical results show that the phenomenon of hysteresis is amplified by the existence of a community both in the entry case and in the exit case. Furthermore, the community can reduce the minimum wage level required to trigger both exit and entry: this fact could explain why in some cases we observe migration inflows with a low wage differential and also with underunemployment. We show also some possible further extensions of the model: in one case we introduce a possible way to select the entrants’ skills and in another case we show some theoretical implementations to include possible policy shocks in the migrant’s choice. Keywords: Migration, Real Option, Theory of Clubs, Network Effect Classification-JEL: F22, H49, O15, R23 Creation-Date: 200610 Template-Type: ReDIF-Paper 1.0 Number: 2006.124 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-124.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.124 Title: Privatization in Western Europe Stylized Facts, Outcomes, and Open Issues Author-Name: Bernardo Bortolotti Author-X-Name-First: Bernardo Author-X-Name-Last: Bortolotti Author-WorkPlace-Name: Fondazione Eni Enrico Mattei Author-Name: Valentina Milella Author-X-Name-First: Valentina Author-X-Name-Last: Milella Author-WorkPlace-Name: Fondazione Eni Enrico Mattei Abstract: Privatization has certainly been one of the main events of the economic and financial history of the 20th century. Between 1997 and 2004 more than 4,000 privatization operations were carried out in the world, bringing to governments revenues for over 1,350US$billion. Western Europe emerges as the most important region, having implemented the greatest number of privatizations and raised a half of global revenues. The relevance of Western Europe in the process can be ascribed to several factors. This paper investigates the causes of this process, summarizes the main trends of privatization activity at the country level, analyzes the main privatization drivers and provides an account of the main findings of the effects of privatization at the macro and microeconomic level. Keywords: Privatization, State-Owned Sector, Capital Markets, Financial Development Classification-JEL: L33, L38 Creation-Date: 200610 Template-Type: ReDIF-Paper 1.0 Number: 2006.125 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-125.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.125 Title: Sustainable Development Data Availability on the Internet Author-Name: Pietro Caratti Author-X-Name-First: Pietro Author-X-Name-Last: Caratti Author-WorkPlace-Name: Regione Lombardia and Fondazione Eni Enrico Mattei Author-Name: Ludovico Ferraguto Author-X-Name-First: Ludovico Author-X-Name-Last: Ferraguto Author-WorkPlace-Name: Fondazione Eni Enrico Mattei Abstract: Defining what Sustainability and Sustainable Development mean is a critical task, as they are global objectives, which cover different aspects of life often difficult to quantify and describe. Talking about sustainable development means dealing with the development and implementation of SD strategies at international as well as at local level. With this regard, SD information plays a key role in monitoring SD performances at different administration levels. The aim of this paper is to give an overview of sustainable data availability on the internet at international, European, national and regional level. The paper is novel in the fact that the attention of the whole analysis focused on internet, considered as the principal mean for accessing data. In fact, the web has become through the years a fundamental tool for exchanging information amongst people, organisations, institutes, governments, thanks to its easy accessibility for a wide knowledge exchange. Sustainable development data collected at different administrative levels are classified and processed according to different methods and procedures; they are gathered at different scales, in different periods and they have a different frequency of updating. Data accuracy and meta-information on available data considerably vary, too. Few organisations at the international and at the European level such as, for example, World Bank, United Nations, OECD, FAO, Eurostat, EEA committed themselves to process information belonging to different sources aiming at standardising and producing comparable data sets for several nations and regions. Following the above considerations, various international, European and national organisations’ databases were investigated in order to check the availability of data at different administrative levels, mostly focusing on those sectors considered as pillars for the definition and monitoring of the implementation of the EU Sustainable Development Strategy, as pointed out in the Communication of the EC SEC(2005) 161 final. Keywords: Sustainability, Indicators, Regional Development, Internet, Database Classification-JEL: Q5, Q56, Y10, Q58 Creation-Date: 200610 Template-Type: ReDIF-Paper 1.0 Number: 2006.126 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-126.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.126 Title: Fishing Across the Centuries: What Prospects for the Venice Lagoon? Author-Name: Silvia Silvestri Author-X-Name-First: Silvia Author-X-Name-Last: Silvestri Author-WorkPlace-Name: Agro-forestry Systems and University of Padova Author-Name: M. Pellizzato Author-X-Name-First: M Author-X-Name-Last: Pellizzato Author-WorkPlace-Name: Agri.Te.Co. and University of Venice Author-Name: V. Boatto Author-X-Name-First: V. Author-X-Name-Last: Boatto Author-WorkPlace-Name: Agro-forestry Systems and University of Padova Abstract: Fishing has always been an important activity for those Venetians who live near the Lagoon, and it still enjoys an important economic and social role in the region. Over the last few years, however, the fishing industry has been subject to a profound transformation both in the reduction of the variety and the abundance of the species found in the lagoon, and in the change from a complex and well-structured type of activity to one which has become monospecialist, that is based principally on the fishing of the bivalve Tapes philippinarum (Adam & Reeve). The widespread diffusion of this bivalve and its considerable commercial value have resulted in an increased harvest, initially carried out by hand but now by more sophisticated methods which are capable of obtaining much higher yields. The social, economic and environmental problems resulting from this automated fishing have stimulated research into alternative strategies to manage the alieutic resources of the lagoon which will allow fishing to become a sustainable activity without inflicting long-term environmental damage. This present work will try and prepare the foundations for a system of eco-compatible management, based on an analysis of the functioning of the lagoon’s eco-system, defined as a paralic model, the observation of the traditional forms of fishing practiced over the centuries, a technical analysis of the present typology of lagoon fishing (fishing with fyke nets, “vallicoltura” and fishing of fish fry for rearing, clam fishing (Tapes philippinarum), mussel culture) with particular reference to the species fished, the distribution of the activity throughout the year and the technology employed, to the productivity of the various fishing methods. Keywords: Venice Lagoon, Fyke nets, Clam Fishing management, Fish Farming Classification-JEL: Q22 Creation-Date: 200610 Template-Type: ReDIF-Paper 1.0 Number: 2006.127 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-127.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.127 Title: Formation of Segregated and Integrated Groups Author-Name: Alison Watts Author-X-Name-First: Alison Author-X-Name-Last: Watts Author-WorkPlace-Name: Southern Illinois University Abstract: A model of group formation is presented where the number of groups is fixed and a person can only join a group if the group’s members approve the person’s joining. Agents have either local status preferences (each agent wants to be the highest status agent in his group) or global status preferences (each agent wants to join the highest status group that she can join). For both preference types, conditions are provided which guarantee the existence of a segregated stable partition where similar people are grouped together and conditions are provided which guarantee the existence of an integrated stable partition where dissimilar people are grouped together. Additionally, in a dynamic framework we show that if a new empty group is added to a segregated stable partition, then integration may occur. Keywords: Group Formation, Stable Partition, Segregation, Integration Classification-JEL: C7, D6 Creation-Date: 200610 Template-Type: ReDIF-Paper 1.0 Number: 2006.128 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-128.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.128 Title: Lexicographic Preferences in Discrete Choice Experiments: Consequences on Individual-Specific Willingness to Pay Estimates Author-Name: Danny Campbell Author-X-Name-First: Danny Author-X-Name-Last: Campbell Author-WorkPlace-Name: Gibson Institute of Land, Food and Environmen, Queen’s University Belfast Author-Name: W. George Hutchinson Author-X-Name-First: W. George Author-X-Name-Last: Hutchinson Author-WorkPlace-Name: Gibson Institute of Land, Food and Environmen, Queen’s University Belfast Author-Name: Riccardo Scarpa Author-X-Name-First: Riccardo Author-X-Name-Last: Scarpa Author-WorkPlace-Name: University of Waikato Abstract: In discrete choice experiments respondents are generally assumed to consider all of the attributes across each of the alternatives, and to choose their most preferred. However, results in this paper indicate that many respondents employ simplified lexicographic decision-making rules, whereby they have a ranking of the attributes, but their choice of an alternative is based solely on the level of their most important attribute(s). Not accounting for these simple decision-making heuristics introduces systemic errors and leads to biased point estimates, as they are a violation of the continuity axiom and a departure from the use of compensatory decision-making. In this paper the implications of lexicographic preferences are examined. In particular, using a mixed logit specification this paper investigates the sensitivity of individual-specific willingness to pay (WTP) estimates conditional on whether lexicographic decision-making rules are accounted for in the modelling of discrete choice responses. Empirical results are obtained from a discrete choice experiment that was carried out to address the value of a number of rural landscape attributes in Ireland. Keywords: Continuity axiom, Discrete Choice Experiments, Lexicographic Preferences, Mixed Logit, Individual-Specific Willingness to Pay Classification-JEL: C35, Q24, Q51 Creation-Date: 200610 Template-Type: ReDIF-Paper 1.0 Number: 2006.129 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-129.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.129 Title: Transitional Dynamics Towards Sustainability: Reconsidering the EKC Hypothesis Author-Name: Giovanni Bella Author-X-Name-First: Giovanni Author-X-Name-Last: Bella Author-WorkPlace-Name: University of Cagliari Abstract: The Environmental Kuznets Curve (EKC) hypothesis is one of the most debated economic issues. Despite its fascinating appeal for any policy maker, neither theoretical nor certain empirical evidence has been found to clean up all doubt. The aim of this paper is to present an economy where environmental quality and polluting emissions do enter the maximisation problem, and provide a transitional dynamics analysis to pursue a new different version of the EKC, depending on the level of development finally achieved. Keywords: Environmental Quality, Endogenous Economic Growth, Sustainable Development Classification-JEL: O41, Q01, Q32 Creation-Date: 200610 Template-Type: ReDIF-Paper 1.0 Number: 2006.130 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-130.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.130 Title: Pricing and Hedging Illiquid Energy Derivatives:an Application to the JCC Index Author-Name: Matteo Manera Author-X-Name-First: Matteo Author-X-Name-Last: Manera Author-WorkPlace-Name: University of Milan-Bicocca and Fondazione Eni Enrico Mattei Author-Name: Elisa Scarpa Author-X-Name-First: Elisa Author-X-Name-Last: Scarpa Author-WorkPlace-Name: Banca Intesa Abstract: In this paper we discuss a simple econometric strategy for pricing and hedging illiquid financial products, such as the Japanese crude oil cocktail (JCC) index, the most popular OTC energy derivative in Japan. First, we review the existing literature for computing optimal hedge ratios (OHR) and we propose a critical classification of the existing approaches. Second, we compare the empirical performance of different econometric models (namely, regression models in price-levels, price first differences, price returns, as well as error correction and autoregressive distributed lag models) in terms of their computed OHR using monthly data on the JCC over the period January 2000-January 2006. Third, we illustrate and implement a procedure to cross-hedge and price two different swaps on the JCC: a one-month swap and a three-month swap with a variable oil volume. We explain how to compute a bid/ask spread and to construct the hedging position for the JCC swap. Fourth, we evaluate our swap pricing scheme with backtesting and rolling regression techniques. Our empirical findings show that it is not necessary to use sophisticated econometric techniques, since the price level regression model permits to compute a more reliable optimal hedge ratio relative to its competing alternatives. Keywords: Hedging Models, Cross-Hedging, Energy Derivatives, Illiquid Financial Products, Commodity Markets, JCC Price Index Classification-JEL: G13, G15 Creation-Date: 200610 Template-Type: ReDIF-Paper 1.0 Number: 2006.131 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-131.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.131 Title: The Nontradable Share Reform in the Chinese Stock Market Author-Name: Bernardo Bortolotti Author-X-Name-First: Bernardo Author-X-Name-Last: Bortolotti Author-WorkPlace-Name: University of Torino and Fondazione Eni Enrico Mattei Author-Name: Andrea Beltratti Author-X-Name-First: Andrea Author-X-Name-Last: Beltratti Author-WorkPlace-Name: Bocconi University Abstract: Nontradable shares (NTS) are an unparalleled feature of the ownership structure of Chinese listed companies and represented a major hurdle to domestic financial market development. After some failed attempts, in 2005 the Chinese authorities have launched a structural reform program aiming at eliminating NTS. In this paper, we evaluate the stock price effects of the actual implementation of this reform in 368 firms. The NTS reform generated a statistically significant 8 percent positive abnormal return over the event window, adjusting prices for the compensation requested by tradable shareholders. Results are consistent with the expectation of improved economic fundamentals such as better corporate governance and enhanced liquidity. Keywords: Chinese Equity Market, Financial Market Development, Split-Share Structure Classification-JEL: G14, G28, G32 Creation-Date: 200611 Template-Type: ReDIF-Paper 1.0 Number: 2006.132 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-132.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.132 Title: The Internalization of Externalities in The Production of Electricity: Willingness to Pay for the Attributes of a Policy for Renewable Energy Author-Name: Alberto Longo Author-X-Name-First: Alberto Author-X-Name-Last: Longo Author-WorkPlace-Name: Queen’s University Belfast and University of Bath Author-Name: Anil Markandya Author-X-Name-First: Anil Author-X-Name-Last: Markandya Author-WorkPlace-Name: University of Bath and Fondazione Eni Enrico Mattei Author-Name: Marta Petrucci Author-X-Name-First: Marta Author-X-Name-Last: Petrucci Author-WorkPlace-Name: University of Bath Abstract: This paper investigates the willingness to pay of a sample of residents of Bath, England, for a hypothetical program that promotes the production of renewable energy. Using choice experiments, we assess the preferences of respondents for a policy for the promotion of renewable energy that (i) contributes to the internalization of the external costs caused by fossil fuel technologies; (ii) affects the security of energy supply; (iii) has an impact on the employment in the energy sector; (iv) and leads to an increase in the electricity bill. Responses to the choice questions show that our respondents are in favour of a policy for renewable energy and that they attach a high value to a policy that brings private and public benefits in terms of climate change and energy security benefits. Our results therefore suggest that consumers are willing to pay a higher price for electricity in order to internalize the external costs in terms of energy security, climate change and air pollution caused by the production of electricity. Keywords: Non Market Valuation, Choice Experiments, Willingness to Pay, Renewable Energy, Energy Security, Greenhouse Gases Emissions Classification-JEL: Q42, Q48, Q51 Creation-Date: 200611 Template-Type: ReDIF-Paper 1.0 Number: 2006.133 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-133.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.133 Title: Quality of Available Mates, Education and Intra-Household Bargaining Power Author-Name: Sonia Oreffice Author-X-Name-First: Sonia Author-X-Name-Last: Oreffice Author-WorkPlace-Name: Clemson University Author-Name: Brighita Bercea Author-X-Name-First: Brighita Author-X-Name-Last: Bercea Author-WorkPlace-Name: Clemson University Abstract: This paper further explores the role of sex ratios on spouses’ bargaining power, by focusing on educational attainment in order to capture the qualitative aspect of mate availability. Using Census and Current Population Survey data for U.S. metropolitan areas in year 2000, a quality sex ratio is constructed by education brackets to test the effect on the intra-household bargaining power of couples in the corresponding education bracket. We argue that a relative shortage of suitably educated women in the spouse’s potential marriage market increases wives’ bargaining power in the household while it lowers their husbands’. Additionally, we test the prediction that this bargaining power effect is greater as the assortative mating order by education increases. We consider a collective labor supply household model, in which each spouse’s labor supply is negatively related to their level of bargaining power. We find that higher relative shortage of comparably educated women in the couple’s metropolitan area reduces wives’ labor supply and increases their husbands’. Also, the labor supply impact is stronger for couples in higher education groups. No such effects are found for unmarried individuals, which is consistent with bargaining theory. Keywords: Education, Intra-Household Bargaining Power, Labor Supply Classification-JEL: D12, J12 Creation-Date: 200611 Template-Type: ReDIF-Paper 1.0 Number: 2006.134 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-134.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.134 Title: Local Networks to Compete in the Global Era. The Italian SMEs Experience Author-Name: Antonia R. Gurrieri Author-X-Name-First: Antonia R. Author-X-Name-Last: Gurrieri Author-WorkPlace-Name: University of Bari Author-Name: Luca Petruzzellis Author-X-Name-First: Luca Author-X-Name-Last: Petruzzellis Author-WorkPlace-Name: University of Bari Abstract: This study is concerned with the factors that influence the cooperation among cluster-based firms. Theorists have consistently demonstrated the role and importance of economic externalities, such as knowledge spillovers, within industrial clusters. Less attention has been paid to the investigation of social based externalities, though it has been suggested that these may also accrue from geographical agglomeration. This study explores the development of cooperation between firms operating in a single industry sector and in close proximity. The results suggest that social networking has a greater influence than geographic proximity in facilitating inter-firm co-operation. A semi-structured questionnaire has been developed and the answers were analysed with a stepwise regression model. Keywords: Networks, Inter-Firm Cooperation, SMEs Creation-Date: 200611 Template-Type: ReDIF-Paper 1.0 Number: 2006.135 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-135.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.135 Title: Economy-Wide Estimates of the Implications of Climate Change: A Joint Analysis for Sea Level Rise and Tourism Author-Name: Francesco Bosello Author-X-Name-First: Francesco Author-X-Name-Last: Bosello Author-WorkPlace-Name: Fondazione Eni Enrico Mattei and Ca’Foscari University of Venice Author-Name: Andrea Bigano Author-X-Name-First: Andrea Author-X-Name-Last: Bigano Author-WorkPlace-Name: Fondazione Eni Enrico Mattei and REF, Ricerche per l'Economia e la Finanza Author-Name: Roberto Roson Author-X-Name-First: Roberto Author-X-Name-Last: Roson Author-WorkPlace-Name: Fondazione Eni Enrico Mattei and Ca’Foscari University of Venice Author-Name: Richard S.J. Tol Author-X-Name-First: Richard S.J. Author-X-Name-Last: Tol Author-WorkPlace-Name: Vrije Universiteit Abstract: Climate change impacts on human life have well defined and different origins, nevertheless in the determination of their final effects, especially those involving social-economic responses, interactions among impacts are likely to play an important role. This paper is one of the first attempts to disentangle and highlight the role of these interactions. It focuses on the economic assessment of two specific climate change impacts: sea-level rise and changes in tourism flows. By using a CGE model the two impacts categories are first analyzed separately and then jointly. Comparing the results it is shown that, even though qualitatively joint effects follow the outcomes of the disjoint exercises, quantitatively impact interactions do play a significant role. Moreover it has been also possible to disentangle the relative contribution of each single impact category to the final result. In the case under scrutiny demand shocks induced by changes in tourism flows outweigh the supply side shock induced by the loss of coastal land. Keywords: Climate Change, Sea Level Rise, Tourism, Computable General Equilibrium Models Classification-JEL: C68, D58, Q25 Creation-Date: 200611 Template-Type: ReDIF-Paper 1.0 Number: 2006.136 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-136.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.136 Title: Why Worry About Climate Change? A Research Agenda Author-Name: Richard S.J. Tol Author-X-Name-First: Richard S.J. Author-X-Name-Last: Tol Author-WorkPlace-Name: Vrije Universiteit, Carnegie Mellon University and Economic and Social Research Institute Abstract: Estimates of the marginal damage costs of carbon dioxide emissions suggest that, although climate change is a problem and some emission reduction is justified, very stringent abatement does not pass the cost-benefit test. However, current estimates of the economic impact of climate change are incomplete. Some of the missing impacts are likely to be positive and others negative, but overall the uncertainty seems to concentrate on the downside risks and current estimates of the damage costs may have a negative bias. The research effort on the economic impacts of climate change is minute, and should be strengthened, with a particular focus on the quantification of uncertainties; estimating missing impacts, interactions between impacts and higher-order effects; the valuation of biodiversity loss; the implications of extreme climate scenarios and violent conflict; and climate change in the very long term. Keywords: Climate Change, Impacts, Valuation, Cost-benefit Analysis Classification-JEL: Q54 Creation-Date: 200611 Template-Type: ReDIF-Paper 1.0 Number: 2006.137 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-137.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.137 Title: Using Surveys to Compare the Public’s and Decisionmakers’ Preferences for Urban Regeneration: The Venice Arsenale Author-Name: Anna Alberini Author-X-Name-First: Anna Author-X-Name-Last: Alberini Author-WorkPlace-Name: University of Maryland Author-Name: Alberto Longo Author-X-Name-First: Alberto Author-X-Name-Last: Longo Author-WorkPlace-Name: Queen’s University Belfast Author-Name: Patrizia Riganti Author-X-Name-First: Patrizia Author-X-Name-Last: Riganti Author-WorkPlace-Name: The University of Nottingham Abstract: In this paper, we illustrate how surveys can be used to elicit the preferences of the public and of policymakers and city officials for regeneration projects at urban sites. Our methodology uses rating exercises, coupled with conjoint-choice stated preferences for the general public and with ranking exercises for the public officials and other stakeholders, and is then applied to investigate alternative reuses of the Venice Arsenale, Italy, and their economic, environmental and social impacts. One interesting feature of the conjoint choice questions for members of the public is that the responses to these questions can be used to estimate the social benefits of regeneration projects, i.e., how much people are willing to pay for these urban transformations. Another advantage of our approach is that it can be used seek and foster broader public participation into urban decisionmaking processes. Keywords: Land Use, Decision-Making, Cleanup, Sustainable Development, Local Economic Development, Choice Experiments Classification-JEL: R14 Creation-Date: 200611 Template-Type: ReDIF-Paper 1.0 Number: 2006.138 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-138.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.138 Title: Environmental Quality in a Differentiated Duopoly Author-Name: Y. Hossein Farzin Author-X-Name-First: Y. Hossein Author-X-Name-Last: Farzin Author-WorkPlace-Name: University of California Author-Name: Ken-Ichi Akao Author-X-Name-First: Ken-Ichi Author-X-Name-Last: Akao Author-WorkPlace-Name: Waseda University Abstract: In a duopoly industry with environmentally differentiated products, we examine the effects of introducing a mandatory environmental quality standard on firms’ environmental quality choices, profits, and the average environmental quality offered by the industry. We show that at low standard levels, both firms choose to overcomply regardless of the standard level. At intermediate levels, the mandatory standard can reduce the profit of the low-cost firm while increasing that of the high-cost firm, and that it can lower the industry’s average environmental quality below what it would be without the standard. Keywords: Duopoly, Environmental Quality, Mandatory Environmental Standard, Overcompliance, Product Differentiation Classification-JEL: Q58, L13, l51, D43 Creation-Date: 200611 Template-Type: ReDIF-Paper 1.0 Number: 2006.139 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-139.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.139 Title: Over-Allocation or Abatement? A Preliminary Analysis of the Eu Ets Based on the 2005 Emissions Data Author-Name: Barbara Buchner Author-X-Name-First: Barbara Author-X-Name-Last: Buchner Author-WorkPlace-Name: Fondazione Eni Enrico Mattei Author-Name: Denny Ellerman Author-X-Name-First: Denny Author-X-Name-Last: Ellerman Author-WorkPlace-Name: Massachusetts Institute of Technology Abstract: This paper provides an initial analysis of the EU ETS based on the installation-level data for verified emissions and allowance allocations in the first trading year. Those data, released on May 15, 2006, and subsequent updates revealed that CO2 emissions were about 4% lower than the allocated allowances. The main objective of the paper is to shed light on the extent to which over-allocation and abatement have taken place in 2005. We propose a measure by which over-allocation can be judged and provide estimates of abatement based on emissions data and indicators of economic activity as well as trends in energy and carbon intensity. Finally, we discuss the insights and implications that emerge from this tentative assessment. Keywords: Climate Change, Emission Trading, Allocation, Environmental Effects Classification-JEL: D61, O1, Q51, Q54 Creation-Date: 200611 Template-Type: ReDIF-Paper 1.0 Number: 2006.140 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-140.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.140 Title: Renewable Resources, Pollution and Trade in a Small Open Economy Author-Name: Horatiu A. Rus Author-X-Name-First: Horatiu A. Author-X-Name-Last: Rus Author-WorkPlace-Name: University of British Columbia Abstract: Industrial pollution can have damaging effects on resource-based productive sectors. International trade creates opportunities for overexploitation of the open-access renewable resources but also for separating the sectors spatially. The paper shows that, depending on the relative damage inflicted by the two industries on the environment, it is possible that the production externality will persist and that specialization in the dirty good may not be the obvious choice from a welfare perspective. Also, the resource exporter does not necessarily have to lose from trade even when specializing incompletely, due to the partially offsetting external effects. Keywords: Renewable Resources, Pollution, Production Externalities, Environment, International Trade Classification-JEL: Q27, Q22, Q53 Creation-Date: 200611 Template-Type: ReDIF-Paper 1.0 Number: 2006.141 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-141.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.141 Title: International Technology Spillovers in Climate-Economy Models: Two Possible Approaches Author-Name: Enrica De Cian Author-X-Name-First: Enrica Author-X-Name-Last: De Cian Author-WorkPlace-Name: Fondazione Eni Enrico Mattei Abstract: This paper analyzes two possible methodologies of modeling international technology spillovers in a climate-economy CGE model. Technological change, by affecting productivity, energy and carbon intensity, eventually influences the amount of CO2 emissions, the costs and the timing of the policies targeted at their reduction. Technological change is here defined so as to include also the diffusion and adoption phase. In an increasingly integrated world, new products and technologies developed in one region will eventually diffuse internationally. The two approaches described in this paper are based on two mechanisms used to model technological change in climate models: learning curves, total factor productivity and the autonomous energy efficient improvement parameter. This paper considers spillovers mediated by international trade in capital goods. In particular, it looks at how imports machinery and equipments from the OECD countries can affect the technology variables related to CO2 emissions: learning rates in the first approach, productivity, energy and carbon intensity in the second one. Keywords: Climate Policy, International Trade, Learning Curves, International Technology Spillovers, Biased Technical Change Classification-JEL: F18, O33, Q54, Q55 Creation-Date: 200611 Template-Type: ReDIF-Paper 1.0 Number: 2006.142 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-142.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.142 Title: Cost Effectiveness in River Management: Evaluation of Integrated River Policy System in Tidal Ouse Author-Name: Tao Wang Author-X-Name-First: Tao Author-X-Name-Last: Wang Author-WorkPlace-Name: University of York Abstract: The River Ouse forms a significant part of Humber river system, which drains about one fifth the land area of England and provides the largest fresh water source to the North Sea from UK. The river quality in the tidal river suffered from sag of dissolved oxygen (DO) during last few decades, deteriorated by the effluent discharges. The Environment Agency (EA) proposed to increase the water quality of Ouse by implementing more potent environmental policies. This paper explores the cost effectiveness of water management in the Tidal Ouse through various options by taking into account the variation of assimilative capacity of river water, both in static and dynamic scope of time. Reduction in both effluent discharges and water abstraction were considered along side with choice of effluent discharge location. Different instruments of environmental policy, the emission tax-subsidy (ETS) scheme and tradable pollution permits (TPP) systems were compared with the direct quantitative control approach. This paper at the last illustrated an empirical example to reach a particular water quality target in the tidal Ouse at the least cost, through a solution of constrained optimisation problem. The results suggested significant improvement in the water quality with less cost than current that will fail the target in low flow year. Keywords: Water Quality Management, Tradable Pollution Permits, Tax and Subsidy, Effluent Discharge, Water Abstraction, Dynamic Equilibrium, Integrated River Policy, Cost Effectiveness Classification-JEL: C31, C61, L51, R19 Creation-Date: 200611 Template-Type: ReDIF-Paper 1.0 Number: 2006.143 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-143.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.143 Title: How well does Learning-by-doing Explain Cost Reductions in a Carbon-free Energy Technology? Author-Name: Gregory F. Nemet Author-X-Name-First: Gregory F. Author-X-Name-Last: Nemet Author-WorkPlace-Name: University of California Abstract: The incorporation of experience curves has enhanced the treatment of technological change in models used to evaluate the cost of climate and energy policies. However, the set of activities that experience curves are assumed to capture is much broader than the set that can be characterized by learning-by-doing, the primary connection between experience curves and economic theory. How accurately do experience curves describe observed technological change? This study examines the case of photovoltaics (PV), a potentially important climate stabilization technology with robust technology dynamics. Empirical data are assembled to populate a simple engineering-based model identifying the most important factors affecting the cost of PV over the past three decades. The results indicate that learning from experience only weakly explains change in the most important cost-reducing factors— plant size, module efficiency, and the cost of silicon. They point to other explanatory variables to include in future models. Future work might also evaluate the potential for efficiency gains from policies that rely less on ‘riding down the learning curve’ and more on creating incentives for firms to make investments in the types of cost-reducing activities quantified in this study. Keywords: Learning-by-doing, Experience Curves, Learning Curves, Climate Policy Classification-JEL: O31, Q42, Q48, Q55 Creation-Date: 200611 Template-Type: ReDIF-Paper 1.0 Number: 2006.144 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-144.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.144 Title: Marginal Cost Versus Average Cost Pricing with Climatic Shocks in Senegal: A Dynamic Computable General Equilibrium Model Applied to Water Author-Name: Anne Briand Author-X-Name-First: Anne Author-X-Name-Last: Briand Author-WorkPlace-Name: University of Rouen Abstract: The model simulates on a 20-year horizon, a first phase of increase in the water resource availability taking into account the supply policies by the Senegalese government and a second phase with hydrologic deficits due to demand evolution (demographic growth). The results show that marginal cost water pricing (with a subsidy ensuring the survival of the water production sector) makes it possible in the long term to absorb the shock of the resource shortage, GDP, investment and welfare increase. Unemployment drops and the sectors of rain rice, market gardening and drinking water distribution grow. In contrast, the current policy of average cost pricing of water leads the long-term economy in a recession with an agricultural production decrease, a strong degradation of welfare and a rise of unemployment. This result questions the basic tariff (average cost) on which block water pricing is based in Senegal. Keywords: Computable General Equilibrium Model, Dynamic, Imperfect Competition, Water, Pricing, Sub Saharan Africa Classification-JEL: C68, O13 Creation-Date: 200611 Template-Type: ReDIF-Paper 1.0 Number: 2006.145 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-145.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.145 Title: Technology Transfers and the Clean Development Mechanism in a North-South General Equilibrium Model Author-Name: Linda Sahlén Author-X-Name-First: Linda Author-X-Name-Last: Sahlén Author-WorkPlace-Name: Umeå University Author-Name: Thomas Aronsson Author-X-Name-First: Thomas Author-X-Name-Last: Aronsson Author-WorkPlace-Name: Umeå University Author-Name: Kenneth Backlund Author-X-Name-First: Kenneth Author-X-Name-Last: Backlund Author-WorkPlace-Name: Umeå University Abstract: This paper analyzes the potential welfare gains of introducing a technology transfer from Annex I to non-Annex I in order to mitigate greenhouse gas emissions. Our analysis is based on a numerical general equilibrium model for a world economy comprising two regions, North (Annex I) and South (non-Annex I). As our model allows for labor mobility between the formal and informal sectors in the South, we are also able to capture additional aspects of how the transfer influences the Southern economy. In a cooperative equilibrium, a technology transfer from the North to the South is clearly desirable from the perspective of a ‘global social planner’, since the welfare gain for the South outweighs the welfare loss for the North. However, if the regions do not cooperate, then the incentives to introduce the technology transfer appear to be relatively weak from the perspective of the North; at least if we allow for Southern abatement in the pre-transfer Nash equilibrium. Finally, by adding the emission reductions associated with the Kyoto agreement to an otherwise uncontrolled market economy, the technology transfer leads to higher welfare in both regions. Keywords: Climate Policy, Technology Transfer, Kyoto Protocol, General Equilibrium, Clean Development Mechanism Classification-JEL: D58, D62, Q52 Creation-Date: 200611 Template-Type: ReDIF-Paper 1.0 Number: 2006.146 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-146.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.146 Title: Energy Regulation, Roll Call Votes and Regional Resources: Evidence from Russia Author-Name: Theocharis N. Grigoriadis Author-X-Name-First: Theocharis N. Author-X-Name-Last: Grigoriadis Author-WorkPlace-Name: The European Union Delegation to Russia Author-Name: Benno Torgler Author-X-Name-First: Benno Author-X-Name-Last: Torgler Author-WorkPlace-Name: University of California Abstract: This paper investigates the relative impact of regional energy production on the legislative choices of Russian Duma deputies on energy regulation between 1994 and 2003. We apply Poole’s optimal classification method of roll call votes using an ordered probit model to explain energy law reform in the first decade of Russia’s democratic transition. Our goal is to analyze the relative importance of home energy on deputies’ behavior, controlling for other factors such as party affiliation, electoral mandate, committee membership and socio-demographic parameters. We observe that energy resource factors have a considerable effect on deputies’ voting behavior. On the other hand, we concurrently find that regional economic preferences are constrained by the public policy priorities of the federal center that continue to set the tone in energy law reform in post-Soviet Russia. Keywords: Energy Regulation, Energy Roll Law Reform, Energy Resources, Roll Call Votes, Legislative Politics, State Duma, Russia Classification-JEL: Q400, D720, K230, P270, P370, P310, R110 Creation-Date: 200611 Template-Type: ReDIF-Paper 1.0 Number: 2006.147 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-147.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.147 Title: Costs of Reducing Greenhouse Gas Emissions: A Case Study of India’s Power Generation Sector Author-Name: Manish Gupta Author-X-Name-First: Manish Author-X-Name-Last: Gupta Author-WorkPlace-Name: National Institute of Public Finance and Policy Abstract: If India were to participate in any international effort towards mitigating CO2 emissions, the power sector which is one of the largest emitters of CO2 in the country would be required to play a major role. In this context the study estimates the marginal abatement costs, which correspond to the costs incurred by the power plants to reduce one unit of CO2 from the current level. The study uses an output distance function approach and its duality with the revenue function to derive these costs for a sample of thermal plants in India. Two sets of exercises have been undertaken. The average shadow prices of CO2 for the sample of thermal plants for the period 1991-92 to 1999-2000 was estimated to be respectively Rs.3380.59 and Rs.2401.99 per ton for the two models. These shadow prices can be used for designing environmental policies and market-based instruments for controlling pollution in the power sector in India. Keywords: Marginal Abatement Costs, Distance Function, CO2 Emissions, Shadow Prices, Power Generation Sector Classification-JEL: Q40 Creation-Date: 200611 Template-Type: ReDIF-Paper 1.0 Number: 2006.148 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-148.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.148 Title: A Modified Environmental Kuznets Curve for Sustainable Development Assessment Using Panel Data Author-Name: Valeria Costantini Author-X-Name-First: Valeria Author-X-Name-Last: Costantini Author-WorkPlace-Name: University of Roma Tre Author-Name: Chiara Martini Author-X-Name-First: Chiara Author-X-Name-Last: Martini Author-WorkPlace-Name: University of Roma Tre Abstract: Sustainable development is a concept strictly connected with basic needs of the individuals. During the last years a number of empirical studies have tried to discover and quantify the causal relations between economic growth and environmental consumption and degradation. The most widely used empirical model is the so-called Environmental Kuznets Curve (EKC), nowadays applied to different polluting elements. Despite the huge diffusion of EKC studies, this model has been criticised for incompleteness of a sustainable development analysis. The aim of this paper is to build a Modified EKC (MEKC) in order to consider a wider concept of development rather than pure economic growth, including well-being aspects and sustainability of the development process. Using a macroeconomic measure of sustainability such as the World Bank’s Genuine Saving and a measure of well-being such as the United Nations’ Human Development Index, we build a model in order to analyse linkages between higher welfare levels and natural resources consumption, verifying the sustainability of human development. A panel analysis for three years (1990-1995-2000) for a wide range of countries (including developed and developing countries) has been applied in order to respond to criticisms related to conjunctural results linked to pure cross-section studies. Comparisons among alternative pollutants (i.e., CO2, NOX, and SOX) and GS are described, and the robustness of the MEKC clearly emerges. Furthermore, in order to respond to criticisms for the reduced form of the EKC, an Instrumental Variables model has been tested both on CO2 and GS, while a system of equations has been tested considering simultaneously a traditional EKC and a MEKC for a longer time period (1996-2004). Unit root tests for non-stationary series have been computed, showing that the IV model gives satisfactory results. An indicator for technological capabilities has been added at this stage, accounting for diffusion of technical progress and import technology as suggested by Archibugi and Coco (2004). Causal relations identified within a MEKC allow to identify correlation between human development and sustainable development, following the classic inverted U-shaped curve of the EKC. Nonetheless, comparing the turning points of the MEKC and EKC, respectively, it seems that using this alternative specification some useful policy implications apply. The threshold level of human development in the MEKC corresponds to an income per capita level lower than the threshold level for the EKC, confirming the possibility of “tunnelling through the curve” as suggested in Munasinghe (1999). Our results show that human development should be the first objective of international development policies, and an increase in human well-being is necessary to provide a sustainability path. Keywords: Environmental Kuznets Curve, Sustainable development, Human development, Genuine saving, Panel data Classification-JEL: O15, Q01, Q56 Creation-Date: 200611 Template-Type: ReDIF-Paper 1.0 Number: 2006.149 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-149.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.149 Title: The Role of Risk Aversion and Lay Risk in the Probabilistic Externality Assessment for Oil Tanker Routes to Europe Author-Name: Andrea Bigano Author-X-Name-First: Andrea Author-X-Name-Last: Bigano Author-WorkPlace-Name: Fondazione Eni Enrico Mattei Author-Name: Mariaester Cassinelli Author-X-Name-First: Mariaester Author-X-Name-Last: Cassinelli Author-WorkPlace-Name: Fondazione Eni Enrico Mattei Author-Name: Anil Markandya Author-X-Name-First: Anil Author-X-Name-Last: Markandya Author-WorkPlace-Name: Fondazione Eni Enrico Mattei and University of Bath Author-Name: Fabio Sferra Author-X-Name-First: Fabio Author-X-Name-Last: Sferra Author-WorkPlace-Name: Fondazione Eni Enrico Mattei Abstract: Oil spills are a major cause of environmental concern, in particular for Europe. However, the traditional approach to the evaluation of the expected external costs of these accidents fails to take into full account the implications of their probabilistic nature. By adapting a methodology originally developed for nuclear accidents to the case of oil spills, we extend the traditional approach to the assessment of the welfare losses borne by potentially affected individuals for being exposed to the risk of an oil spill. The proposed methodology differs from the traditional approach in three respects: it allows for risk aversion; it adopts an ex-ante rather than an ex-post perspective; it allows for subjective oil spill probabilities (held by the lay public) higher than those assessed by the experts in the field. In order to illustrate quantitatively this methodology, we apply it to the hypothetical (yet realistic) case of an oil spill in the Aegean Sea. We assess the risk premiums that potentially affected individuals would be willing to pay in order to avoid losses to economic activities such as tourism and fisheries, and non-use damages resulting from environmental impacts on the Aegean coasts. In the scenarios analysed, the risk premiums on expected losses for tourism and fisheries turn out to be substantial when measured as a percentage of expected losses; by contrast, they are quite small for the case of damages to the natural environment. Keywords: Oil Spills, Probabilistic Externalities, Risk Aversion, Lay Risk Assessment, Mediterranean Classification-JEL: Q51, Q53, L91 Creation-Date: 200611 Template-Type: ReDIF-Paper 1.0 Number: 2006.150 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-150.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.150 Title: A Tale of Three Countries: Italian, Spanish and Swiss Manufacturing Operations in China Author-Name: Valeria Gattai Author-X-Name-First: Valeria Author-X-Name-Last: Gattai Author-WorkPlace-Name: Bocconi University and ISESAO Abstract: In this paper we investigate the choice of FDI versus joint-venture, made by Italian, Spanish and Swiss multinationals in China, as shaped by the risk of Dissipation of Intangible Assets. Probit estimates, based on an entirely new firm-level dataset, constructed by the author, show that FDI is more likely to emerge when know-how easily spills over - namely for firms endowed with more Intangible Assets or belonging to high tech sectors - in line with the theoretical expectations. Keywords: Intangible Assets, Internalisation, FDI, Joint-venture, China Classification-JEL: F23, C25, O53 Creation-Date: 200612 Template-Type: ReDIF-Paper 1.0 Number: 2006.151 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-151.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.151 Title: Governance and Water Management: Progress and Tools in Mediterranean Countries Author-Name: Alessandra Sgobbi Author-X-Name-First: Alessandra Author-X-Name-Last: Sgobbi Author-WorkPlace-Name: Fondazione Eni Enrico Mattei Author-Name: Gregorio Fraviga Author-X-Name-First: Gregorio Author-X-Name-Last: Fraviga Author-WorkPlace-Name: Università Cattolica del Sacro Cuore di Milano Abstract: This paper reviews the progress with respect to Integrated Water Resource Management (IWRM) in Mediterranean countries, as addressed within the activities of the Nostrum-Dss project, a Coordination Action funded by the 6th Framework Programme of the EC, with a particular emphasis on the current use of decision support tools (DSS). The IWRM paradigm is a comprehensive management framework, which integrates the different aspects of water resources – from the underlying ecological and physical aspects, to the socio-economic values and needs (horizontal integration); and calls for increasing decentralisation and privatisation of water services (vertical integration), and the devolution of planning authority, without however forgetting the need to ensure equitable access to water resources. Substantial progress has been made in the last decades in Nostrum-Dss Partner countries, although a disparity can still be seen between the Northern and Southern banks. New institutions have been established for implementing IWRM, existing institutions have been reformed, and decision making processes increasingly require public participation. Decentralisation of decision making, implementation and monitoring are also well underway, although improvements are still needed to ensure that the traditional power structures do not prevail. More efficient technologies and infrastructures are in place, especially for the production of high value goods or in agriculture. Finally, several DSS have been developed: yet, while operational/technical DSS instruments have been successfully employed, DSSs tools developed in a participatory way, or tackling more complex, political as well as environmental and economic problems are still de-linked from actual decision making processes. Laws and regulations for water management in most Mediterranean countries embrace and support the paradigms of IWRM – and EU framework directives have played an important role in fostering this shift from more traditional, vertical governance to new, horizontal governance based on soft laws. Yet, the implementation of such laws and regulations is often only partial – often because of the lack of a clear monitoring and enforcement strategy, but also because of governments’ financial and human resources constraints. Strong overlaps of roles and competences among different government institutions remain, hampering effective implementation of water management. The tendency to centralisation of decision making persists, and actors’ involvement is scanty. The shift towards the use of demand side policies as opposed to supply side policies is not yet completed: yet, supply side policies are very costly, as they are based on greater mobilisation of financial resources. Full cost recovery pricing is not practiced widely. This reluctance to introduce full cost recovery pricing in developing countries may be due to ethical and moral considerations, but in developed countries it is often associated with strong lobbying power of interest groups. This study was supported by funding under the Sixth Research Framework of the European Union within the project "Network on Governance, Science and Technology for Sustainable Water Resource Management in the Mediterranean- The role of Dss tools” (NOSTRUM-Dss, contract number INCO-CT-2004-509158). Keywords: Integrated Water Resources Management, Decision Support Systems, Environmental Governance Classification-JEL: Q01, Q25, Q28 Creation-Date: 200612 Template-Type: ReDIF-Paper 1.0 Number: 2006.152 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-152.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.152 Title: Sustainable Development Policies in Europe Author-Name: Pietro Caratti Author-X-Name-First: Pietro Author-X-Name-Last: Caratti Author-WorkPlace-Name: Fondazione Eni Enrico Mattei Author-Name: Gabriella Lo Cascio Author-X-Name-First: Gabriella Author-X-Name-Last: Lo Cascio Author-WorkPlace-Name: Fondazione Eni Enrico Mattei Abstract: The objective of this paper is to investigate the actual situation in the shift towards the implementation of Sustainable Development Policies in Europe. The aim is to highlight the key role of the European Union in bringing about sustainable development within Europe and also on the wider global stage. It will show how the European Commission performs its commitment in reaching a sustainable regulation by issuing some documents and declarations. The paper frames the EU action into an international framework of strategies, agreements and policies on SD and, at the same time, provides an overview on experiences of SD strategy implementations at the national level, according to the commission pressing on MS to produce their own SD strategy and implement it. Indicators systems, issues of interest and fields of actions are compared: the analysis of these elements aims to highlight common scenarios of SD strategies that reveal the trends towards a more sustainable growth in the European Union. Keywords: Sustainable Development, Globalization, Environment Policy, Strategy for Sustainable Development, Good Governance, Participation Classification-JEL: Q01, Q5, Q56 Creation-Date: 200612 Template-Type: ReDIF-Paper 1.0 Number: 2006.153 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-153.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.153 Title: Space Vs. Networks in the Geography of Innovation: A European Analysis Author-Name: Mario A. Maggioni Author-X-Name-First: Mario A. Author-X-Name-Last: Maggioni Author-WorkPlace-Name: DISEIS and Catholic University of Milan Author-Name: Mario Nosvelli Author-X-Name-First: Mario Author-X-Name-Last: Nosvelli Author-WorkPlace-Name: CERIS-CNR Author-Name: T. Erika Uberti Author-X-Name-First: T. Erika Author-X-Name-Last: Uberti Author-WorkPlace-Name: DISEIS and Catholic University of Milan Abstract: In the last fifteen years, income differences among European Member States have been strongly narrowing while the process has been matched with a widening of the inter-regional variance within single countries. Traditionally, regional economic disparities in Europe have been ascribed to peripherality and/or to a high level of dependence on declining sectors. Nowadays regional disparities can be no longer defined only in terms of statistical differences in the values of standard macroeconomic indicators, but also according to innovative capacities and knowledge endowment. This paper provides an original framework for the interpretation of the existing relationships between innovation process and research activity in Europe and the structural and geographical features shaping the European scientific and technological map. In order to do so, we focus on two knowledge-based relational phenomena: participation in the same research networks (funded by the EU Fifth Framework Programme) and EPO co-patent applications. Using two complementary econometric techniques we try to assess those factors that determine patenting activity, distinguishing structural features, geographical and relational spillovers. Through these variables we measure the intrinsic relational structure of knowledge flows which directly connects people, institutions and, indirectly, regions, across European countries in order to test whether hierarchical relationships based on a-spatial networks between geographically distant excellence centres prevail over diffusive patterns based on spatial contiguity. Keywords: Spatial Distribution, Networks, European Analysis Classification-JEL: O31, R12, C21 Creation-Date: 200612 Template-Type: ReDIF-Paper 1.0 Number: 2006.154 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-154.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.154 Title: The Economic Impact of the South-North Water Transfer Project in China: A Computable General Equilibrium Analysis Author-Name: Maria Berrittella Author-X-Name-First: Maria Author-X-Name-Last: Berrittella Author-WorkPlace-Name: University of Palermo Author-Name: Katrin Rehdanz Author-X-Name-First: Katrin Author-X-Name-Last: Rehdanz Author-WorkPlace-Name: Hamburg University Author-Name: Richard S.J. Tol Author-X-Name-First: Richard S.J. Author-X-Name-Last: Tol Author-WorkPlace-Name: Economic and Social Research Institute Abstract: Water resources are unevenly spread in China. Especially the basins of the Yellow, Hui and Hai rivers in the North are rather dry. To increase the supply of water in these basins, the South-to-North Water Transfer project (SNWT) was launched. Using a computable general equilibrium model this study estimates the impact of the project on the economy of China and the rest of the world. We contrast three alternative groups of scenarios. All are directly concerned with the South-to-North water transfer project to increase water supply. In the first group of scenarios additional supply implies productivity gains. We call it the “non-market” solution. The second group of scenarios is called “market solution”. The market price for water adjusts such that supply and demand are equated again. In the third group of simulations the economic implications of China’s capital investment in infrastructure for the water South-North water transfer project is analyzed. Finally, the investment is combined with the increased capacity of water. If an increase in water supply in China leads to an increase in productivity of their water-intensive goods and services (non-market solution) this would result in a huge positive welfare effect from increased production and export. The effect on China’s welfare would still be positive, if a market for water would exist (market solution), but the world as a whole would lose. The negative effect for the rest of the world is largely explained by a deterioration of its terms-of-trade. Well functioning water markets in China are unlikely to exist. Keywords: Computable General Equilibrium, South-North Water Transfer Project, Water Policy, Water Scarcity Classification-JEL: D58, R13, Q25, Q28 Creation-Date: 200612 Template-Type: ReDIF-Paper 1.0 Number: 2006.155 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2006-155.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2006.155 Title: Municipal Waste Production, Economic Drivers, and ‘New’ Waste Policies: EKC Evidence from Italian Regional and Provincial Panel Data Author-Name: Massimiliano Mazzanti Author-X-Name-First: Massimiliano Author-X-Name-Last: Mazzanti Author-WorkPlace-Name: University of Ferrara Author-Name: Anna Montini Author-X-Name-First: Anna Author-X-Name-Last: Montini Author-WorkPlace-Name: University of Bologna & National Research Council, CERIS-CNR Author-Name: Roberto Zoboli Author-X-Name-First: Roberto Author-X-Name-Last: Zoboli Author-WorkPlace-Name: National Research Council, CERIS-CNR Milan & Catholic University of Milan Abstract: This paper provides empirical evidence on delinking and Environmental Kuznets Curve (EKC) for municipal waste production in Italy. First, methodological issues and literature on delinking and EKC for waste are critically re-examined. Secondly, we analyse two very disaggregated panel datasets on Italian Regions and Provinces (1996-2004 data for the 20 regions, 2000-2004 data for the 103 provinces) to estimate the extent to which delinking between waste production and economic drivers is taking place. The empirical analysis of different specifications shows mixed evidence in favour of an EKC relationship. Evidence supporting an EKC hypothesis significantly arises at a provincial level, which presents a very high data heterogeneity. Nevertheless, the turning point is at very high levels of added value per capita (around 23,000-26,000€), which characterise a very limited number of wealthy (Northern) Italian provinces. The analysis does not reveal a similar evidence for the regional dataset: only a relative delinking dynamic emerges at the provincial level, we also note a positive relationship between waste production and the share of separated waste collection, which can be explained by the sharp difference in income and waste-policy performance between Northern and Southern Italy. Population density is not significant. Finally, the test on some policy proxies, i.e. the diffusion of the new waste tariff regime at the local-level and the ability of utilities to recover waste service cost, leads to the conclusion that they are not (yet) impacting waste production. To lower the turning points and to avoid an increasing gap between geographical areas, innovative (market based) and more effective policy instruments should be implemented. In particular, the weight of waste policies should be rebalanced towards waste prevention targets and instruments, in line with the priorities stated by the EU and Member Countries. In fact, the indirect feedback effect of good post-production waste management policies/practices on reducing waste production at a source can be weak and slow. In general, the results confirm that more geographically-disaggregated data may offer more insights with respect to cross-country datasets, also from the policy perspective. Keywords: Decoupling, Environmental Kuznets Curves, Environmental Efficiency, Waste Indicators, Waste Policy, Economic Drivers, Panel Data Classification-JEL: C23, Q38, Q56 Creation-Date: 200612