Template-Type: ReDIF-Paper 1.0 Number: 2008.1 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-001.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.1 Title: Banking Permits: Economic Efficiency and Distributional Effects 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: Fondazione Eni Enrico Mattei, University of Venice, CEPR, CESifo and CEPS Author-Name: Emanuele Massetti Author-X-Name-First: Emanuele Author-X-Name-Last: Massetti Author-WorkPlace-Name: Fondazione Eni Enrico Mattei and Catholic University Abstract: Most analyses of the Kyoto flexibility mechanisms focus on the cost effectiveness of “where” flexibility (e.g. by showing that mitigation costs are lower in a global permit market than in regional markets or in permit markets confined to Annex 1 countries). Less attention has been devoted to “when” flexibility, i.e. to the benefits of allowing emission permit traders to bank their permits for future use. In the model presented in this paper, banking of carbon allowances in a global permit market is fully endogenised, i.e. agents may decide to bank permits by taking into account their present and future needs and the present and future decisions of all the other agents. It is therefore possible to identify under what conditions traders find it optimal to bank permits, when banking is socially optimal, and what are the implications for present and future permit prices. We can also explain why the equilibrium rate of growth of permit prices is likely to be larger than the equilibrium interest rate. Most importantly, this paper analyses the efficiency and distributional consequences of allowing markets to optimally allocate emission permits across regions and over time. The welfare and distributional effects of an optimal intertemporal emission trading scheme are assessed for different initial allocation rules. Finally, the impact of banking on carbon emissions, technological progress, and optimal investment decisions is quantified and the incentives that banking provides to accelerate technological innovation and diffusion are also discussed. Among the many results, we show that not only does banking reduce abatement costs, but it also increases the amount of GHG emissions abated in the short-term. It should therefore belong to all emission trading schemes under construction. Keywords: Emission Trading, Banking Classification-JEL: C72, H23, Q25, Q28 Creation-Date: 200801 Template-Type: ReDIF-Paper 1.0 Number: 2008.2 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-002.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.2 Title: Can Climate Change Mitigation Policy Benefit the Israeli Economy? A Computable General Equilibrium Analysis Author-Name: Ruslana Palatnik Author-X-Name-First: Ruslana Author-X-Name-Last: Palatnik Author-WorkPlace-Name: Fondazione Eni Enrico Mattei Author-Name: Mordechai Shechter Author-X-Name-First: Mordechai Author-X-Name-Last: Shechter Author-WorkPlace-Name: Natural Resource & Environmental Research Center Abstract: The growing attention to global warming due to greenhouse gas (GHG) emissions in the process of fossil fuel--based energy production is expressed in the Kyoto Protocol, which prescribes, on average, a 7 percent reduction in GHG emissions for developed countries. Although Israel was not included in the list of the obligated countries ("Annex A"), it should consider the economic implications of participating in the emission reduction effort, as such a commitment becomes highly feasible following the Bali roadmap which oblige a successor to the Kyoto Protocol to launch negotiations including all parties to the UNFCCC on a future framework, stressing the role of cooperative action and of common though differentiated responsibility. This study aimed to quantify the economy-wide consequences for Israel of meeting the targets of the Kyoto Protocol, employing a Computable General Equilibrium (CGE) model of the Israeli economy. Initially, to this end, we constructed a social accounting matrix (SAM) to serve as a benchmark by combining physical energy and emission data and economic data from various sources. The efficacy of decentralized economic incentives for CO2 emission reduction, such as carbon taxes on emissions and auctioned emission permits, was assessed in terms of their impact on economic welfare. In addition, we tested for the ensuing so-called double dividend. Two distinct cases were analyzed. In the first one, we tested a revenue-neutral environmental policy which proportionally cut pre-existing taxes. Labour supply was assumed to be exogenously fixed. The results showed that, although significant CO2 emission reduction can be achieved, followed by modest economic cost, no double dividend could be discerned. Next, in order to check for the employment double dividend (lower CO2 emissions and lower unemployment), we introduced labor market imperfections, with the aim of cutting income tax. The results of this case indicate that an employment double dividend is possible under a rather standard set of assumptions. Moreover, for higher substitutability between the energy composite input and the labor-capital one, an even “strong” form of double dividend can be obtained. We performed several sensitivity analyses with respect to the modeled production function, which re-confirmed the finding that higher substitution possibilities lead to lower welfare costs 3 associated with a given emission reduction target. We qualify this general result by also showing that the opposite holds when the emission tax rate is held constant, rather than reduced. It may be concluded on the basis of this analysis that a double dividend may be an achievable goal under a GHG emission reduction policy in the case of economies such as Israel. The CGE approach applied in this research is adopted for the first time to the Israeli economy and should contribute to better informed debate on environmental policy in Israel. Keywords: Computable General Equilibrium, Climate Change, Environmental Policy, Double Dividend, Israel Classification-JEL: D58, H23, Q43, Q48, Q52 Creation-Date: 200801 Template-Type: ReDIF-Paper 1.0 Number: 2008.3 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-003.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.3 Title: Firms’ International Status and Heterogeneity in Performance: Evidence From Italy Author-Name: Alfredo Minerva Author-X-Name-First: Alfredo Author-X-Name-Last: Minerva Author-WorkPlace-Name: Università di Bologna Author-Name: Lorenzo Casaburi Author-X-Name-First: Lorenzo Author-X-Name-Last: Casaburi Author-WorkPlace-Name: Università di Bologna Author-Name: Valeria Gattai Author-X-Name-First: Valeria Author-X-Name-Last: Gattai Author-WorkPlace-Name: Università di Bologna, ISESAO, Università Commerciale “L. Bocconi” Abstract: This paper revisits the empirical evidence about the link between firms’ performance and their international status, based on a large sample of Italian enterprises. To this purpose, we merged two waves of the Capitalia survey (1998-2000, and 2001-2003) retrieving firm level data for roughly 7,000 units. Three results stand out from our empirical exercise. First, firms that engage in the foreign production of final goods, in addition to export activities, are more productive than firms that only export abroad. Second, firms that engage in final goods off-shoring are more productive than firms that engage in inputs off-shoring. Third, in terms of the productivity dynamics over the period 1998-2003, exporters’ performance in Italy was not any better than the non-exporters’ one. Our results support the view that the better performance (in static terms) of globally engaged firms is chiefly due to the selection caused by the fixed costs associated to international operations. Keywords: Export, Heterogeneous Firms, Italy, Off-shoring, Productivity Classification-JEL: F10, F20, L10, L20, L60 Creation-Date: 200801 Template-Type: ReDIF-Paper 1.0 Number: 2008.4 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-004.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.4 Title: Does Social Capital Mitigate Precariousness? Author-Name: Fabio Sabatini Author-X-Name-First: Fabio Author-X-Name-Last: Sabatini Author-WorkPlace-Name: University of Siena Abstract: There is a surprising gap in the economic literature on social capital. First, we lack studies addressing the effects of social capital on those facets of development that can contribute in making growth more sustainable in the long run, like, for example, human development and social cohesion. Second, it is still unclear what type of networks may exert a positive effect on the different dimensions of development. In particular, the literature has not yet provided a rigorous assessment of the role of strong family ties, that are generally referred to as a form of bonding social capital causing backwardness. This paper carries out an empirical investigation into the relationship between the three types of social capital so far identified by the literature (i.e. bonding, bridging and linking), human development, and labour precariousness, in the belief that precariousness and uncertainty play a crucial role in determining the social cohesion and well-being that are necessary to make growth sustainable in the long run. Keywords: Social capital, Human development, Labour market, Precariousness, Italy Classification-JEL: J24, O15, Z13 Creation-Date: 200801 Template-Type: ReDIF-Paper 1.0 Number: 2008.5 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-005.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.5 Title: On the Economics of Rational Self-Medication Author-Name: Wisdom Akpalu Author-X-Name-First: Wisdom Author-X-Name-Last: Akpalu Author-WorkPlace-Name: Agricultural Annex University of Pretoria Abstract: It has been established in the medical literature that self-medicating with imperfect information about either the use of a genuine or counterfeit drug or based on wrong self-diagnosis of ailment, which is predominant especially in developing countries, is a risky investment in health capital. This paper models the decision to self-medicate and the demand for self-medicated drugs. We suppose that investment in self-medication depends on the perception of its effectiveness. The results obtained show that the decision to self-medicate depends on the relative price and perceived effectiveness of self-medication, the elasticity of the shadow value of health with respect to the quantity of health capital, and the relative effectiveness of self-medication in reducing the unpredictable changes in health capital. Furthermore, if an individual self-medicates, self-medication becomes a normal good: it increases if income increases; and it obeys the law of demand (i.e. it increases if its price, relative to that of the risk-free medication, decreases). Moreover, we have shown that some optimum subsidy can discourage self-medication. Keywords: Health Production, Self-Medication, Risky Investment, Government Policy, Dynamic Analysis Classification-JEL: I12, I18, D81, C61 Creation-Date: 200801 Template-Type: ReDIF-Paper 1.0 Number: 2008.6 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-006.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.6 Title: Climate Change Impacts and Adaptation Strategies In Italy. An Economic Assessment Author-Name: Alessandra Sgobbi Author-X-Name-First: Alessandra Author-X-Name-Last: Sgobbi Author-WorkPlace-Name: Fondazione Eni Enrico Mattei Author-Name: Carlo Carraro Author-X-Name-First: Carlo Author-X-Name-Last: Carraro Author-WorkPlace-Name: University of Venice, Fondazione Eni Enrico Mattei, CEPR, CEPS, CMCC and CESifo Abstract: In this paper, the economic value of the impacts of climate change is assessed for different Italian economic sectors and regions. Sectoral and regional impacts are then aggregated to provide a macroeconomic estimate of variations in GDP induced by climate change in the next decades. Autonomous adaptation induced by changes in relative prices and in stocks of natural and economic resources is fully taken into account. The model also considers international trade effects. Results show that in Italy aggregate GDP losses induced by climate change are likely to be small. However, some economic sectors (e.g. tourism) and the alpine regions will suffer significant economic damages. Keywords: Impacts, Climate Change, Adaptation, GDP Losses, Tourism Classification-JEL: O13, Q43, Q5, R13 Creation-Date: 200801 Template-Type: ReDIF-Paper 1.0 Number: 2008.7 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-007.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.7 Title: Collective Reputation, Entry and Minimum Quality Standard Author-Name: Raphaël Soubeyran Author-X-Name-First: Raphaël Author-X-Name-Last: Soubeyran Author-WorkPlace-Name: INRA-MOISA Author-Name: Elodie Rouvière Author-X-Name-First: Elodie Author-X-Name-Last: Rouvière Author-WorkPlace-Name: INRA-MOISA Abstract: This article deals with the issue of entry into an industry where firms share a collective reputation. First, we show that free entry is not socially optimal; there is a need for regulation through the imposition of a minimum quality standard. Second, we argue that a minimum quality standard can induce firms to enter the market. Contrary to conventional wisdom, a minimum quality standard should not always be considered as a barrier to entry. Keywords: Collective Reputation, Entry, Minimum Quality Standard Classification-JEL: L11, H41, I18, Q18 Creation-Date: 200801 Template-Type: ReDIF-Paper 1.0 Number: 2008.8 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-008.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.8 Title: Industrial Coal Demand in China: A Provincial Analysis Author-Name: Matteo Manera Author-X-Name-First: Matteo Author-X-Name-Last: Manera Author-WorkPlace-Name: University of Milano-Bicocca Author-Name: Cristina Cattaneo Author-X-Name-First: Cristina Author-X-Name-Last: Cattaneo Author-WorkPlace-Name: Fondazione Eni Enrico Mattei, Milan and University of Sussex Author-Name: Elisa Scarpa Author-X-Name-First: Elisa Author-X-Name-Last: Scarpa Author-WorkPlace-Name: Edison Trading Abstract: The general concern on the environmental implications of the rising demand for coal registered in China during the last few years has induced considerable research effort to produce accurate forecasts of China’s energy requirements. Nevertheless, no previous study has modelled the coal demand in China at provincial level. The aim of this paper is twofold. First, we estimate and forecast the Chinese demand for coal using panel data disaggregated by provinces and accounting for spatial heterogeneity. Second, given the spatial nature of the data, we explicitly capture the spatial autocorrelation among provinces using spatial econometrics. In particular, we specify the Chinese industrial coal demand at provincial level with a fixed-effect spatial lag model and a fixed-effect spatial error model. The fixedeffect spatial lag model seems to better capture the existing interdependence between provinces. This model forecasts an average annual increase in coal demand to 2010 of 4 percent. Keywords: Energy demand in China, Coal demand in China, Chinese provinces, Panel data; Spatial econometrics, Forecasting Classification-JEL: C23, E6, Q31, Q41 Creation-Date: 200802 Template-Type: ReDIF-Paper 1.0 Number: 2008.9 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-009.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.9 Title: Modeling Electricity Prices: From the State of the Art to a Draft of a New Proposal Author-Name: Matteo Manera Author-X-Name-First: Matteo Author-X-Name-Last: Manera Author-WorkPlace-Name: University of Milano-Bicocca Author-Name: Massimiliano Serati Author-X-Name-First: Massimiliano Author-X-Name-Last: Serati Author-WorkPlace-Name: Institute of Economics, Cattaneo University – LIUC, Castellanza Author-Name: Michele Plotegher Author-X-Name-First: Michele Author-X-Name-Last: Plotegher Author-WorkPlace-Name: ENI SPA Abstract: In the last decades a liberalization of the electric market has started; prices are now determined on the basis of contracts on regular markets and their behaviour is mainly driven by usual supply and demand forces. A large body of literature has been developed in order to analyze and forecast their evolution: it includes works with different aims and methodologies depending on the temporal horizon being studied. In this survey we depict the actual state of the art focusing only on the recent papers oriented to the determination of trends in electricity spot prices and to the forecast of these prices in the short run. Structural methods of analysis, which result appropriate for the determination of forward and future values are left behind. Studies have been divided into three broad classes: Autoregressive models, Regime switching models, Volatility models. Six fundamental points arise: the peculiarities of electricity market, the complex statistical properties of prices, the lack of economic foundations of statistical models used for price analysis, the primacy of uniequational approaches, the crucial role played by demand and supply in prices determination, the lack of clearcut evidence in favour of a specific framework of analysis. To take into account the previous stylized issues, we propose the adoption of a methodological framework not yet used to model and forecast electricity prices: a time varying parameters Dynamic Factor Model (DFM). Such an eclectic approach, introduced in the late ‘70s for macroeconomic analysis, enables the identification of the unobservable dynamics of demand and supply driving electricity prices, the coexistence of short term and long term determinants, the creation of forecasts on future trends. Moreover, we have the possibility of simulating the impact that mismatches between demand and supply have over the price variable. This way it is possible to evaluate whether congestions in the network (eventually leading black out phenomena) trigger price reactions that can be considered as warning mechanisms. Keywords: Electricity Spot Prices, Autoregressive Models, GARCH Models, Regime Switching Models, Dynamic Factor Models Classification-JEL: C2, C3, Q4 Creation-Date: 200802 Template-Type: ReDIF-Paper 1.0 Number: 2008.10 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-010.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.10 Title: The Economics of Geological CO2 Storage and Leakage Author-Name: Bob van der Zwaan Author-X-Name-First: Bob Author-X-Name-Last: van der Zwaan Author-WorkPlace-Name: ECN Author-Name: Reyer Gerlagh Author-X-Name-First: Reyer Author-X-Name-Last: Gerlagh Author-WorkPlace-Name: University of Manchester Abstract: The economics of CO2 capture and storage in relation to the possibility of significant leakage of CO2 from geological reservoirs once this greenhouse gas has been stored artificially underground will be among the main determinants of whether CCS can significantly contribute to a deep cut in global CO2 emissions. This paper presents an analysis of the economic and climatic implications of the large-scale use of CCS for reaching a stringent climate change control target, when geological CO2 leakage is accounted for. The natural scientific uncertainties regarding the rates of possible leakage of CO2 from geological reservoirs are likely to remain large for a long time to come. We present a qualitative description, a concise analytical inspection, as well as a more detailed integrated assessment model, proffering insight into the economics of geological CO2 storage and leakage. Our model represents three main CO2 emission reduction options: energy savings, a carbon to non-carbon energy transition and the use of CCS. We find CCS to remain a valuable option even with CO2 leakage of a few %/yr, well above the maximum seepage rates that we think are likely from a geo-scientific point of view. Keywords: Climate Change, Carbon Dioxide Emission Reduction, Technological Innovation, CO2 Capture and Storage (CCS), Geological Leakage Classification-JEL: H21, D58, C61, O33, Q40 Creation-Date: 200802 Template-Type: ReDIF-Paper 1.0 Number: 2008.11 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-011.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.11 Title: Geographical Distribution of Crime in Italian Provinces: A Spatial Econometric Analysis Author-Name: Teodora Erika Uberti Author-X-Name-First: Teodora Erika Author-X-Name-Last: Uberti Author-WorkPlace-Name: Università Cattolica del Sacro Cuore Author-Name: Maria Francesca Cracolici Author-X-Name-First: Maria Francesca Author-X-Name-Last: Cracolici Author-WorkPlace-Name: Catholic University of Milano Abstract: For a long time social sciences scholars from different fields have devoted their attention to identifying the causes leading to commit criminal offences and recently lots of studies have included the analysis of spatial effects. Respect to the Italian crime phenomenon some stylized facts exist: high spatial and time variability and presence of “organised crime” (e.g. Mafia and Camorra) deep-seated in some local territorial areas. Using explanatory spatial data analysis, the paper firstly explores the spatial structure and distribution of four different typologies of crimes (murders, thefts, frauds, and squeezes) in Italian provinces in two years, 1999 and 2003. ESDA allows us to detect some important geographical dimensions and to distinguish crucial macro- and micro- territorial aspects of offences. Further, on the basis of Becker-Ehrlich model, a spatial cross-sectional model including deterrence, economic and socio-demographic variables has been performed to investigate the determinants of Italian crime for 1999 and 2003 and its “neighbouring” effects, measured in terms of geographical and relational proximity. The empirical results obtained by using different spatial weights matrices highlighted that socioeconomic variables have a relevant impact on crime activities, but their role changes enormously respect to crimes against person (murders) or against property (thefts, frauds and squeezes). It is worthy to notice that severity does not show the expected sign: its significant and positive sign should suggest that inflicting more severe punishments does not always constitute a deterrence to commit crime, but it works on the opposite direction. Keywords: Crime, Spatial Econometrics Classification-JEL: C21, K42 Creation-Date: 200802 Template-Type: ReDIF-Paper 1.0 Number: 2008.12 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-012.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.12 Title: Economics of Literary Translation. A Simple Theory and Evidence Author-Name: Shlomo Weber Author-X-Name-First: Shlomo Author-X-Name-Last: Weber Author-WorkPlace-Name: University Dallas Author-Name: Victor Ginsburgh Author-X-Name-First: Victor Author-X-Name-Last: Ginsburgh Author-WorkPlace-Name: ECARES, Université Libre de Bruxelles and CORE, Université catholique de Louvain Author-Name: Sheila Weyers Author-X-Name-First: Sheila Author-X-Name-Last: Weyers Author-WorkPlace-Name: Université catholique de Louvain Abstract: Books are an important factor of cultural transmission, but need, in most cases, to be translated. According to some authors, this may lead to a form of cultural domination of English. The population speaking English as a first language is, with the exception of Mandarin, the largest in the world. It is therefore not surprising that English produces more fiction (and much more scientific literature, as scientists from all countries write in English with increasing frequency) than any other language. We develop a theoretical model of translation, which is estimated on the basis of UNESCO translation data. We show that translations from English are dominated by translations from other languages, including Scandinavian ones and French. Keywords: Languages, Translations, Cultural and Linguistic Distances Classification-JEL: L82, Z11 Creation-Date: 200802 Template-Type: ReDIF-Paper 1.0 Number: 2008.13 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-013.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.13 Title: Participatory Modelling and Decision Support for Natural Resources Management in Climate Change Research Author-Name: Carlo Giupponi Author-X-Name-First: Carlo Author-X-Name-Last: Giupponi Author-WorkPlace-Name: Universita' Ca’Foscari di Venezia Author-Name: Jaroslav Mysiak Author-X-Name-First: Jaroslav Author-X-Name-Last: Mysiak Author-WorkPlace-Name: Fondazione Eni Enrico Mattei Author-Name: Alessandra Sgobbi Author-X-Name-First: Alessandra Author-X-Name-Last: Sgobbi Author-WorkPlace-Name: Fondazione Eni Enrico Mattei Abstract: The ever greater role given to public participation by laws and regulations, in particular in the field of environmental management calls for new operational methods and tools for managers and practitioners. This paper analyses the potentials and the critical limitations of current approaches in the fields of simulation modelling (SM), public participation (PP) and decision analysis (DA), for natural resources management within the context of climate change research. The potential synergies of combining SM, PP and DA into an integrated methodological framework are identified and a methodological proposal is presented, called NetSyMoD (Network Analysis – Creative System Modelling – Decision Support), which aims at facilitating the involvement of stakeholders or experts in policy - or decision-making processes (P/DMP). A generic P/DMP is formalised in NetSyMoD as a sequence of six main phases: (i) Actors analysis; (ii) Problem analysis; (iii) Creative System Modelling; (iv) DSS design; (v) Analysis of Options; and (vi) Action taking and monitoring. Several variants of the NetSyMoD approach have been adapted to different contexts such as integrated water resources management and coastal management, and, recently it has been applied in climate change research projects. Experience has shown that NetSyMoD may be a useful framework for skilled professionals, for guiding the P/DMP, and providing practical solutions to problems encountered in the different phases of the decision/policy making process, in particular when future scenarios or projections have to be considered, such as in the case of developing and selecting adaptation policies. The various applications of NetSyMoD share the same approach for problem analysis and communication within the group of selected 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 a Decision Support System (DSS) software. Keywords: Modelling, Public Participation, Natural Resource Management, Policy, Decision-Making, Governance, DSS Classification-JEL: Q5 Creation-Date: 200802 Template-Type: ReDIF-Paper 1.0 Number: 2008.14 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-014.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.14 Title: Science-Policy Communication for Improved Water Resources Management: Contributions of the Nostrum-DSS Project Author-Name: Carlo Giupponi Author-X-Name-First: Carlo Author-X-Name-Last: Giupponi Author-WorkPlace-Name: Universita' Ca’Foscari di Venezia Author-Name: Yaella Depietri Author-X-Name-First: Yaella Author-X-Name-Last: YDepietri Author-WorkPlace-Name: Fondazione Eni Enrico Mattei Abstract: The Nostrum-DSS EU funded Co-ordination Action (CA) aims at contributing to the achievement of improved governance and planning in the field of sustainable water management within the Mediterranean Basin by establishing a network between the science, policy, and civil society spheres and through the development and dissemination of Best Practices Guidelines (BPGs) for the design and implementation of DSSs for IWRM in the Mediterranean Area. Decision Support Systems (DSS) have a great theoretical potential as tools for the identification of optimal water resource management regimes in the Mediterranean basin, thus helping policy makers (PMs) to bring the principles of Integrated Water Resources Management (IWRM) into practice. However, such tools are only episodically exploited outside the academia. This article presents the outcomes of project activities targeting the development of more effective communication strategies, in order to facilitate the development of research products with greater potential for been up taken by the expected end-users, i.e. the community of policy makers, and their staffs, advisors, consultants, etc., in the Mediterranean Region. Keywords: Science-Policy Interface, Policy Making, Water Resources Management, Mediterranean Region Classification-JEL: Q2, H7, O2, R5 Creation-Date: 200802 Template-Type: ReDIF-Paper 1.0 Number: 2008.15 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-015.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.15 Title: Abatement Cost Uncertainty and Policy Instrument Selection under a Stringent Climate Policy. A Dynamic Analysis Author-Name: Valentina Bosetti Author-X-Name-First: Valentina Author-X-Name-Last: Bosetti Author-WorkPlace-Name: Fondazione Eni Enrico Mattei Author-Name: Alexander Golub Author-X-Name-First: Alexander Author-X-Name-Last: Golub Author-WorkPlace-Name: Environmental Defense Author-Name: Emanuele Massetti Author-X-Name-First: Emanuele Author-X-Name-Last: Massetti Author-WorkPlace-Name: Fondazione Eni Enrico Mattei and Università Cattolica del Sacro Cuore Author-Name: Massimo Tavoni Author-X-Name-First: Massimo Author-X-Name-Last: Tavoni Author-WorkPlace-Name: Fondazione Eni Enrico Mattei and Università Cattolica del Sacro Cuore Abstract: This paper investigates the relative economic and environmental outcomes of price versus quantity mechanisms to control GHG emissions when abatement costs are uncertain. In particular, we evaluate the impacts on policy costs, CO2 emissions and energy R&D for a stringent mitigation target of 550 ppmv CO2 equivalent (i.e. 450 for CO2 only) concentrations. The analysis is performed in an optimal growth framework via Monte Carlo simulations of the integrated assessment model WITCH (World Induced Technical Change Hybrid). Results indicate that the price instrument stochastically dominates the quantity instrument when a stringent stabilization policy is in place. Keywords: Abatement Costs, Climate Policy Classification-JEL: H2, C6, Q5 Creation-Date: 200802 Template-Type: ReDIF-Paper 1.0 Number: 2008.16 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-016.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.16 Title: The Labor Market Impact of Immigration in Western Germany in the 1990’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: Francesco D’Amuri Author-X-Name-First: Francesco Author-X-Name-Last: D’Amuri Author-WorkPlace-Name: Bank of Italy, ISER, University of Essex and FEEM Author-Name: Giovanni Peri Author-X-Name-First: Giovanni Author-X-Name-Last: Peri Author-WorkPlace-Name: University of California, Davis and NBER Abstract: We adopt a general equilibrium approach in order to measure the effects of recent immigration on the Western German labor market, looking at both wage and employment effects. Using the Regional File of the IAB Employment Subsample for the period 1987-2001, we find that the substantial immigration of the 1990’s had no adverse effects on native wages and employment levels. It had instead adverse employment and wage effects on previous waves of immigrants. This stems from the fact that, after controlling for education and experience levels, native and migrant workers appear to be imperfect substitutes whereas new and old immigrants exhibit perfect substitutability. Our analysis suggests that if the German labor market were as ‘flexible’ as the UK labor market, it would be more efficient in dealing with the effects of immigration. Keywords: Immigration, Skill Complementarities, Employment, Wages Classification-JEL: E24, F22, J61, J31 Creation-Date: 200802 Template-Type: ReDIF-Paper 1.0 Number: 2008.17 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-017.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.17 Title: Bilingualism and Communicative Benefits Author-Name: Shlomo Weber Author-X-Name-First: Shlomo Author-X-Name-Last: Weber Author-WorkPlace-Name: University Dallas Author-Name: Jean Gabszewicz Author-X-Name-First: Jean Author-X-Name-Last: Gabszewicz Author-WorkPlace-Name: CORE, Universitè Catholique de Louvain Author-Name: Victor Ginsburgh Author-X-Name-First: Victor Author-X-Name-Last: Ginsburgh Author-WorkPlace-Name: ECARES, Universite Libre de Bruxelles, Belgium and CORE, Universite Catholique de Louvain Abstract: We examine patterns of acquiring non-native languages in a model with two languages and two populations with heterogeneous learning skills, where every individual faces a binary choice of learning the foreign language or refraining from doing so. We show that both interior and corner linguistic equilibria can emerge in our framework, and that the fraction of learners of the foreign language is higher in the country with a higher gross cost adjusted communicative benefit. It turns out that this observation is consistent with the data on language proficiency in bilingual countries such as Belgium and Canada. We also point out that linguistic equilibria can exhibit insufficient learning which opens the door for government policies that are beneficial for both populations. Keywords: Communicative Benefits, Linguistic Equilibrium, Learning Costs Classification-JEL: C72, D83, O52, Z13 Creation-Date: 200802 Template-Type: ReDIF-Paper 1.0 Number: 2008.18 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-018.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.18 Title: Differences in Preferences Towards the Environment: The Impact of a Gender, Age and Parental Effect Author-Name: Benno Torgler Author-X-Name-First: Benno Author-X-Name-Last: Torgler Author-WorkPlace-Name: Queensland University of Technology Author-Name: María A. García Valiñas Author-X-Name-First: María A. Author-X-Name-Last: García Valiñas Author-WorkPlace-Name: University of Oviedo Author-Name: Alison Macintyre Author-X-Name-First: Alison Author-X-Name-Last: Macintyre Author-WorkPlace-Name: Queensland University of Technology Abstract: The paper investigates empirically the differences in preferences towards protection of the environment. Using seven different dependent variables to focus on the impact of age, gender and children we use a large micro data set covering data from 33 Western and Eastern European countries. The results indicate that women have both a stronger preference towards the environment and a stronger willingness to contribute. Moreover, we observe the tendency of a negative correlation between age and environmental preferences. However, a positive effect is visible once we focus on the impact of age on social norms (environmental morale). Finally, we were not able to observe that having children is positively correlated with a stronger preference towards the environment. Keywords: Environmental Preferences, Environmental Morale, Gender, Age, Children Classification-JEL: H260, H730, D640 Creation-Date: 200802 Template-Type: ReDIF-Paper 1.0 Number: 2008.19 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-019.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.19 Title: Past Performance Evaluation in Repeated Procurement: A Simple Model of Handicapping Author-Name: Berardino Cesi Author-X-Name-First: Berardino Author-X-Name-Last: Cesi Author-WorkPlace-Name: University "G. D.Annunzio" Author-Name: Gian Luigi Albano Author-X-Name-First: Gian Luigi Author-X-Name-Last: Albano Author-WorkPlace-Name: Italian Public Procurement Agency (Consip S.p.A.) Abstract: When procurement contracts are awarded through competitive tendering participating firms commit ex ante to fulfil a set of contractual duties. However, selected contractors may find profitable to renege ex post on their promises by opportunistically delivering lower quality standards. In order to deter ex post moral hazard, buyers may use different strategies depending on the extent to which quality dimensions are contractible, that is, verifiable by contracting parties and by courts. We consider a stylized repeated procurement framework in which a buyer awards a contract over time to two firms with different efficiency levels. If the contractor does not deliver the agreed level of performance the buyer may handicap the same firm in future competitive tendering. We prove that under complete information extremely severe handicapping is never a credible strategy for the buyer, rather the latter finds it optimal to punish the opportunistic firm so as to make the pool of competitors more alike. In other words, when opportunistic behaviour arises, the buyer should use handicapping to “level the playing field”. Keywords: Repeated Procurement, Handicapping, Relational Contracts, Stick and Carrot Strategy Classification-JEL: C73, D82, D44, H57, K12, L14 Creation-Date: 200803 Template-Type: ReDIF-Paper 1.0 Number: 2008.20 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-020.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.20 Title: Stability and Success of Regional Fisheries Management Organizations Author-Name: Michael Finus Author-X-Name-First: Michael Author-X-Name-Last: Finus Author-WorkPlace-Name: University of Stirling Author-Name: Pedro Pintassilgo Author-X-Name-First: Pedro Author-X-Name-Last: Pintassilgo Author-WorkPlace-Name: University of Algarve Author-Name: Marko Lindroos Author-X-Name-First: Marko Author-X-Name-Last: Lindroos Author-WorkPlace-Name: University of Helsinki Author-Name: Gordon Munro Author-X-Name-First: Gordon Author-X-Name-Last: Munro Author-WorkPlace-Name: Centre for the Economics and Management of Aquatic Resources, University of Portsmouth Abstract: According to international law, straddling fish stocks should preferably be managed cooperatively through regional fisheries management organizations (RFMOs). This paper analyzes the stability and success of these organizations through a game in partition function form based on the classical Gordon-Schaefer bioeconomic model. A comprehensive analysis of the economic and biological fundamentals that influence the success of coalition formation is provided. The results show that the larger the number of fishing states that compete for the fish stock the higher would be the relative gains from full cooperation, but the lower is the likelihood of large RFMOs being stable. It is also shown that the success of coalition formation is positively correlated with the degree of production cost asymmetry among fishing states and negatively with the overall level of efficiency. Keywords: Straddling Fish Stock, Regional Fisheries Management Organizations, Unregulated Fishing, Bioeconomic Model, Coalition Formation Model, Free-Riding Classification-JEL: C72, Q22 Creation-Date: 200803 Template-Type: ReDIF-Paper 1.0 Number: 2008.21 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-021.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.21 Title: On Policy Interactions Among Nations: When Do Cooperation and Commitment Matter? Author-Name: Leopold von Thadden Author-X-Name-First: Leopold Author-X-Name-Last: von Thadden Author-WorkPlace-Name: European Central Bank Author-Name: Hubert Kempf Author-X-Name-First: Hubert Author-X-Name-Last: Kempf Author-WorkPlace-Name: Paris School of Economics and Université Paris-1 Panthéon-Sorbonne Abstract: This paper offers a framework to study commitment and cooperation issues in games with multiple policymakers. To reconcile some puzzles in the recent literature on the nature of policy interactions among nations, we prove that games characterized by different commitment and cooperation schemes can admit the same equilibrium outcome if certain spillover effects vanish at the common solution of these games. We provide a detailed discussion of these spillovers, showing that, in general, commitment and cooperation are non-trivial issues. Yet, in linear-quadratic models with multiple policymakers commitment and cooperation schemes are shown to become irrelevant under certain assumptions. The framework is sufficiently general to cover a broad range of results from the recent literature on policy interactions as special cases, both within monetary unions and among fully sovereign nations. Keywords: Monetary Policy, Fiscal Regimes Classification-JEL: E52, E63 Creation-Date: 200803 Template-Type: ReDIF-Paper 1.0 Number: 2008.22 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-022.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.22 Title: Repeated Games Played in a Network Author-Name: Markus Kinateder Author-X-Name-First: Markus Author-X-Name-Last: Kinateder Author-WorkPlace-Name: Universitat Autònoma de Barcelona Abstract: Delayed perfect monitoring in an infinitely repeated discounted game is modelled by allocating the players to a connected and undirected network. Players observe their immediate neighbors’ behavior only, but communicate over time the repeated game’s history truthfully throughout the network. The Folk Theorem extends to this setup, although for a range of discount factors strictly below 1, the set of sequential equilibria and the corresponding payoff set may be reduced. A general class of games is analyzed without imposing restrictions on the dimensionality of the payoff space. Due to this and the bilateral communication structure, truthful communication arises endogenously only under additional conditions. The model also produces a network result; namely, the level of cooperation in this setup depends on the network’s diameter, and not on its clustering coefficient as in other models. Keywords: Repeated Game, Delayed Perfect Monitoring, Network, Communication Classification-JEL: C72, C73, D85 Creation-Date: 200803 Template-Type: ReDIF-Paper 1.0 Number: 2008.23 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-023.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.23 Title: Contributing or Free-Riding? A Theory of Endogenous Lobby Formation Author-Name: Hideo Konishi Author-X-Name-First: Hideo Author-X-Name-Last: Konishi Author-WorkPlace-Name: Boston College Author-Name: Taiji Furusawa Author-X-Name-First: Taiji Author-X-Name-Last: Furusawa Author-WorkPlace-Name: Hitotsubashi University Abstract: We consider a two-stage public goods provision game: In the first stage, players simultaneously decide if they will join a contribution group or not. In the second stage, players in the contribution group simultaneously offer contribution schemes in order to influence the government’s choice on the level of provision of public goods. Using perfectly coalition-proof Nash equilibrium (Bernheim, Peleg and Whinston, 1987 JET), we show that the set of equilibrium outcomes is equivalent to an "intuitive" hybrid solution concept, the free-riding-proof core, which is always nonempty but does not necessarily achieve global efficiency. It is not necessarily true that an equilibrium lobby group is formed by the players with highest willingness-to-pay, nor is it a consecutive group with respect to their willingnesses-to-pay. We also show that the equilibrium level of public goods provision shrinks to zero as the economy is replicated. Keywords: Common Agency, Public Good, Free Rider, Core, Lobby, Coalition Formation, Coalition-proof Nash Equilibrium Classification-JEL: C71, C72, F13, H41 Creation-Date: 200803 Template-Type: ReDIF-Paper 1.0 Number: 2008.24 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-024.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.24 Title: Opportunity and Choice in Social Networks Author-Name: Paolo Pin Author-X-Name-First: Paolo Author-X-Name-Last: Pin Author-WorkPlace-Name: Università Ca' Foscari di Venezia Author-Name: Silvio Franz Author-X-Name-First: Silvio Author-X-Name-Last: Franz Author-WorkPlace-Name: Universite Paris-Sud 11 Author-Name: Matteo Marsili Author-X-Name-First: Matteo Author-X-Name-Last: Marsili Author-WorkPlace-Name: The Abdus Salam International Centre for Theoretical Physics Abstract: Our societies are heterogeneous in many dimensions such as census, education, religion, ethnic and cultural composition. The links between individuals - e.g. by friendship, marriage or collaboration - are not evenly distributed, but rather tend to be concentrated within the same group. This phenomenon, called imbreeding homophily, has been related to either (social) preference for links with own--type individuals ( choice-based homophily) or to the prevalence of individuals of her same type in the choice set of an individual ( opportunity-based homophily). We propose an indicator to distinguish between these effects for minority groups. This is based on the observation that, in environments with unbiased opportunities, as the relative size of the minority gets small, individuals of the minority rarely meet and have the chance to establish links together. Therefore the effect of choice--based homophily gets weaker and weaker as the size of the minority shrinks. We test this idea across the dimensions of race and education on data on US marriages, and across race on friendships in US schools, and find that: for what concerns education i) opportunity--based homophily is much stronger than choice--based homophily and ii) they are both remarkably stationary in time; concerning race iii) school friendships do not exhibit opportunity-based homophily, while marriages do, iv) choice-based homophily is much stronger for marriages than for friendships and v) these effects vary widely across race. Keywords: Social Networks, Choice-Based and Opportunity-Based Homophily Classification-JEL: D85, J11, J12 Creation-Date: 200803 Template-Type: ReDIF-Paper 1.0 Number: 2008.25 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-025.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.25 Title: R&D Collaboration Networks in Mixed Oligopoly Author-Name: Vasileios Zikos Author-X-Name-First: Vasileios Author-X-Name-Last: Zikos Author-WorkPlace-Name: Loughborough University Abstract: We develop a model of endogenous network formation in order to examine the incentives for R&D collaboration in a mixed oligopoly. Our analysis reveals that the complete network, where each firm collaborates with all others, is uniquely stable, industry-profit maximizing and efficient. This result is in contrast with earlier contributions in private oligopoly where under strong market rivalry a conflict between stable and efficient networks is likely to occur. A key finding of the paper is that state-owned enterprises may be used as policy instruments in tackling the potential conflict between individual and collective incentives for R&D collaboration. Keywords: Networks, R&D Collaboration, Mixed Oligopoly Classification-JEL: C70, L13, L20, L31, L32, O31, D85 Creation-Date: 200803 Template-Type: ReDIF-Paper 1.0 Number: 2008.26 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-026.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.26 Title: Sticks and Carrots for the Design of International Climate Agreements with Renegotiations Author-Name: Hans-Peter Weikard Author-X-Name-First: Hans-Peter Author-X-Name-Last: Weikard Author-WorkPlace-Name: Wageningen University Author-Name: Rob Dellink Author-X-Name-First: Rob Author-X-Name-Last: Dellink Author-WorkPlace-Name: VU University Amsterdam Abstract: This paper examines stability of international climate agreements for carbon abatement under an optimal transfer rule and renegotiations. The optimal transfer rule suggested to stabilise international environmental agreements (Weikard 2005, Carraro, Eyckmans and Finus 2006) is no longer optimal when agreements are renegotiated. We determine the conditions for optimal self-enforcing sequences of agreements. If these conditions are met, then transfer payments can be arranged such that no country wants to change its membership status at any stage. In order to demonstrate the applicability of our condition we use the STACO model, a 12-regions global model, to assess the impact of welldesigned transfer rules on the stability of an international climate agreement. Although there are strong free-rider incentives, we find a stable grand coalition in the first commitment period in a game with one round of renegotiations. Keywords: Stability of Coalitions, International Environmental Agreements, Partition Function Approach, Sharing Rules, Optimal Transfers, Renegotiations Classification-JEL: C72, D62, H41, H77 Creation-Date: 200803 Template-Type: ReDIF-Paper 1.0 Number: 2008.27 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-027.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.27 Title: The Maximal Payoff and Coalition Formation in Coalitional Games Author-Name: Jingang Zhao Author-X-Name-First: Jingang Author-X-Name-Last: Zhao Author-WorkPlace-Name: University of Saskatchewan Abstract: This paper first establishes a new core theorem using the concept of generated payoffs: the TU (transferable utility) core is empty if and only if the maximum of generated payoffs (mgp) is greater than the grand coalition’s payoff v(N), or if and only if it is irrational to split v(N). It then provides answers to the questions of what payoffs to split, how to split the payoff, what coalitions to form, and how long each of the coalitions will be formed by rational players in coalitional TU games. Finally, it obtains analogous results in coalitional NTU (non-transferable utility) games. Keywords: Coalition Formation, Core, Maximal Payoff, Minimum No-Blocking Payoff Classification-JEL: C62, C71 Creation-Date: 200803 Template-Type: ReDIF-Paper 1.0 Number: 2008.28 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-028.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.28 Title: A Network Model of Price Dispersion Author-Name: Giacomo Pasini Author-X-Name-First: Giacomo Author-X-Name-Last: Pasini Author-WorkPlace-Name: Ca' Foscari University in Venice Author-Name: Paolo Pin Author-X-Name-First: Paolo Author-X-Name-Last: Pin Author-WorkPlace-Name: Abdus Salam Internazional Centre for Theoretical Physics Author-Name: Simon Weidenholzer Author-X-Name-First: Simon Author-X-Name-Last: Weidenholzer Author-WorkPlace-Name: Institut für Volkswirtschaftslehre, Universität Wien Abstract: We analyze a model of price competition ? la Bertrand in a network environment. Firms only have a limited information on the structure of network: they know the number of potential customers they can attract and the degree distribution of customers. This incomplete information framework stimulates the use of Bayesian-Nash equilibrium. We find that, if there are customers only linked to one firm, but not all of them are, then an equilibrium in randomized strategies fails to exist. Instead, we find a symmetric equilibrium in randomized strategies. Finally, we test our results on US gasoline data. We find empirical evidence consistent with firms playing random strategies. Keywords: Bertrand Competition, Bayesian- Nash Equilibrium, Mobility Index Classification-JEL: D43, D85, L11 Creation-Date: 200803 Template-Type: ReDIF-Paper 1.0 Number: 2008.29 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-029.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.29 Title: Von Neumann-Morgenstern Farsightedly Stable Sets in Two-Sided Matching Author-Name: Vincent Vannetelbosch Author-X-Name-First: Vincent Author-X-Name-Last: Vannetelbosch Author-WorkPlace-Name: CORE University of Louvain Author-Name: Ana Mauleon Author-X-Name-First: Ana Author-X-Name-Last: Mauleon Author-WorkPlace-Name: CORE, University of Louvain Author-Name: Wouter Vergote Author-X-Name-First: Wouter Author-X-Name-Last: Vergote Author-WorkPlace-Name: CEREC, Facultés Universitaires Saint-Louis, and CORE, University of Louvain Abstract: We adopt the notion of von Neumann-Morgenstern farsightedly stable sets to predict which matchings are possibly stable when agents are farsighted in one-to-one matching problems. We provide the characterization of von Neumann-Morgenstern farsightedly stable sets: a set of matchings is a von Neumann-Morgenstern farsightedly stable set if and only if it is a singleton set and its element is a corewise stable matching. Thus, contrary to the von Neumann-Morgenstern (myopically) stable sets, von Neumann-Morgenstern farsightedly stable sets cannot include matchings that are not corewise stable ones. Moreover, we show that our main result is robust to many- to-one matching problems with responsive preferences. Keywords: Matching Problem, von Neumann-Morgenstern Stable Sets, Farsighted Stability Classification-JEL: C71, C78 Creation-Date: 200803 Template-Type: ReDIF-Paper 1.0 Number: 2008.30 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-030.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.30 Title: Network of Commons Author-Name: Rahmi Ilkiliç Author-X-Name-First: Rahmi Author-X-Name-Last: Ilkiliç Author-WorkPlace-Name: Maastricht University Abstract: A tragedy of the commons appears when the users of a common resource have incentives to exploit it more than the socially efficient level. We analyze the situation when the tragedy of the commons is embedded in a network of users and sources. Users play a game of extractions, where they decide how much resource to draw from each source they are connected to. We show that if the value of the resource to the users is linear, then each resource exhibits an isolated problem. There exists a unique equilibrium. But when the users have concave values, the network structure matters. The exploitation at each source depends on the centrality of the links connecting the source to the users. The equilibrium is unique and we provide a formula which expresses the quantities at an equilibrium as a function of a network centrality measure. Next we characterize the efficient levels of extractions by users and outflows from sources. Again, the case of linear values can be broken down source by source. For the case of concave values, we provide a graph decomposition which divides the network into regions according to the availability of sources. Then the efficiency problem can be solved region by region. Keywords: Tragedy of The Commons, Networks, Nash Equilibrium, Efficiency, Centrality Measures Classification-JEL: C62, C72, D85, Q20 Creation-Date: 200803 Template-Type: ReDIF-Paper 1.0 Number: 2008.31 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-031.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.31 Title: A Social Network Analysis of Occupational Segregation Author-Name: Marco J. van der Leij Author-X-Name-First: Marco J. Author-X-Name-Last: van der Leij Author-WorkPlace-Name: University of Alicante Author-Name: I. Sebastian Buhai Author-X-Name-First: I. Sebastian Author-X-Name-Last: Buhai Author-WorkPlace-Name: University of Alicante Abstract: We develop a social network model of occupational segregation between different social groups, generated by the existence of positive inbreeding bias among individuals from the same group. If network referrals are important for job search, then expected homophily in the contact network structure induces different career choices for individuals from different social groups. This further translates into stable occupational segregation equilibria in the labor market. We derive the conditions for wage and unemployment inequality in the segregation equilibria and characterize first and second best social welfare optima. Surprisingly, we find that socially optimal policies involve segregation. Keywords: Social Networks, Homophily, Inbreeding Bias, Occupational Segregation, Labor Market Inequality, Social Welfare Classification-JEL: J24, J31, J70, Z13 Creation-Date: 200803 Template-Type: ReDIF-Paper 1.0 Number: 2008.32 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-032.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.32 Title: The Sixth Framework Program as an Affiliation Network: Representation and Analysis Author-Name: David Frachisse Author-X-Name-First: David Author-X-Name-Last: Frachisse Author-WorkPlace-Name: CREUSET, Jean Monnet University Author-Name: Pascal Billand Author-X-Name-First: Pascal Author-X-Name-Last: Billand Author-WorkPlace-Name: CREUSET, Jean Monnet University Abstract: In this paper, we compare two different representations of Framework Programs as affiliation network: “One-mode networks”' and “Two-mode networks”'. The aim of this article is to show that the choice of the representation has an impact on the analysis of the networks and on the results of the analysis. In order to support our proposals, we present two forms of representation and different indicators used in the analysis. We study the network of the 6th Framework Program using the two forms of representation. In particular, we show that the identification of the central nodes is sensitive to the chosen representation. Furthermore, the nodes forming the core of the network vary according to the representation. These differences of results are important as they can influence innovation policies. Keywords: Affiliation Network, Innovation Policies, Centrality Classification-JEL: O31, O38, L14 Creation-Date: 200803 Template-Type: ReDIF-Paper 1.0 Number: 2008.33 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-033.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.33 Title: Dynamic Models for International Environmental Agreements Author-Name: Michèle Breton Author-X-Name-First: Michèle Author-X-Name-Last: Breton Author-WorkPlace-Name: GERAD, CREF and HEC Montréal Author-Name: Lucia Sbragia Author-X-Name-First: Lucia Author-X-Name-Last: Sbragia Author-WorkPlace-Name: GERAD and HEC Montréal Author-Name: Georges Zaccour Author-X-Name-First: Georges Author-X-Name-Last: Zaccour Author-WorkPlace-Name: GERAD and Chair in Game Theory & Management HEC Montréal Abstract: In this paper we develop a model to analyze, in a dynamic framework, how countries join international environmental agreements (IEAs). In the model, where countries suffer from the same environmental damage as a result of the total global emissions, a non-signatory country decides its emissions by maximizing its own welfare, whereas a signatory country decides its emissions by maximizing the aggregate welfare of all signatory countries. Signatory countries are assumed to be able to punish the non-signatories at a cost. When countries decide on their pollution emissions they account for the evolution of the pollution over time. Moreover, we propose a mechanism to describe how countries reach a stable IEA. The model is able to capture situations with partial cooperation in an IEA stable over time. It also captures situations where all countries participate in a stable agreement, or situations where no stable agreement is feasible. When more than one possibility coexists, the long-term outcome of the game depends on the initial conditions (i.e. the size of the initial group of signatory countries and the pollution level). Keywords: International Environmental Agreements, Non-Cooperative Dynamic Game, Coalition Stability Classification-JEL: C73, Q53 Creation-Date: 200803 Template-Type: ReDIF-Paper 1.0 Number: 2008.34 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-034.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.34 Title: The Political Economy of Incentive Regulation: Theory and Evidence from US States Author-Name: Carmine Guerriero Author-X-Name-First: Carmine Author-X-Name-Last: Guerriero Author-WorkPlace-Name: University of Cambridge Abstract: The determinants of incentive regulation are a key issue in industrial policy. I study an asymmetric information model of incentive rules selection by a political principal endowed with an information-gathering technology whose efficiency increases with the effort exerted by two accountable supervisors (a regulator and a judge). This set up captures the institutions of several international markets. The model predicts that reforms toward higher powered rules are more likely the more inefficient (efficient) is the production (information-gathering) technology, the less tight is political competition and the greater are pro-consumer supervisors’ incentives. This prediction is consistent with evidence based on US electric power market data. Keywords: Incentive Schemes, Accountability Rules, Regulatory Capture Classification-JEL: D73, H11, L51, K2 Creation-Date: 200804 Template-Type: ReDIF-Paper 1.0 Number: 2008.35 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-035.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.35 Title: Learning from Experts Author-Name: Irene Valsecchi Author-X-Name-First: Irene Author-X-Name-Last: Valsecchi Author-WorkPlace-Name: University of Milano-Bicocca Abstract: The survey is concerned with the issue of information transmission from experts to non-experts. Two main approaches to the use of experts can be traced. According to the game-theoretic approach expertise is a case of asymmetric information between the expert, who is the better informed agent, and the non-expert, who is either a decision-maker or an evaluator of the expert’s performance. According to the Bayesian decision-theoretic approach the expert is the agent who announces his probabilistic opinion, and the non-expert has to incorporate that opinion into his beliefs in a consistent way, despite his poor understanding of the expert’s substantive knowledge. The two approaches ground the relationships between experts and non-experts on such different premises that their results are very poorly connected. Keywords: Expert, Information Transmission, Learning Classification-JEL: D81, L21 Creation-Date: 200804 Template-Type: ReDIF-Paper 1.0 Number: 2008.36 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-036.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.36 Title: Measuring Service Quality: The Opinion of Europeans about Utilities Author-Name: P. A. Ferrari Author-X-Name-First: P. A. Author-X-Name-Last: Ferrari Author-WorkPlace-Name: University of Milan Author-Name: S. Salini Author-X-Name-First: S. Author-X-Name-Last: Salini Author-WorkPlace-Name: University of Milan Abstract: This paper provides a comparative analysis of statistical methods to evaluate the consumer perception about the quality of Services of General Interest. The evaluation of the service quality perceived by users is usually based on Customer Satisfaction Survey data and an ex-post evaluation is then performed. Another approach, consisting in evaluating Consumers preferences, supplies an ex-ante information on Service Quality. Here, the ex-post approach is considered, two non-standard techniques - the Rasch Model and the Nonlinear Principal Component Analysis - are presented and the potential of both methods is discussed. These methods are applied on the Eurobarometer Survey data to assess the consumer satisfaction among European countries and in different years. Keywords: Service Quality, Eurobarometer, Non Linear Principal Component Analysis, Rasch Analysis, Conjoint Analysis Classification-JEL: C33, C35, C43, L94, L95, L96 Creation-Date: 200804 Template-Type: ReDIF-Paper 1.0 Number: 2008.37 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-037.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.37 Title: Vertical Integration and Operational Flexibility Author-Name: Michele Moretto Author-X-Name-First: Michele Author-X-Name-Last: Moretto Author-WorkPlace-Name: University of Padova Author-Name: Gianpaolo Rossini Author-X-Name-First: Gianpaolo Author-X-Name-Last: Rossini Author-WorkPlace-Name: University of Bologna Abstract: The main aim of the paper is to highlight the relation between flexibility and vertical integration. To this purpose, we go through the selection of the optimal degree of vertical disintegration of a flexible firm which operates in a dynamic uncertain environment. The enterprise we model enjoys flexibility since it can switch from a certain amount of disintegration to vertical integration and viceversa. This means that the firm never loses vertical control, i.e., the ability to produce all inputs even when it buys them in the market. This sort of flexibility makes for results which are somehow contrary to the Industrial Organization recent literature and closer to the Operations Research results. In this sense we provide a bridge between the two approaches and rescue Industrial Organization from counterintuitive conclusions. Keywords: Vertical Integration, Outsourcing, Entry, Flexibility Classification-JEL: L24, G31, C61 Creation-Date: 200804 Template-Type: ReDIF-Paper 1.0 Number: 2008.38 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-038.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.38 Title: The Environmental Kuznets Curve from Multiple Perspectives Author-Name: William K. Jaeger Author-X-Name-First: William K. Author-X-Name-Last: Jaeger Author-WorkPlace-Name: Oregon State University Author-Name: Van Kolpin Author-X-Name-First: Van Author-X-Name-Last: Kolpin Author-WorkPlace-Name: University of Oregon Abstract: The analysis finds that in addition to U-shaped paths of environmental quality arising for growth in income per capita, growth in population can also produce socially efficient patterns that are U-shaped. Sufficient conditions for both types of paths are identified for a range of models and parameters, including symmetrical models with homothetic, constant-returns functions such as with CES functions. Similar results are also shown to arise in decentralized economies under either homogeneous or heterogeneous income levels. Keywords: Environmental Kuznets Curve, Economic Growth, Environmental Quality Classification-JEL: Q2, D61, O13 Creation-Date: 200804 Template-Type: ReDIF-Paper 1.0 Number: 2008.39 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-039.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.39 Title: Corruption and Political Interest: Empirical Evidence at the Micro Level Author-Name: Benno Torgler Author-X-Name-First: Benno Author-X-Name-Last: Torgler Author-WorkPlace-Name: Queensland University of Technology Author-Name: Bin Dong Author-X-Name-First: Bin Author-X-Name-Last: Dong Author-WorkPlace-Name: Queensland University of Technology Abstract: The topic of corruption has recently attracted a great deal of attention, yet there is still a lack of micro level empirical evidence regarding the determinants of corruption. Furthermore, the present literature has not investigated the effects of political interest on corruption despite the interesting potential of this link. We address these deficiencies by analyzing a cross-section of individuals, using the World Values Survey. We explore the determinants of corruption through two dependent variables (perceived corruption and the justifiability of corruption). The impact of political interest on corruption is explored through three different proxies, presenting empirical evidence at both the cross-country level and the within-country level. The results of the multivariate analysis suggest that political interest has an impact on corruption controlling for a large number of factors. Keywords: Corruption, Political Interest, Social Norms Classification-JEL: K420, D720, O170, J240 Creation-Date: 200804 Template-Type: ReDIF-Paper 1.0 Number: 2008.40 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-040.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.40 Title: Language Diversity in Urban Landscapes: An econometric study 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 Ca’ Foscari Author-Name: Laura Onofri Author-X-Name-First: Laura Author-X-Name-Last: Onofri Author-WorkPlace-Name: University of Venice Ca’ Foscari and Fondazione Eni Enrico Mattei Author-Name: Jasone Cenoz Author-X-Name-First: Jasone Author-X-Name-Last: Cenoz Author-WorkPlace-Name: University of the Basque Country Author-Name: Durk Gorter Author-X-Name-First: Durk Author-X-Name-Last: Gorter Author-WorkPlace-Name: Ikerbasque-University of the Basque Country Abstract: This multidisciplinary study adopts econometric analysis for investigating how different characteristics determine the choice of the language used in the signs of a shopping street. We work with a dataset containing about 200 observations collected in the main shopping streets of the cities of Donostia (Spain) and Ljouwert (The Netherlands). The results corroborate the important assumption that multilingualism and the choice of the language (even in a street sign) is an individual and a social preference. Therefore, understanding individuals’ linguistic preference structures is preliminary to the target and design of proper linguistic and social policies. Keywords: Linguistic Diversity, Street Sign, Probit Model, Linguistic Landscape Classification-JEL: C010, R200, Z130 Creation-Date: 200804 Template-Type: ReDIF-Paper 1.0 Number: 2008.41 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-041.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.41 Title: Multiple Membership and Federal Sructures Author-Name: Alexei Savvateev Author-X-Name-First: Alexei Author-X-Name-Last: Savvateev Author-WorkPlace-Name: New Economic School Author-Name: Michel Le Breton Author-X-Name-First: Michel Author-X-Name-Last: Le Breton Author-WorkPlace-Name: Universitè de Toulouse I, GREMAQ and IDEI Author-Name: Valery Makarov Author-X-Name-First: Valery Author-X-Name-Last: Makarov Author-WorkPlace-Name: Central Economics and Mathematics Institute and New Economic School Author-Name: Shlomo Weber Author-X-Name-First: Shlomo Author-X-Name-Last: Weber Author-WorkPlace-Name: Southern Methodist University and CEPR Abstract: We consider a model of the “world" with several regions that may create a unified entity or be partitioned into several unions (countries). The regions have distinct preferences over policies chosen in the country to which they belong and equally share the cost of public policies. It is known that stable \political maps" or country partitions, that do not admit a threat of secession by any group of regions, may fail to exist. To rectify this problem, in line with the recent trend for an increased autonomy and various regional arrangements, we consider federal structures, where a region can simultaneously be a part of several unions. We show that, under very general conditions, there always exists a stable federal structure. Keywords: Partitions, Federal Structures, Stability, Cooperative Games Classification-JEL: C71, D71, H41 Creation-Date: 200805 Template-Type: ReDIF-Paper 1.0 Number: 2008.42 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-042.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.42 Title: Institutions and Forest Management: A Case Study from Swat, Pakistan Author-Name: Lorenzo Pellegrini Author-X-Name-First: Lorenzo Author-X-Name-Last: Pellegrini Author-WorkPlace-Name: Institute of Social Studies (ISS) Author-Name: Gideon Kruseman Author-X-Name-First: Gideon Author-X-Name-Last: Kruseman Author-WorkPlace-Name: LEI Abstract: Deforestation in the North western part of Pakistan is a long standing problem. The Forestry Department, as formal managers of the forest resources, has been undergoing a long reform process aimed at improving its performance. This reform process has not resulted in less deforestation. From the policy perspective this has been leading to stated intentions to further reform the Forestry Department, the question is whether organizational reform is the answer. We think there are more limiting bottlenecks to sustainable forest management in Pakistan. De facto property rights are not as simple as denoted by statutory law. In this article we explore the mechanisms behind the deforestation and try to uncover mechanisms to reverse the process. Although our conclusions are not very optimistic, we provide a framework for determining the bottlenecks in the management of common resources from the perspective of institutions. We show that in circumstances where institutional change is necessary we are faced with a trade-off between the transaction costs related to the enforcement of “improved” institutional arrangements and the transaction costs improving enforceable institutional arrangements. Incurring these transaction costs only makes sense if the benefits from improved institutional arrangements outweigh them and the transition costs. When we relate this dilemma to the management regime of the forest in North west Pakistan, we identify at the one end of the spectrum the ideal forest management system; at the other end we see the spontaneous evolution of self organization. The current situation is an intermediate form with an incoherent set of external interventions and strategic reactions by different agents in the local communities. The emergent system of management is the one producing the present dismal outcome. Keywords: New institutional Economics, Corruption, Forestry, Swat Classification-JEL: Q23, Q58 Creation-Date: 200805 Template-Type: ReDIF-Paper 1.0 Number: 2008.43 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-043.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.43 Title: Analysing Regional Sustainability Through a Systemic Approach: The Lombardy Case Study Author-Name: Pietro Caratti Author-X-Name-First: Pietro Author-X-Name-Last: Caratti Author-WorkPlace-Name: Fondazione Eni Enrico Mattei Author-Name: Ludovico Ferraguto Author-X-Name-First: Ludovico Author-X-Name-Last: Ferraguto Author-WorkPlace-Name: I-COM, Istituto per la Competitività Abstract: The intrinsic complexity of the sustainability concept challenges research towards more sophisticated ways to model and assess the dimensions underlying it. However, currently adopted modelling techniques and indicators frameworks are not able to give an integrated assessment through the different components of sustainability, providing incomplete visuals of the reality that they aim to catch. This paper tries to assess how the INSURE methodology can provide a contribution in the analysis of sustainability through indicator frameworks, describing its application to the Lombardy region (Italy). Developed on the course of a 6th European Framework Program – financed project to measure sustainability in the European regions, the methodology provides two distinct sustainability representations, based on a quantitative “top-down” System Dynamics model and on a qualitative “bottom-up” System Thinking approach. The models are then linked to a hierarchical indicator framework setting policy priorities. The overall objective is thus to create a set of regional indicators, adapting the models of regional sustainability to different policy agendas. The purpose of the paper is twofold: defining a new approach to sustainability appraisal, and assessing how the Region is holistically behaving towards sustainable development. Starting from a basis analysis of the main shortcomings highlighted by the use of most adopted methodologies, the paper will verify the contribution given by the INSURE methodology to research in the fields of modelling and indicators approaches, providing insights over methodological adjustments and the results obtained from the application to Lombardy. The conclusions will show how the methodology has tried to overcome identified constraints in current models, like the strong dependence on existing datasets of the obtained representations, the under-coverage of “immaterial factors” role and the scarce integration between sustainability dimensions. Keywords: ustainable Development, Regional Economics, Econometric and Input Output Models, Development Planning and Policy, Regional Analyses Classification-JEL: Q01, R, R15, O2, O18 Creation-Date: 200805 Template-Type: ReDIF-Paper 1.0 Number: 2008.44 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-044.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.44 Title: Effects of Tourism Upon the Economy of Small and Medium-Sized European Cities. Cultural Tourists and “The Others” Author-Name: Elena Bellini Author-X-Name-First: Elena Author-X-Name-Last: Bellini 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: Ugo Gasparino Author-X-Name-First: Ugo Author-X-Name-Last: Gasparino Author-WorkPlace-Name: Fondazione Eni Enrico Mattei Author-Name: William Malizia Author-X-Name-First: William Author-X-Name-Last: Malizia Author-WorkPlace-Name: Fondazione Eni Enrico Mattei Abstract: The paper presents the results of the application of an Input-Output-based approach for the estimation of direct, indirect and induced effects of tourist spending on local economies, in a static partial equilibrium setting. The methodology has been successfully applied in three case studies – Bergen (Norway), Elche (Spain), Syracuse (Italy) –, in the framework of the 6th FP project PICTURE (Pro-active management of the Impact of Cultural Tourism upon Urban Resources and Economies), in order to quantify the monetary impact of cultural tourism upon urban economies. The analysis was carried out in two major steps: firstly, interviews to tourists in each case study city, in order to estimate the scale and variability of the spending patterns of different profiles of visitors (e.g., culture-driven vs. leisure tourists); secondly, application of the Input-Output model of the economy of concern (eventually re-scaling the matrix at the Region or County level) to quantify the effects of tourist expenditure on sales, income and employment for the several impacted economic sectors. Tourists driven by cultural interest are often assumed, in literature, to have a higher than average income and to spend more on holiday. The paper reports the main findings of the analysis, discussing them against the “cultural tourist” stereotype. The analysis aims at assisting local decision makers in identifying the value of different tourist typologies to their region, in understanding how different sectors of local economy and society can benefit from tourism and in determining how to maximise, or more equally redistribute, the positive impact. Keywords: Tourism, Cultural Tourism, Economic Impacts, Input-Output Analysis Classification-JEL: C67, R15, L83, D12 Creation-Date: 200805 Template-Type: ReDIF-Paper 1.0 Number: 2008.45 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-045.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.45 Title: Coalitional Matchings Author-Name: Dinko Dimitrov Author-X-Name-First: Dinko Author-X-Name-Last: Dimitrov Author-WorkPlace-Name: University of Bayreuth Author-Name: Emiliya Lazarova Author-X-Name-First: Emiliya Author-X-Name-Last: Lazarova Author-WorkPlace-Name: School of Management and Economics, Queen’s University Belfast Abstract: A coalitional matching is a two-sided matching problem in which agents on each side of the market may form coalitions such as student groups and research teams who - when matched - form universities. We assume that each researcher has preferences over the research teams he would like to work in and over the student groups he would like to teach to. Correspondingly, each student has preferences over the groups of students he wants to study with and over the teams of researchers he would like to learn from. In this setup, we examine how the existence of core stable partitions on the distinct market sides, the restriction of agents’ preferences over groups to strict orderings, and the extent to which individual preferences respect common rankings shape the existence of core stable coalitional matchings. Keywords: Coalitions, Common Rankings, Core, Stability, Totally Balanced Games, Two-Sided Matchings Classification-JEL: C78, J41, D71 Creation-Date: 200805 Template-Type: ReDIF-Paper 1.0 Number: 2008.46 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-046.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.46 Title: Environmental Regulation and Horizontal Mergers in the Eco-industry Author-Name: Joan Canton Author-X-Name-First: Joan Author-X-Name-Last: Canton Author-WorkPlace-Name: University of Ottawa Author-Name: Maia David Author-X-Name-First: Maia Author-X-Name-Last: David Author-WorkPlace-Name: UMR INRA-AgroParisTech Economie publique Author-Name: Bernard Sinclair-Desgagné Author-X-Name-First: Bernard Author-X-Name-Last: Sinclair-Desgagné Author-WorkPlace-Name: HEC Montreal, CIRANO and Ecole Polytechniqu Abstract: This paper considers the environmental policy and welfare implications of a merger between environment firms (i.e., firms managing environmental resources or supplying pollution abatement goods and services). The traditional analysis of mergers in Cournot oligopolies is extended in two ways. First, we show how environmental policy affects the incentives of environment firms to merge. Second, we stress that mergers in the eco-industry impact welfare beyond what is observed in other sectors, due to an extra effect on pollution abatement efforts; this might lead to disagreements between an anti-trust agency seeking to limit market concentration which can be detrimental to consumer surplus and a benevolent regulator who maximizes total welfare. Keywords: Eco-Industry, Environmental Policy, Horizontal Mergers Classification-JEL: D62, H23, L11 Creation-Date: 200805 Template-Type: ReDIF-Paper 1.0 Number: 2008.47 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-047.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.47 Title: A Proposal for a New Prescriptive Discounting Scheme: The Intergenerational Discount Rate Author-Name: Stéphane Hallegatte Author-X-Name-First: Stéphane Author-X-Name-Last: Hallegatte Author-WorkPlace-Name: CIRED Abstract: Cost-benefit analyses require comparing costs and benefits that occur at different points in time. Doing so, however, creates conflicts between short-term considerations — a discounting scheme has to be consistent with observed behaviours — and long-term ethical issues — a discounting scheme must not favour the current generation over future ones. To overcome this conflict, the present article proposes a prescriptive consumption discounting scheme that applies different discount rates (i) for various incomes in the lifetime of a unique individual and (ii) for various incomes that affect different individuals. Practically, any income flux is first discounted to the birth date of all individuals using a discount rate with a non-zero pure preference for the present; then these individual discounted values are discounted to the present with a discount rate with no preference for the present and finally summed up. The aim of this prescriptive discount rate is to be consistent with observed individual behaviour (descriptive discount rate) without favouring current generations. Consequences are discussed and compared with the UK Green Book and the Stern Review discounting schemes. Keywords: Discount Rate, Intergenerational Equity Classification-JEL: H4 Creation-Date: 200805 Template-Type: ReDIF-Paper 1.0 Number: 2008.48 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-048.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.48 Title: Structural Change, Environment and Well-being: Interactions Between Production and Consumption Choices of the Rich and the Poor in Developing Countries Author-Name: Angelo Antoci Author-X-Name-First: Angelo Author-X-Name-Last: Antoci Author-WorkPlace-Name: DEIR, University of Sassari Author-Name: Paolo Russu Author-X-Name-First: Paolo Author-X-Name-Last: Russu Author-WorkPlace-Name: University of Sassari Author-Name: Elisa Ticci Author-X-Name-First: Elisa Author-X-Name-Last: Ticci Author-WorkPlace-Name: University of Florence Abstract: Vulnerability to scarcity or to reduction of natural capital depends on defensive substitution possibilities that, in turn, are affected by the availability of other productive factors. However, in several developing countries asset distribution tends to be highly skewed. Taking into ac- count these elements, this paper argues that environmental degradation may represent a push factor of economic development in an economy polarized into two main classes (the Rich and the Poor) and characterized by the following stylized facts: a) the main income source of the rural poor is self-employment in traditional activities highly depending on natural resources; b) labor remuneration in rural sector represents the basic opportunity cost for (unskilled) labor in the economy. Thus, given that environmental degradation reduces labor productivity of the rural poor, it may depress wages; c) production of the modern sector managed by the rich is less affected by depletion of natural resources because they can adopt defensive strategies that the poor cannot. They are able to defend themselves by partially substituting natural resources with physical capital accumulation and wage labor employment. We will show that, in this context, environmental depletion may benefit the modern sector through an increase in low cost labor supply and, in turn, it may stimulate economic transition. However the structural change is likely to result in an increase in inequality. Keywords: Production, Consumption Choices, Welfare Classification-JEL: D62, O11, O13, O15, O41, Q20 Creation-Date: 200805 Template-Type: ReDIF-Paper 1.0 Number: 2008.49 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-049.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.49 Title: The Determinants of Suppliers’ Performance in E-Procurement: Evidence from the Italian Government’s E-Procurement Platform Author-Name: Gian Luigi Albano Author-X-Name-First: Gian Luigi Author-X-Name-Last: Albano Author-WorkPlace-Name: Italian Public Procurement Agency (Consip S.p.A.) Author-Name: Federico Dini Author-X-Name-First: Federico Author-X-Name-Last: Dini Author-WorkPlace-Name: Italian Public Procurement Agency (Consip S.p.A.) Author-Name: Roberto Zampino Author-X-Name-First: Roberto Author-X-Name-Last: Zampino Author-WorkPlace-Name: Italian Public Procurement Agency (Consip S.p.A.) and University of Bari Author-Name: Marta Fana Author-X-Name-First: Marta Author-X-Name-Last: Fana Author-WorkPlace-Name: University of Rome “Tor Vergata” Abstract: Participation of small businesses in the market for public contracts is widely recognized as a key policy issue. It is also commonly held that the adoption of e-procurement solutions can be effective in pursuing such an objective. To this end, we analyze the transactions completed in the period 2004-2007 through the Italian Government’s e-procurement platform, that is, the marketplace managed by the Italian Public Procurement Agency (Consip S.p.A.). Although descriptive statistics indicate that micro suppliers are the most represented group of firms in the marketplace, our econometric treatment provides some evidence that the former are less successful than all other suppliers in getting public contracts. Degree of loyalty with buyers, location and the use of other MEPA negotiation tools, also emerge as relevant factors of success in the e-procurement market. Keywords: E-Procurement, Small Suppliers, Request For Quotations, Performance, Public Contracts, Count Data Classification-JEL: D44, H57, C16, C25, L25 Creation-Date: 200806 Template-Type: ReDIF-Paper 1.0 Number: 2008.50 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-050.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.50 Title: The Impact of Urbanization on CO2 Emissions: Evidence from Developing Countries Author-Name: Inmaculada Martínez-Zarzoso Author-X-Name-First: Inmaculada Author-X-Name-Last: Martínez-Zarzoso Author-WorkPlace-Name: Universität Göttingen Abstract: This paper analyzes the impact of urbanization on CO2 emissions in developing countries. In this study we treat population as a predictor in the model, instead of assuming a unitary elasticity of emissions with respect to population growth. We contribute to the existing literature by examining the effect of urbanization, taking into account the presence of heterogeneity in the sample of countries and testing for the stability of the estimated elasticities over time. The sample covers the period from 1975 through 2005 for different groups of countries, classified according to their income levels. Our results show that, whereas the impact of population growth on emissions is above unity and only slightly different for upper, middle, and low-income countries, additional demographic variables, namely, urbanization, demonstrate a very different impact on emissions for low and lower-middle-income countries and upper-middle income countries. For the first set of countries, the elasticity, emission-urbanization, is higher than unity, whereas in the second group, the elasticity is 0.72, which is in accordance with the higher environmental impact observed in less developed regions. However, in upper-middle income countries and highly developed countries, the elasticity, emission-urbanization, is negative. The heterogeneous impact of urbanization on CO2 emissions should therefore be taken into account in future discussions of climate change policies. Keywords: CO2 Emissions, Developing Countries, Panel Data, Population Growth, Urbanization Classification-JEL: Q25, Q4, Q54 Creation-Date: 200806 Template-Type: ReDIF-Paper 1.0 Number: 2008.51 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-051.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.51 Title: Managing Migration through Quotas: an Option-theory Perspective Author-Name: Michele Moretto Author-X-Name-First: Michele Author-X-Name-Last: Moretto Author-WorkPlace-Name: University of Padua Author-Name: Sergio Vergalli Author-X-Name-First: Sergio Author-X-Name-Last: Vergalli Author-WorkPlace-Name: University of Brescia Abstract: Recent European Legislation on immigration has revealed a particular paradox on migration policies. On the one hand, the trend of recent legislation points to the increasing closure of frontiers (OECD 1999, 2001,2004), also by using immigration quotas. On the other hand, there is an increase of regularization, i.e., European policies are becoming less tight. Our aim here is to study these counterbalanced and opposite policies in European immigration legislation in a unified framework . To do this, we have used a real option approach to migration choice that assumes that the decision to migrate can be described as an irreversible investment decision where quotas represent an upper bound limit. Our results show that the paradox of counterbalancing immigration policies is not odd but it could be in line with an optimal policy to control migration inflow. In particular, we show that if the government controls the information related to the immigration quota system it could delay the mass entry of immigrants maintaining, in the long run, the required immigration stock and controlling the flows in the short-run. Keywords: Immigration, Real Option, Quota System Classification-JEL: F22, J61, O15, R23 Creation-Date: 200806 Template-Type: ReDIF-Paper 1.0 Number: 2008.52 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-052.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.52 Title: Measuring the Impact of Tourism Upon Urban Economies: A Review of Literature Author-Name: Ugo Gasparino Author-X-Name-First: Ugo Author-X-Name-Last: Gasparino Author-WorkPlace-Name: Fondazione Eni Enrico Mattei Author-Name: Elena Bellini Author-X-Name-First: Elena Author-X-Name-Last: Bellini 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: William Malizia Author-X-Name-First: William Author-X-Name-Last: Malizia Author-WorkPlace-Name: Fondazione Eni Enrico Mattei Abstract: Tourism is increasingly seen as a potential lever towards high economic growth, measured both in terms of income and employment. In recent years, interest in tourism has spread rapidly throughout many small and medium European cities, which previously have not considered themselves as tourist destinations. This paper reviews and summarises the existing literature on the economic assessment of tourism with the objectives of, firstly, identifying the main categories of impacts and, secondly, constructing an inventory of methodologies available to assess them. We will progress step by step, starting from the most simplistic approaches and relaxing assumptions as we proceed. Firstly, we assume a static setting, with spare capacity. In such a setting (partial equilibrium), prices do not respond to demand shocks: only quantities (production, income and jobs) adjust. Secondly, we relax this assumption and assume that there is no spare capacity: prices respond to increasing demand (general equilibrium), leading to reallocation of resources across sectors. We then move from a static to a dynamic setting and survey those contributions that look at the relationship between tourism specialisation and long-run growth. Keywords: Tourism, Economic Impacts, Input-Output Analysis, General and Partial Equilibrium Analaysis Classification-JEL: B41, C67, C68, L83 Creation-Date: 200806 Template-Type: ReDIF-Paper 1.0 Number: 2008.53 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-053.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.53 Title: Linking Environmental and Innovation Policy Author-Name: Reyer Gerlagh Author-X-Name-First: Reyer Author-X-Name-Last: Gerlagh Author-WorkPlace-Name: University of Manchester Author-Name: Snorre Kverndokk Author-X-Name-First: Snorre Author-X-Name-Last: Kverndokk Author-WorkPlace-Name: Ragnar Frisch Centre for Economic Research Author-Name: Knut Einar Rosendah Author-X-Name-First: Knut Einar Author-X-Name-Last: Rosendah Author-WorkPlace-Name: Research Department, Statistics Norway Abstract: This paper addresses the timing and interdependence between innovation and environmental policy in a model of research and development (R&D). On a first-best path the environmental tax is set at the Pigouvian level, independent of innovation policy. With infinite patent lifetime, the R&D subsidy should be constant and independent of the state of the environment. However, with finite patent lifetime, optimal innovation policy depends on the stage of the environmental problem. In the early stages of an environmental problem, abatement research should be subsidized at a high level and this subsidy should fall monotonically over time to stimulate initial R&D investments. Alternatively, with a constant R&D subsidy, patents’ length should initially have a very long life-time but this should be gradually shortened. In a second-best situation with no deployment subsidy for abatement equipment, we find that the environmental tax should be high compared to the Pigouvian levels when an abatement industry is developing, but the relative difference falls over time. That is, environmental policies will be accelerated compared to first-best. Keywords: Environmental Policy, Research and Development, Innovation Subsidies, Patents Classification-JEL: H21, O30, Q42 Creation-Date: 200806 Template-Type: ReDIF-Paper 1.0 Number: 2008.54 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-054.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.54 Title: Corruption, Income Inequality, and Poverty in the United States Author-Name: Oguzhan C. Dincer Author-X-Name-First: Oguzhan C. Author-X-Name-Last: Dincer Author-WorkPlace-Name: Illinois State University Author-Name: Burak Gunalp Author-X-Name-First: Burak Author-X-Name-Last: Gunalp Author-WorkPlace-Name: Hacettepe University Abstract: In this study we analyze the effects of corruption on income inequality and poverty. Our analysis advances the existing literature in four ways. First, instead of using corruption indices assembled by various investment risk services, we use an objective measure of corruption: the number of public officials convicted in a state for crimes related to corruption. Second, we use all commonly used inequality and poverty measures including various Atkinson indexes, Gini index, standard deviation of the logarithms, relative mean deviation, coefficient of variation, and the poverty rate defined by the U.S. Census Bureau. Third, we minimize the problems which are likely to arise due to data incomparability by examining the differences in income inequality, and poverty across U.S. states. Finally, we exploit both time series and cross sectional variation in the data. We find robust evidence that an increase in corruption increases income inequality and poverty. Keywords: Corruption, Income Inequality, Poverty Classification-JEL: D31, D73, I32 Creation-Date: 200808 Template-Type: ReDIF-Paper 1.0 Number: 2008.55 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-055.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.55 Title: Accountability in Government and Regulatory 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 political economy of regulatory and judicial appointment rules. I study a model of price-setting by a political principal faced with a firm with unknown costs, and endowed with an information-gathering technology whose efficiency rises with the effort exerted by two accountable supervisors (a regulator and a judge). This set-up captures the institutions of several international markets. The model predicts that reforms toward election rather than appointment of regulators are more likely the less efficient is the information-gathering technology, the less stringent are the investment concerns of society, the stronger are regulators’ revolving-door motivations, and the closer is political competition. These predictions are consistent with US electric power market data. Moreover, in accordance with the model, electricity rates are lower and respond less to shock in input costs in states that elect their regulators or their High Court judges. Keywords: Election, Agency, Judges, Regulation, Electricity Classification-JEL: K23, L51, Q43 Creation-Date: 200806 Template-Type: ReDIF-Paper 1.0 Number: 2008.56 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-056.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.56 Title: Export, Assembly-line FDI or FDI with the Possibility of Technology Diffusion: Optimal Entry Mode for Multinationals Author-Name: Tanmoyee Banerjee(Chatterjee) Author-X-Name-First: Tanmoyee Author-X-Name-Last: Banerjee(Chatterjee) Author-WorkPlace-Name: Jadavpur University Author-Name: Nilanjana Mitra Author-X-Name-First: Nilanjana Author-X-Name-Last: Mitra Author-WorkPlace-Name: Susil Kar College Abstract: The paper tries to evaluate the optimal entry mode of a Multinational Company that is choosing among export, fragmented production structure with assembly-line FDI in LDC or complete production in LDC with FDI. The results show that if the plant installation cost is sufficiently high then the firm will find it profitable to export the finished product to the LDC market and the Government will not exercise any IPR restriction. If plant installation cost is below a certain critical level the MNC chooses complete LDC production with FDI over assembly-line FDI if the IPR restriction is strong, where the model assumes that a fake producer can copy the product if complete production takes place in LDC. In such a situation government will choose to protect IPR if government earning exceeds the cost of IPR protection, otherwise no monitoring is the optimal strategy of the government and MNC will choose the strategy of fragmented production structure and assembly-line FDI will take place in LDC. Keywords: Export, Assembly-line FDI, FDI with Complete Production, IPR Protection Classification-JEL: L11, O34 Creation-Date: 200807 Template-Type: ReDIF-Paper 1.0 Number: 2008.57 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-057.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.57 Title: Environmental Policy, Education and Growth: A Reappraisal when Lifetime Is Finite Author-Name: Xavier Pautrel Author-X-Name-First: Xavier Author-X-Name-Last: Pautrel Author-WorkPlace-Name: Nantes Atlantique Université Abstract: This article demonstrates that when finite lifetime is introduced in a Lucas (1988) growth model, the environmental policy may enhance growth both in the short- and the long-run, while pollution does not influence educational activities, labor supply is not elastic and human capital does not enter the utility function. This is because finite lifetime and the appearance of newborns at each date creates a turnover of generations which disconnects the aggregate consumption growth to the interest rate. We show that the shorter is the horizon, the greater the effect of the environmental policy on growth, because the higher the “generational turnover effect”. We also demonstrate that when time is not the single production factor in education, the environmental policy promotes growth only if time remains the predominant factor. Otherwise, the crowding-out effect of the tighter environmental policy dominates the “generational turnover effect” and growth diminishes. Finally, when the source of pollution is final output rather than physical capital and time is the single factor in education, the environmental does not affect growth in the steady-state, despite the “generational turnover effect”. Nevertheless, if the education good is introduced, the positive influence of the environmental policy appears again. Keywords: Growth, Environment, Overlapping generations, Human capital Classification-JEL: C, O Creation-Date: 200807 Template-Type: ReDIF-Paper 1.0 Number: 2008.58 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-058.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.58 Title: The Factors Behind CO2 Emission Reduction in Transition Economies Author-Name: Katrin Millock Author-X-Name-First: Katrin Author-X-Name-Last: Millock Author-WorkPlace-Name: University Paris 1 Panthéon-Sorbonne Author-Name: Natalia Zugravu Author-X-Name-First: Natalia Author-X-Name-Last: Zugravu Author-WorkPlace-Name: University Paris 1 Panthéon-Sorbonne Author-Name: Gérard Duchene Author-X-Name-First: Gérard Author-X-Name-Last: Duchene Author-WorkPlace-Name: ERUDITE, University Paris 12 Abstract: The Central and Eastern European countries significantly reduced their carbon dioxide (CO2) emissions between 1995 and 2003. Was this emission reduction just the fortuitous result of the major economic transformation undergone by countries in the transition? Or is it rather a result of more stringent environmental policy? The objective of the article is to answer this question through a simultaneous equation model of the demand (emissions) and supply (environmental stringency) of pollution. The supply equation takes into account the institutional quality of the country as well as consumer preferences for environmental quality. The results indicate that, all else equal, output growth would have increased industrial CO2 emissions in the Central and Eastern European countries in our sample by 31% between 1995 and 2003, and the composition effect corresponded to an increase of 8.4% of emissions. Nevertheless, the technique effect, induced by more stringent environmental policy, reduced industrial CO2 emissions by 58%, and allowed for a final beneficial result for the environment, i.e., -18% of industrial CO2 emissions in 2003 compared to 1995. Finally, our study confirms the importance of institutional factors in the explanation and further prediction of pollution reduction in transition economies. Keywords: Transition, CO2 Emissions, Environmental Policy, Scale, Composition and Technique Effects Classification-JEL: C33, D72, P5, P27, Q53, Q58 Creation-Date: 200807 Template-Type: ReDIF-Paper 1.0 Number: 2008.59 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-059.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.59 Title: Justifiability of Littering: An Empirical Investigation Author-Name: Benno Torgler Author-X-Name-First: Benno Author-X-Name-Last: Torgler Author-WorkPlace-Name: Queensland University of Technology Author-Name: María A.García-Valiñas Author-X-Name-First: María A. Author-X-Name-Last: García-Valiñas Author-WorkPlace-Name: University of Oviedo Author-Name: Alison Macintyre Author-X-Name-First: Alison Author-X-Name-Last: Macintyre Author-WorkPlace-Name: Queensland University of Technology Abstract: The paper investigates the relationship between environmental participation and littering. Previous empirical work in the area of littering is scarce as is evidence regarding the determinants of littering behavior. We address these deficiencies, demonstrating a strong empirical link between environmental participation and reduced public littering using European Values Survey (EVS) data for 30 Western and Eastern European countries. The results suggest that membership in environmental organizations strengthens commitment to anti-littering behaviour, thereby supporting improved environmental quality. Keywords: Littering, Environmental Participation, Environmental Preferences, Environmental Outcomes Classification-JEL: H260, H730, D640 Creation-Date: 200807 Template-Type: ReDIF-Paper 1.0 Number: 2008.60 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-060.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.60 Title: Redeveloping Derelict and Underused Historic City Areas: Evidence from a Survey of Real Estate Developers Author-Name: Paolo Rosato Author-X-Name-First: Paolo Author-X-Name-Last: Rosato Author-WorkPlace-Name: Fondazione Eni Enrico Mattei Author-Name: Anna Alberini Author-X-Name-First: Anna Author-X-Name-Last: Alberini Author-WorkPlace-Name: Fondazione Eni Enrico Mattei Author-Name: Valentina Zanatta Author-X-Name-First: Valentina Author-X-Name-Last: Zanatta Author-WorkPlace-Name: Fondazione Eni Enrico Mattei Author-Name: Margaretha Breil Author-X-Name-First: Margaretha Author-X-Name-Last: Breil Author-WorkPlace-Name: Fondazione Eni Enrico Mattei Abstract: Infill redevelopment—the transformation of previously used urban sites—is generally regarded as an important way to attain environmental and urban sustainability goals. At many locales, however, such urban renewal, community development, and tax revenue goals must be reconciled with historic preservation objectives. Are economic incentives and regulatory relief useful tools for encouraging reuse of abandoned or underutilized urban sites with historic buildings? Answering this question is of key importance for many European cities and for older US cities, and has important implications in terms of urban sustainability and “smart growth” initiatives. We use conjoint choice experiments to explore the relative importance of economic incentives, regulatory relief, land use and property regime offerings at underutilized historical sites in Venice, Italy. We survey real estate developers and investors, and ask them to choose between pairs of hypothetical projects in three Venice locations, as well as between one of these projects and the alternative to do a development project elsewhere. Statistical models of the responses to these choice questions indicate that respondents are sensitive to the price of acquiring the land (and hence to any policies that influence prices), and especially sensitive to the property regime that would be granted to developers and investors and to the allowable land use. Contrary to expectations, our respondents were insensitive to tightening or relaxing the stringency of building conservation restrictions. Our findings sound a common theme with Howland (2004), who warns that redevelopment of previously used sites in Baltimore is impaired by obsolete land uses, zoning and infrastructure (but not by suspected or actual contamination). We conclude that the City should focus on offering land uses and property regimes that are more in tune with developer demand. Keywords: Conjoint Choice Experiments, Real Estate Developers, Building Conservation Restrictions, Redevelopment Incentives, Brownfields, Infill Redevelopment Classification-JEL: Z1, R52 Creation-Date: 200807 Template-Type: ReDIF-Paper 1.0 Number: 2008.61 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-061.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.61 Title: Networks with Group Counterproposals Author-Name: Ricardo Nieva Author-X-Name-First: Ricardo Author-X-Name-Last: Nieva Author-WorkPlace-Name: University of Minnesota Abstract: We study two n-player sequential network formation games with externalities. Link formation is tied to simultaneous transfer selection in a Nash demand like game in each period. Players in groups can counterpropose. We give necessary and sufficient conditions for efficiency in terms of cyclical monotonicity. The n-player group version always yields efficiency. Keywords: Efficiency, Bargaining Protocol, Counterproposals, Network Formation, Transfers, Externalities, Groups, Coalitions Classification-JEL: C71, C72, C73, C78 Creation-Date: 200807 Template-Type: ReDIF-Paper 1.0 Number: 2008.62 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-062.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.62 Title: Coalition Formation and the Ancillary Benefits of Climate Policy Author-Name: Michael Finus Author-X-Name-First: Michael Author-X-Name-Last: Finus Author-WorkPlace-Name: University of Stirling Author-Name: Dirk T.G. Rübbelke Author-X-Name-First: Dirk T.G. Author-X-Name-Last: Rübbelke Author-WorkPlace-Name: Center for International Climate and Environmental Research Abstract: Several studies found ancillary benefits of environmental policy to be of considerable size. These additional private benefits imply not only higher cooperative but also noncooperative abatement targets. However, beyond these largely undisputed important quantitative effects, there are qualitative and strategic implications associated with ancillary benefits: climate policy is no longer a pure but an impure public good. In this paper, we investigate these implications in a setting of non-cooperative coalition formation. In particular, we address the following questions. 1) Do ancillary benefits increase participation in international environmental agreements? 2) Do ancillary benefits raise the success of these treaties in welfare terms? Keywords: Ancillary Benefits, Climate Policy, Coalition Formation, Game Theory, Impure Public Goods Classification-JEL: C72, H87, Q54 Creation-Date: 200807 Template-Type: ReDIF-Paper 1.0 Number: 2008.63 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-063.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.63 Title: A Choice Modelling Approach for Assessment of Use and Quasi-Option Values in Urban Planning for Areas of Environmental Interest Author-Name: Elisabetta Strazzera Author-X-Name-First: Elisabetta Author-X-Name-Last: Strazzera Author-WorkPlace-Name: University of Cagliari Author-Name: Elisabetta Cherchi Author-X-Name-First: Elisabetta Author-X-Name-Last: Cherchi Author-WorkPlace-Name: DIT and CIREM, University of Cagliari Author-Name: Silvia Ferrini Author-X-Name-First: Silvia Author-X-Name-Last: Ferrini Author-WorkPlace-Name: DEPFID, University of Siena, CSERGE and University of East Anglia Abstract: This study adopts a discrete choice modelling methodology to evaluate individuals’ preferences over planning alternatives for an urban site of environmental interest. Since such projects involve some uncertainty and irreversibility, a special attention is devoted to the estimation of the quasi-option values which are associated to project development. Two distinct measures for the quasi-option value are estimated, and both coefficients indicate that the public places a significant value on reduction of the possibility of adverse irreversible effects: a more prudent development strategy is valued about four times more than a procedure that provides a lesser hedge against undesired outcomes. Furthermore, the study involved elicitation of intertemporal preferences over projects with different time spans, and estimation of the implicit discount rates: the values obtained seem high if compared to standard discount rates applied to public projects, but not far from current interest rates on consumption. Keywords: Urban Planning, Environmental Values, Choice Modelling, Use Values, Quasi-option Values, Discounting Classification-JEL: C35, Q51, R41 Creation-Date: 200807 Template-Type: ReDIF-Paper 1.0 Number: 2008.64 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-064.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.64 Title: Do We Care about Built Cultural Heritage? The Empirical Evidence Based on the Veneto House Market Author-Name: Paolo Rosato Author-X-Name-First: Paolo Author-X-Name-Last: Rosato Author-WorkPlace-Name: Fondazione Eni Enrico Mattei Author-Name: Lucia Rotaris Author-X-Name-First: Lucia Author-X-Name-Last: Rotaris Author-WorkPlace-Name: Fondazione Eni Enrico Mattei and Università di Trieste Author-Name: Margaretha Breil Author-X-Name-First: Margaretha Author-X-Name-Last: Breil Author-WorkPlace-Name: Fondazione Eni Enrico Mattei Author-Name: Valentina Zanatta Author-X-Name-First: Valentina Author-X-Name-Last: Zanatta Author-WorkPlace-Name: Fondazione Eni Enrico Mattei Abstract: Italian historical buildings require urgent and costly maintenance and restoration works, but neither the local, nor the national public administrators can afford these expenditures. Nevertheless the built cultural heritage represent a unique resource of the territory, as it embodies the local social, historical, and cultural values, generates positive externalities (Musgrave, 1959), and stimulates economic activities mainly related to tourism. Is it possible to quantify how much we care about historical buildings and to measure this value in monetary terms? The aim of this paper is to answer to this question via the hedonimetric approach. Specifically, we try to verify if the proximity to historical villas, districts, palaces, squares, fortresses, religious buildings and archeological site systematically influence the house market equilibrium price in the Veneto region (Italy). The paper is organized as follows: in section two a brief review of the literature is reported, in section three the database used for the hedonimetric estimates is described, in section four the econometric models and the results we had obtained are illustrated, and in section five some final comments are drawn. Keywords: Cultural Heritage Externalities, Hedonic Housing Price Method Classification-JEL: Z1, D62, Q51 Creation-Date: 200807 Template-Type: ReDIF-Paper 1.0 Number: 2008.65 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-065.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.65 Title: Does Network Matter in International Expansion? Evidence from Italian SMEs Author-Name: Antonia Rosa Gurrieri Author-X-Name-First: Antonia Rosa Author-X-Name-Last: Gurrieri Author-WorkPlace-Name: University of Foggia Author-Name: Luca Petruzzellis Author-X-Name-First: Luca Author-X-Name-Last: Petruzzellis Author-WorkPlace-Name: University of Bari Abstract: In order to face the new competitive scenario, Apulian textile firms are involved in a process of change and are trying to adopt a networking approach in analysing the international propensity of SMEs. The case of the textile network in Apulia has been analysed using a semi-structured questionnaire submitted to a sample of family businesses in order to verify the influence of network on their internationalisation process. The contribution that the network can give to the single firm in its internationalisation process depends also on the level of cooperation in the network. In fact, relationships – at least dual vertical relationships – are the key to overcoming size limit and providing value to all the partners involved. The research attempted to offer a better academic understanding of the role of network in international competitive advantage. Future research should be based on cross countries analysis, in order to determine whether or not the set of internal determinants of internationalisation pensity remain stable from one country to another. The findings should also be useful to local governance for a better understanding of the network phenomenon in order to develop appropriate programmes for training and supporting SMEs in the global market. This paper provides a wide analysis of the network role in the internationalisation process in a low technology sector. Keywords: Internationalisation Strategies, Network Approach Classification-JEL: L2, D85 Creation-Date: 200807 Template-Type: ReDIF-Paper 1.0 Number: 2008.66 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-066.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.66 Title: Comparing Price and Non-price Approaches to Urban Water Conservation Author-Name: Sheila M. Olmstead Author-X-Name-First: Sheila M. Author-X-Name-Last: Olmstead Author-WorkPlace-Name: Yale School of Forestry and Environmental Studies Author-Name: Robert N. Stavins Author-X-Name-First: Robert N. Author-X-Name-Last: Stavins Author-WorkPlace-Name: Harvard University Abstract: Urban water conservation is typically achieved through prescriptive regulations, including the rationing of water for particular uses and requirements for the installation of particular technologies. A significant shift has occurred in pollution control regulations toward market-based policies in recent decades. We offer an analysis of the relative merits of market-based and prescriptive approaches to water conservation, where prices have rarely been used to allocate scarce supplies. The analysis emphasizes the emerging theoretical and empirical evidence that using prices to manage water demand is more cost-effective than implementing non-price conservation programs, similar to results for pollution control in earlier decades. Price-based approaches also have advantages in terms of monitoring and enforcement. In terms of predictability and equity, neither policy instrument has an inherent advantage over the other. As in any policy context, political considerations are important. Keywords: Cost-effectiveness, Water Conservation, Market-based Approaches, Policy Instrument Choice, Water Price Classification-JEL: Q25, Q28, Q58, L95 Creation-Date: 200809 Template-Type: ReDIF-Paper 1.0 Number: 2008.67 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-067.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.67 Title: Addressing Climate Change with a Comprehensive U.S. Cap-and-Trade System Author-Name: Robert N. Stavins Author-X-Name-First: Robert N. Author-X-Name-Last: Stavins Author-WorkPlace-Name: Harvard University Abstract: There is growing impetus for a domestic U.S. climate policy that can provide meaningful reductions in emissions of CO2 and other greenhouse gases. I describe and analyze an up- stream, economy-wide CO2 cap-and-trade system which implements a gradual trajectory of emissions reductions (with inclusion over time of non-CO2 greenhouse gases), and includes mechanisms to reduce cost uncertainty. Initially, half of the allowances are allocated through auction and half through free distribution, with the share being auctioned gradually increasing to 100 percent over 25 years. The system provides for linkage with emission reduction credit projects in other countries, harmonization over time with effective cap-and-trade systems in other countries and regions, and appropriate linkage with actions taken in other countries, in order to establish a level playing field among domestically produced and imported products. Keywords: Cap-and-Trade System, Carbon Dioxide, Greenhouse Gas Emissions, Global Climate Change, Carbon Taxes Classification-JEL: Q540, Q280, Q380, Q480, Q580 Creation-Date: 200809 Template-Type: ReDIF-Paper 1.0 Number: 2008.68 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-068.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.68 Title: Impact of Revised CO2 Growth Projections for China on Global Stabilization Goals Author-Name: Geoffrey J. Blanford Author-X-Name-First: Geoffrey J. Author-X-Name-Last: Blanford Author-WorkPlace-Name: Electric Power Research Institute Author-Name: Richard G. Richels Author-X-Name-First: Richard G. Author-X-Name-Last: Richels Author-WorkPlace-Name: Electric Power Research Institute Author-Name: Thomas F. Rutherford Author-X-Name-First: Thomas F. Author-X-Name-Last: Rutherford Author-WorkPlace-Name: Centre for Energy Policy and Economics Abstract: Recent growth in carbon dioxide emissions from China’s energy sector has exceeded expectations. In a major US government study of future emissions released in 2007 (1), participating models appear to have substantially underestimated the near-term rate of increase in China’s emissions. We present a recalibration of one of those models to be consistent with both current observations and historical development patterns. The implications of the new specification for the feasibility of commonly discussed stabilization targets, particularly when considering incomplete global participation, are profound. Unless China’s emissions begin to depart soon from their (newly projected) business-as-usual path, stringent stabilization goals may be unattainable. The current round of global policy negotiations must engage China and other developing countries, not to the exclusion of emissions reductions in the developed world and possibly with the help of significant financial incentives, if such goals are to be achieved. It is in all nations’ interests to work cooperatively to limit our interference with the global climate. Keywords: Energy-Economy Modeling, China, Economic Growth Rates, Energy Intensity, International Climate Policy Classification-JEL: Q48, H23, O13 Creation-Date: 200809 Template-Type: ReDIF-Paper 1.0 Number: 2008.69 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-069.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.69 Title: Delayed Action and Uncertain Targets. How Much Will Climate Policy Cost? Author-Name: Valentina Bosetti Author-X-Name-First: Valentina Author-X-Name-Last: Bosetti Author-WorkPlace-Name: Fondazione Eni Enrico Mattei Author-Name: Massimo Tavoni Author-X-Name-First: Massimo Author-X-Name-Last: Tavoni 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, University of Venice, CEPR, CESifo and CMCC Author-Name: Alessandra Sgobbi Author-X-Name-First: Alessandra Author-X-Name-Last: Sgobbi Author-WorkPlace-Name: Fondazione Eni Enrico Mattei Abstract: Despite the growing concern about actual on-going climate change, there is little consensus about the scale and timing of actions needed to stabilise the concentrations of greenhouse gases. Many countries are unwilling to implement effective mitigation strategies, at least in the short-term, and no agreement on an ambitious global stabilisation target has yet been reached. It is thus likely that some, if not all countries, will delay the adoption of effective climate policies. This delay will affect the cost of future policy measures that will be required to abate an even larger amount of emissions. What additional economic cost of mitigation measures will this delay imply? At the same time, the uncertainty surrounding the global stabilisation target to be achieved crucially affects short-term investment and policy decisions. What will this uncertainty cost? Is there a hedging strategy that decision makers can adopt to cope with delayed action and uncertain targets? This paper addresses these questions by quantifying the economic implications of delayed mitigation action, and by computing the optimal abatement strategy in the presence of uncertainty about a global stabilisation target (which will be agreed upon in future climate negotiations). Results point to short-term inaction as the key determinant for the economic costs of ambitious climate policies. They also indicate that there is an effective hedging strategy that could minimise the cost of climate policy under uncertainty, and that a short-term moderate climate policy would be a good strategy to reduce the costs of delayed action and to cope with uncertainty about the outcome of future climate negotiations. By contrast, an insufficient short-term effort significantly increases the costs of compliance in the long-term. Keywords: Uncertainty, Climate Policy, Stabilisation Costs, Delayed Action Classification-JEL: C72, H23, Q25, Q28 Creation-Date: 200809 Template-Type: ReDIF-Paper 1.0 Number: 2008.70 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-070.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.70 Title: Delayed Participation of Developing Countries to Climate Agreements: Should Action in the EU and US be Postponed? Author-Name: Valentina Bosetti Author-X-Name-First: Valentina Author-X-Name-Last: Bosetti Author-WorkPlace-Name: Fondazione Eni Enrico Mattei and CMCC Author-Name: Carlo Carraro Author-X-Name-First: Carlo Author-X-Name-Last: Carraro Author-WorkPlace-Name: Fondazione Eni Enrico Mattei, University of Venice, CEPR, CESifo and CMCC Author-Name: Massimo Tavoni Author-X-Name-First: Massimo Author-X-Name-Last: Tavoni Author-WorkPlace-Name: Fondazione Eni Enrico Mattei, Catholic University of Milan and CMCC Abstract: This paper analyses the cost implications for climate policy in developed countries if developing countries are unwilling to adopt measures to reduce their own GHG emissions. First, we assume that a 450 CO2 (550 CO2e) ppmv stabilisation target is to be achieved and that Non Annex1 (NA1) countries decide to delay their GHG emission reductions by 30 years. What would be the cost difference between this scenario and a case in which both developed and developing countries start reducing their emissions at the same time? Then, we look at a scenario in which the timing of developing countries’ participation is uncertain and again we compute the costs of climate policy in developed and developing countries. We find that delayed participation of NA1 countries has a negative impact on climate policy costs. Economic inefficiencies can be as large as 10-25 TlnUSD. However, this additional cost wanes when developing countries are allowed to trade emission reductions from their baseline emission paths during the 30-year delay period. Thus, irrespective of whether NA1 countries are immediately assigned an emission reduction target or not, they should nonetheless be included in a global carbon market. Technology deployment is also affected by the timing of developing countries’ mitigation measures. Delayed NA1-country participation in a climate agreement would scale down the deployment of coal with CCS throughout the century. On the other hand, innovation in the form of energy R&D investments would be positively affected, since it would become crucial in developed countries. Finally, uncertainty about the timing of NA1-country participation does not modify the optimal abatement strategy for developed countries and does not alter policy costs as long as a global carbon market is in place. Keywords: Delayed Action, Climate Policy, Stabilisation Costs, Uncertain Participation Classification-JEL: C72, H23, Q25, Q28 Creation-Date: 200809 Template-Type: ReDIF-Paper 1.0 Number: 2008.71 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-071.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.71 Title: Embedding Landfill Diversion in Economic, Geographical and Policy Settings Panel based evidence from Italy 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 Author-Name: Francesco Nicolli Author-X-Name-First: Francesco Author-X-Name-Last: Nicolli Author-WorkPlace-Name: University of Ferrara Abstract: This paper analyses the process of delinking for landfilling trends embedding the dynamics in a frame where economic, geographical and policy variables enter the arena We aim at investigating in depth what main drivers may be responsible for such a phenomenon, and whether differences may be observed focusing the lens on a decentralised provincial based setting. We exploit a rich panel dataset stemming from Official sources (APAT, Italian environmental agency) merged with other provincial and regional based information, covering all the 103 Italian provinces over 1999-2005. The case study on Italy is worth being considered given that Italy is a main country in the EU. Thus it offers important pieces on information on the evaluation of policies. Evidence shows that the observed decoupling between economic growth and landfilling is driven by a mix of structural factors, as population density and other waste management opportunity: local opportunity costs and landfill externalities matter in shaping waste policies and local commitment to landfill diversion. But not only structural factors are relevant. If on the one hand landfill taxation is a significant driver of the phenomenon, even at the more coherent regional level, where the tax is implemented, waste management instruments, when we exploit the provincial dataset, are associated to high significant negative effect on landfilled waste. A good performance on managing waste according to economic rationales helps reducing the amount that is landfilled. In association to the features of the tariff system, we also underline the key role played by the share of separated collection. Both the evolution of collection and tariff system are joint factors that may drive a wedge between the comparative waste performances of northern and southern regions. We finally note that lock in effects linked to the intensity of incinerator sites in the area are relevant for landfilling: past investments in incineration lock in the region in this technological path, which may be associated to less opportunity cost and lower external effects. Summing up, landfill diversion is stronger where the economic cost deriving from high population density, a structural factor, are higher, and waste management collection systems and economic instruments are associated with higher performances. Keywords: Landfill Policies, Incineration, Landfill Tax, Policy Effectiveness, Waste Management, Delinking, Landfill Trends, Kuznets Curves Classification-JEL: C23, Q38, Q56 Creation-Date: 200809 Template-Type: ReDIF-Paper 1.0 Number: 2008.72 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-072.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.72 Title: Strategic Resource Dependence Author-Name: Reyer Gerlagh Author-X-Name-First: Reyer Author-X-Name-Last: Gerlagh Author-WorkPlace-Name: University of Manchester Author-Name: Matti Liski Author-X-Name-First: Matti Author-X-Name-Last: Liski Author-WorkPlace-Name: Helsinki School of Economics Abstract: We consider a situation where an exhaustible-resource seller faces demand from a buyer who has a perfect substitute but there is a time-to-build delay for the substitute. We that find in this simple framework the basic implications of the Hotelling model (1931) are reversed: over time the stock declines but supplies increase up to the point where the buyer decides to switch. Under such a threat of demand change, the supply does not reflect the true current resource scarcity but leads to increased future scarcity, felt during the transition to the substitute supplies. The analysis suggests a perspective on costs of oil dependence. Keywords: Dynamic Bilateral Monopoly, Markov-Perfect Equilibrium, Depletable Resources, Energy, Alternative Fuels, Oil Dependence Classification-JEL: D4, D9, O33, Q40 Creation-Date: 200809 Template-Type: ReDIF-Paper 1.0 Number: 2008.73 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-073.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.73 Title: The Pollution Haven Hypothesis: A Geographic Economy Model in a Comparative Study Author-Name: Natalia Zugravu Author-X-Name-First: Natalia Author-X-Name-Last: Zugravu Author-WorkPlace-Name: CES - Université Paris-I Panthéon Sorbonne Author-Name: Sonia Ben Kheder Author-X-Name-First: Sonia Author-X-Name-Last: Ben Kheder Author-WorkPlace-Name: CES - Université Paris-I Panthéon Sorbonne Abstract: Although based on theoretical foundations, the pollution haven hypothesis has never been clearly proven empirically. In this study, we re-examine this hypothesis by a fresh take on both its theoretical and empirical aspects. While applying a geographic economy model on French firm-level data, we confirm the hypothesis for the global sample. Through sensitivity analysis, we validate it for Central and Eastern European countries, emerging and high-income OECD countries, but not for the major part of the Commonwealth of Independent States countries. Finally, we show that the pollution haven hypothesis is confirmed in the strongest manner for emerging economies. Keywords: FDI, Environmental Regulation, Economic Geography, Pollution Haven Hypothesis Classification-JEL: F12, F18, Q28 Creation-Date: 200809 Template-Type: ReDIF-Paper 1.0 Number: 2008.74 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-074.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.74 Title: The Preferences of Trieste Inhabitants for the Re-use of the Old Port: A Conjoint Choice Experiment Author-Name: Jérôme Massiani Author-X-Name-First: Jérôme Author-X-Name-Last: Massiani Author-WorkPlace-Name: University of Trieste Author-Name: Paolo Rosato Author-X-Name-First: Paolo Author-X-Name-Last: Rosato Author-WorkPlace-Name: University of Trieste Abstract: In many developed countries, abandoned (derelict or underused) industrial areas often occupy important parts of the cities. This raises issues about the possibilities of reusing these areas as well as on the conservation of industrial heritage they often entail. Conjoint Analysis (CA) can shed light on these issues as it can elicit the preferences of inhabitants for different scenarios of reuse. So far, only a limited number of applications of CA have been made on this topic. In this article, we present the results of a CA experiment on the reuse of a large, mainly abandoned, port area in Trieste (Italy) featuring buildings with some historical and industrial heritage value. Three hundred computer assisted interviews have been made on a representative sample of Trieste inhabitants, eliciting their preferences for different reuse hypotheses and building conservation scenarios. The survey explores two original topics: the impact of the time horizon of the payment (single or decennial special purpose tax) and the consideration of various mixes of future uses. The collected data have been processed using latent class and mixed logit models to explore heterogeneity among interviewees' preferences. Our findings show that, while preferences clearly emerge in favor of tourism and leisure oriented uses, preferences in terms of conservation and the impact of cost are much more difficult to measure. This difficulty persists even when specified or non specified heterogeneity is taken into account, although Mixed Logit estimate provides more convincing results. Keywords: Land Use, Port, Trieste, Conjoint Analysis Classification-JEL: H43, R52, R10 Creation-Date: 200809 Template-Type: ReDIF-Paper 1.0 Number: 2008.75 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-075.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.75 Title: Pollution and the Efficiency of Urban Growth Author-Name: Martin F. Quaas Author-X-Name-First: Martin F. Author-X-Name-Last: Quaas Author-WorkPlace-Name: University of Kiel Author-Name: Sjak Smulders Author-X-Name-First: Sjak Author-X-Name-Last: Smulders Author-WorkPlace-Name: University of Calgary and Tilburg University Abstract: We analyze the efficiency of urbanization patterns in a dynamic model of endogenous urban growth with two sectors of production. Production exhibits increasing returns to scale on aggregate. Urban environmental pollution, as a force that discourages agglomeration, is caused by domestic production. We show that cities are too large and too few in number in equilibrium, compared to the efficient urbanization path, if economic growth implies increasing aggregate emissions. If, on the other hand, production becomes cleaner over time (`quality growth') the urbanization path approximates the efficient outcome after finite time. Keywords: Cities, Urbanisation, Pollution, Growth, Migration, Sustainable Development Classification-JEL: Q56, R12, O18 Creation-Date: 200809 Template-Type: ReDIF-Paper 1.0 Number: 2008.76 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-076.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.76 Title: Impure Public Technologies and Environmental Policy Author-Name: Dirk T.G. Rübbelke Author-X-Name-First: Dirk T.G. Author-X-Name-Last: Rübbelke Author-WorkPlace-Name: CICERO Author-Name: Anil Markandya Author-X-Name-First: Anil Author-X-Name-Last: Markandya Author-WorkPlace-Name: Fondazione Eni Enrico Mattei, Italy and University of Bath Abstract: Analyses of public goods regularly address the case of pure public goods. However, a large number of (international) public goods exhibit characteristics of different degrees of publicness, i.e. they are impure public goods. In our analysis of transfers helping to overcome the inefficient provision of such goods, we therefore apply the Lancastrian characteristics approach. In contrast to the existing literature, we consider the case of a continuum of impure public goods. We employ the example of international conditional transfers targeting to overcome suboptimal low climate protection efforts by influencing the abatement technology choice of countries. Keywords: Impure Public Goods, Lancastrian Characteristics Approach, Conditional Transfers, Ancillary Benefits of Climate Policy Classification-JEL: H87, Q54 Creation-Date: 200809 Template-Type: ReDIF-Paper 1.0 Number: 2008.77 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-077.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.77 Title: Immigration and National Wages: Clarifying the Theory and the Empirics Author-Name: Gianmarco I P Ottaviano Author-X-Name-First: Gianmarco I P Author-X-Name-Last: Ottaviano Author-WorkPlace-Name: Università di Bologna Author-Name: Giovanni Peri Author-X-Name-First: Giovanni Author-X-Name-Last: Peri Author-WorkPlace-Name: University of California Abstract: This paper estimates the effects of immigration on wages of native workers at the national U.S. level. Following Borjas (2003) we focus on national labor markets for workers of different skills and we enrich his methodology and refine previous estimates. We emphasize that a production function framework is needed to combine workers of different skills in order to evaluate the competition as well as cross-skill complementary effects of immigrants on wages. We also emphasize the importance (and estimate the value) of the elasticity of substitution between workers with at most a high school degree and those without one. Since the two groups turn out to be close substitutes, this strongly dilutes the effects of competition between immigrants and workers with no degree. We then estimate the substitutability between natives and immigrants and we find a small but significant degree of imperfect substitution which further decreases the competitive effect of immigrants. Finally, we account for the short run and long run adjustment of capital in response to immigration. Using our estimates and Census data we find that immigration (1990-2006) had small negative effects in the short run on native workers with no high school degree (-0.7%) and on average wages (-0.4%) while it had small positive effects on native workers with no high school degree (+0.3%) and on average native wages (+0.6%) in the long run. These results are perfectly in line with the estimated aggregate elasticities in the labor literature since Katz and Murphy (1992). We also find a wage effect of new immigrants on previous immigrants in the order of negative 6%. Keywords: Less Educated Workers, Physical Capital Adjustment, Skill Complementarities and Wages Classification-JEL: F22, J31, J61 Creation-Date: 200809 Template-Type: ReDIF-Paper 1.0 Number: 2008.78 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-078.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.78 Title: Technology Transfer in the Non-traded Sector as a Means to Combat Global Warming Author-Name: Dirk T.G. Rübbelke Author-X-Name-First: Dirk T.G. Author-X-Name-Last: Rübbelke Author-WorkPlace-Name: CICERO Author-Name: Vivekananda Mukherjee Author-X-Name-First: Vivekananda Author-X-Name-Last: Mukherjee Author-WorkPlace-Name: Jadavpur University Author-Name: Tilak Sanyal Author-X-Name-First: Tilak Author-X-Name-Last: Sanyal Author-WorkPlace-Name: Jadavpur University Abstract: The paper considers a situation where two countries – the North and the South – use a non-traded polluting input to produce the goods for final consumption. The North is more efficient in both, production and abatement processes. The study compares the effects of the transfer of abatement technology by the North to the South under autarky with the free trade situation, assuming that the North pre-commits to an international protocol to keep the global pollution under a fixed level. The conditions under which either full or partial technology is transferred in autarky are determined. It is shown that under free trade no such transfer is possible. With trade even though the North wants a complete transfer of technology, the South refuses it. Keywords: GHG Emissions, Mitigation, Technology Transfer, International Trade Classification-JEL: F18, F35, Q54, Q56 Creation-Date: 200809 Template-Type: ReDIF-Paper 1.0 Number: 2008.79 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-079.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.79 Title: The Economic Value of Wetland Conservation and Creation: A Meta-Analysis Author-Name: Andrea Ghermandi Author-X-Name-First: Andrea Author-X-Name-Last: Ghermandi Author-WorkPlace-Name: School for Advanced Studies in Venice Foundation Author-Name: J.C.J.M. van den Bergh Author-X-Name-First: J.C.J.M. Author-X-Name-Last: van den Bergh Author-WorkPlace-Name: VU Amsterdam Author-Name: L.M. Brander Author-X-Name-First: L.M. Author-X-Name-Last: Brander Author-WorkPlace-Name: Institute for Environmental Studies (IVM) Author-Name: H.L.F. de Groot Author-X-Name-First: H.L.F. Author-X-Name-Last: de Groot Author-WorkPlace-Name: VU Amsterdam Author-Name: P.A.L.D. Nunes Author-X-Name-First: P.A.L.D. Author-X-Name-Last: Nunes Author-WorkPlace-Name: School for Advanced Studies in Venice Foundation Abstract: The rationale for conservation and creation of wetlands stems from the recognition of both their ecological and economic values. This paper examines the welfare impacts of goods and services provided by wetlands. We collected 385 estimates of the economic value of 181 natural and man-made wetlands from 167 studies worldwide. The resulting database is less biased towards North America than previous reviews of the literature. The relative importance of characteristics of the valuation study, of the wetland site, and of the socio-economic and geographical context is estimated by means of a meta-regression analysis of wetland values. Provision of amenities, flood control and storm buffering, and water quality improvement are the most highly valued wetland services. The relevance of the socio-economic and geographical context clearly emerges from the analysis and, in particular, the proximity to other wetland sites is negatively correlated with valuations. An analysis of the effect of environmental stress on wetland value shows that the latter increases with stress from human development activities and uses. In addition to the basic meta-regression model, the influence of authorship effects and of the geographic regions is examined by means of a multi-level approach. A second extended meta-regression model including cross-effects shows that the valuations of specific services vary according to the type of wetland producing them. Keywords: Constructed Ecosystems, Economic Valuation, Man-Made Wetlands, Meta-Regression, Wetland Values Classification-JEL: C81, Q24 Creation-Date: 200809 Template-Type: ReDIF-Paper 1.0 Number: 2008.80 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-080.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.80 Title: Equity and Justice in Global Warming Policy Author-Name: Snorre Kverndokk Author-X-Name-First: Snorre Author-X-Name-Last: Kverndokk Author-WorkPlace-Name: Ragnar Frisch Centre for Economic Research Author-Name: Adam Rose Author-X-Name-First: Adam Author-X-Name-Last: Rose Author-WorkPlace-Name: Energy Institute and School of Policy, Planning, and Development University of Southern California Abstract: Many countries are implementing or at least considering policies to counter increasingly certain negative impacts from climate change. An increasing amount of research has been devoted to the analysis of the costs of climate change and its mitigation, as well as to the design of policies, such as the international Kyoto Protocol, post-Kyoto negotiations, regional initiatives, and unilateral actions. Although most studies on climate change policies in economics have considered efficiency aspects, there is a growing literature on equity and justice. Climate change policy has important dimensions of distributive justice, both within and across generations, but in this paper we survey only studies on the intragenerational aspect, i.e., within a generation. We cover several domains including the international, regional, national, sectoral and inter-personal, and examine aspects such as the distribution of burdens from climate change, climate change policy negotiations in general, implementation of climate agreements using tradable emission permits, and the uncertainty of alternatives to emission reductions. Keywords: Economics of Climate Change, Intragenerational Equity, Distributive Justice Classification-JEL: D62, D63, H23, H41, Q00 Creation-Date: 200809 Template-Type: ReDIF-Paper 1.0 Number: 2008.81 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-081.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.81 Title: Sexual Orientation and Household Decision Making. Same-Sex Couples’ Balance of Power and Labor Supply Choices Author-Name: Sonia Oreffice Author-X-Name-First: Sonia Author-X-Name-Last: Oreffice Author-WorkPlace-Name: University of Alicante Abstract: I estimate how intra-household bargaining affects gay and lesbian couples’ labor supplies, investigating their similarity to heterosexual decision-making, in a collective household framework. Data from the 2000 US Census show that couples of all types exhibit a significant response to bargaining power shifts, as measured by differences between partners in age or non-labor income. In gay, lesbian, and heterosexual cohabiting couples, a relatively young or rich partner has more bargaining power and hence supplies less labor, the opposite holding for his/her mate. Married couples value the older spouse instead, or the richer. No effects are found for same-sex roommates. Keywords: Household Decision Making, Same-Sex Couples, Labor Supply Classification-JEL: D1, J22 Creation-Date: 200810 Template-Type: ReDIF-Paper 1.0 Number: 2008.82 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-082.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.82 Title: A Meaningful U.S. Cap-and-Trade System to Address Climate Change Author-Name: Robert N. Stavins Author-X-Name-First: Robert N. Author-X-Name-Last: Stavins Author-WorkPlace-Name: Harvard University Abstract: There is growing impetus for a domestic U.S. climate policy that can provide meaningful reductions in emissions of CO2 and other greenhouse gases. In this article, I propose and analyze a scientifically sound, economically rational, and politically feasible approach for the United States to reduce its contributions to the increase in atmospheric concentrations of greenhouse gases. The proposal features an up-stream, economy-wide CO2 cap-and-trade system which implements a gradual trajectory of emissions reductions over time, and includes mechanisms to reduce cost uncertainty. I compare the proposed system with frequently discussed alternatives. In addition, I describe common objections to a cap-and-trade approach to the problem, and provide responses to these objections. Keywords: Cap-and-Trade System, Carbon Dioxide, Greenhouse Gas Emissions, Global Climate Change, Carbon Taxes Classification-JEL: Q540, Q280, Q380, Q480, Q580 Creation-Date: 200810 Template-Type: ReDIF-Paper 1.0 Number: 2008.83 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-083.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.83 Title: What Drives Land-Use Change in the United States? A National Analysis of Landowner Decisions Author-Name: Robert N. Stavins Author-X-Name-First: Robert N. Author-X-Name-Last: Stavins Author-WorkPlace-Name: Harvard University Author-Name: Ruben N. Lubowski Author-X-Name-First: Ruben N. Author-X-Name-Last: Lubowski Author-WorkPlace-Name: USDA Economic Research Service Author-Name: Andrew J. Plantinga Author-X-Name-First: Andrew J. Author-X-Name-Last: Plantinga Author-WorkPlace-Name: Oregon State University Abstract: Land-use changes involve important economic and environmental effects with implications for international trade, global climate change, wildlife, and other policy issues. We use an econometric model to identify factors driving land-use change in the United States between 1982 and 1997. We quantify the effects of net returns to alternative land uses on private landowners’ decisions to allocate land among six major uses, drawing on detailed micro-data on land use and land quality that are comprehensive of the contiguous U.S. This analysis provides the first evidence of the relative historical importance of markets and Federal farm policies affecting land-use changes nationally. Keywords: Land Use, Land-Use Change, Econometric Analysis, Simulations Classification-JEL: O51, Q15 Creation-Date: 200810 Template-Type: ReDIF-Paper 1.0 Number: 2008.84 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-084.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.84 Title: Corporate Social Responsibility Through an Economic Lens Author-Name: Robert N. Stavins Author-X-Name-First: Robert N. Author-X-Name-Last: Stavins Author-WorkPlace-Name: Harvard University Author-Name: Forest L. Reinhardt Author-X-Name-First: Forest L. Author-X-Name-Last: Reinhardt Author-WorkPlace-Name: Harvard Business School Author-Name: Richard H. K. Vietor Author-X-Name-First: Richard H. K. Author-X-Name-Last: Vietor Author-WorkPlace-Name: Harvard Business School Abstract: Business leaders, government officials, and academics are focusing considerable attention on the concept of "corporate social responsibility" (CSR), particularly in the realm of environmental protection. Beyond complete compliance with environmental regulations, do firms have additional moral or social responsibilities to commit resources to environmental protection? How should we think about the notion of firms sacrificing profits in the social interest? May they do so within the scope of their fiduciary responsibilities to their shareholders? Can they do so on a sustainable basis, or will the forces of a competitive marketplace render such efforts and their impacts transient at best? Do firms, in fact, frequently or at least sometimes behave this way, reducing their earnings by voluntarily engaging in environmental stewardship? And finally, should firms carry out such profit-sacrificing activities (i.e., is this an efficient use of social resources)? We address these questions through the lens of economics, including insights from legal analysis and business scholarship. Keywords: Corporate Social Responsibility, Voluntary Environmental Performance Classification-JEL: M140, L510, Q500 Creation-Date: 200810 Template-Type: ReDIF-Paper 1.0 Number: 2008.85 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-085.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.85 Title: Modelling Economic Impacts of Alternative International Climate Policy Architectures. A Quantitative and Comparative Assessment of Architectures for Agreement Author-Name: Valentina Bosetti Author-X-Name-First: Valentina Author-X-Name-Last: Bosetti Author-WorkPlace-Name: Fondazione Eni Enrico Mattei and CMCC Author-Name: Carlo Carraro Author-X-Name-First: Carlo Author-X-Name-Last: Carraro Author-WorkPlace-Name: Fondazione Eni Enrico Mattei, University of Venice, CEPR, CESifo and CMCC Author-Name: Alessandra Sgobbi Author-X-Name-First: Alessandra Author-X-Name-Last: Sgobbi Author-WorkPlace-Name: Fondazione Eni Enrico Mattei and CMCC Author-Name: Massimo Tavoni Author-X-Name-First: Massimo Author-X-Name-Last: Tavoni Author-WorkPlace-Name: Fondazione Eni Enrico Mattei, Catholic University of Milan and CMCC Abstract: This paper provides a quantitative comparison of the main architectures for an agreement on climate policy. Possible successors to the Kyoto protocol are assessed according to four criteria: economic efficiency; environmental effectiveness; distributional implications; and their political acceptability which is measured in terms of feasibility and enforceability. The ultimate aim is to derive useful information for designing a future agreement on climate change control. Keywords: Climate Policy, Integrated Modelling, International Agreements Classification-JEL: C72, H23, Q25, Q28 Creation-Date: 200810 Template-Type: ReDIF-Paper 1.0 Number: 2008.86 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-086.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.86 Title: Bidding for Complex Projects: Evidence From the Acquisitions of IT Services Author-Name: Gian Luigi Albano Author-X-Name-First: Gian Luigi Author-X-Name-Last: Albano Author-WorkPlace-Name: Italian Public Procurement Agency (Consip S.p.A.) Author-Name: Federico Dini Author-X-Name-First: Federico Author-X-Name-Last: Dini Author-WorkPlace-Name: Italian Public Procurement Agency (Consip S.p.A.) Author-Name: Roberto Zampino Author-X-Name-First: Roberto Author-X-Name-Last: Zampino Author-WorkPlace-Name: Italian Public Procurement Agency (Consip S.p.A.) Abstract: Competitive bidding (as auctions) is commonly used to procure goods and services. Public buyers are often mandated by law to adopt competitive procedures to ensure transparency and promote full competition. Recent theoretical literature, however, suggests that open competition can perform poorly in allocating complex projects. In exploring the determinants of suppliers’ bidding behavior in procurement auctions for complex IT services, we find results that are consistent with theory. We find that price and quality do not exhibit the classical tradeoff one would expect: quite surprisingly, high quality is associated to low prices. Furthermore, while quality is mainly driven by suppliers’ experience, price is affected more by the scoring rule and by the level of expected competition. These results might suggest that (scoring) auctions fail to appropriately incorporate buyers’ complex price/quality preferences in the tender design. Keywords: Procurement Auctions, Scoring Rules, IT Contracts, Price/Quality Ratio Classification-JEL: D44, D86, H51, H57 Creation-Date: 200810 Template-Type: ReDIF-Paper 1.0 Number: 2008.87 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-087.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.87 Title: Voluntary Cleanups and Redevelopment Potential: Lessons from Baltimore, Maryland Author-Name: Anna Alberini Author-X-Name-First: Anna Author-X-Name-Last: Alberini Author-WorkPlace-Name: University of Maryland Author-Name: Dennis Guignet Author-X-Name-First: Dennis Author-X-Name-Last: Guignet Author-WorkPlace-Name: University of Maryland Abstract: Policy has increasingly shifted towards economic incentives and liability attenuation for promoting cleanup and redevelopment of contaminated sites, but little is known about the effectiveness of such policies. An example of such legislation is State Voluntary Cleanup Programs (VCPs), which were established in the US in the 1990s and to date have been implemented in almost every state. We examine Baltimore properties that participated in the Maryland VCP from its inception in 1997 to the end of 2006. Specifically, we examine what type of properties tend to participate in these programs, how these properties compare to other eligible but non-participating sites, and what is the redevelopment potential of VCP properties and implications towards open space conversion. We find that most applicants (66%) actually requested a “No Further Action Determination” directly, rather than proposing cleanup. VCP properties tend to be industrial, located in industrial areas, and away from residential neighborhoods. In more recent years larger industrial properties have increasingly enrolled in the program. The majority of sites are reused as industrial or commercial. In contrast to Alberini (2007), this suggests that pressure for residential development does not drive VCP participation. Based on differences in zoning requirements, the VCP may reduce demand for potentially contaminating activities on pristine land by as much as 1,238 to 6,444 acres, in Baltimore alone. Keywords: Brownfields, Contaminated Sites, Voluntary Cleanup Programs, Incentives Classification-JEL: R14, Q58, K32 Creation-Date: 200810 Template-Type: ReDIF-Paper 1.0 Number: 2008.88 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-088.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.88 Title: Efficiency and Distributional Impacts of Tradable White Certificates Compared to Taxes, Subsidies and Regulations Author-Name: Philippe Quirion Author-X-Name-First: Philippe Author-X-Name-Last: Quirion Author-WorkPlace-Name: CIRED Author-Name: Louis-Gaëtan Giraudet Author-X-Name-First: Louis-Gaëtan Author-X-Name-Last: Giraudet Author-WorkPlace-Name: CIRED, ENPC Abstract: Tradable White Certificates (TWC) schemes, also labelled Energy-Efficiency Certificates schemes, were recently implemented in Great Britain, Italy and France. Energy suppliers have to fund a given quantity of energy efficiency measures, or to buy so-called "white certificates" from other suppliers who exceed their target. We develop a partial equilibrium model to compare TWC schemes to other policy instruments for energy efficiency, i.e., energy taxes, subsidies on energy-saving goods and regulations fixing a minimum level of energy-efficiency. The model features an endogenous level of energy service and we analyse the influence of the substitutability between energy and energy-saving goods to produce the energy service, as well as the influence of the elasticity of demand for the energy service. We show that if the level of energy service consumption is fixed, a TWC scheme is as efficient as an energy tax, but that it is much less otherwise because it does not provide the optimal incentive to reduce the consumption of energy service. This inefficiency is worsened if energy suppliers' targets are fixed rather than proportional to the suppliers' current output. On the other hand, compared to taxes, a TWC scheme allows reaching a given level of energy savings with a lower increase in the consumers' energy price, which may ease its implementation. Keywords: Energy Saving Policies, Energy-Efficiency Certificates, White Certificates, Rebound Effect Classification-JEL: Q38, Q48, Q58 Creation-Date: 200810 Template-Type: ReDIF-Paper 1.0 Number: 2008.89 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-089.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.89 Title: Changing the Allocation Rules in the EU ETS: Impact on Competitiveness and Economic Efficiency Author-Name: Philippe Quirion Author-X-Name-First: Philippe Author-X-Name-Last: Quirion Author-WorkPlace-Name: CIRED Author-Name: Damien Demailly Author-X-Name-First: Damien Author-X-Name-Last: Demailly Author-WorkPlace-Name: CIRED Abstract: We assess five proposals for the future of the EU greenhouse gas Emission Trading Scheme (ETS): pure grandfathering allocation of emission allowances (GF), output-based allocation (OB), auctioning (AU), auctioning with border adjustments (AU-BA), and finally output-based allocation in sectors exposed to international competition combined with auctioning in electricity generation (OB-AU). We look at the impact on production, trade, CO2 leakage and welfare. We use a partial equilibrium model of the EU 27 featuring three sectors covered by the EU ETS – cement, steel and electricity – plus the aluminium sector, which is indirectly impacted through a rise in electricity price. The leakage ratio, i.e. the increase in emissions abroad over the decrease in EU emissions, ranges from around 8% under GF and AU to -2% under AU-BA and varies greatly among sectors. Concerning the overall economic cost, OB appears to be the least efficient policy, even when taking into account its ability to prevent CO2 leakage. On the other hand, this policy minimises production losses and wealth transfers among stakeholders, which is likely to soften oppositions. GF and AU are the most efficient policies from an EU perspective, even when leakage is accounted for. From a world welfare perspective and whatever the emission reductio Keywords: Emission Trading, Allowance Allocation, Leakage, Spillover, Climate Policy, Kyoto Protocol, Border Adjustment Classification-JEL: Q5 Creation-Date: 200810 Template-Type: ReDIF-Paper 1.0 Number: 2008.90 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-090.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.90 Title: Linkage of Tradable Permit Systems in International Climate Policy Architecture Author-Name: Robert N. Stavins Author-X-Name-First: Robert N. Author-X-Name-Last: Stavins Author-WorkPlace-Name: Harvard University Author-Name: Judson Jaffe Author-X-Name-First: Judson Author-X-Name-Last: Jaffe Author-WorkPlace-Name: Analysis Group Abstract: Cap-and-trade systems have emerged as the preferred national and regional instrument for reducing emissions of greenhouse gases throughout the industrialized world, and the Clean Development Mechanism — an international emission-reduction-credit system — has developed a substantial constituency, despite some concerns about its performance. Because linkage between tradable permit systems can reduce compliance costs and improve market liquidity, there is great interest in linking cap-and-trade systems to each other, as well as to the CDM and other credit systems. We examine the benefits and concerns associated with various types of linkages, and analyze the near-term and long-term role that linkage may play in a future international climate policy architecture. In particular, we evaluate linkage in three potential roles: as an independent bottom-up architecture, as a step in the evolution of a top-down architecture, and as an ongoing element of a larger climate policy agreement. We also assess how the policy elements of climate negotiations can facilitate or impede linkages. Our analysis throughout is both positive and normative. Keywords: Linkage, Cap-and-Trade, Tradable Permits, Global Climate Change Classification-JEL: F500, Q200, Q400, Q500 Creation-Date: 200810 Template-Type: ReDIF-Paper 1.0 Number: 2008.91 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-091.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.91 Title: A Multicriteria Approach for the Evaluation of the Sustainability of Re-use of Historic Buildings in Venice Author-Name: Margaretha Breil Author-X-Name-First: Margaretha Author-X-Name-Last: Breil Author-WorkPlace-Name: Fondazione Eni Enrico Mattei Author-Name: Silvio Giove Author-X-Name-First: Silvio Author-X-Name-Last: Giove Author-WorkPlace-Name: Ca’ Foscari University of Venice Author-Name: Paolo Rosato Author-X-Name-First: Paolo Author-X-Name-Last: Rosato Author-WorkPlace-Name: University of Trieste Abstract: The paper presents a multiple criteria model for the evaluation of the sustainability of projects for the economic re-use of historical buildings in Venice. The model utilises the relevant parameters for the appraisal of sustainability, aggregated into three macro-indicators: intrinsic sustainability, context sustainability and economic-financial feasibility. The model has been calibrated by a panel of experts and tested on two reuse hypotheses of the Old Arsenal in Venice. The tests have proven the model to be a useful support in the early stages of evaluation of re-use projects, where economic improvements are to be combined with conservation, as it supports the identification of critical points and the selection of projects, thus providing not only a check-list of variables to be considered, but an appraisal of trade-offs between economic uses and requirements of conservation. Keywords: Economic Reuse, Historical Building Conservation Classification-JEL: Z1, R52 Creation-Date: 200810 Template-Type: ReDIF-Paper 1.0 Number: 2008.92 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-092.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.92 Title: Absolute Abundance and Relative Scarcity: Announced Policy, Resource Extraction, and Carbon Emissions Author-Name: Corrado Di Maria Author-X-Name-First: Corrado Author-X-Name-Last: Di Maria Author-WorkPlace-Name: University College Dublin Author-Name: Sjak Smulders Author-X-Name-First: Sjak Author-X-Name-Last: Smulders Author-WorkPlace-Name: Tilburg University Author-Name: Edwin van der Werf Author-X-Name-First: Edwin Author-X-Name-Last: van der Werf Author-WorkPlace-Name: University of Oldenburg Abstract: We study the effectiveness of climate change policy in a model with multiple non-renewable resources that differ in their carbon content. We find that, when allowing some time between announcement and implementation of a cap on carbon dioxide emissions, emissions from non-renewable energy sources increase at the time of announcement. There are two channels behind this effect. First, since a binding constraint on emissions restricts energy use during some period of time, more must be extracted during other periods. Second, since low carbon energy sources are relatively more valuable when the policy is implemented, it is optimal to conserve them ahead of enforcement. This might induce a switch to high-carbon resources before the policy is implemented. Keywords: Climate Policy, Non-renewable Resources, Announcement Effects, Scarcity, Order of Extraction Classification-JEL: Q31, Q41, Q54, Q58 Creation-Date: 200811 Template-Type: ReDIF-Paper 1.0 Number: 2008.93 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-093.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.93 Title: Effects of the CDM on Poverty Eradication and Global Climate Protection Author-Name: Dirk T.G. Rübbelke Author-X-Name-First: Dirk T.G. Author-X-Name-Last: Rübbelke Author-WorkPlace-Name: Center for International Climate and Environmental Research Oslo (CICERO) Author-Name: Nathan Rive Author-X-Name-First: Nathan Author-X-Name-Last: Rive Author-WorkPlace-Name: Center for International Climate and Environmental Research Oslo (CICERO) Abstract: In an impure public good model we analyze the effects of CDM transfers on poverty as well as on the global climate protection level. We construct an analytical model of a developing and an industrialized region, both of which independently seek to maximize their utility – a function of private consumption, domestic air quality, and global climate protection. They do so by distributing their finite expenditures across (1) the aggregate consumption good, (2) end-of-pipe pollution control technologies, and (3) greenhouse gas abatement. Based on our analytical findings, we develop two sets of simulations for China in which we vary the rate of the CDM transfer. The simulations differ by the assumption of China’s domestic air quality policy – the first assumes a technology-standards policy which fixes a level of end-of-pipe SO2 control, whereas the second assumes a technology-neutral policy which simply fixes the level of total SO2 emissions. Keywords: Ancillary Benefits, CDM, Climate Policy, Impure Public Goods, Transfers, Abatement Technology Classification-JEL: Q54, H23,H41,O33 Creation-Date: 200811 Template-Type: ReDIF-Paper 1.0 Number: 2008.94 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-094.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.94 Title: Waste Generation, Incineration and Landfill Diversion. De-coupling Trends, Socio-Economic Drivers and Policy Effectiveness in the EU 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: Catholic University of Milan & CERIS CNR Abstract: Waste generation and waste disposal are issues that are becoming increasingly prominent in the environmental arena both from a policy perspective and in the context of delinking analysis. Waste generation is still increasing proportionally with income, and economic and environmental costs associated to landfilling are also increasing. This paper provides a comprehensive analysis of waste generation, incineration, recycling and landfill dynamics based on panel data for the EU25, to assess the effects of different drivers (economic, structural, policy) and the eventual differences between western and eastern EU countries. We show that for waste generation there is still no Waste Kuznets Curve (WKC) trend, although elasticity to income drivers appear lower than in the past. Landfill and other policy effects do not seem to provide backward incentives for waste prevention. Regarding landfill and incineration, the two trends, as expected, are respectively decreasing and increasing, with policy providing a strong driver. It demonstrates the effectiveness of policy even in this early stage of policy implementation. This is essential for an ex post evaluation of existing landfill and incineration directives. Eastern countries appear to perform generally quite well, thus benefiting from their EU membership and related policies in terms of environmental performances. We may conclude that although absolute delinking is far from being achieved for waste generation, there are first positive signals in favour of an increasing relative delinking for waste generation and average robust landfill diversion, and various evidence of a significant role of the EU waste policies implemented in the late 1990s and early 2000s on landfill diversion. Waste prevention is nevertheless the next necessary target of waste regulatory efforts. Keywords: Waste Kuznets Curves, Delinking, Waste Generation, Waste Disposal, Landfilling, Landfill Policies, Evaluation Methodology, Incineration Classification-JEL: C23, Q38, Q56 Creation-Date: 200811 Template-Type: ReDIF-Paper 1.0 Number: 2008.95 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-095.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.95 Title: Environmental Participation and Environmental Motivation Author-Name: Benno Torgler Author-X-Name-First: Benno Author-X-Name-Last: Torgler Author-WorkPlace-Name: Queensland University of Technology Author-Name: María A. García Valiñas Author-X-Name-First: María A. Author-X-Name-Last: García Valiñas Author-WorkPlace-Name: University of Oviedo Author-Name: Alison Macintyre Author-X-Name-First: Alison Author-X-Name-Last: Macintyre Author-WorkPlace-Name: The School of Economics and Finance, Queensland University of Technology Abstract: We explore whether environmental motivation affects environmental behavior by focusing on volunteering. The paper first introduces a theoretical model of volunteering in environmental organizations. In a next step, it tests the hypothesis working with a large micro data set covering 32 countries from both Western and Eastern Europe using several different proxies to measure environmental motivation. Our results indicate that environmental motivation has a strong impact on individuals’ voluntary engagement in environmental organizations. A higher level of environmental motivation due to higher environmental moral standards may lead to a stronger voluntary involvement in environmental organizations. Keywords: Environmental Participation, Environmental Motivation, Environmental Morale, Pro-environmental Attitudes, Social Capital Classification-JEL: D11, H41, H26, H73, D64 Creation-Date: 200811 Template-Type: ReDIF-Paper 1.0 Number: 2008.96 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-096.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.96 Title: Technology Diffusion, Abatement Cost, and Transboundary Pollution Author-Name: Geoffrey Heal Author-X-Name-First: Geoffrey Author-X-Name-Last: Heal Author-WorkPlace-Name: Columbia University Author-Name: Nori Tarui Author-X-Name-First: Nori Author-X-Name-Last: Tarui Author-WorkPlace-Name: University of Hawaii at Manoa Abstract: This paper studies countries’ incentives to develop advanced pollution abatement technology when technology may spillover across countries and pollution abatement is a global public good. We are motivated in part by the problem of global warming: a solution to this involves providing a global public good, and will surely require the development and implementation of new technologies. We show that at the Nash equilibrium of a simultaneous-move game with R&D investment and emission abatement, whether the free rider effect prevails and under-investment and excess emissions occur depends on the degree of technology spillovers and the effect of R&D on the marginal abatement costs. There are cases in which, contrary to conventional wisdom, Nash equilibrium investments in emissions reductions exceed the first-best case. Keywords: International Environmental Agreement, Pollution Abatement Costs, Endogenous Technological Change Classification-JEL: Q50, H87, D70 Creation-Date: 200811 Template-Type: ReDIF-Paper 1.0 Number: 2008.97 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-097.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.97 Title: Enforcement and Environmental Quality in a Decentralized Emission Trading System Author-Name: Edilio Valentini Author-X-Name-First: Edilio Author-X-Name-Last: Valentini Author-WorkPlace-Name: Università "G. D'Annunzio" di Chieti-Pescara Author-Name: Edilio Valentini Author-X-Name-First: Edilio Author-X-Name-Last: Valentini Author-WorkPlace-Name: Università "G. D'Annunzio" di Chieti-Pescara Abstract: This paper addresses the issue of whether the powers of monitoring compliance and allocating tradeable emissions allowances within a federation of countries should be appointed to a unique federal regulator or decentralized to several local regulators. To this end, we develop a two stage game played by environmental regulator(s) and the polluting industries of two countries. Regulator(s) choose the amount of emission allowances to be issued and set the level of monitoring effort to achieve full compliance, while regulated firms choose actual emissions and the number of permits to be held. We identify various, possibly conflicting, spillovers among states in a decentralized setting. We show that cost advantage in favor of local regulators is not sufficient to justify decentralization. Nevertheless, cost differential in monitoring violations can imply lower emissions and greater welfare under a decentralized institutional setting than under a centralized one. However, while a better environmental quality under decentralization is a sufficient condition for higher welfare under the same regime, it is not also a necessary condition. Keywords: Emissions Trading, Environmental Federalism, Enforcement, Monitoring Cost Classification-JEL: F18, K42, Q53 Creation-Date: 200812 Template-Type: ReDIF-Paper 1.0 Number: 2008.98 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-098.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.98 Title: Computational Complexity in Additive Hedonic Games Author-Name: Dinko Dimitrov Author-X-Name-First: Dinko Author-X-Name-Last: Dimitrov Author-WorkPlace-Name: University of Munich Author-Name: Shao-Chin Sung Author-X-Name-First: Shao-Chin Author-X-Name-Last: Sung Author-WorkPlace-Name: Aoyama Gakuin University Abstract: We investigate the computational complexity of several decision problems in hedonic coalition formation games and demonstrate that attaining stability in such games remains NP-hard even when they are additive. Precisely, we prove that when either core stability or strict core stability is under consideration, the existence problem of a stable coalition structure is NP-hard in the strong sense. Furthermore, the corresponding decision problems with respect to the existence of a Nash stable coalition structure and of an individually stable coalition structure turn out to be NP-complete in the strong sense. Keywords: Additive Preferences, Coalition Formation, Computational Complexity, Hedonic Games, NP-hard, NP-complete Classification-JEL: C63, C70, C71, D02, D70, D71 Creation-Date: 200812 Template-Type: ReDIF-Paper 1.0 Number: 2008.99 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-099.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.99 Title: The Relationship Between Environmental Efficiency and Manufacturing Firm’s Growth Author-Name: Massimiliano Mazzanti Author-X-Name-First: Massimiliano Author-X-Name-Last: Mazzanti Author-WorkPlace-Name: University of Ferrara Author-Name: Giulio Cainelli Author-X-Name-First: Giulio Author-X-Name-Last: Cainelli Author-WorkPlace-Name: University of Bari Author-Name: Roberto Zoboli Author-X-Name-First: Roberto Author-X-Name-Last: Zoboli Author-WorkPlace-Name: Catholic University of Milan & CERIS CNR Abstract: This paper investigates the empirical link between emission intensity and economic growth, using a very large data set of 61,219 Italian manufacturing firms over the period 2000-2004. As a measure of lagged environmental performance (efficiency) at firm level we exploit NAMEA sector for CO2, NOx, SOx data over 1990-1999. The paper tests the extent to which (past) environmental efficiency/intensity, which is driven by structural features and firm strategic actions, including responses to policies, influences firms growth. Our results show, first, a typical trade off generally appearing for the three core environmental emissions we analyse: lower environmentally efficiency in the recent past allows higher degrees of freedom to firms and relax the constraints for growth, at least in this short/medium term scenario. Nevertheless, the size of the estimated coefficients is not large. Trade off are significant for two emission indicators out of two, but quite negligible in terms of impacts, besides the case of CO2. For example, growth is reduced by far less than 0.1% in association to a 1% increase of environmental efficiency. Environmental efficiency does not seem a primary cost factor and constraint to growth if compared to other factors affecting firm targets and firm competitiveness. In addition, non-linearity seems to characterise the economic growth-environmental performance relationship. Signals of inverted U shape appears: this may be a signal that both firm strategies and recent policy efforts are affecting the dynamic relationship between environmental efficiency and economic productivity, turning it from an usual trade off to a possible joint complementary/co-dynamics, where bad environmental performances hamper firm growth and investments in greener technologies may be associated to positive economic performances of firms and sectors. Keywords: Firm growth, Manufacturing, Emission intensity, Economic performance, Environmental performance Classification-JEL: C23, D21, O32, Q55 Creation-Date: 200812 Template-Type: ReDIF-Paper 1.0 Number: 2008.100 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-100.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2008.100 Title: Assessing the Consequences of Natural Disasters on Production Networks: A Disaggregated Approach Author-Name: Stéphane Hallegatte Author-X-Name-First: Stéphane Author-X-Name-Last: Hallegatte Author-WorkPlace-Name: CIRED Author-Name: Fanny Henriet Author-X-Name-First: Fanny Author-X-Name-Last: Henriet Author-WorkPlace-Name: Centre International de Recherche sur l’Environnement et le Développement Abstract: This article proposes a framework to investigate the consequences of natural disasters. This framework is based on the disaggregation of Input-Output tables at the business level, through the representation of the regional economy as a network of production units. This framework accounts for (i) limits in business production capacity; (ii) forward propagations through input shortages; and (iii) backward propagations through decreases in demand. Adaptive behaviors are included, with the possibility for businesses to replace failed suppliers, entailing changes in the network structure. This framework suggests that disaster costs depend on the heterogeneity of losses and on the structure of the affected economic network. The model reproduces economic collapse, suggesting that it may help understand the difference between limited-consequence disasters and disasters leading to systemic failure. Keywords: Natural disasters, Economic impacts, Economic Network Classification-JEL: D20, Q54, R15 Creation-Date: 200812