Environmental policies in an international mixed duopoly

The purpose of this paper is to study the effects of environmental and trade policies in an international mixed duopoly serving two markets. We suppose that the firm in the home country is a welfare-maximizing public firm, while the firm in the foreign country is its own profit-maximizing private firm. We find that the environmental tax can be a strategic instrument for the home government to distribute production from the foreign private firm to the home public firm. An additional effect of the home environmental tax is the reduction of the foreign private firm's output for local consumption, thereby expanding the foreign market for the home public firm.

Spent coffee grounds for biodiesel production and other applications

This work evaluates the possibility of using spent coffee grounds (SCG) for biodiesel production and other applications. An experimental study was conducted with different solvents showing that lipid content up to 6 wt% can be obtained from SCG. Results also show that besides biodiesel production, SCG can be used as fertilizer as it is rich in nitrogen, and as solid fuel with higher heating value (HHV) equivalent to some agriculture and wood residues. The extracted lipids were characterized for their properties of acid value, density at 15 °C, viscosity at 40 °C, iodine number, and HHV, which are negatively influenced by water content and solvents used in lipid extraction. Results suggest that for lipids with high free fatty acids (FFA), the best procedure for conversion to biodiesel would be a two-step process of acid esterification followed by alkaline transesterification, instead of a sole step of direct transesterification with acid catalyst. Biodiesel was characterized for its properties of iodine number, acid value, and ester content. Although these quality parameters were not within the limits of NP EN 14214:2009 standard, SCG lipids can be used for biodiesel, blended with higher-quality vegetable oils before transesterification, or the biodiesel produced from SCG can be blended with higher-quality biodiesel or even with fossil diesel, in order to meet the standard requirements.

European Union emissions trading scheme impact on the Spanish electricity price during phase II and phase III implementation

The European Union Emissions Trading Scheme (EU ETS) is a cornerstone of the European Union's policy to combat climate change and its key tool for reducing industrial greenhouse gas emissions cost-effectively. The purpose of the present work is to evaluate the influence of CO2 opportunity cost on the Spanish wholesale electricity price. Our sample includes all Phase II of the EU ETS and the first year of Phase III implementation, from January 2008 to December 2013. A vector error correction model (VECM) is applied to estimate not only long-run equilibrium relations, but also short-run interactions between the electricity price and the fuel (natural gas and coal) and carbon prices. The four commodities prices are modeled as joint endogenous variables with air temperature and renewable energy as exogenous variables. We found a long-run relationship (cointegration) between electricity price, carbon price, and fuel prices. By estimating the dynamic pass-through of carbon price into electricity price for different periods of our sample, it is possible to observe the weakening of the link between carbon and electricity prices as a result from the collapse on CO2 prices, therefore compromising the efficacy of the system to reach proposed environmental goals. This conclusion is in line with the need to shape new policies within the framework of the EU ETS that prevent excessive low prices for carbon over extended periods of time.