Modeling the Transport Sector: The Role of Existing Fuel Taxes in Climate Policy

Existing fuel taxes play a major role in determining the welfare effects of exempting the transportation sector from measures to control greenhouse gases. To study this phenomenon we modify the MIT Emissions Prediction and Policy Analysis (EPPA) model to disaggregate the household transportation sector. This improvement requires an extension of the GTAP data set that underlies the model. The revised and extended facility is then used to compare economic costs of cap-and-trade systems differentiated by sector, focusing on two regions: the USA where the fuel taxes are low, and Europe where the fuel taxes are high. We find that the interplay between carbon policies and pre-existing taxes leads to different results in these regions: in the USA exemption of transport from such a system would increase the welfare cost of achieving a national emissions target, while in Europe such exemptions will correct pre-existing distortions and reduce the cost.

On the difficulty of feature-based attentional modulations in visual object recognition: A modeling study.

Numerous psychophysical experiments have shown an important role for attentional modulations in vision. Behaviorally, allocation of attention can improve performance in object detection and recognition tasks. At the neural level, attention increases firing rates of neurons in visual cortex whose preferred stimulus is currently attended to. However, it is not yet known how these two phenomena are linked, i.e., how the visual system could be "tuned" in a task-dependent fashion to improve task performance. To answer this question, we performed simulations with the HMAX model of object recognition in cortex [45]. We modulated firing rates of model neurons in accordance with experimental results about effects of feature-based attention on single neurons and measured changes in the model's performance in a variety of object recognition tasks. It turned out that recognition performance could only be improved under very limited circumstances and that attentional influences on the process of object recognition per se tend to display a lack of specificity or raise false alarm rates. These observations lead us to postulate a new role for the observed attention-related neural response modulations.