Hicks meets Hotelling: the direction of technical change in capital-resource economies

We analyze a two-sector growth model with directed technical change where man-made capital and exhaustible resources are essential for production. The relative profitability of factor-specific innovations endogenously determines whether technical progress will be capital- or resource-augmenting. We show that any balanced growth equilibrium features purely resource-augmenting technical change. This result is compatible with alternative specifications of preferences and innovation technologies, as it hinges on the interplay between productive efficiency in the final sector, and the Hotelling rule characterizing the efficient depletion path for the exhaustible resource. Our result provides sound micro-foundations for the broad class of models of exogenous/endogenous growth where resource-augmenting progress is required to sustain consumption in the long run, contradicting the view that these models are conceptually biased in favor of sustainability.

Carbon leakage revisited: unilateral climate policy with directed technical change

Using a stylized theoretical model, we argue that current economic analyses of climate policy tend to over-estimate the degree of carbon leakage, as they abstract from the effects of induced technological change. We analyse carbon leakage in a two-country model with directed technical change, where only one of the countries enforces an exogenous cap on emissions. Climate policy induces changes in relative prices, that cause carbon leakage through a terms-of-trade effect. However, these changes in relative prices also affect the incentives to innovate in different sectors. This leads to a counterbalancing induced-technology effect, which always reduces carbon leakage. We therefore conclude that the leakage rates reported in the literature may be too high, as these estimates neglect the effect of price changes on the incentives to innovate.

A retrospective analysis of spring barley germplasm development from 'foundation genotypes' to currently successful cultivars

Twenty-eight mapped barley SSRs were used to examine changes in the level and pattern of variability in northern European spring barley over time. Comparing the most recently introduced cultivars with a group of 19 landraces and key progenitors termed 'foundation genotypes' we observed a reduction in the spectrum of alleles at 28 loci over time, and highlighted chromosomal regions with limited SSR allelic variation. The 19 'foundation genotypes' contained 72% of the alleles present in all the cultivars sampled. The smallest number of genotypes required to encompass all of the alleles detected in this study was 44, several of which were recently introduced cultivars. The level of diversity within modern cultivars was lower (0.484) than in the 'foundation genotypes' (0.597), although the values varied with the SSR locus. A total of 74 rare alleles (frequency

The pressure distribution along the stone column in soft clay when subjected to consolidation and foundation loading

The mechanism whereby the foundation loading is transmitted through stone the column (included in soft clay) has received less attention from researchers. This paper reports on some interesting findings obtained from a laboratory-based model study in respect of this issue. The stone column, included in the soft clay bed was subjected to foundation loading under drained conditions. The results show, probably for the first time, how the foundation loadings are transmitted through the column and indeed the existence of “negative skin friction” (a widely accepted phenomena in solid piles) in granular columns in soft clays.

The pressure distribution along stone columns in soft clay under consolidation and foundation loading

The mechanism whereby foundation loading is transmitted through the column has received little attention from researchers. This paper reports on some interesting findings obtained from a laboratory-based model study in respect of this issue. The model tests were carried out on samples of soft clay, 300 mm in diameter and 400 mm high. The samples were reinforced with fully penetrating stone columns, of three different diameters, made of crushed basalt. Four pressure cells were located along each stone column. The 60 mm diameter footing used in the model was supported on a clay bed reinforced with a stone column and subjected to foundation loading under drained conditions. The results show that the dissipation of excess pore water pressure developed during the initial application of total stresses, when the foundation was subjected to no loading, generated considerable stresses within the column, and that this was directly attributable to the development of negative skin friction. The pressure distributions in the column during foundation loading showed some complex behaviour.