Applying consumer responsibility principle in evaluating environmental load of carbon emissions

There is a need for a proper indicator in order to assess the environmental impact of international trade, therefore using the carbon footprint as an indicator can be relevant and useful. The aim of this study is to show from a methodological perspective how the carbon footprint, combined with input- output models can be used for analysing the impacts of international trade on the sustainable use of national resources in a country. The use of the input-output approach has the essential advantage of being able to track the transformation of goods through the economy. The study examines the environmental impact of consumption related to international trade, using the consumer responsibility principle. In this study the use of the carbon footprint and input-output methodology is shown on the example of the Hungarian consumption and the impact of international trade. Moving from a production- based approach in climate policy to a consumption-perspective principle and allocation, would also help to increase the efficiency of emission reduction targets and the evaluation of the ecological impacts of international trade.

Carbon emissions locked - in trade

In recent years there has been a growing concern about the emission trade balance of countries. It is due to the fact that countries with an open economy are active players in the international trade, though trade is not only a major factor in forging a country’s economic structure anymore, but it does contribute to the movement of embodied emissions beyond the country borders. This issue is especially relevant from the carbon accounting policy’s point of view, as it is known that the production-based principle is in effect now in the Kyoto agreement. The study aims at revealing the interdependence of countries on international trade and its environmental impacts, and how the carbon accounting method plays a crucial role in evaluating a country’s environmental performance and its role in the climate mitigation processes. The input-output models are used in the methodology, as they provide an appropriate framework for this kind of environmental accounting; the analysis shows an international comparison of four European countries (Germany, the United Kingdom, the Netherlands, and Hungary) with extended trading activities and carbon emissions. Moving from the production-based approach in the climate policy, to the consumptionperspective principle and allocation [15], it would also help increasing the efficiency of emission reduction targets and the evaluation of the sustainability dimension and its impacts of international trade. The results of the study have shown that there is an importance of distinction between the two emission allocation approaches, both from global and local level point of view.

Applying consumer responsibility principle in evaluating environmental load of carbon emissions

There is a need for a proper indicator in order to assess the environmental impact of international trade, therefore using the carbon footprint as an indicator can be relevant and useful. The aim of this study is to show from a methodological perspective how the carbon footprint, combined with input- output models can be used for analysing the impacts of international trade on the sustainable use of national resources in a country. The use of the input-output approach has the essential advantage of being able to track the transformation of goods through the economy. The study examines the environmental impact of consumption related to international trade, using the consumer responsibility principle. In this study the use of the carbon footprint and input-output methodology is shown on the example of the Hungarian consumption and the impact of international trade. Moving from a production- based approach in climate policy to a consumption-perspective principle and allocation, would also help to increase the efficiency of emission reduction targets and the evaluation of the ecological impacts of international trade.

A comprehensive approach to the euro-area debt crisis

The euro area‘s sovereign debt crisis continues though significant steps have been taken to resolve it. This paper proposes a comprehensive solution to the crisis based on three pillars: a plan to restore banking sector soundness in the whole euro area, a resolution of sovereign debt crisis -including a revision of EU assistance facilities and a reduction of the Greek public debt- and a strategy to foster growth and competitiveness. The paper provides novel estimates and analysis focusing on the current situation of Greece, Ireland, Portugal and Spain.

Debt Restructuring in the Euro Area: a Necessary but Manageable Evil?

There are two possible responses to the Greek debt crisis: ‘Plan A’, continued official lending, for as long as needed, with possible voluntary private sector involvement, and ‘Plan B’, coercive preemptive or post-default restructuring with significant face value reduction in privately-held debt. Both options have risks, but it is necessary to move to Plan B sooner or later. The impact on Greece could be mitigated by foreign bank ownership and proper liquidity support measures. The direct spillover impact on the rest of the euro area seems small. But there is the risk of contagion, which is a serious concern. There is a cautious case for delaying somewhat Plan B in order to prepare for it.

The Euro Area's Tightrope Walk: Debt and Competitiveness in Italy and Spain

- Competitiveness adjustment in struggling southern euro-area members requires persistently lower inflation than in major trading partners, but low inflation worsens public debt sustainability. When average euro-area inflation undershoots the two percent target, the conflict between intra-euro relative price adjustment and debt sustainability is more severe. - In our baseline scenario, the projected public debt ratio reduction in Italy and Spain is too slow and does not meet the European fiscal rule. Debt projections are very sensitive to underlying assumptions and even small negative deviations from GDP growth, inflation and budget surplus assumptions can easily result in a runaway debt trajectory. - The case for a greater than five percent of GDP primary budget surplus is very weak. Beyond vitally important structural reforms, the top priority is to ensure that euro-area inflation does not undershoot the two percent target, which requires national policy actions and more accommodative monetary policy. The latter would weaken the euro exchange rate, thereby facilitating further intra-euro adjustment. More effective policies are needed to foster growth. But if all else fails, the European Central Bank’s Outright Monetary Transactions could reduce borrowing costs.

Államadósság, optimális politika, finanszírozás (State Debt, Optimal Policy, and Financing)

A fejlett ipari országoknak is az államadósság csökkentése vagy akár szinten tartása okozza az egyik legfontosabb gazdaságpolitikai dilemmát. Az euróövezet tagállamai esetében is ez a kritérium tűnik a legkevésbé teljesíthetőnek, de Japán és az Egyesült Államok is leküzdhetetlennek tűnő államadóssággal birkózik. A tanulmány rövid áttekintést ad néhány meghatározó közgazdasági megközelítésről, amelyek az államadósság szintjének hosszú távú alakulása mögött meghúzódó tényezőket, gazdaságpolitikai lépéseket magyarázzák. Végül az elméletek alapján tanulságokat fogalmaz meg a magyar államadósság kezelését illetően az 1990–2010 közötti folyamatok ismeretében. _____ The macroeconomic developments of the last decade have confirmed that one of the most important dilemmas that even developed economies have to face is the reduction or even sustaining of the state debt. In case of the eurozone member states this criterion is the most difficult to be accomplished, furthermore the United States and Japan are among the global powers that have to cope with state debts which seems to be insurmountable. The aim of this paper is to provide a brief overview of some decisive economic approaches (Barro [1979], Lucas and Stokey [1983], Marcet and Scott [2007], Martin [2009] etc.) that explain the factors behind the formation of long-run state debt level and economic policy measures accompanying state debt management. The paper also attempts to draw some lessons for the Hungarian state debt management in view of the 1990-2010 processes.