A Consumption-Based Approach to Carbon Emission Accounting – Sectoral Differences and Environmental Benefits

In recent years there has been growing concern about the emission trade balances of countries. This is due to the fact that countries with an open economy are active players in international trade. Trade is not only a major factor in forging a country’s economic structure, but contributes to the movement of embodied emissions beyond country borders. This issue is especially relevant from the carbon accounting policy and domestic production perspective, as it is known that the production-based principle is employed in the Kyoto agreement. The research described herein was designed to reveal the interdependence of countries on international trade and the corresponding embodied emissions both on national and on sectoral level and to illustrate the significance of the consumption-based emission accounting. It is presented here to what extent a consumption-based accounting would change the present system based on production-based accounting and allocation. The relationship of CO2 emission embodied in exports and embodied in imports is analysed here. International trade can blur the responsibility for the ecological effects of production and consumption and it can lengthen the link between consumption and its consequences. Input-output models are used in the methodology as they provide an appropriate framework for climate change accounting. The analysis comprises an international comparative study of four European countries (Germany, the United Kingdom, the Netherlands, and Hungary) with extended trading activities and carbon emissions. Moving from a production-based approach in climate policy to a consumption-based principle and allocation approach would help to increase the efficiency of emission reductions and would force countries to rethink their trading activities in order to decrease the environmental load of production activities. The results of this study show that it is important to distinguish between the two emission accounting approaches, both on the global and the local level.

Rethinking Kyoto Compliance from a Consumption-Based Perspective.

Environmental consequences of international trade are quite relevant for climate change policy. Apparent decoupling of GHG emission and GDP growth, observed in several European countries, is partly due to the increasing dislocation of manufacturing industries from the developed world to emerging economies. Consequently, decoupling is coupled with increasing GHG emission embodied in imported products from these nations. The article scrutinises the GHG emission embedded in Hungarian import of Chinese products. It argues that a stagnating GHG emission observed in Hungary is intertwined with hidden GHG export to China that takes place through trading of goods. Objective evaluation of compliance status with Kyoto targets would require a consumption-based accounting of GHG emissions rather than a production-based one, unless we accept facing a BIG problem at global level.

Fenntartható élelmiszer-fogyasztás? – Lehetőségek az ökológiai lábnyom csökkentésére a magyar lakosság körében (Sustainable food consumption? – Opportunities to reduce the ecological footprint of the Hungarian population)

Magyarországi fogyasztókról még nem készült olyan reprezentatív felmérés, amely az élelmiszer-fogyasztás környezetterhelését az ökológiai lábnyommal mérve számszerűsítette. A szerző kutatásában az élelmiszer- fogyasztásból származó ökológiai lábnyomot számszerűsítette és elemezte a magyar felnőtt lakosság körében. A cikkben először bemutatja a fenntartható élelmiszer-fogyasztás szakirodalomban található definícióit, majd a fenntartható és egészséges élelmiszer-fogyasztás mátrixát elemzi. Az elméleti áttekintést követően az empirikus kutatás eredményeinek ismertetése következik. ____ In her research the author quantified and analysed the ecological footprint from food consumption in the Hungarian adult population. In the article she presents the definitions of sustainable food consumption in the literature, and then analyses the matrix of sustainable and healthy food consumption. Following a theoretical overview the author presents the results of her empirical research.

Az élelmiszer-fogyasztás szerkezete és környezeti hatása Magyarországon (Analysing the structure and environmental impact of food consumption in hungary)

Egyre többen ismerik fel, hogy az élelmiszer-fogyasztás egészségügyi és környezeti hatása is jelentős. A különböző életstílusú társadalmi csoportok fogyasztási szerkezete eltérő lehet. Jelen tanulmány ezerfős, országos reprezentatív minta alapján vizsgálja az élelmiszer-fogyasztási szerkezet eltéréseit a nemek és különböző iskolázottságú fogyasztók körében. Jellemző fogyasztási klasztereket tár fel a fogyasztás szerkezete alapján. A fogyasztás szerkezeti és mennyiségi értékein túlmenően az ökológiai lábnyom indikátorával a fogyasztás környezetterhelését is számszerűsíti. _____ Concern about both health and environmental impacts of food consumption is increasing. Social groups with various lifestyles can have different food consumption structure. The present study analyses the differences in the food consumption structure among genders and educational groups based on a national, representative survey of 1000 adults. Food consumption clusters are identified based on food consumption structure. Beyond the analysis of food consumption and its structure, its environmental impact is quantified by the ecological footprint indicator.

Generational differences in consumption patterns in Hungary

Various authors have used the term consumer society with a number of different meanings, yet one common point has been the shift of focus to the consumer ethos, which alters the everyday life of society members and their relationship to each other and society as a whole. One’s relationship to consumption determines fundamental levels of consumption and for what purposes (e.g. hedonic values, family and savings), thus it is essential to explore this relationship to develop an understanding of consumer behaviour and to create effective marketing messages. This paper provides a brief summary of the various approaches and research lines of consumer culture and reviews the findings of the first, qualitative phase of our consumer culture study in Hungary. The purpose of this research programme is to analyse the changes in people’s relationships to consumption since the change of regime.

Essays on exchange rate economics

Exchange rate economics has achieved substantial development in the past few decades. Despite extensive research, a large number of unresolved problems remain in the exchange rate debate. This dissertation studied three puzzling issues aiming to improve our understanding of exchange rate behavior. Chapter Two used advanced econometric techniques to model and forecast exchange rate dynamics. Chapter Three and Chapter Four studied issues related to exchange rates using the theory of New Open Economy Macroeconomics. ^ Chapter Two empirically examined the short-run forecastability of nominal exchange rates. It analyzed important empirical regularities in daily exchange rates. Through a series of hypothesis tests, a best-fitting fractionally integrated GARCH model with skewed student-t error distribution was identified. The forecasting performance of the model was compared with that of a random walk model. Results supported the contention that nominal exchange rates seem to be unpredictable over the short run in the sense that the best-fitting model cannot beat the random walk model in forecasting exchange rate movements. ^ Chapter Three assessed the ability of dynamic general-equilibrium sticky-price monetary models to generate volatile foreign exchange risk premia. It developed a tractable two-country model where agents face a cash-in-advance constraint and set prices to the local market; the exogenous money supply process exhibits time-varying volatility. The model yielded approximate closed form solutions for risk premia and real exchange rates. Numerical results provided quantitative evidence that volatile risk premia can endogenously arise in a new open economy macroeconomic model. Thus, the model had potential to rationalize the Uncovered Interest Parity Puzzle. ^ Chapter Four sought to resolve the consumption-real exchange rate anomaly, which refers to the inability of most international macro models to generate negative cross-correlations between real exchange rates and relative consumption across two countries as observed in the data. While maintaining the assumption of complete asset markets, this chapter introduced endogenously segmented asset markets into a dynamic sticky-price monetary model. Simulation results showed that such a model could replicate the stylized fact that real exchange rates tend to move in an opposite direction with respect to relative consumption. ^

Essays on durable goods consumption and firm innovation

This dissertation comprises three individual chapters. Chapter Two examines how free riding across neighbors influenced the diffusion of color television sets in rural China. Chapter Three tests for asymmetric information between a firm’s management and other investors concerning its patent output. Chapter Four discusses how knowledge stocks influence a patenting firm’s later diversification. Chapter Two documents the existence of a type of network effects—free riding across neighbors—in the consumption of color television sets in rural China, which reduces the propensity of non-owners to purchase. I construct a model of the timing of the purchase of a durable good in the presence of free riding, and test its key implications using household survey data in rural China. Chapter Three tests for asymmetric information between a firm’s management and other investors about its patent output by examining insider trading patterns and stock price changes in R&D intensive firms. It demonstrates that management has considerable information about its patent output beyond what is known to investors. It also shows that the predictive power of insider trading patterns on patent output comes from purchases rather than sales. Chapter Four discusses two sequential channels through which knowledge stocks may influence a firm’s later diversification. One is that firms with more knowledge are more likely to enter a new industry. The other is that firms’ businesses have a better chance of surviving, conditional on being formed. By examining U.S. public patenting firms in manufacturing sectors for 1984-1996, I find that knowledge stocks predict the likelihood of new industry entry when controlling for firm size. However, this predictive power is weakened when diversification effects are included. On the other hand, a survival study of newly established segments shows that initial knowledge stocks have significant positive effects on segment survival, whereas diversification effects are insignificant.

Essays on Exchange Rate Economics

Exchange rate economics has achieved substantial development in the past few decades. Despite extensive research, a large number of unresolved problems remain in the exchange rate debate. This dissertation studied three puzzling issues aiming to improve our understanding of exchange rate behavior. Chapter Two used advanced econometric techniques to model and forecast exchange rate dynamics. Chapter Three and Chapter Four studied issues related to exchange rates using the theory of New Open Economy Macroeconomics. Chapter Two empirically examined the short-run forecastability of nominal exchange rates. It analyzed important empirical regularities in daily exchange rates. Through a series of hypothesis tests, a best-fitting fractionally integrated GARCH model with skewed student-t error distribution was identified. The forecasting performance of the model was compared with that of a random walk model. Results supported the contention that nominal exchange rates seem to be unpredictable over the short run in the sense that the best-fitting model cannot beat the random walk model in forecasting exchange rate movements. Chapter Three assessed the ability of dynamic general-equilibrium sticky-price monetary models to generate volatile foreign exchange risk premia. It developed a tractable two-country model where agents face a cash-in-advance constraint and set prices to the local market; the exogenous money supply process exhibits time-varying volatility. The model yielded approximate closed form solutions for risk premia and real exchange rates. Numerical results provided quantitative evidence that volatile risk premia can endogenously arise in a new open economy macroeconomic model. Thus, the model had potential to rationalize the Uncovered Interest Parity Puzzle. Chapter Four sought to resolve the consumption-real exchange rate anomaly, which refers to the inability of most international macro models to generate negative cross-correlations between real exchange rates and relative consumption across two countries as observed in the data. While maintaining the assumption of complete asset markets, this chapter introduced endogenously segmented asset markets into a dynamic sticky-price monetary model. Simulation results showed that such a model could replicate the stylized fact that real exchange rates tend to move in an opposite direction with respect to relative consumption.

Perceived barriers towards healthy eating and their association with fruit and vegetable consumption

Acknowledgements The authors would like to thank the anonymous reviewer, staff at the Health Economics Research Unit and the Rowett Institute of Nutrition and Health for helpful comments on the manuscript. Funding This work was supported by the Scottish Government Rural and Environment Science and Analytical Services (RESAS) division.

The Market for Apples: A Theory of Identity and Consumption

This paper presents an economic model of the effects of identity and social norms on consumption patterns. By incorporating qualitative studies in psychology and sociology, I propose a utility function that features two components – economic (functional) and identity elements. This setup is extended to analyze a market comprising a continuum of consumers, whose identity distribution along a spectrum of binary identities is described by a Beta distribution. I also introduce the notion of salience in the context of identity and consumption decisions. The key result of the model suggests that fundamental economic parameters, such as price elasticity and market demand, can be altered by identity elements. In addition, it predicts that firms in perfectly competitive markets may associate their products with certain types of identities, in order to reduce product substitutability and attain price-setting power.

Influences and advice of theatrical consumption. A study about the effect of the theatre critics and other instances of evaluation in the habits of theatre attendance

This article analyses the influence that different criticism stages of proceedings exert in the habits of theatre attendance. The study is based on the survey carried out specifically for this research in which 210 people, who attended a theatrical representation, were interviewed in three different theatres in the city of Valencia. The study has revealed the mouth to mouth importance in the decision of attending the theatre and its stronger influence on the audiences who less frequently go to theatrical representations. The results obtained have also made clear the existence of a narrow relation between the advice effect of the theatre critics and the patterns of attendance to the theatre, just like its bigger influence between theatres with commercial orientation and those which are addressed to the broad audiences.

Standardization in the Pre-Columbian Pottery from El Caño, Panama: Specialization, Productivity and Consumption

The pottery found in the burials of El Cano is uniform in style to these made in the coclesanos valleys between 700 and 1000 AD. The coefficient of variability of the different pottery forms, evidence diverse standardizations values for polychrome and non-polychrome ceramics. Moreover, data of funerary contexts from the Cano recently excavated, suggest that elite has controlled ceramic production. This control over the production of certain goods reveals that these were important in the support or proper operational of the chiefdoms in Panama and mark the phase of splendour of this culture.

Utilizing “Big Data” to Improve the Hotel Sector’s Energy Efficiency: Lessons from Recent Economics Research

Hotel chains have access to a treasure trove of “big data” on individual hotels’ monthly electricity and water consumption. Benchmarked comparisons of hotels within a specific chain create the opportunity to cost-effectively improve the environmental performance of specific hotels. This paper describes a simple approach for using such data to achieve the joint goals of reducing operating expenditure and achieving broad sustainability goals. In recent years, energy economists have used such “big data” to generate insights about the energy consumption of the residential, commercial, and industrial sectors. Lessons from these studies are directly applicable for the hotel sector. A hotel’s administrative data provide a “laboratory” for conducting random control trials to establish what works in enhancing hotel energy efficiency.