What role for nuclear power in Japan after Fukushima?

This chapter brings a human security lens to bear on the energy-mix question in post-Fukushima Japan. In particular, two of the four elements of human security identified in the 1994 Human Development Report (HDR), prevention and people-centeredness, are mobilized. We trace developments in Japan’s post-Fukushima nuclear politics through the demise of DPJ rule to the advent of the LDP government, and evaluate the current nuclear energy strategy of the Abe administration. Using a human security framework, we consider the economic security dimension of the arguments for and against the use of nuclear power, and weigh the result of this consideration against a concern with the six other elements of human security identified in the 1994 HDR. We conclude that the risks and threats to human security engendered by the use of nuclear energy outweigh any benefits that could reasonably be argued to accrue from its use. The notion of prevention, so central to the concept of human security, performs a further ‘trumping’ function, in leading us to put a premium on the downside risk of the use of nuclear energy.

Urban economic openness and IPO underpricing

We examine the empirical impact of trade openness on the short-run underpricing of initial public offerings (IPOs) using city-level real estate data. This paper represents a first attempt to employ a macroeconomic approach to explain IPO performance. We investigate an openness effect in which urban economic openness (UEO) has a significant impact on the productivity and on the prices of both direct and indirect real estate due to productivity gains of companies in more open areas. This in turn positively affects the firm’s profitability, enhancing the confidence in the local real estate market and the future company performance and decreasing the uncertainty of the IPO valuation. And as a result, we find that issuers have less incentive to underprice the IPO shares. China provides a suitable experimental ground to study the immense underpricing in developing markets, which cannot solely be accounted for by firm specific effects. First, Chinese real estate companies show strong geographic patterns focusing their businesses locally – usually at a city level. Second, we observe a degree of openness which is significantly heterogeneous across Chinese cities. Controlling for company-specific variables, location and state ownership, we find the evidence that companies whose businesses are in economically more open areas experience less IPO underpricing. Our results show high explanatory power and are robust to diverse specifications.

Do shocks permanently change output? : Local persistency in economic time series

While it is recognized that output fuctuations are highly persistent over certain range, less persistent results are also found around very long horizons (Conchrane, 1988), indicating the existence of local or temporary persistency. In this paper, we study time series with local persistency. A test for stationarity against locally persistent alternative is proposed. Asymptotic distributions of the test statistic are provided under both the null and the alternative hypothesis of local persistency. Monte Carlo experiment is conducted to study the power and size of the test. An empirical application reveals that many US real economic variables may exhibit local persistency.

On the purchasing power parity for Latin-American countries

The purpose of this paper is to test the hypothesis of long-run purchasing power parity (PPP) for all Latin American countries. These countries share similar economic history and contagious effects from currency crises, which might lead to comovements in their real exchange rates. New time series unit root tests found evidence of PPP for the vast majority of countries. In the panel data framework, tests for the null of unit root, null of stationarity, and unit root under multiple structural breaks indicated stationary real exchange rates. Thus, there is convincing evidence that PPP holds for Latin-American countries in the post-1980 period.

EDF and the Brazilian Power Sector

Electricité de France (EDF) is a leading player in the European energy market by being both the first electricity producer in Europe and the world’s leading nuclear plant operator. EDF is also the first electricity producer and supplier in France. However, Europe, EDF’s core market, is currently underperforming: the European sovereign debt crisis is lowering significantly the growth perspective of an energy market that has already reached its maturity. As a consequence, European energy companies are now looking at international markets and especially BRIC economies where economic growth potential remains high. Among them, Brazil is expected to keep its strong economic and electricity demand growth perspectives for the coming decades. Though Brazil has not been considered as a strategic priority for EDF after the Light reversal in 2006, the current economic situation has led the Group to reconsider its position toward the country. EDF’s current presence in Brazil is limited to its stake in UTE Norte Fluminense, a thermal plant, located in the state of Rio de Janeiro. This report investigates the possibility and the feasibility of EDF’s activities expansion in Brazil and what added value it could bring for the Brazilian power market. Considering that the status quo would not allow EDF to take full advantage of Brazil’s future growth, this work is identifying the various options that are currently opened to EDF: market exit, status quo, EDF alone, local partner. For that purpose, this study collects and analyses the latest energy market data as well as generation companies’ information which are necessary to give a relevant overview of the current brazilian power sector and to present EDF strategic options for the country.

Economic recovery from the Argentine great depression : institutions, expectations, and the change of macroeconomic regime

This work explores how Argentina overcame the Great Depression and asks whether active macroeconomic interventions made any contribution to the recovery. In particular, we study Argentine macroeconomic policy as it deviated from gold-standard orthodoxy after the final suspension of convertibility in 1929. As elsewhere, fiscal policy in Argentina was conservative, and had little power to smooth output. Monetary policy became heterodox after 1929. The first and most important stage of institutional change took place with the switch from a metallic monetary regime to a fiduciary regime in 1931; the Caja de Conversión (Conversion Office, a currency board) began rediscounting as a means to sterilize gold outflows and avoid deflationary pressures, thus breaking from orthodox "mIes of the game." However, the actual injections of liquidity were small' and were not enough to fully offset the incipient monetary contractions: the "Keynes" effect was weak or negative. Rather, recovery derived from changes in beliefs and expectations surrounding the shift in the monetary and exchange-rate regime,and the delinking of gold flows and the money base. Agents perceivod a new regime, as shown by the path of consumption, investment, and estimated ex ante real interest rates: the "Mundell" effect was dominant. Notably, this change of regime predated a later, and supposedly more significant, stage of institutional reform, namely the creation of the central bank in 1935. Still, the extent of intervention was weak, and insufficient to fully offset externaI shocks to prices and money. Argentine macropolicy was heterodox in terms of the change of regime, but still conservative in terms of the tentative scope of the measures taken .

Economic landscapes, what are they? an application to the Brazilian economy and to the sugar cane complex

In assessing the economic impact of a sector or group of sectors on a single or multiregional economy, input-output analysis has proven to be a popular method. . However, there has a problem in displaying all the information that can be obtained from this analytical approach. In this paper, we have tried to set new directions in the use of input-output analysis by presenting an improved way of looking at the economic landscapes. While this is not a new concept, a new meaning is explored in this paper; essentially, it will now be possible to visualize, in a simple picture, all the relations in the economy as well as being able to view how one sector is related to the other sectors/regions in the economy. These relations can be measured in terms of structural changes, production, value added, employment, imports, etc. While all the possibilities cannot be explored in this paper, the basic idea is given here and the smart reader can uncover all the various possibilities. To illustrate the power of analysis provided by the economic landscapes, an application is made to the sugar cane complex using an interregional inputoutput system for the Brazilian economy, constructed for 2 regions (Northeast and Rest of Brazil), for the years of 1985, 1992, and 1995.

The power of the purse : what do the data say on US federal budget allocation to the states?

This paper provides new evidence on the determinants of the allocation of the US federal budget to the states and tests the capability of congressional, electoral and partisan theories to explain such allocation. We find that socio-economic characteristics are important explanatory variables but are not sufficient to explain the disparities in the distribution of federal monies. First, prestige committee membership is not conducive to pork-barrelling. We do not find any evidence that marginal states receive more funding; on the opposite, safe states tend to be rewarded. Also, states that are historically "swing" in presidential elections tend to receive more funds. Finally, we find strong evidence supporting partisan theories of budget allocation. States whose governor has the same political affiliation of the President receive more federal funds; while states whose representatives belong to a majority opposing the president party receive less funds.

Predictor-Corrector Primal-Dual Interior Point Method for Solving Economic Dispatch Problems: A Postoptimization Analysis

Fundação de Amparo à Pesquisa do Estado de São Paulo (FAPESP)

An efficient Hopfield network to solve economic dispatch problems with transmission system representation

Economic dispatch (ED) problems have recently been solved by artificial neural network approaches. Systems based on artificial neural networks have high computational rates due to the use of a massive number of simple processing elements and the high degree of connectivity between these elements. The ability of neural networks to realize some complex non-linear function makes them attractive for system optimization. All ED models solved by neural approaches described in the literature fail to represent the transmission system. Therefore, such procedures may calculate dispatch policies, which do not take into account important active power constraints. Another drawback pointed out in the literature is that some of the neural approaches fail to converge efficiently toward feasible equilibrium points. A modified Hopfield approach designed to solve ED problems with transmission system representation is presented in this paper. The transmission system is represented through linear load flow equations and constraints on active power flows. The internal parameters of such modified Hopfield networks are computed using the valid-subspace technique. These parameters guarantee the network convergence to feasible equilibrium points, which represent the solution for the ED problem. Simulation results and a sensitivity analysis involving IEEE 14-bus test system are presented to illustrate efficiency of the proposed approach. (C) 2004 Elsevier Ltd. All rights reserved.

Line-pack management for producing electric power on peak periods

The distribution of natural gas is carried out by means of long ducts and intermediate compression stations to compensate the pressure drops due to friction. The natural gas compressors are usually driven by an electric motor or a gas turbine system, offering possibilities for energy management, one of these consisting in generating energy for use in-plant or to commercialize as independent power producer. It can be done by matching the natural gas demand, at the minimum pressure allowed in the reception point, and the storage capacity of the feed duct with the maximum compressor capacity, for storing the natural gas at the maximum permitted pressure. This allows the gas turbine to drive an electric generator during the time in which the decreasing pressure in duct is above the minimum acceptable by the sink unit. In this paper, a line-pack management analysis is done for an existing compression station considering its actual demand curve for determining the economic feasibility of maintaining the gas turbine system driver generating electricity in a peak and off-peak tariff structure. The potential of cost reduction from the point of view of energy resources (natural gas and electric costs) is also analyzed. (C) 2010 Elsevier Ltd. All rights reserved.

Evaluation of economic impact of external eauivalent models used in reactive OPF studies for interconnected systems

Reactive-optimisation procedures are responsible for the minimisation of online power losses in interconnected systems. These procedures are performed separately at each control centre and involve external network representations. If total losses can be minimised by the implementation of calculated local control actions, the entire system benefits economically, but such control actions generally result in a certain degree of inaccuracy, owing to errors in the modelling of the external system. Since these errors are inevitable, they must at least be maintained within tolerable limits by external-modelling approaches. Care must be taken to avoid unrealistic loss minimisation, as the local-control actions adopted can lead the system to points of operation which will be less economical for the interconnected system as a whole. The evaluation of the economic impact of the external modelling during reactive-optimisation procedures in interconnected systems, in terms of both the amount of losses and constraint violations, becomes important in this context. In the paper, an analytical approach is proposed for such an evaluation. Case studies using data from the Brazilian South-Southeast system (810 buses) have been carried out to compare two different external-modelling approaches, both derived from the equivalent-optimal-power-flow (EOPF) model. Results obtained show that, depending on the external-model representation adopted, the loss representation can be flawed. Results also suggest some modelling features that should be adopted in the EOPF model to enhance the economy of the overall system.

Cogeneration in a solid-wastes power-station: a case-study

Nowadays, natural gas is viewed as the solution to the problem of energy supply for Latin America, Europe and North America for the next few decades; Brazil is increasingly becoming dependent upon the Bolivian natural-gas supply - many industries and some entrepreneurs are deciding to construct industrial cogeneration systems and new thermal power-stations burning natural gas because of its low environmental impact and attractive price. However, natural gas is a finite resource: this will cause, in the future, an increase of its unit price. This paper details questions involved in the energy generation and presents solid-waste burning as a possible alternative fuel for the future, especially in the context of cogeneration practice in which the thermal and electric energy are used primarily for the industries located in an industrial district. Two cogeneration schemes are proposed for the burning of municipal solid wastes, associated or not with natural gas, and their technical and economic feasibilities are examined. (C) 1999 Elsevier B.V. Ltd. All rights reserved.

Finns growth dynamics, competition and power-law scaling

We study the growth dynamics of the size of manufacturing firms considering competition and normal distribution of competency. We start with the fact that all components of the system struggle with each other for growth as happened in real competitive business world. The detailed quantitative agreement of the theory with empirical results of firms growth based on a large economic database spanning over 20 years is good with a single set of the parameters for all the curves. Further, the empirical data of the variation of the standard deviation of the growth rate with the size of the firm are in accordance with the present theory rather than a simple power law. (C) 2003 Elsevier B.V. B.V. All rights reserved.

Economic and technical feasibility study of a combined-cycle cogeneration system associated with cellulose plants

In this paper, is presented an economical and technical feasibility study of a combined cycle cogeneration system proposed to be used in a pulp plant located in Brazil, where around 95% of country's pulp production is done by the use of Kraft Process. This process allows the use of black liquor and other by-products as fuel. This study is based upon actual data from a pulp plant with a daily production of 1000 tons., that generates part of the energy demanded by the process in a conventional cogeneration system with condensing steam turbine and two extractions. The addition of a gas turbine was studied to compare electricity production level and its related costs between original system and the new one, considering that the former can use industrial by-products and firewood as fuel, when required. Several parameters related to electric generation systems operation and production costs were studied. The use of natural gas in the combined cycle, in comparison with the use of firewood in the conventional system was studied. The advantages of natural gas fuel are highlighted. The surplus availability and the electricity generation costs are presented as a function of pulp and black liquor production.