Impacts of FDI Renewable Energy Technology Spillover on China's Energy Industry Performance

Environmental friendly renewable energy plays an indispensable role in energy industry development. Foreign direct investment (FDI) in advanced renewable energy technology spillover is promising to improve technological capability and promote China’s energy industry performance growth. In this paper, the impacts of FDI renewable energy technology spillover on China’s energy industry performance are analyzed based on theoretical and empirical studies. Firstly, three hypotheses are proposed to illustrate the relationships between FDI renewable energy technology spillover and three energy industry performances including economic, environmental, and innovative performances. To verify the hypotheses, techniques including factor analysis and data envelopment analysis (DEA) are employed to quantify the FDI renewable energy technology spillover and the energy industry performance of China, respectively. Furthermore, a panel data regression model is proposed to measure the impacts of FDI renewable energy technology spillover on China’s energy industry performance. Finally, energy industries of 30 different provinces in China based on the yearbook data from 2005 to 2011 are comparatively analyzed for evaluating the impacts through the empirical research. The results demonstrate that FDI renewable energy technology spillover has positive impacts on China’s energy industry performance. It can also be found that the technology spillover effects are more obvious in economic and technological developed regions. Finally, four suggestions are provided to enhance energy industry performance and promote renewable energy technology spillover in China.

The governance of adaptation: choices, reasons, and effects. Introduction to the Special Feature

The governance of climate adaptation involves the collective efforts of multiple societal actors to address problems, or to reap the benefits, associated with impacts of climate change. Governing involves the creation of institutions, rules and organizations, and the selection of normative principles to guide problem solution and institution building. We argue that actors involved in governing climate change adaptation, as climate change governance regimes evolve, inevitably must engage in making choices, for instance on problem definitions, jurisdictional levels, on modes of governance and policy instruments, and on the timing of interventions. Yet little is known about how and why these choices are made in practice, and how such choices affect the outcomes of our efforts to govern adaptation. In this introduction we review the current state of evidence and the specific contribution of the articles published in this Special Feature, which are aimed at bringing greater clarity in these matters, and thereby informing both governance theory and practice. Collectively, the contributing papers suggest that the way issues are defined has important consequences for the support for governance interventions, and their effectiveness. The articles suggest that currently the emphasis in adaptation governance is on the local and regional levels, while underscoring the benefits of interventions and governance at higher jurisdictional levels in terms of visioning and scaling-up effective approaches. The articles suggest that there is a central role of government agencies in leading governance interventions to address spillover effects, to provide public goods, and to promote the long-term perspectives for planning. They highlight the issue of justice in the governance of adaptation showing how governance measures have wide distributional consequences, including the potential to amplify existing inequalities, access to resources, or generating new injustices through distribution of risks. For several of these findings, future research directions are suggested.

The impact of red light cameras on safety in Arizona

Red light cameras (RLCs) have been used in a number of US cities to yield a demonstrable reduction in red light violations; however, evaluating their impact on safety (crashes) has been relatively more difficult. Accurately estimating the safety impacts of RLCs is challenging for several reasons. First, many safety related factors are uncontrolled and/or confounded during the periods of observation. Second, “spillover” effects caused by drivers reacting to non-RLC equipped intersections and approaches can make the selection of comparison sites difficult. Third, sites selected for RLC installation may not be selected randomly, and as a result may suffer from the regression to the mean bias. Finally, crash severity and resulting costs need to be considered in order to fully understand the safety impacts of RLCs. Recognizing these challenges, a study was conducted to estimate the safety impacts of RLCs on traffic crashes at signalized intersections in the cities of Phoenix and Scottsdale, Arizona. Twenty-four RLC equipped intersections in both cities are examined in detail and conclusions are drawn. Four different evaluation methodologies were employed to cope with the technical challenges described in this paper and to assess the sensitivity of results based on analytical assumptions. The evaluation results indicated that both Phoenix and Scottsdale are operating cost-effective installations of RLCs: however, the variability in RLC effectiveness within jurisdictions is larger in Phoenix. Consistent with findings in other regions, angle and left-turn crashes are reduced in general, while rear-end crashes tend to increase as a result of RLCs.

Network structure, knowledge governance, and firm performance : evidence from innovation networks and SMEs in the UK

It is increasingly understood that learning and thus innovation often occurs via highly interactive, iterative, network-based processes. Simultaneously, economic development policy is increasingly focused on small and medium-sized enterprises (SMEs) as a means of generating growth, creating a clear research issue in terms of the roles and interactions of government policy, universities, and other sources of knowledge, SMEs, and the creation and dissemination of innovation. This paper analyses the contribution of a range of actors in an SME innovation creation and dissemination framework, reviewing the role of various institutions therein, exploring the contribution of cross-locality networks, and identifying the mechanisms required to operationalise such a framework. Bivariate and multivariate (regression) techniques are employed to investigate both innovation and growth outcomes in relation to these structures; data are derived from the survey responses of over 450 SMEs in the UK. Results are complex and dependent upon the nature of institutions involved, the type of knowledge sought, and the spatial level of the linkages in place but overall highlight the value of cross-locality networks, network governance structures, and certain spillover effects from universities. In general, we find less support for the factors predicting SME growth outcomes than is the case for innovation. Finally, we outline an agenda for further research in the area.

Essays on irrigation development, farm production and unaccounted costs : theory and empirical evidence

A review of the literature related to issues involved in irrigation induced agricultural development (IIAD) reveals that: (1) the magnitude, sensitivity and distribution of social welfare of IIAD is not fully analysed; (2) the impacts of excessive pesticide use on farmers’ health are not adequately explained; (3) no analysis estimates the relationship between farm level efficiency and overuse of agro-chemical inputs under imperfect markets; and (4) the method of incorporating groundwater extraction costs is misleading. This PhD thesis investigates these issues by using primary data, along with secondary data from Sri Lanka. The overall findings of the thesis can be summarised as follows. First, the thesis demonstrates that Sri Lanka has gained a positive welfare change as a result of introducing new irrigation technology. The change in the consumer surplus is Rs.48,236 million, while the change in the producer surplus is Rs. 14,274 millions between 1970 and 2006. The results also show that the long run benefits and costs of IIAD depend critically on the magnitude of the expansion of the irrigated area, as well as the competition faced by traditional farmers (agricultural crowding out effects). The traditional sector’s ability to compete with the modern sector depends on productivity improvements, reducing production costs and future structural changes (spillover effects). Second, the thesis findings on pesticides used for agriculture show that, on average, a farmer incurs a cost of approximately Rs. 590 to 800 per month during a typical cultivation period due to exposure to pesticides. It is shown that the value of average loss in earnings per farmer for the ‘hospitalised’ sample is Rs. 475 per month, while it is approximately Rs. 345 per month for the ‘general’ farmers group during a typical cultivation season. However, the average willingness to pay (WTP) to avoid exposure to pesticides is approximately Rs. 950 and Rs. 620 for ‘hospitalised’ and ‘general’ farmers’ samples respectively. The estimated percentage contribution for WTP due to health costs, lost earnings, mitigating expenditure, and disutility are 29, 50, 5 and 16 per cent respectively for hospitalised farmers, while they are 32, 55, 8 and 5 per cent respectively for ‘general’ farmers. It is also shown that given market imperfections for most agricultural inputs, farmers are overusing pesticides with the expectation of higher future returns. This has led to an increase in inefficiency in farming practices which is not understood by the farmers. Third, it is found that various groundwater depletion studies in the economics literature have provided misleading optimal water extraction quantity levels. This is due to a failure to incorporate all production costs in the relevant models. It is only by incorporating quality changes to quantity deterioration, that it is possible to derive socially optimal levels. Empirical results clearly show that the benefits per hectare per month considering both the avoidance costs of deepening agro-wells by five feet from the existing average, as well as the avoidance costs of maintaining the water salinity level at 1.8 (mmhos/Cm), is approximately Rs. 4,350 for farmers in the Anuradhapura district and Rs. 5,600 for farmers in the Matale district.

Compensation for environmental services and intergovernmental fiscal transfers : the case of India

This paper studies mechanisms to compensate local government for the public provision of environmental services using the theory of optimal fiscal transfers in India. Especially, we analyzed the role of intergovernmental fiscal transfers in achieving the environmental goal. Simply assigning the functions at appropriate levels does not ensure optimal provision of environmental services. Optimality in resource allocation could be achieved by combining the assignment system with an appropriate compensation mechanism. Intergovernmental fiscal transfers would be a suitable mechanism for compensating the local governments and help in internalizing the spillover effects of providing environmental public goods. Illustrations are also provided for India.

Public Policy for the Creative Industries

The cultural and creative industries are closely intertwined with government. This chapter reviews key economic rationales for public policy interventions for the arts, cultural and creative industries. Market failure justifications depend on the status of arts and culture as non-rival public goods, as ‘merit goods’, or the need to moderate the effects of up-front investment costs or monopoly, and the inherent uncertainty of creative production. ‘Systems failure’ too is a regular rationale for policy intervention. Using the United Kingdom as an example, the chapter shows how emphasis on these rationales has shifted over the last three decades, first in the context of industrial policies for traditional aims such as exports and job growth, which have been joined in recent years by the need for investment in intangibles, knowledge exchange, and spillover effects in the wider economy.

Redundancy and Workplace Occupation: The Case of the Republic of Ireland

Purpose – This paper aims to examine the antecedent influences and merits of workplace occupations as a tactical response to employer redundancy initiatives.

Design/methodology/approach – The data are based on analysis of secondary documentary material reporting on three workplace occupations in the Republic of Ireland during 2009.

Findings – Perceptions of both procedural (e.g. employer unilateral action) and substantive (e.g. pay and entitlements) justice appear pivotal influences. Spillover effects from other known occupations may also be influential. Workplace occupations were found to produce some modest substantive gains, such as enhancing redundancy payments. The tactic of workplace occupation was also found to transform unilateral employer action into scenarios based upon negotiated settlement supported by third-party mediation. However the tactic of workplace occupation in response to redundancy runs the risks of potential judicial injunction and sanction.

Research limitations/implications – Although operationally difficult, future studies should strive to collect primary data workplace occupations as they occur.

Originality/value – The paper identifies conditions conducive to the genesis of workplace occupations and the extent to which the tactic may be of benefit in particular circumstances to workers facing redundancy. It also contextualises the tactic in relation to both collective mobilisation and bargaining theories in employment relations.

The Greek Debt Crisis and Southern Europe: Majoritarian Pitfalls?

Although widely debated in broader socioeconomic terms, the Eurozone crisis has not received adequate scholarly attention with regards to the impact of alternative political systems. This article revisits the debate on majoritarian and consensus democracies drawing on recent evidence from the Eurozone debacle. Greece is particularly interesting both with regards to its potential ‘global spillover effects’ and choice of political system. Despite facing comparable challenges as Portugal and Spain, the country has become polarized socially and politically, seeing a record number of MP defections, electoral volatility and the rise of the militant extreme right. The article explains why Greece, the country that relied most extensively on majoritarian institutions, entered the global financial crisis in the most vulnerable position while subsequently faced insurmountable political and institutional obstacles in its management. The article points to the paradox of majoritarianism: in times of economic stress, the first ‘casualties’ are its strongest elements – centrist parties (bi-partisanship) and cabinet stability.

Essays in International Trade

Dans ma thèse doctorale, j'étudie trois facteurs importants qui caractérisent le commerce international : les différences technologiques entre les pays, les barrières à l'entrée sous la forme de coûts fixes et la migration internationale. Le premier chapitre analyse si les différences technologiques entre les pays peuvent expliquer la spécialisation dans le commerce international entre les pays. Pour mesurer le niveau de la spécialisation, je calcule les index de concentration pour la valeur des importations et des exportations et décompose la concentration totale dans la marge de produits extensive (nombre de produits commercialisés) et la marge de produits intensive (volume de produits commercialisés). En utilisant des données commerciales détaillées au niveau du produit dans 160 pays, mes résultats montrent que les exportations sont plus concentrées que les importations, que la spécialisation se produit principalement au niveau de la marge intensive du produit, et que les économies plus grandes disposent d'importations et d'exportations plus diversifiées, car elles commercialisent plus de produits. Compte tenu de ces faits, j'évalue la capacité du modèle Eaton-Kortum, le principal modèle de la théorie ricardienne du commerce, pour représenter les preuves empiriques. Les résultats montrent que la spécialisation à travers l'avantage comparatif induit par les différences de technologie peut expliquer les faits qualitatifs et quantitatifs. De plus, j'évalue le rôle des déterminants clés de la spécialisation : le degré de l'avantage comparatif, l'élasticité de la substitution et la géographie. Une implication de ces résultats est qu'il est important d’évaluer jusqu'à quel point la volatilité de production mesurée par la volatilité du PIB est motivée par la spécialisation des exportations et des importations. Étant donné le compromis entre l'ouverture du commerce et la volatilité de production, les bénéfices tirés du commerce peuvent s'avérer plus faibles que ceux estimés précédemment. Par conséquent, les politiques commerciales alternatives telles que l'ouverture graduelle au commerce combinée à la diversification de la production pour réduire la concentration de l'exportation peuvent se révéler être une meilleure stratégie que l'approche du laissez-faire. En utilisant la relation entre la taille du marché et l’entrée de firmes et produits, le deuxième chapitre évalue si les barrières à l'entrée sous la forme de coûts fixes à exporter sont au niveau de la firme ou au niveau du produit. Si les coûts fixes se trouvent au niveau de la firme, la firme multiproduits a un avantage de coût de production par rapport aux autres firmes parce qu’elles peuvent diviser les coûts fixes sur plusieurs produits. Dans ce cas, le commerce international sera caractérisé par peu de firmes qui exportent beaucoup des produits. Si les coûts fixes sont au niveau du produit, l’entrée d’un produit est associée avec l’entrée de plusieurs firmes. La raison est qu’une fois que la première firme entre et paye les coûts fixes du produit, elle crée un effet d’entrainement qui réduit les coûts fixes pour des firmes rivales. Dans ce cas, le commerce international sera caractérisé par plusieurs firmes qui vendent des variétés différentes du même produit. En utilisant des données détaillées provenant de 40 pays exportateurs à travers 180 marchés de destination, mes résultats montrent que les barrières à l'entrée se trouvent principalement au niveau du produit. Un marché plus large favorise l'expansion d'un plus grand nombre d’entreprises au sein d'une catégorie de produit plutôt que de permettre aux entreprises produisant plusieurs produits de croître dans une gamme de produits. En regardant la différence entre le nombre d'exportateurs au sein d'une catégorie de produit dans des destinations données, je trouve que le taux d'entrée de firmes augmente significativement après qu'un produit entre la première fois dans le marché. J'en déduis donc que le premier entrant réduit les coûts fixes pour les firmes suivantes. Mes recherches démontrent également que malgré une plus grande compétition sur le marché du produit, les entreprises disposent de revenus d'exportation supérieurs et sont plus susceptibles de rester sur les marchés internationaux. Ces résultats sont cohérents avec l’hypothèse que l’effet d’entrainement incite l'entrée de firmes rivales et permettent aux entreprises de produire à plus grande échelle. Cette recherche dévoile un nombre de conclusions importantes. D'abord, les politiques commerciales encouragent l'entrée de nouveaux produits, par exemple, en promouvant des produits dans les marchés de destination entraînant ainsi des retombées qui se traduiront par un taux de participation plus élevé de l'entreprise et une croissance de l'exportation. Deuxièmement, les consommateurs du pays importateur peuvent bénéficier de prix plus bas pour le produit en réduisant les barrières techniques du commerce. Troisièmement, lorsque l'on effectue des expérimentations politiques sous la forme de réduction des coûts commerciaux, il est de coutume de considérer uniquement une baisse des coûts marginaux et d'évaluer les répercussions sur le bien-être du consommateur. Cependant, un élément important des accords commerciaux est la réduction des barrières techniques au commerce grâce à la négociation de normes communes pour un produit. Négliger l'existence des barrières à l'entrée et les conséquences des réaffectations de l'industrie affaiblit l'impact des réformes commerciales. Le troisième chapitre prend en compte le rôle de l'information dans la facilitation du commerce international. Les immigrants réduisent les coûts de transaction dans le commerce international en fournissant des informations sur les possibilités d'échange avec leur pays d'origine. En utilisant des données géographiques détaillées sur l'immigration et les importations aux États-Unis entre 1970 et 2005, je quantifie l'incidence qu'ont les nouveaux immigrants sur la demande pour les importations de biens intermédiaires aux États-Unis. Pour établir le lien cause à effet entre le commerce et la migration, j’exploite l'important afflux d'immigrants d'Amérique centrale après l'ouragan Mitch. Les résultats montrent que l'augmentation de dix pour cent d'immigrants a fait croître la demande pour les importations de biens intermédiaires de 1,5 pour cent. Mes résultats sont robustes aux problèmes de la causalité inverse ou la décision d’émigrer est causée par des opportunités de faire du commerce.

Análisis de la repercusión del conflicto interno colombiano en el plano internacional : las relaciones diplomáticas colombo-ecuatorianas en el periodo 2004-2008

Las relaciones colombo-ecuatorianas han tenido que enfrentar diversos obstáculos hasta su rompimiento definitivo en marzo de 2008. Dichos inconvenientes parten básicamente del desbordamiento del conflicto colombiano sobre territorio ecuatoriano, el cual le ha provocado a Ecuador diversas dificultades tanto en su Estado, como en su territorio y población. Dichos efectos de derrame son tres principalmente: el asentamiento de las FARC en suelo ecuatoriano, los refugiados y las fumigaciones del Plan Colombia, los cuales a su vez son explicados a través del efecto Spillover. El rompimiento de las relaciones diplomáticas, el cual tiene origen en el desborde del conflicto y finalmente en la Operación Fénix, revela la oposición en visiones de seguridad que existe entre Colombia y Ecuador, lo que lleva al análisis de aspectos como la neutralidad que Ecuador ha mantenido hasta cierto punto y los esfuerzos que este ha adelantado para enfrentar dichos efectos de derrame.

Productividad, eficiencia y tecnologías de la información y de la comunicación: Aplicación empírica a la industria española

ste trabajo estudia la contribución de las tecnologías de la información y de la comunicación al crecimiento de la industria española, durante el periodo 1990-1999. Se aplica la descomposición del crecimiento de Solow (1957) y para el análisis de productividad se usa la metodología de fronteras estocásticas. Se encuentra que la mayor contribución es en la producción de las ramas TIC-manufacturas y éstas no tienen efectos spillover significativos. También se destaca el escaso efecto sobre la productividad del progreso técnico incorporado en capital físico.

The impact of a minimum pension on old age poverty and its budgetary cost. Evidence from Latin America

This paper examines the impact on old age poverty and the fiscal cost of universal minimum oldage pensions in Latin America using recent household survey data for 18 countries. Alleviatingold age poverty requires different approach from other age groups and a minimum pension islikely to be the only alternative available. First we measure old age poverty rates for all countries.Second we discuss the design of minimum pensions schemes, means-tested or not, as wellas the disincentive effects that they are expected to have on the economic and social behavior ofhouseholds including labor supply, saving and family solidarity. Third we use the household surveysto simulate the fiscal cost and the impact on poverty rates of alternative minimum pensionschemes in the 18 countries. We show that a universal minimum pension would substantiallyreduce poverty among the elderly except in Argentina, Brazil, Chile and Uruguay where minimumpension systems already exist and poverty rates are low. Such schemes have much tobe commended in terms of incentives, spillover effects and administrative simplicity but have ahigh fiscal cost. The latter is a function of the age at which benefits are awarded, the prevailinglongevity, the generosity of benefits, the efficacy of means testing, and naturally the fiscal capacityof the country.

Measuring the response of macroeconomic uncertainty to shocks

Recent research documents the importance of uncertainty in determining macroeconomic outcomes, but little is known about the transmission of uncertainty across such outcomes. This paper examines the response of uncertainty about inflation and output growth to shocks documenting statistically significant size and sign bias and spillover effects. Uncertainty about inflation is a determinant of output uncertainty, whereas higher growth volatility tends to raise inflation volatility. Both inflation and growth volatility respond asymmetrically to positive and negative shocks. Negative growth and inflation shocks lead to higher and more persistent uncertainty than shocks of equal magnitude but opposite sign.

Spatial patterns of office employment in the New York region

This study analyzes the regional spatial dynamics of the New York region for a period of roughly twenty years and places the effects of the 9/11 terrorist attacks in the context of longer-term regional dynamics. The analysis reveals that office-using industries are still heavily concentrated in Manhattan despite ongoing decentralization in many of these industries over the last twenty years. Financial services tend to be highly concentrated in Manhattan whereas administrative and support services are the least concentrated of the six major office-using industry groups. Although office employment has been by and large stagnant in Manhattan for at least two decades, growth of output per worker has outpaced the CMSA as well as the national average. This productivity differential is mainly attributable to competitive advantages of office-using industries in Manhattan and not to differences in industry composition. Finally, the zip-code level analysis of the Manhattan core area yielded further evidence of the existence of significant spillover effects at the small-scale level.