Reviewing the EU ETS review? Report of the CEPS TAsk Force on "Does the ETS market produce the 'right' price signal"? CEPS Task Force Report, 12 November 2012

Drawing on discussions within a CEPS Task Force on the revised EU emissions trading system, this report provides a comprehensive assessment of the pros and cons of the various measures put forward by different stakeholders to address the level and stability of the price of carbon in the EU. It argues that the European Commission, the member states, the European Parliament and other stakeholders need to give serious consideration to introducing some kind of ‘dynamic’ adjustment provision to address the relatively inelastic supply. The report also suggests that there is a need to improve communication of market-sensitive information, for example by leaving the management of the ETS to a specialised body.

Feature tracking on the unit-sphere

Techniques used in a previous study of the objective identification and tracking of meteorological features in model data are extended to the unit sphere. An alternative feature detection scheme is described based on cubic interpolation for the sphere and local maximization. The extension of the tracking technique, used in the previous study, to the unit sphere is described. An example of the application of these techniques to a global relative vorticity field from a model integration are presented and discussed.

Temperature trends derived from Stratospheric Sounding Unit radiances: the effect of increasing CO2 on the weighting function

Stratospheric Sounding Units (SSU) on the NOAA operational satellites have been the main source of near global temperature trend data above the lower stratosphere. They have been used extensively for comparison with model-derived trends. The SSU senses in the 15 micron band of CO2 and hence the weighting function is sensitive to changes in CO2 concentrations. The impact of this change in weighting function has been ignored in all recent trend analyses. We show that the apparent trends in global mean brightness temperature due to the change in weighting function vary from about -0.4 K/decade to 0.4 K/decade depending on the altitude sensed by the different SSU channels. For some channels, this apparent trend is of a similar size to the trend deduced from SSU data but ignoring the change in weighting function. In the mid-stratosphere, the revised trends are now significantly more negative and in better agreement with model-calculated trends.

Institutional sustainability: at what price? UNDP and the new cost-sharing model in Brazil

By the turn of the twenty-first century, UNDP had embraced a new form of funding based on ‘cost-sharing’, with this source accounting for 51 per cent of the organisation’s total expenditure worldwide in 2000. Unlike the traditional donor - recipient relationship so common with development projects, the new cost-sharing modality has created a situation whereby UNDP local offices become ‘subcontractors’ and agencies of the recipient countries become ‘clients’. This paper explores this transition in the context of Brazil, focusing on how the new modality may have compromised UNDP’s ability to promote Sustainable Human Development, as established in its mandate. The great enthusiasm for this modality within the UN system and its potential application to other developing countries increase the importance of a systematic assessment of its impact and developmental consequences.

Unity as a unit

The arguments for regarding the number 1 as a unit of the SI are reviewed. Examples of dimensionless quantities are presented, and problems associated with representing the values of dimensionless quantities of very small magnitude are discussed. The logarithmic ratio units bel, decibel and neper are discussed.

Risk and price in the bidding process of contractors

Formal and analytical risk models prescribe how risk should be incorporated in construction bids. However, the actual process of how contractors and their clients negotiate and agree on price is complex, and not clearly articulated in the literature. Using participant observation, the entire tender process was shadowed in two leading UK construction firms. This was compared to propositions in analytical models and significant differences were found. 670 hours of work observed in both firms revealed three stages of the bidding process. Bidding activities were categorized and their extent estimated as deskwork (32%), calculations (19%), meetings (14%), documents (13%), off-days (11%), conversations (7%), correspondence (3%) and travel (1%). Risk allowances of 1-2% were priced in some bids and three tiers of risk apportionment in bids were identified. However, priced risks may sometimes be excluded from the final bidding price to enhance competitiveness. Thus, although risk apportionment affects a contractor’s pricing strategy, other complex, microeconomic factors also affect price. Instead of pricing in contingencies, risk was priced mostly through contractual rather than price mechanisms, to reflect commercial imperatives. The findings explain why some assumptions underpinning analytical models may not be sustainable in practice and why what actually happens in practice is important for those who seek to model the pricing of construction bids.