Regional Wage and Employment Responses to Market Potential in the EU. Bruges European Economic Research (BEER) Papers 3/November 2005

Recent theoretical work on economic geography emphasizes the interplay of transport costs and plant-level increasing returns. In these models, the spatial distribution of demand is a key determinant of economic outcomes. In one strand, it is argued that higher demand gives rise to a more than proportionate increase in production, a result known as the home market effect. Another strand emphasizes the effects of market sizes on factor prices. We highlight the theoretical connection between these two strands. Using data on 57 European regions, we show how wages and employment respond to differentials in what we call real market potential, a discounted sum of demands derived from the theory.

The Market for Tractors in the EU: Price Differences and Convergence. Factor Markets Working Documents No. 35, February 2013

This study evaluates the degree of segmentation of the market for agricultural machinery and equipment in the EU. We focus on agricultural tractors, the most common and biggest investment in machinery and equipment in the agricultural sector. By using country price data for individual tractor models, we test the law of one price, i.e. the existence of a common price for tractors across EU member states. We find that significant price differences exist, yet unlike most other studies we find that large price deviations are penalised within a short time. The study also shows that transport costs are an important source of price differences, as domestic production leads to lower prices on the domestic market and as price convergence is negatively correlated with distance. Finally, price differences should not solely be understood from a geographical perspective, as evidence supports the idea that farmers’ buying power is significant in explaining price differences within countries.

Reshoring:opportunities and limits for manufacturing in the UK - the case of the auto sector

In recent years, offshoring and outsourcing have transformed fundamentally nationally based auto sectors into global networks of design, production and distribution across the global value chains coordinated by the major automotive Original Equipment Manufacturers (OEMs). As manufacturing activities tended to be shifted to low-labour cost locations in Asia, Africa and Latin America, high-end design, R&D, product development have stayed anchored mostly to high-cost and high knowledge-intensive home economy locations (perhaps with the except of some design and styling activities which are often located in major end markets around the world. However, very recently the weaknesses of and risks inherent in such global value chains (GVCs) have been exposed, triggering attempts to rethink their nature and also raising possibilities to reshore some manufacturing activities to home countries. A combination of a more competitive exchange rate (despite the very recent appreciation of sterling), increased transport costs, rising wages in key areas of China, and a greater awareness of supply chain resilience have all contributed to a perceived change in some business fundamentals. The potential for some supply chain relocalisation also links in with the servitisation of manufacturing including the auto sector and shift to a hybrid model where manufacturing and services are increasingly intertwined. However, there are limits as to how far this can go and these raise some important questions and issues over the possible role for industrial policy.

A földrajzi távolság, a kulturális hasonlóság és a szabadkereskedelem hatása a borkereskedelemre = Effects on the global wine trade of geographical distance, cultural and linguistic similarity, and free trade

A globalizálódó világgazdaságban a vezető bortermelő országok egyre jelentősebb borkereskedelmet bonyolítanak le egymás között. Míg Európában a fogyasztók egyre kevesebb bort vásárolnak, addig Amerikában és Ázsiában a bor iránti kereslet folyamatosan bővül: a borkereskedelem földrajzi átrendeződése zajlik. A kulturális hasonlóság és a földrajzi távolság kereskedelemre gyakorolt hatását gyakran a kereskedelemelméletek gravitációs modelljével elemzik. E tanulmány azt vizsgálja, hogy a fő borexportáló országok közötti földrajzi távolság, kulturális hasonlóság és szabadkereskedelem milyen hatással van a nemzetközi borkereskedelemre, annak költségeire. A regressziós becslés eredményei alátámasztják, hogy a borkereskedelem költségei alacsonyabbak, ha a kereskedelmi partnerek kulturálisan hasonlók, földrajzilag közel helyezkednek el egymáshoz, vagy van tengeri kikötőjük, tagjai a WTO-nak, illetve ha kötöttek egymással regionális kereskedelmi megállapodást. Ezenkívül megállapítható, hogy az angolszász, a latin-amerikai és az európai kulturális klaszterek elsősorban egymással kereskednek. A kutatás számos kulturális változó alkalmazásával és több ökonometriai modell, illetve becslési eljárás nagymintás tesztelésével gazdagítja a szakirodalmat. ____ In a globalizing world, major wine-producing countries export considerable quantities to the global wine market and turn over a notable trade, but in what happens European wine regions differ markedly from the New World. Here major wine producers suffered a remarkable fall in domestic wine consumption in recent decades, while New World wine producers increased their production potential and generated new foreign demand. The changes have been joined by geographical relocation of wine consumption and exports. The gravity equation can be derived from demand-side or supply-side theory-consistent estimation methods that suggest relationships between the size of the economies, geographical distances, cultural similarities, and size of their trade. The paper analyses the effects of cultural and geographical proximity, free trade, and linguistic similarity on bilateral trade in the main wine-producing countries, using a cross-section gravity model for 2012. The results suggest that larger countries export more wine, while transport costs rise in line with geographical distance and are higher for landlocked trading partners. Wine export costs are lower if trading partners are culturally similar, share a dominant religion, or are both WTO members with regional trade agreements. Anglo-Saxon, Germanic, Latin American and Latin European countries mainly trade wines within their groups. The paper looks to extend the number of trading partners, investigate the effect of language clusters, and confirm that the results are robust by different econometric methodologies.

Stratégie d'amélioration de la résistance mécanique des zones de connecteurs

Le bois subit une demande croissante comme matériau de construction dans les bâtiments de grandes dimensions. Ses qualités de matériau renouvelable et esthétique le rendent attrayant pour les architectes. Lorsque comparé à des produits fonctionnellement équivalents, il apparait que le bois permet de réduire la consommation d’énergie non-renouvelable. Sa transformation nécessite une quantité d’énergie inférieure que l’acier et le béton. Par ailleurs, par son origine biologique, une structure en bois permet de stocker du carbone biogénique pour la durée de vie du bâtiment. Maintenant permis jusqu’à six étages de hauteur au Canada, les bâtiments de grande taille en bois relèvent des défis de conception. Lors du dimensionnement des structures, les zones des connecteurs sont souvent les points critiques. Effectivement, les contraintes y sont maximales. Les structures peuvent alors apparaitre massives et diminuer l’innovation architecturale. De nouvelles stratégies doivent donc être développées afin d’améliorer la résistance mécanique dans les zones de connecteurs. Différents travaux ont récemment porté sur la création ou l’amélioration de types d’assemblage. Dans cette étude, l’accent est mis sur le renforcement du bois utilisé dans la région de connexion. L’imprégnation a été choisie comme solution de renfort puisque la littérature démontre qu’il est possible d’augmenter la dureté du bois avec cette technique. L’utilisation de cette stratégie de renfort sur l’épinette noire (Picea Mariana (Mill.) BSP) pour une application structurale est l’élément de nouveauté dans cette recherche. À défaut d’effectuer une imprégnation jusqu’au coeur des pièces, l’essence peu perméable de bois employée favorise la création d’une mince couche en surface traitée sans avoir à utiliser une quantité importante de produits chimiques. L’agent d’imprégnation est composé de 1,6 hexanediol diacrylate, de triméthylopropane tricacrylate et d’un oligomère de polyester acrylate. Une deuxième formulation contenant des nanoparticules de SiO2 a permis de vérifier l’effet des nanoparticules sur l’augmentation de la résistance mécanique du bois. Ainsi, dans ce projet, un procédé d’imprégnation vide-pression a servi à modifier un nouveau matériau à base de bois permettant des assemblages plus résistants mécaniquement. Le test de portance locale à l’enfoncement parallèle au fil d’un connecteur de type tige a été réalisé afin de déterminer l’apport du traitement sur le bois utilisé comme élément de connexion. L’effet d’échelle a été observé par la réalisation du test avec trois diamètres de boulons différents (9,525 mm, 12,700 mm et 15,875 mm). En outre, le test a été effectué selon un chargement perpendiculaire au fil pour le boulon de moyen diamètre (12,700 mm). La corrélation d’images numériques a été utilisée comme outil d’analyse de la répartition des contraintes dans le bois. Les résultats ont démontré une portance du bois plus élevée suite au traitement. Par ailleurs, l’efficacité est croissante lorsque le diamètre du boulon diminue. C’est un produit avec une valeur caractéristique de la portance locale parallèle au fil de 79% supérieure qui a été créé dans le cas du test avec le boulon de 9,525 mm. La raideur du bois a subi une augmentation avoisinant les 30%. Suite au traitement, la présence d’une rupture par fissuration est moins fréquente. Les contraintes se distribuent plus largement autour de la région de connexion. Le traitement n’a pas produit d’effet significatif sur la résistance mécanique de l’assemblage dans le cas d’un enfoncement du boulon perpendiculairement au fil du bois. De même, l’effet des nanoparticules en solution n’est pas ressorti significatif. Malgré une pénétration très faible du liquide à l’intérieur du bois, la couche densifiée en surface créée suite au traitement est suffisante pour produire un nouveau matériau plus résistant dans les zones de connexion. Le renfort du bois dans la région des connecteurs doit influencer le dimensionnement des structures de grande taille. Avec des éléments de connexion renforcés, il sera possible d’allonger les portées des poutres, multipliant ainsi les possibilités architecturales. Le renfort pourra aussi permettre de réduire les sections des poutres et d’utiliser une quantité moindre de bois dans un bâtiment. Cela engendrera des coûts de transport et des coûts reliés au temps d’assemblage réduits. De plus, un connecteur plus résistant permettra d’être utilisé en moins grande quantité dans un assemblage. Les coûts d’approvisionnement en éléments métalliques et le temps de pose sur le site pourront être revus à la baisse. Les avantages d’un nouveau matériau à base de bois plus performant utilisé dans les connexions permettront de promouvoir le bois dans les constructions de grande taille et de réduire l’impact environnemental des bâtiments.

Implementación de una fábrica de postes de hormigón armado basada en la creación de valores

Se considera a los postes de hormigón armado un elemento indispensable para la distribución de energía eléctrica, también son parte de nuestro ornamento. Como breve reseñapuedo indicar que la idea del negocio nació, para satisfacer la necesidad de encontrar una fábrica de postes de hormigón que cuente con stock y con entrega oportuna a los clientes ubicados en la zona Austral.Al existir una sola fábrica se generó una escasez del producto, para cubrir la demanda se debe buscar en otras ciudades, lo que encarece el precio del producto debido al incremento del costo del transporte, además seproduce retraso en la construcción de las obras eléctricas. Con este proyecto se analizó la factibilidad de instalaruna fábrica de postes de hormigón armado, se cuantificó la inversión que demandaráempezar la producción y venta de los productos. Se comercializará postes de 10 y 12 metros de longitud, debido a que son los más utilizados en las empresas eléctricas, telefonía, internet y tv cable.

Internalising the external costs of light goods vehicle transport in Britain

Report produced as part of the Green Logistics project (EPSRC and Department for Transport funded). To what extent do the taxes paid by the light goods vehicles (LGVs) users in Britain cover their allocated infrastructural, environmental and congestion costs? This report is a continuation of a study on the internalisation of the external costs of heavy goods vehicle activity. Research undertaken jointly by the Transport Studies Group at University of Westminster and Logistics Research Centre at Heriot-Watt University has attempted to answer this question using official government transport statistics and monetary valuations for the external costs.

Internalising the external costs of light and heavy goods vehicle transport in London

Report produced as part of the Green Logistics project (EPSRC and Department for Transport funded). This report provides estimates of the total external costs of LGV and HGV operations in London. In 2006, total LGV and HGV activity imposed external costs of approximately £1.75-£1.8 billion using low, medium and high emission cost values. About 27 per cent of these costs were internalised by duties and taxes paid by LGV operators, compared with 26% in the case of HGVs. If congestion costs are excluded, taxes and duties paid by LGV operators are estimated to be 155% of LGVs' allocated infrastructural and environmental costs, compared with 85% in the case of HGVs. When using the medium emission cost values, LGVs accounted for 56% of these external costs in London and HGVs for 44%.

Internalising the external costs of light goods vehicle transport in Britain

To what extent do the taxes paid by the light goods vehicles (LGVs) users in Britain cover their allocated infrastructural, environmental and congestion costs? This report is a continuation of a study on the internalisation of the external costs of heavy goods vehicle activity. Research undertaken jointly by the Transport Studies Group at University of Westminster and Logistics Research Centre at Heriot-Watt University has attempted to answer this question using official government transport statistics and monetary valuations for the external costs.

Changes in the external costs of freight surface transport in Spain

This paper studies the external costs of surface freight transport in Spain and finds that a reduction occurred over the past 15 years. The analysis yields two conclusions: trucks have experienced a reduction in external costs, and rail has lower externalities. The external costs of road freight transport decrease between 1993 and 2007 (44%). The external costs of rail freight increase by 12%. During this period, the external costs of road freight related to climate increase by 16%, oppositely than those from air pollution and accidents (51 and 44%). The external costs of rail related to pollutant emissions and climate increase by 4% and 43%. Oppositely, the external costs related to accidents decrease by 27%. Road freight generates eight times the external costs of rail, 2.35 Euro cents per tonne kilometre in 2005 (5.6% accidents, 74.7% air pollution and 19.7% climate) vs. 0.28 (13.4% accidents, 53.9% air pollution and 32.7% climate).

A software tool for accurate assessment of costs and CO2 emissions in wood transport using OpenStreetMap©

Costs and environmental impacts are key elements in forest logistics and they must be integrated in forest decision-making. The evaluation of transportation fuel costs and carbon emissions depend on spatial and non-spatial data but in many cases the former type of data are dicult to obtain. On the other hand, the availability of software tools to evaluate transportation fuel consumption as well as costs and emissions of carbon dioxide is limited. We developed a software tool that combines two empirically validated models of truck transportation using Digital Elevation Model (DEM) data and an open spatial data tool, specically OpenStreetMap©. The tool generates tabular data and spatial outputs (maps) with information regarding fuel consumption, cost and CO2 emissions for four types of trucks. It also generates maps of the distribution of transport performance indicators (relation between beeline and real road distances). These outputs can be easily included in forest decision-making support systems. Finally, in this work we applied the tool in a particular case of forest logistics in north-eastern Portugal

A Multi-Criteria GIS-Based Route Selection Tool for Hazardous Material Transport: Consideration of Environmental Consequence, Traffic Congestions and Costs

Hazardous materials are substances that, if not regulated, can pose a threat to human populations and their environmental health, safety or property when transported in commerce. About 1.5 million tons of hazardous material shipments are transported by truck in the US annually, with a steady increase of approximately 5% per year. The objective of this study was to develop a routing tool for hazardous material transport in order to facilitate reduced environmental impacts and less transportation difficulties, yet would also find paths that were still compelling for the shipping carriers as a matter of trucking cost. The study started with identification of inhalation hazard impact zones and explosion protective areas around the location of hypothetical hazardous material releases, considering different parameters (i.e., chemicals characteristics, release quantities, atmospheric condition, etc.). Results showed that depending on the quantity of release, chemical, and atmospheric stability (a function of wind speed, meteorology, sky cover, time and location of accidents, etc.) the consequence of these incidents can differ. The study was extended by selection of other evaluation criteria for further investigation because health risk as an evaluation criterion would not be the only concern in selection of routes. Transportation difficulties (i.e., road blockage and congestion) were incorporated as important factor due to their indirect impact/cost on the users of transportation networks. Trucking costs were also considered as one of the primary criteria in selection of hazardous material paths; otherwise the suggested routes would have not been convincing for the shipping companies. The last but not least criterion was proximity of public places to the routes. The approach evolved from a simple framework to a complicated and efficient GIS-based tool able to investigate transportation networks of any given study area, and capable of generating best routing options for cargos. The suggested tool uses a multi-criteria-decision-making method, which considers the priorities of the decision makers in choosing the cargo routes. Comparison of the routing options based on each criterion and also the overall suitableness of the path in regards to all the criteria (using a multi-criteria-decision-making method) showed that using similar tools as the one proposed by this study can provide decision makers insights in the area of hazardous material transport. This tool shows the probable consequences of considering each path in a very easily understandable way; in the formats of maps and tables, which makes the tradeoffs of costs and risks considerably simpler, as in some cases slightly compromising on trucking cost may drastically decrease the probable health risk and/or traffic difficulties. This will not only be rewarding to the community by making cities safer places to live, but also can be beneficial to shipping companies by allowing them to advertise as environmental friendly conveyors.

A transport protocol for real-time applications in wireless networked control systems

A Networked Control System (NCS) is a feedback-driven control system wherein the control loops are closed through a real-time network. Control and feedback signals in an NCS are exchanged among the system’s components in the form of information packets via the network. Nowadays, wireless technologies such as IEEE802.11 are being introduced to modern NCSs as they offer better scalability, larger bandwidth and lower costs. However, this type of network is not designed for NCSs because it introduces a large amount of dropped data, and unpredictable and long transmission latencies due to the characteristics of wireless channels, which are not acceptable for real-time control systems. Real-time control is a class of time-critical application which requires lossless data transmission, small and deterministic delays and jitter. For a real-time control system, network-introduced problems may degrade the system’s performance significantly or even cause system instability. It is therefore important to develop solutions to satisfy real-time requirements in terms of delays, jitter and data losses, and guarantee high levels of performance for time-critical communications in Wireless Networked Control Systems (WNCSs). To improve or even guarantee real-time performance in wireless control systems, this thesis presents several network layout strategies and a new transport layer protocol. Firstly, real-time performances in regard to data transmission delays and reliability of IEEE 802.11b-based UDP/IP NCSs are evaluated through simulations. After analysis of the simulation results, some network layout strategies are presented to achieve relatively small and deterministic network-introduced latencies and reduce data loss rates. These are effective in providing better network performance without performance degradation of other services. After the investigation into the layout strategies, the thesis presents a new transport protocol which is more effcient than UDP and TCP for guaranteeing reliable and time-critical communications in WNCSs. From the networking perspective, introducing appropriate communication schemes, modifying existing network protocols and devising new protocols, have been the most effective and popular ways to improve or even guarantee real-time performance to a certain extent. Most previously proposed schemes and protocols were designed for real-time multimedia communication and they are not suitable for real-time control systems. Therefore, devising a new network protocol that is able to satisfy real-time requirements in WNCSs is the main objective of this research project. The Conditional Retransmission Enabled Transport Protocol (CRETP) is a new network protocol presented in this thesis. Retransmitting unacknowledged data packets is effective in compensating for data losses. However, every data packet in realtime control systems has a deadline and data is assumed invalid or even harmful when its deadline expires. CRETP performs data retransmission only in the case that data is still valid, which guarantees data timeliness and saves memory and network resources. A trade-off between delivery reliability, transmission latency and network resources can be achieved by the conditional retransmission mechanism. Evaluation of protocol performance was conducted through extensive simulations. Comparative studies between CRETP, UDP and TCP were also performed. These results showed that CRETP significantly: 1). improved reliability of communication, 2). guaranteed validity of received data, 3). reduced transmission latency to an acceptable value, and 4). made delays relatively deterministic and predictable. Furthermore, CRETP achieved the best overall performance in comparative studies which makes it the most suitable transport protocol among the three for real-time communications in a WNCS.