Ibon Galarraga, Luis M. Abadie and Alberto Ansuategi. 5 th Atlantic Workshop on Energy and Environmental Economics A Toxa, 2012


 Cody Woods
 1 years ago
 Views:
Transcription
1 ECONOMIC EFFICIENCY, ENVIRONMENTAL EFFECTIVENESS AND POLITICAL FEASIBILITY OF ENERGY EFFICIENCY REBATES: THE CASE OF THE SPANISH ENERGY EFFICIENCY RENOVE PLAN. Ibon Galarraga, Lus M. Abade and Alberto Ansuateg 5 th Atlantc Workshop on Energy and Envronmental Economcs A Toxa, 2012
2 Overvew 1. Energy labellng and the RENOVE subsdy scheme: some background 2. Research dea 3. Methodology 4. Results 5. Concludng remarks 2
3 1. Energy Labellng and the RENOVE subsdy scheme Energy labellng s acqurng a major mportance n the lght of the EU Clmate and Energy package that sets the target of reducng energy consumpton by 20% by The goal of a 27% energy savng n the resdental sector (European Councl 2006). Drectve 92/75/ECC regulated nformaton on energy and other resources consumpton n household applances. Snce 2008 a Proposal for a Drectve of the European Parlament and of the Councl on the ndcaton by labellng and standard product nformaton of the consumpton of energy and other resources by energyrelated products SEC (2008) 2862 has been under revew. 3
4 1. Energy Labellng and the RENOVE subsdy scheme In many countres subsdes are used to support labelled goods. The RENOVE program s the Spansh polcy. Regulated by Royal Decree 208/2005, 25 February 2005, on electrcal applances and electronc devces and the management of ther wastes. Set up by the Insttute for Energy Dversfcaton and Savng (IDAE, Insttuto para la Dversfcacón y el Ahorro Energétco) But run and managed by the Energy Boards of the Autonomous Communtes (AC). Sets a mnmum of 50 as a lump sum subsdy to consumers (both publc or prvate) wllng to purchase (exchange) hghly effcent durables,.e. labelled as class A or hgher; Some AC have ncreased ths premum to and more. 4
5 2. Research dea How do polcy makers estmate how much s the optmum subsdy? Do they fne tune the program each year accordng to an evaluaton? How can we measure the mpact of the scheme? We need to know how much people are wllng to pay for those labels. Economc valuaton technque. Queston A. And we also need prce elastctes of demand and supply to properly assess the mpact of the polcy. How can be estmate them? Queston B. We can measure the mpact of the scheme and perhaps propose alternatves (?). Queston C. 5
6 2. Research dea Answer to A and to B n: Galarraga, I, Heres, D. and GonzálezEguno, M. (2011), Prce premum for hgheffcency refrgerators and calculaton of prceelastctes for closesubsttutes: Combnng Hedonc Prcng and Demand Systems. Journal of Cleaner Producton. Galarraga, I, GonzálezEguno, M. and Markandya, A. (2011), Wllngness to pay and prce elastctes of demand for energyeffcent applances: combnng the hedonc approach and demand systems. Energy Economcs, vol 33 pp Answer to C: Welfare analyss of proposed polcy and other proposals. A subsdy for energy effcent applances.(exstng polcy!) A tax for noneffcent applances. A combnaton of an small tax on non labelled ones that fnances a subsdy on labelled ones. (BonusMalus type of approach). 6
7 2. Polcy proposal Three prncples: Economc effcency To reduce the welfare losses of the polcy optons,.e. dead weght losses. Envronmental effectveness Not to ncrease the energy bll, that s, no rebound effect. Poltcal feasblty Balanced polcy, should not generate any defct. Settng the ground: We frstly analyse the mpact of the ongong polcy opton (Energyeffcency Rebates) accordng to n these three prncples. We then analyse alternatves that comply wth the three polcy prncples. Fnally, several other optons are studed. 7
8 3. Methodology: Effects of polces The effect of a subsdy n labelled goods: when the prce of labelled goods decreases (shft n supply) the demanded quantty ncreases and the demand for nonlabelled ones Fgure decreases 1: The Effect (substtuton of a Subsdy on effect). the Far Trade We Coffee need Producton nformaton on demand (and supply) elastctes! FT S 0 a FT S 1 OT S FT P 0 FT P 1 b c FT D OT D 1 OT D 0 FT Q 0 FT Q 1 OT Q 1 It generates a DWL n the labelled good market and a loss of welfare n the nonlabelled ones as a consequence of the reducton n the quantty demanded. Fnal outcome s an ncreased loss of welfare comparng wth a stuaton where no substtute exsts. OT Q 0 8
9 3. Methodology: Effects of polces The effect of a tax n nonlabelled goods: when the prce of nonlabelled goods ncreases (shft n supply) the demanded quantty decreases and the demand for labelled Fgure 2: The Effect of a Tax on the other dshwashers ones ncreases (substtuton effect). We need nformaton on demand (and supply) elastctes! O S 1 a O S 0 L S O P 1 b O P 0 c OT D L D 0 L D 1 O x 1 O x 0 It generates a DWL 4.2. Calculatons n the nonlabelled and Values good Used market and a welfare GAIN n the labelled one as a consequence of the ncrease n the quantty demanded. Fnal outcome s an reduced loss of welfare comparng wth a stuaton where no substtute exsts. L x 0 L x 1 9
10 3. Methodology: Mathematcal llustraton x = f( P, Pj, m) = 1,2 (1) x = g( P, Pj ) = 1,2 (2) These demand and supply functon can be now approxmated as constant elastcty functons. x x µ j j η1 = P P m = 1,2 µ (3) ε j j = P P = 1,2 ε (4) where µ s the own prce demand elastcty for product, µ s the cross prce demand elastcty, j ε s the own prce supply elastcty for good, ε s the cross prce supply elastcty and j η s the ncome elastcty of the th product. By dfferentatng equatons (3) and (4) and usng proportonal notaton we can obtan the followng equatons: Ex = µ EP + µ jepj j + η Em = 1,2 (5) Ex = EP + ε EP = 1, 2 ε (6) j j j where E prefx stands for the proportonal change n the varable. 10
11 3. Methodology: Mathematcal llustraton The ntroducton of a tax (subsdy) as a proportonal change n the supply of the product taxed (subsdsed); 1 εj Ex EP EPj ε ε = dp P = 1,2 (7) The change n ncome due to the tax (subsdy) s equal to the quantty consumed of such quantty tmes the prce change orgnated by the tax (subsdy). That s, dm = x dp. By ntroducng the proportonate change; Em = w EP = 1,2 (8) where w stands for the expendture share of good. The dead weght loss, Damond & McFadden (1974) as, DWL = ( X 1 X 0 ) * dp *0.5 1 j= 1 ( X 1 j X 0 j ) * dp j (9) 0 1 where X s the quantty before the tax (subsdy), X s the quantty after the entre tax (subsdy) for has been ntroduced. 11
12 3. Methodology: Values used Elastctes of demand: QDBS ( e e = 0. 4 e = 1) O = L X / X Prce Elastcty cross O/L ( own for L ( cross L/O ( of demand own O/O ( ) ) ) ) Source Galarraga et al. (2011). Elastctes of supply: Some wellguessed supply elastcty values, these are: An own prce elastcty of supply for other applances of 1.5, an own prce elastcty of supply for labelled ones of 1.2. The latter more nelastc. Intal equlbrum prces and quanttes: Product Orgnal Quanttes (Unts) Orgnal average Prces (Euro) Non labelled dshwashers (60%) A+ Labelled dshwashers (40%) Source: Galarraga et al. (2011) 21, , =594 12
13 4. Results: (1) Results of a 80 subsdy Market Segment Orgnal Quanttes Orgnal Prces ( ) Polcy Quanttes Polcy Prces Change n Quant. (%) Change n Prces (%) Balance of the polcy ( ) Welfare loss ( ) Energy savngs ( ) A+ Labelled dshwasher s (40%) Nonlabelled dshwasher s (60%) 12, , , , Subsdy Cost 1,036, , , , Total 33,68034, , There s a rebound effect due to the ncrease n the total number of applances. Although more effcent applances the ncrease n the total number generates an ncrease n the energy bll. The polcy has a cost of 1M. Generates a DWL of 26,
14 4. Results: (2) Polcy alternatves Is a tax a better nstrument? Results of a 40 tax Market Segment Orgnal Quanttes Orgnal Prces ( ) Polcy Quanttes Polcy Prces Change n Quant. (%) Change n Prces (%) Balance of the polcy ( ) Welfare loss ( ) Energy savngs ( ) A+ Labelled dshwashers (40%) 12, , Collected 829, , , Nonlabelled dshwashers (60%) 21, , , ,680 33, , Total There NO rebound effect. In fact there s energy savng. The polcy collects money. And t generates a much lower DWL. Can we mprove ths? What about tax and subsdes at the same tme. 14
15 4. Results: (3) Polcy alternatves Malusbonus type of approaches S(+) ES(+) DWL>25,800 15
16 4. Results: (4) Polcy alternatves Results of a 30 subsdy and 20 tax (wth ncome effect) Market Segment Orgnal Quanttes Orgnal Prces ( ) Polcy Quanttes Polcy Prces Change n Quant. (%) Change n Prces (%) Balance of the polcy ( ) Welfare loss ( ) Energy savngs ( ) A+ Labelled dshwasher s (40%) Nonlabelled dshwasher s (60%) 12, , Collected 7, , , , , , Total 33,68033, , There NO rebound effect. In fact there s energy savng. The polcy collects money. And t generates a much lower DWL. 16
17 4. Results: (5) Polcy alternatves Results of a subsdy and tax (wth ncome effect) Market Segment Orgnal Quanttes Orgnal Prces ( ) Polcy Quanttes Polcy Prces Change n Quant. (%) Change n Prces (%) Balance of the polcy ( ) Welfare loss ( ) Energy savngs ( ) A+ Labelled dshwasher s (40%) Nonlabelled dshwasher s (60%) 12, , Collected 25, , , , , Total 33,68033, , There NO rebound effect. In fact there s energy savng. The polcy collects money. And t generates a lower DWL. 17
18 4. Results: (6) Polcy alternatves Results of a 60 subsdy and 30 tax (wth ncome effect) Market Segment Orgnal Quanttes Orgnal Prces ( ) Polcy Quanttes Polcy Prces Change n Quant. (%) Change n Prces (%) Balance of the polcy ( ) Welfare loss ( ) Energy savngs ( ) A+ Labelled dshwasher s (40%) Nonlabelled dshwasher s (60%) 12, , Collected 16, , , , , , Total 33,68033, , There NO rebound effect. In fact there s energy savng. The polcy has a cost. It generates a lower DWL. 18
19 4. Results: (7) Polcy alternatves Results of a 70 subsdy and 90 tax (wth ncome effect) Market Segment Orgnal Quanttes Orgnal Prces ( ) Polcy Quanttes Polcy Prces Change n Quant. (%) Change n Prces (%) Balance of the polcy ( ) Welfare loss ( ) Energy savngs ( ) A+ Labelled dshwasher s (40%) Nonlabelled dshwasher s (60%) 12, , Collected 164, , , , , , Total 33,68032, , There NO rebound effect. In fact there s energy savng. The polcy collects 0.8 M. But t generates a much hgher DWL. 19
20 5. Concludng remarks As a consequence of the subsdy scheme the total number of dshwashers at the market ncreased n 1%: The labelled ncreased by 5% as a reducton n the equlbrum prce of 9%. 0.5% prce reducton n equlbrum prce reduces the quantty of nonlabelled ones by 1%. Net cost of 1 M euro. And as a consequence of the ncrease n the number of applances there s an ncrease n the energy bll of 196,000. Ths can nterpreted as the cost of the rebound effect. (?) If nstead a 40 tax s mplemented the total number of applances wll be reduced by 1.6% (and no rebound effect wll be expected for ths reason generatng an energy savng of 0.3M ) whle collectng 0.8 M. DWL half of the subsdy. When all cross effects are taken nto account the equlbrum prce wll be 6% hgher for nonlabelled dshwashers (wth a 2.6% decrease n demanded quanttes) and 0.5% for labelled ones (wth a 0.6% decrease n quanttes). 20
21 5. Concludng remarks Fnally, the paper proposes combnatons of both nstruments (subsdes that could be fnanced by smaller taxes on nonlabelled market). One reasonable combnaton can be subsdy 30 and a tax of 20. Ths can be justfed n terms of ethcal belefs, as the users of non effcent applances should be the ones compensatng the consumers that opt for effcent applances nstead of all socety. But also n terms of the three prncples. When (30,20) s mplemented there s an nsgnfcant change n the total applances demanded (less that 1%) whch s explaned by a 2.21% ncrease n labelled segment and a 1.69% decrease n nonlabelled one. The net result of the polcy s a surplus of 42,000 and a modest energy savng s also generated. Comples wth the three prncples. Ths polcy s llustratve of what can be done wth the methodology proposed n the paper when both own and cross prce elastctes are avalable. 21
22 5. Concludng remarks Fnally, the paper proposes combnatons of both nstruments (subsdes that could be fnanced by smaller taxes on nonlabelled market). One reasonable combnaton can be subsdy 30 and a tax of 20. Ths can be justfed n terms of ethcal belefs, as the users of non effcent applances should be the ones compensatng the consumers that opt for effcent applances nstead of all socety. But also n terms of the three prncples. When (30,20) s mplemented there s an nsgnfcant change n the total applances demanded (less that 1%) whch s explaned by a 2.21% ncrease n labelled segment and a 1.69% decrease n nonlabelled one. The net result of the polcy s a surplus of 42,000 and a modest energy savng s also generated. Comples wth the three prncples. Ths polcy s llustratve of what can be done wth the methodology proposed n the paper when both own and cross prce elastctes are avalable. 22
23 BC3 Contact: Thank you! 23
I. Deadweight Loss of a Tax
Economcs 203: Dervaton of Ramsey's Optmal Tax Formula Fall 2007 Casey B. Mullgan These notes derve Ramsey's optmal tax formula that we dscussed n lecture. Econ 203 students should understand the logc behnd
More informationAnswer: A). There is a flatter IS curve in the high MPC economy. Original LM LM after increase in M. IS curve for low MPC economy
4.02 Quz Solutons Fall 2004 MultpleChoce Questons (30/00 ponts) Please, crcle the correct answer for each of the followng 0 multplechoce questons. For each queston, only one of the answers s correct.
More information7. Instruments of Trade Policy
GL458, Internatonal Trade & Globalzaton / K. Chrst 7. Instruments of Trade olcy Learnng Objectves 7. Instruments of Trade olcy Become famlar wth the varous nstruments of trade polcy tarff and nontarff
More information14.02 Principles of Macroeconomics Problem Set 5 Solutions Fall 2004
4.0 Prncples of Macroeconomcs Problem Set 5 Solutons Fall 4 Part I. True/False/Uncertan Justfy your answer wth a short argument.. hgher savng rate alone can sustan hgher growth of output forever. False.
More informationChapter 4 Financial Markets
Chapter 4 Fnancal Markets ECON2123 (Sprng 2012) 14 & 15.3.2012 (Tutoral 5) The demand for money Assumptons: There are only two assets n the fnancal market: money and bonds Prce s fxed and s gven, that
More informationProfessor Cunningham. 1. Question 7 on p. 127 of Mishkin. Liquidity Preference
Money and ankng FE434, Sprng 02 rofessor Cunnngham roblem Set 2 Solutons 1. Queston 7 on p. 127 of Mshkn. Lqudty reference Durng a boom n the cycle, ndvdual s tend to ncrease ther spendng (consumpton).
More informationCOMPOSITE COST OF BORROWING INDICATORS: METHODOLOGICAL NOTE 1
DIECTOATE GENEAL ATIICS DIISION MONETAY & FINANCIAL ATIICS ECBPUBLIC 6 December 206 COMPOSITE CO OF BOOWING INDICATOS: METODOLOGICAL NOTE Introducton One of the man uses of MFI nterest rate statstcs s
More informationMacroeconomic Theory and Policy
ECO 209 Macroeconomc Theory and Polcy Lecture 7: The Open Economy wth Fxed Exchange Rates Gustavo Indart Slde 1 Open Economy under Fxed Exchange Rates Let s consder an open economy wth no captal moblty
More informationAn Overview of the ISLM Model
Insde ECONOMICS Introducton to Macroeconomcs An Overvew of the ISLM Model Introducton The ISLM model shows the relatonshp between nterest rates and output n the goods market and money market. The ISLM
More informationWorkbook For Chapter 5 Of Blanchard Macroeconomics. Part B
Workbook For Chapter 5 Of Blanchard Macroeconomcs. Part B Problem 3 The response of nvestment to fscal polcy. Usng the IS graph, show the effects on output and the nterest rate of a decrease n government
More information2) In the mediumrun/longrun, a decrease in the budget deficit will produce:
4.02 Quz 2 Solutons Fall 2004 MultpleChoce Questons ) Consder the wagesettng and prcesettng equatons we studed n class. Suppose the markup, µ, equals 0.25, and F(u,z) = u. What s the natural rate of
More informationData Envelopment Analysis
Data Envelopment Analyss Data Envelopment Analyss (DEA) s an ncreasngly popular management tool. DEA s commonly used to evaluate the effcency of a number of producers. A typcal statstcal approach s characterzed
More informationOPTIMAL PROVISION OF PUBLIC GOODS. Chapter 7: Public Goods. Optimal Provision of Private Goods
Outlne hapter 7: Publc Goods Optmal provson of publc goods. Underprovson generally characterzes markets wth publc goods absent government nterventon. Prvate sector provson. rowd out Problems OPTIMAL PROVISION
More informationProblem Set 5 Answers
conomcs 302 Menze D. Chnn Sprng 2012 Socal Scences 7418 Unversty of WsconsnMadson Problem Set 5 Answers Due n lecture on Wednesday, May 9th. Be sure to put your name on your problem set. Put boxes around
More informationTechnology and the Solow Model
Technology and the Solow Model Extra credt assgnment You have the opton to make an nclass presentaton 15 mnutes, wll answer questons Some papers cover topcs that go (slghtly) beyond ths course. Counts
More informationNBER WORKING PAPER SERIES EFFICIENCY EFFECTS ON THE U.S. ECONOMY FROM WIRELESS TAXATION. Jerry Hausman
NBER WORKING PAPER SERIES EFFICIENCY EFFECTS ON THE U.S. ECONOMY FROM WIRELESS TAXATION Jerry Hausman Workng Paper 7281 http://www.nber.org/papers/w7281 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts
More informationEU Dairy Policy Reform: Impacts and Challenges Roel Jongeneel
EU Dary Polcy Reform: Impacts and Challenges Roel Jongeneel (LEIWUR The Hague & Wagenngen Unversty, Wagenngen) 10 March 2010 Pars EU Dary Polcy Reform: Impacts and Challenges Synthess and Reflecton based
More informationProblem Set 5 Answers
Economcs 330 Menze D. Chnn Fall 2006 Socal Scences 7418 Unversty of WsconsnMadson Problem Set 5 Answers Due n lecture on Wednesday, December 13 th. No late submssons wll be accepted. Make sure your name
More informationISLM Model with Labor
ISLM Model wth Labor Demand for Labor ( D  assumes frms hre workers to make proft roft  prce x quantty [.e., total revenue]  (labor cost + materals cost + fxed cost [.e., total cost] Value Added 
More informationProblem Set 3. a) We are asked how people will react, if the interest rate i on bonds is negative.
Queston roblem Set 3 a) We are asked how people wll react, f the nterest rate on bonds s negatve. When
More informationPowerofTwo Policies for Single Warehouse MultiRetailer Inventory Systems with Order Frequency Discounts
Powerofwo Polces for Sngle Warehouse MultRetaler Inventory Systems wth Order Frequency Dscounts José A. Ventura Pennsylvana State Unversty (USA) Yale. Herer echnon Israel Insttute of echnology (Israel)
More informationI. INVENTORY CONTROL
I. INVENTORY CONTROL I.7.1. BACKORDERINGEOQ WITH SHORTAGES (1/5) A backorder s demand that wll be flled later than desred. In the backorderng stuaton, a frm does not lose the sale when ts nventory s depleted.
More informationFinn Roar Aune, Hanne Marit Dalen and Cathrine Hagem
Dscusson Papers No. 630, September 2010 Statstcs Norway, Research Department Fnn Roar Aune, Hanne Mart Dalen and Cathrne Hagem Implementng the EU renewable target through green certfcate markets Abstract:
More information14.02: Problem Set 4 Solutions Fall 2003
14.02: Problem Set 4 Solutons Fall 2003 1. True/False State whether each of the followng statements s True or False, and justfy your answer n 23 sentences and/or a smple dagram. (a) A country wth a fxed
More informationWorkbook For Chapter 7 Of Blanchard Macroeconomics.
Workbook For Chapter 7 Of Blanchard Macroeconomcs. roblem 2 Spendng shocks and the medum run a. Usng the ASAD model developed n ths chapter, show the effects of an ncrease n consumer confdence on the
More informationA futuristic view of energy saving and related energy rebound effect in Bangladesh using complete decomposition model (CDM)
BCSIR Avalable onlne at www.banglajol.nfo Bangladesh J. Sc. Ind. Res. 47(3), 313320, 2012 BANGLADESH JOURNAL OF SCIENTIFIC AND INDUSTRIAL RESEARCH Emal: bjsr07@gmal.com A futurstc vew of energy savng
More informationChapter 7: Answers to Questions and Problems
19. Based on the nformaton contaned n Table 73 of the text, the food and apparel ndustres are most compettve and therefore probably represent the best match for the expertse of these managers. Chapter
More informationISLM Model 1 C' dy = di
 odel Solow Assumptons  demand rrelevant n long run; assumes economy s operatng at potental GDP; concerned wth growth  Assumptons  supply s rrelevant n short run; assumes economy s operatng below potental
More informationCHAPTER 18 INFLATION, UNEMPLOYMENT AND AGGREGATE SUPPLY. Themes of the chapter. Nominal rigidities, expectational errors and employment fluctuations
CHAPTER 18 INFLATION, UNEMPLOYMENT AND AGGREGATE SUPPLY Themes of the chapter Nomnal rgdtes, expectatonal errors and employment fluctuatons The shortrun tradeoff between nflaton and unemployment The
More information9.1 The Cumulative Sum Control Chart
Learnng Objectves 9.1 The Cumulatve Sum Control Chart 9.1.1 Basc Prncples: Cusum Control Chart for Montorng the Process Mean If s the target for the process mean, then the cumulatve sum control chart s
More information9 Arithmetic and Geometric Sequence
AAU  Busness Mathematcs I Lecture #5, Aprl 4, 010 9 Arthmetc and Geometrc Sequence Fnte sequence: 1, 5, 9, 13, 17 Fnte seres: 1 + 5 + 9 + 13 +17 Infnte sequence: 1,, 4, 8, 16,... Infnte seres: 1 + + 4
More informationAsymptotic Equipartition Property and Data Compression Exercises
Asymptotc Equpartton Property and Data Compresson Exercses Exercse 3.3: The AEP and source codng. A dscrete memoryless source emts a sequence of statstcally ndependent bnary dgts wth probabltes p() =.5
More informationNasdaq Iceland Bond Indices 01 April 2015
Nasdaq Iceland Bond Indces 01 Aprl 2015 Fxed duraton Indces Introducton Nasdaq Iceland (the Exchange) began calculatng ts current bond ndces n the begnnng of 2005. They were a response to recent changes
More informationVolume 31, Issue 2. Fuel taxes and tolls in costbenefit analysis
Volume 31, Issue Fuel taxes and tolls n costbeneft analyss Pedro Godnho Faculty of Economcs of the Unversty of Combra and GEMF Joana Das Faculty of Economcs of the Unversty of Combra and INESC Combra
More informationNotes on General Equilibrium in an Exchange Economy
Notes on General Equlbrum n an Exchange Economy Ted Bergstrom, Econ 20A, UCSB November 29, 206 From Demand Theory to Equlbrum Theory We have studed Marshallan demand functons for ratonal consumers, where
More informationDetermining Demand for Energy Services: Investigating incomedriven
Determnng Demand for Energy Servces: Investgatng ncomedrven behavours Chantal Guertn* Subal C. Kumbhakar** Anantha K. Duraappah* *Internatonal Insttute for Sustanable Development **State Unversty of New
More informationCAPM and BlackLitterman
CAPM and BlackLtterman IngHaw Cheng y Prnceton Unversty November, 28 Abstract Ths teachng note descrbes CAPM and the BlackLtterman portfolo optmzaton process. Keywords: CAPM, BlackLtterman Ths s a
More informationPaper prepared for presentation at the American Agricultural Economics Association Meeting, Denver Colorado, August 14, 2004.
1 Analyss of Producton Structure of the Canadan Pulp and Paper Industry: 19611996 Paper, # 117984 Mchael Habteyonas Unversty of Alberta Department of Rural Economy Edmonton Canada Emal: mzh@ualberta.ca
More informationEuropean Dairy Industry Model DEMAND FOR DAIRY PRODUCTS IN THE EUROPEAN UNION. Claudio Soregaroli (UNICATTT) Audrey Trévisiol (INRA)
European Dary Industry Model DEMAND FOR DAIRY PRODUCTS IN THE EUROPEAN UNION Claudo Soregarol (UNICATTT) Audrey Trévsol (INRA) Workng Paper 02 /2005 Demand for dary products n the European Unon Claudo
More informationProceedings of the Annual Meeting of the American Statistical Association, August 59, 2001
Proceedngs of the Annual Meetng of the Amercan Statstcal Assocaton, August 59, 2001 LISTASSISTED SAMPLING: THE EFFECT OF TELEPHONE SYSTEM CHANGES ON DESIGN 1 Clyde Tucker, Bureau of Labor Statstcs James
More informationInstitute of Informatics, Faculty of Business and Management, Brno University of Technology,Czech Republic
Lagrange Multplers as Quanttatve Indcators n Economcs Ivan Mezník Insttute of Informatcs, Faculty of Busness and Management, Brno Unversty of TechnologCzech Republc Abstract The quanttatve role of Lagrange
More informationThe Factor Analysis of Energy Efficiency in Taiwan's Service Sectors and Energysaving Strategies
The Factor Analyss of nergy ffcency n Tawan's Servce Sectors and nergysavng Strateges ChYuan Lang, RueHe Jheng, KyenLwan Yan, PoYao Kuo, WenHsang Ln Abstract In order to fgure out the factors that
More informationLECTURE  9 STRATIFIED SAMPLING
Samplng Theory MODULE IV LECTURE  9 STRATIFIED SAMPLIG DR. SHALABH DEPARTMET OF MATHEMATICS AD STATISTICS IDIA ISTITUTE OF TECHOLOGY KAPUR An mportant objectve n any ematon problem s to obtan an emator
More informationHomework 1: The twovariable linear model Answer key to analytical questions
Econ471: Appled Econometrcs Walter SosaEscudero Homework 1: The twovarable lnear model Answer key to analytcal questons I) Excercses 1. Consder the data shown n the next table, on consumpton C and ncome
More informationThis prediction can be tested by use of times series analysis: should be negative. Where i=region1, region2, region3, region4,, region25.
Lecture: EMPIRICAL EVIDENCE ON ECONOMIC GROWTH One predcton of the model s that f ncome per capta ncreases the subsequent growth rate of per capta ncome decreases. For example f an econom s below ts stead
More informationAutonomous Planned Aggregate Expenditure rises at any level of the interest rate.
Autonoous Planned Aggregate Expendture rses at any level of the nterest rate. The level of output that satsfes goodsarket equlbru rses. As output rses, oney deand rses as well, leadng to hgher nterest
More informationb) The mean of the fitted (predicted) values of Y is equal to the mean of the Y values: c) The residuals of the regression line sum up to zero: = ei
Mathematcal Propertes of the Least Squares Regresson The least squares regresson lne obeys certan mathematcal propertes whch are useful to know n practce. The followng propertes can be establshed algebracally:
More informationSocial Disparity of Higher Education in India an Analysis of NSSO 55 th Round Abstract:
Socal Dsparty of Hgher Educaton n Inda an Analyss of NSSO 55 th Round Abstract: Dsparty, measured n terms of enrolment n hgher educaton by age group gves the representaton by socal group, not only that
More informationModelling the Cocaine and Heroin Markets in the Era of Globalization and Drug Reduction Policies Claudia Costa Storti and Paul De Grauwe
Modellng the Cocane and Heron Markets n the Era of Globalzaton and Drug Reducton Polces Clauda Costa Stort and Paul De Grauwe Modellng the Cocane and Heron Markets n the Era of Globalzaton and Drug Reducton
More informationSTATIC OLIGOPOLY MODELS
SØK/ECON 535 Imperfect Competton and Strategc Interacton STATIC OLIGOPOLY MODELS Lecture notes 0.09.0 Nash Equlbrum Descrbes strategc nteracton by equlbrum n noncooperatve games. Strateges: a, =,,...,
More informationNinth INFORUM World Conference th th September 2001 Gerzensee (Switzerland) The analysis of welfare effects in INTIMO Rossella Bardazzi
Nnth INFORUM World Conference th th 916 September 2001 Gerzensee (Swtzerland) The analyss of welfare effects n INTIMO Rossella Bardazz Ths paper deals wth the analyss of welfare effects for an EU member
More information[1] Pricing and Hedging Motivation
[] Prcng and Hedgng Motvaton Fxedncome products can pay ether Fxed cashflows (e.g., fxedrate Treasury coupon bond) Random cashflows: depend on the future evoluton of nterest rates (e.g., floatng rate
More informationH Χρέωση ως Μηχανισμός Ελέγχου Δικτύων. Κωνσταντίνος Κουρκουμπέτης, Βασίλειος Σύρης και Γεώργιος Δ. Σταμούλης
H Χρέωση ως Μηχανισμός Ελέγχου Δικτύων Κωνσταντίνος Κουρκουμπέτης, Βασίλειος Σύρης και Γεώργιος Δ. Σταμούλης Why Charge for Telecommuncaton Servces? In order for the Network (or Servce) Provder to: Recover
More informationEnergy prices, energy efficiency, and fuel poverty 1. Vivien Foster, JeanPhilippe Tre, and Quentin Wodon. World Bank. September 2000.
Energy prces, energy effcency, and fuel poverty 1 Vven Foster, JeanPhlppe Tre, and Quentn Wodon World Bank September 2000 Abstract Because electrcty s much more effcent than other sources of energy for
More informationSimulation Study for a Transformer Based Voltage Regulator
Smulaton Study for a Transformer Based Voltage Regulator Report (Ref: PCSR SC 1 211) Professor Jhong Wang School of Engneerng, Unversty of Warwck, Coventry CV4 7AL, UK Sept. Dec. 211 Executve Summary EMSC
More informationA Simple Economic Model about the Teamwork Pedagogy
Appled Mathematcal Scences, Vol. 6, 01, no. 1, 130 A Smple Economc Model about the Teamwork Pedagog Gregor L. Lght Department of Management, Provdence College Provdence, Rhode Island 0918, USA glght@provdence.edu
More informationNumber of Levels Cumulative Annual operating Income per year construction costs costs ($) ($) ($) 1 600,000 35,000 100,000 2 2,200,000 60,000 350,000
Problem Set 5 Solutons 1 MIT s consderng buldng a new car park near Kendall Square. o unversty funds are avalable (overhead rates are under pressure and the new faclty would have to pay for tself from
More informationDr. Maddah ENMG 400 Engineering Economy 08/05/09. Chapter 18 Sensitivity Analysis and Expected Value Decisions
Dr. Maddah ENMG 400 Engneerng Economy 08/05/09 Chapter 18 Senstvty Analyss and Expected Value Decsons Senstvty analyss Engneerng economy estmates of parameters such as costs and other cash flow are only
More informationCalculations for the Greenhouse Development Rights Calculator
Calculatons for the Greenhouse Development Rghts Calculator Erc KempBenedct September 4, 8 Stockholm Envronment Insttute Workng Paper Abstract The Greenhouse Development Rghts (GDRs) onlne calculator
More informationindustry by simulation analysis
Carbon emsson reducton potental assessment of Chna s Iron and Steel ndustry by smulaton analyss Unversty of Tsukuba, Zhaolng L Tokyo Unversty, Lu Sun Unversty of Tsukuba, Helmut Yabar Unversty of Tsukuba,
More informationSolutions to First Midterm
rofessor Chrstano Economcs 3, Wnter 2004 Solutons to Frst Mdterm. Multple Choce. 2. (a) v. (b). (c) v. (d) v. (e). (f). (g) v. (a) The goods market s n equlbrum when total demand equals total producton,.e.
More informationKiel Institute for World Economics Duesternbrooker Weg 120 24105 Kiel (Germany) Kiel Working Paper No. 1119
Kel Insttute for World Economcs Duesternbrooker Weg 120 24105 Kel (Germany) Kel Workng Paper No. 1119 Under What Condtons Do Venture Captal Markets Emerge? by Andrea Schertler July 2002 The responsblty
More informationOn the Optimal Control of a Cascade of HydroElectric Power Stations
On the Optmal Control of a Cascade of HydroElectrc Power Statons M.C.M. Guedes a, A.F. Rbero a, G.V. Smrnov b and S. Vlela c a Department of Mathematcs, School of Scences, Unversty of Porto, Portugal;
More informationCapital asset pricing model, arbitrage pricing theory and portfolio management
Captal asset prcng model, arbtrage prcng theory and portfolo management Vnod Kothar The captal asset prcng model (CAPM) s great n terms of ts understandng of rsk decomposton of rsk nto securtyspecfc rsk
More informationWORKING PAPERS. The Impact of Technological Change and Lifestyles on the Energy Demand of Households
ÖSTERREICHISCHES INSTITUT FÜR WIRTSCHAFTSFORSCHUNG WORKING PAPERS The Impact of Technologcal Change and Lfestyles on the Energy Demand of Households A Combnaton of Aggregate and Indvdual Household Analyss
More informationFIGHTING INFORMALITY IN SEGMENTED LABOR MARKETS A general equilibrium analysis applied to Uruguay *
Vol. 48, No. 1 (May, 2011), 137 FIGHTING INFORMALITY IN SEGMENTED LABOR MARKETS A general equlbrum analyss appled to Uruguay * Carmen Estrades ** María Inés Terra ** As n other Latn Amercan countres,
More informationRelationship between the Uncompensated Price Elasticity and the. Income Elasticity of Demand under Conditions of Additive Preferences
Relatonshp between the Uncompensated Prce Elastcty and the Income Elastcty of Demand under Condtons of Addtve Preferences Lorenzo Sabatell, PhD GLOBMOD Health, Market Analyss Unt, Barcelona, Span lorenzo.sabatell@globmod.com
More informationPRINCIPLES OF COSTBENEFIT ANALYSIS
Publc Polcy Revew, 2006, Vol.2, No.1 1 PRINCIPLES OF COSTBENEFIT ANALYSIS Robn Boadway Professor, Department of Economcs, Queen's Unversty, Kngston, Canada Abstract Ths paper summarzes the procedure for
More informationCHAPTER 15. Aggregate Demand & Aggregate Supply. Summary. What is the relationship between equilibrium output and price level?
CHATER 5 Aggregate Demand & Aggregate Suppl Summar What s the relatonshp between equlbrum output and prce level? Ths chapter deals wth such a relatonshp. It does so b ntroducng the neokenesan concepts
More informationDynamic Pricing by Restricted Boltzmann Machine
Academc Research Internatonal Vol. 5(6) November 2014 Dynamc Prcng by Restrcted Boltzmann Machne Lusajo M. Mnga 1, Noel E. Mbonde 2 Mbeya Unversty of Scence and Technology, Mbeya, TANZANIA. 1 lusajomnga.103@gmal.com,
More informationChapter 5: Tariffs and Quotas. An import tariff is a tax on the imported goods, levied as goods pass into the
Chapter 5: Tarffs and Quotas n mport tarff s a tax on the mported goods, leved as goods pass nto the domestc country. n mport quota s a physcal lmt on the amount of the mported goods for a specfed perod
More information17 Capital tax competition
17 Captal tax competton 17.1 Introducton Governments would lke to tax a varety of transactons that ncreasngly appear to be moble across jursdctonal boundares. Ths creates one obvous problem: tax base flght.
More informationWhat Shaped the Chinese Manufacturing Energy Use Since 1995 and What s the Prediction for the Future?
What Shaped the Chnese Manufacturng Energy Use Snce 1995 and What s the Predcton for the Future? Lynn Prce, Al Hasanbeg, Hongyou Lu, Cecla FnoChen, and Jng Ke Lawrence Berkeley Natonal Laboratory ABSTRACT
More informationEvaluating the Effects of FUNDEF on Wages and Test Scores in Brazil *
Evaluatng the Effects of FUNDEF on Wages and Test Scores n Brazl * Naérco MenezesFlho Elane Pazello Unversty of São Paulo Abstract In ths paper we nvestgate the effects of the 1998 reform n the fundng
More informationLinear Regression The Method of Least Squares Data Fitting
Lnear Regresson The Method of Least Squares Data Fttng by Dr. James E. Parks Department of Physcs and Astronomy 401 Nelsen Physcs Buldng The Unversty of Tennessee Knoxvlle, Tennessee 37996100 Copyrght
More informationBRTP: Border Routing & Transport Protocol. Debish Fesehaye & Klara Nahrstedt University of IllinoisUrbana Champaign
BRTP: Border Routng & Transport Protocol Debsh Fesehaye & Klara Nahrstedt Unversty of IllnosUrbana Champagn Routng & Transport Protocols Any network communcaton system nvolves fndng a path (routng) and
More informationEuropean Union Import Demand for InShell Peanuts: The Source Differentiated AIDS Model 1
European Unon Import Demand for InShell Peanuts: The Source Dfferentated AIDS Model 1 Tullaya Boonsaeng Post Doctoral Assocate Department of Agrcultural and Appled Economcs Unversty of Georga Emal: tullaya@uga.edu
More informationWeek 6 Market Failure due to Externalities
Week 6 Market Falure due to Externaltes 1. Externaltes n externalty exsts when the acton of one agent unavodably affects the welfare of another agent. The affected agent may be a consumer, gvng rse to
More informationRealization of uniform approximation by applying meansquare approximation
Computer Applcatons n Electrcal Engneerng Realzaton of unform approxmaton by applyng meansquare approxmaton Jan Purczyńsk West Pomeranan Unversty of Technology 71126 Szczecn, ul 26 Kwetna 1, emal: janpurczynsk@pspl
More informationEXAM. Exam #2. Math 1430, Spring March 26, 2001 ANSWERS
EXAM Exam #2 Math 1430, Sprng 2002 March 26, 2001 ANSWERS Here are some possbly useful formulas from Chapter 3: A = P (1 + rt), A = P (1 + ) n, ( APY = 1 + r ) m 1, FV = PMT (1 + )n 1, m PV = PMT 1 (1
More informationEconomies of Scale in Hong Kong s Banking Industry
2014 年 2 月第十七卷一期 Vol. 17, No. 1, February 2014 Economes of Scale n Hong Kong s Banng Industry Agol Ho http://cmr.ba.ouh.edu.h Web Journal of Chnese Management Revew Vol 17 No 1 1 Economes of Scale n Hong
More informationThe Pricing Strategy of the Manufacturer with Dual Channel under Multiple Competitions
Internatonal Journal of uand eservce, Scence and Technology Vol.7, No.4 (04), pp.34 http://dx.do.org/0.457/junnesst.04.7.4. The Prcng Strategy of the Manufacturer wth Dual Channel under Multple Compettons
More informationOverview of monitoring and evaluation
540 Toolkt to Combat Traffckng n Persons Tool 10.1 Overvew of montorng and evaluaton Overvew Ths tool brefly descrbes both montorng and evaluaton, and the dstncton between the two. What s montorng? Montorng
More informationAddendum to: Importing SkillBiased Technology
Addendum to: Importng SkllBased Technology Arel Bursten UCLA and NBER Javer Cravno UCLA August 202 Jonathan Vogel Columba and NBER Abstract Ths Addendum derves the results dscussed n secton 3.3 of our
More informationMembers not eligible for this option
DC  Lump sum optons R6.1 Uncrystallsed funds penson lump sum An uncrystallsed funds penson lump sum, known as a UFPLS (also called a FLUMP), s a way of takng your penson pot wthout takng money from a
More informationEstimation of Gini coefficients using Lorenz curves
Journal of Statstcal and Econometrc Methods, vol.1, no.2, 2012, 3138 ISSN: 22410384 (prnt), 22410376 (onlne) Scenpress Ltd, 2012 Estmaton of Gn coeffcents usng Lorenz curves Johan Fellman 1,2 Abstract
More informationMarginal Benefit Incidence Analysis Using a Single Crosssection of Data. Mohamed Ihsan Ajwad and Quentin Wodon 1. World Bank.
Margnal Beneft Incdence Analyss Usng a Sngle Crosssecton of Data Mohamed Ihsan Ajwad and uentn Wodon World Bank August 200 Abstract In a recent paper, Lanjouw and Ravallon proposed an attractve and smple
More informationInvestigating the effects of targeting subsidies on macroeconomics variables of agricultural sector in Iran
Afrcan Journal of Agrcultural Research Vol. 6(2), pp. 38239, 8 January, 20 Avalable onlne at http://www.academcournals.org/ajar ISSN 99637X 20 Academc Journals Full Length Research Paper Investgatng
More informationUncertainty in measurements of power and energy on power networks
Uncertanty n measurements of power and energy on power networks E. Manov, N. Kolev Department of Measurement and Instrumentaton, Techncal Unversty Sofa, bul. Klment Ohrdsk No8, bl., 000 Sofa, Bulgara Tel./fax:
More informationChapter 11 Practice Problems Answers
Chapter 11 Practce Problems Answers 1. Would you be more wllng to lend to a frend f she put all of her lfe savngs nto her busness than you would f she had not done so? Why? Ths problem s ntended to make
More informationLecture 3.4 Electric Potential
Lecture 3.4 Electrc Potental Today we are gong to look at electrostatc problems from a dfferent stand pont. We wll use the same dea whch we have developed n classcal mechancs. As you may recall, we frst
More informationMARKET STRUCTURE AND ENVIRONMENTAL INNOVATION
Journal of Appled Economcs, Vol. V, No. (Nov 00, 9335 MARKET STRUCTURE AND ENVIRONMENTAL INNOVATION 93 MARKET STRUCTURE AND ENVIRONMENTAL INNOVATION JUANPABLO MONTERO * Catholc Unversty of Chle and MIT
More informationElasticity The percentage change in a dependent variable resulting from a 1% change in another variable. , I, I,...I )
Elastcty Elastcty The percentage change n a dependent varable resultng rom a 1% change n another varable. We have seen how the demand or the th good depends on the prces o all goods and ncome x (p I.
More informationA Computer Technique for Solving LP Problems with Bounded Variables
Dhaka Unv. J. Sc. 60(2): 163168, 2012 (July) A Computer Technque for Solvng LP Problems wth Bounded Varables S. M. Atqur Rahman Chowdhury * and Sanwar Uddn Ahmad Department of Mathematcs; Unversty of
More informationFuel Economy and CO2 Emissions Standards, Manufacturer Pricing Strategies, and Feebates
Lu and Greene 1 Fuel Economy and CO2 Emssons Standards, Manufacturer Prcng Strateges, and Feebates Changzheng Lu (Correspondng Author) Research Assocate Oak Rdge Natonal Laboratory Natonal Transportaton
More information1 Approximation Algorithms
CME 305: Dscrete Mathematcs and Algorthms 1 Approxmaton Algorthms In lght of the apparent ntractablty of the problems we beleve not to le n P, t makes sense to pursue deas other than complete solutons
More informationMultiple Linear Regression
Multple Lnear Regresson Heteroskedastcty Heteroskedastcty Multple Lnear Regresson: Assumptons Assumpton MLR. (Lnearty n parameters) Assumpton MLR. (Random Samplng from the populaton) We have a random sample:
More information5.4 Headon Elastic Collisions
5.4 Headon Elastc Collsons In prevous sectons, you read about systems nvolvng elastc and nelastc collsons. You appled the law of conservaton of momentum and the law of conservaton of netc energy to solve
More informationHow Strong Are Weak Patents? Joseph Farrell and Carl Shapiro. Supplementary Material Licensing Probabilistic Patents to Cournot Oligopolists *
How Strong Are Weak Patents? Joseph Farrell and Carl Shapro Supplementary Materal Lcensng Probablstc Patents to Cournot Olgopolsts * January 007 We study here the specal case n whch downstream competton
More informationEstimation of Perceived Flood Damage in Tokyo Metropolitan Area
Estmaton of Perceved Flood Damage n Tokyo Metropoltan Area Azusa OKAGAWA* Akra HIBIKI* * Natonal Insttute for Envronmental Studes Overvew Comparng prces of lands wth/wthout flood rsk Land prce wthout flood
More information