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on Computational Economics |
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Issue of 2012‒09‒16
six papers chosen by |
| By: | Matthias Weitzel; Michael Hübler; Sonja Peterson |
| Abstract: | We carry out a detailed sensitivity analysis of border carbon adjustment (rates) by applying a global Computable General Equilibrium (CGE) GTAP7-based model. We find different incentives for the regions in the climate coalition to raise carbon-based border tax rates (BTAX) above the standard rate that mimics an equalisation of carbon prices across regions. Herein, the strategic use of BTAX (the manipulation of the terms of trade) is stronger for all coalition regions than the environmental use (the reduction of carbon emissions abroad). Higher BTAX can reduce carbon leakage but with a declining marginal effect. Furthermore, we find different incentives for regions outside the coalition to oppose high BTAX rates: Russia and the other energy exporters would oppose it, while the Low-Income Countries would not because of benefits from the trade diversion effect. Thus, BTAX encourages the former to join the coalition, while compensating transfers are necessary to encourage the other (developing) countries including China and India |
| Keywords: | climate policy, border tax adjustment, leakage, trade diversion, coalitions, general equilibrium mod |
| JEL: | F13 F18 Q54 |
| Date: | 2012–08 |
| URL: | http://d.repec.org/n?u=RePEc:kie:kieliw:1792&r=cmp |
| By: | Puddu,Marco; Bartolini, Fabio; Viaggi,Davide |
| Abstract: | Factor markets are a central issue in analyses of farm development and of agricultural sector vitality. Among the different production factors, land is one of the most studied. Several studies seek to estimate the effect of government policy payments on land value or land rental prices. The studies mostly agree that government payments and other types of policy support are significant in explaining land prices and account for a large share of them. In October 2011, the European Commission published a new policy proposal for the common agricultural policy (CAP) up to 2020. The proposed regulation includes a shift from historical to regional payments. The objective of this paper is to provide an ex ante analysis of the impact of the new CAP policy instruments on the land market. In particular, the effect of the regionalisation of payments in Italy is examined. The analysis is based on the use of a mathematical programming model to simulate the changes in land demand for a farm in Emilia Romagna. The results highlight the relevance of the new policy mechanism in determining a change in land demand. Yet the effect is highly dependent on initial ownership of entitlements under the historical payment scheme. |
| Date: | 2012–07 |
| URL: | http://d.repec.org/n?u=RePEc:eps:fmwppr:132&r=cmp |
| By: | Suzi Kerr (Motu Economic and Public Policy Research); Simon Anastasiadis (Motu Economic and Public Policy Research); Alex Olssen (Motu Economic and Public Policy Research); William Power (GNS Science); Levente Tímár (Motu Economic and Public Policy Research and GNS Science); Wei Zhang (Ministry for Primary Industries) |
| Abstract: | We perform simulations using the integrated Land Use in Rural New Zealand (LURNZ) model to analyse the effect of various New Zealand emissions trading scheme (ETS) scenarios on land-use, emissions, and output in a temporally and spatially explicit manner. We compare the impact of afforestation to the impact of other land-use change on net greenhouse gas emissions, and evaluate the importance of the forestry component of the ETS relative to the agricultural component. We also examine the effect of land-use change on the time profile of net emissions from the forestry sector. Our projections for the mid-2020s suggest that under a comprehensive ETS, sequestration associated with new planting could be significant; it may approach 20 percent of national inventory agricultural emissions in 2008. Most of this is driven by the reward for forestry rather than a liability for agricultural emissions. Finally, we present projections of future agricultural output under various policy scenarios. |
| Keywords: | land use; land-use change; LURNZ; greenhouse-gas emissions; afforestation; forestry removals; New Zealand Emissions Trading Scheme; integrated modelling; agricultural production |
| JEL: | Q15 Q18 Q23 Q54 |
| Date: | 2012–09 |
| URL: | http://d.repec.org/n?u=RePEc:mtu:wpaper:12_10&r=cmp |
| By: | Yongyang Cai; Kenneth L. Judd; Thomas S. Lontzek |
| Abstract: | Continuous time is a superior representation of both the economic and climate systems that Integrated Assessment Models (IAM) aim to study. Moreover, continuous-time representations are simple to express. Continuous-time models are usually solved by discretizing time, but the quality of a solution is significantly affected by the details of the discretization. The numerical analysis literature offers many reliable methods, and should be used because alternatives derived from “intuition” may be significantly inferior. We take the well-known DICE model as an example. DICE uses 10-year time steps. We first identify the underlying continuous-time model of DICE. Second, we present mathematical and computational methods for transforming continuous-time deterministic perfect foresight models into systems of finite difference equations. While some transformations create finite difference systems that look like a discrete-time dynamical system, the only proper way to view the finite difference system is as an approximation of the continuous-time problem. DICE is an example where the usage of finite difference methods from numerical analysis produces far superior approximations than do simple discrete-time systems. |
| JEL: | C61 C63 D81 Q54 |
| Date: | 2012–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:18365&r=cmp |
| By: | Brandouy, Olivier (University Paris 1 Pantheon Sorbonne, Sorbonne Graduate Business School); Kerstens, Kristiaan (IESEG School of Management); Van de Woestyne, Ignace (HUBrussel) |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:hub:wpecon:201229&r=cmp |
| By: | J. H. Ll. Dewhurst |
| Abstract: | The measurement of inter-connectedness in an economy using input-output tables is not new, however much of the previous literature has not had any explicit dynamic dimension. Studies have tried to estimate the degree of inter-relatedness for an economy at a given point in time using one input-output table, some have compared different economies at a point in time but few have looked at the question of how interconnectedness within an economy changes over time. The publication in 2010 of a consistent series of input-output tables for Scotland offers the researcher the opportunity to track changes in the degree of inter-connectedness over the seven year period 1998 to 2007. The paper is in two parts. A simple measure of inter-connectedness is introduced in the first part of the paper and applied to the Scottish tables. In the second part of the paper an extraction method is applied to sector by sector to the tables in order to estimate how interconnectedness has changed over time for each industrial sector. |
| Keywords: | Extraction method, Input-Output Analysis, Inter-connectedness, Scottish economy |
| JEL: | R11 R12 R15 |
| Date: | 2012–09 |
| URL: | http://d.repec.org/n?u=RePEc:dun:dpaper:271&r=cmp |