nep-ene New Economics Papers
on Energy Economics
Issue of 2008‒05‒10
eight papers chosen by
Roger Fouquet
Imperial College, UK

  1. Resources for Peace? Managing Revenues from Extractive Industries in Post-Conflict Environments By Philippe Le Billon
  2. Economic and Trade Policy Impacts of Sustained High Oil Prices By Edward Christie; Mario Holzner
  3. Production Diversification Trends In The Manufacturing Sector And Its Impact On Iraqi Economy By Alrubaie, falah.K.Ali
  4. Identification of Segments of Thermo Energy Plants with a Latent Class Model By Carlos Pestana Barros
  5. The Rise of the Mega-Region By Florida, Richard; Gulden, Tim; Mellander, Charlotta
  6. Environmental input-output analysis and life cycle assessment applied to the case of hydrogen and fuel cells buses By Cantono Simona
  7. Strategic environmental policy under free trade with transboundary pollution By Sikdar, Shiva; Lapan, Harvey E.
  8. Democracy, Income, and Environmental Quality By Kevin Gallagher; Strom Thacker

  1. By: Philippe Le Billon
    Abstract: Revenues from extractive sectors such as oil and gas, minerals, and logging play an important role in many post-conflict environments, often providing more than 30% of state fiscal receipts. When managed well, these revenues can help to finance postwar reconstruction and other vital peace-related needs. When mismanaged, however, resource revenues can undermine both economic performance and the quality of governance, thereby heightening the risk of renewed violence. This paper offers a number of proposals for managing revenues from extractive industries to better support peacebuilding. <p></p><p class="MsoNormal" style="text-align: justify;"><i><span></span></i><span> </span></p>
    Keywords: Extractive resources; oil revenues; peacebuilding; revenue-sharing
    JEL: D74 F13 F51 F53 O13 O19 Q34
    Date: 2008
  2. By: Edward Christie (The Vienna Institute for International Economic Studies, wiiw); Mario Holzner (The Vienna Institute for International Economic Studies, wiiw)
    Abstract: This study provides an overview of the most important economic and trade policy impacts of high oil prices in the European Union. The potential reasons for recent oil price increases are briefly discussed, followed by a review of the macroeconomic effects of higher oil prices, namely on growth, inflation and trade balances. Industry-specific effects are then assessed, offering both a historic perspective and descriptive elements regarding possible future developments. Price effects are also assessed, covering final energy product prices, industrial commodity prices and agricultural and food prices. The study then presents the main responses of economic agents to higher energy prices, with a particular focus on corporate supply chains, production relocations, fuel substitution efforts and energy efficiency measures. Finally, the potential for appropriate policy responses at the Community level is discussed, notably with respect to available trade policy and external policy instruments.
    Keywords: oil price, oil shock, commodity prices, corporate responses, energy efficiency, trade policy
    JEL: Q43 Q48 Q49
    Date: 2008–04
  3. By: Alrubaie, falah.K.Ali
    Abstract: The main problem facing the Iraqi economy waylay in excessive dependence on one product is crude oil, which is dominated on major contribution in GDP, exports and public revenue and this product prone to structural changes, technological changes and fluctuations on oil prices in international markets, in addition to the fluctuations in Iraq's relations with the international community and with his neighborhood specially during the period (1980-2003) and concomitant wars and international harsh sanctions imposed lasted (1991-2003) following its invasion of Kuwait in 1991, the result of all these developments diversification efforts suffered a serious setback setting the Iraqi economy in a rattrap. This study focuses on study the period (1975 - 1990) in order to determine the size achievement in the diversification production field, because that period has special attention by concerned in the affairs of planning and economic policy in Iraq, as a historic opportunity to diversify the productive structure of the Iraqi economy and transformation the agricultural- extract structure to industrial - extract the industrial structure, the diversification efforts during that period based on increase the rates of investment in petrochemical industries, oil refining industry and other industries that depend on oil, natural gas, which Iraq enjoyed States a clear competitive advantage. However, the wars and deteriorate political conditions had prevented the achievement of these goals, and the Iraqi economy has remained suffered from negative effects on the continued overdependence on oil revenues, This study focuses on analysis the trends Production diversification in the Iraqi economy by measuring levels of production diversification in the manufacturing sector in branches, activities and patterns, small and large scale, import substitution and encourage exports activities , to diagnose the reality of production diversification. Finally the study recommend to re-study the comparative advantages of domestic resources and financial, human and technical , to re-evaluate the policies of industrialization by focuses on the industries that have ability to raise value-added manufacturing and diversify manufacturing production , in order to strengthen the role of export industries and the industries which contribute to reducing dependence on the oil sector ,and which achieve a higher value-added ,and offer more job opportunities, and more productivity, to raise growth rates in the long term, and diversification the structure of Production in Iraqi economy
    Keywords: اتجاهات التنويع الإنتاجي في قطاع الصناعة التحويلية وأثرها على الاقتصاد العراقي
    JEL: L60
    Date: 2004–09–10
  4. By: Carlos Pestana Barros
    Abstract: This paper identifies different groups in a cost function framework of thermo energy plants belonging to EDP-Electricity of Portugal. In particular, we have clustered the sample - comprising data for years 1987 to 2006 - into two groups. To do so, we have implemented a stochastic frontier latent class model, a procedure that also permits us to analyze also the efficiency of the thermo energy plants with respect to their own frontiers. The results reveal that some of the plants could improve their efficiency levels substantially.
    Keywords: cost efficiency; latent class model; thermo energy plants; stochastic frontier.
    Date: 2008–03
  5. By: Florida, Richard (MPI Rotman School of Management); Gulden, Tim (Center for International and Security Studies at the University of Maryland School of Public Policy); Mellander, Charlotta (Prosperity Institute of Scandinavia JIBS and CESIS)
    Abstract: This paper uses a global dataset of nighttime light emissions to produce an objectively consistent set of mega-regions for the globe. We draw on high resolution population data to estimate the population of each of these regions. We then process the light data in combination with published estimates of national GDP to produce rough but useful estimates of the economic activity of each region. We also present estimates of technological and scientific innovation. We identify 40 mega-regions with economic output of more than $100 billion that produce 66 percent of world output and accounts for 85 percent of global innovation.
    Keywords: Mega-region; Globalization; Urbanization; Nighttime lights
    JEL: O18 R10
    Date: 2008–04–28
  6. By: Cantono Simona (University of Turin)
    Date: 2008–04
  7. By: Sikdar, Shiva; Lapan, Harvey E.
    Abstract: We analyze the effects of free trade on environmental policies in a strategic setting with transboundary pollution. Trade liberalization can result in a race to the bottom in environmental outcomes, making both countries worse off. With command and control policies (quotas), there is no race to the bottom. However, with internationally tradable permits, unless pollution is a pure global public bad, there is a race to the bottom in environmental policy. In our model carbon leakage alone, and not a terms of trade motive, drives countries to relax domestic environmental policy. Quantity-based tools strictly welfare-dominate price-based tools under free trade.
    Keywords: Free trade; Transboundary pollution; Environmental policy; Carbon leakage; Race to the bottom
    JEL: D6 F1 H2 Q5
    Date: 2008–05–01
  8. By: Kevin Gallagher; Strom Thacker
    Abstract: This Working Paper considers the role of democracy in environmental quality and the Environmental Kuznets Curve (EKC). Some studies in the EKC literature have examined the extent to which democratic nations are more or less apt to have improving environmental conditions, but they have drawn from static measures of a nation’s current regime. In this paper the authors examine panel data from 1960 to 2001 and analyze the extent to which both the current level and the stock of a country’s democracy have significant and independent effects on a nation’s sulfur and carbon dioxide emissions.While they find no evidence for the short-run effect of the current level of democracy, they do find strong evidence that long-term democracy stock helps lower sulfur and carbon dioxide emissions.
    Keywords: Environmental Kuznets Curve; political economy of environment; sulfur emissions; carbon dioxide emissions; democracy; democracy stock; democracy and environment
    Date: 2008

This nep-ene issue is ©2008 by Roger Fouquet. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.