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on Microeconomic European Issues |
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Issue of 2010‒11‒27
fifteen papers chosen by Giuseppe Marotta University of Modena and Reggio Emilia |
| By: | Alberola, Emilie; Chevallier, Julien; Mansanet-Bataller, Maria; Hervé-Mignucci, Morgan |
| Abstract: | This article studies the price relationships between EU emissions allowances (EUAs) - valid under the EU Emissions Trading Scheme (EU ETS) - and secondary Certified Emissions Reductions (sCERs) - established from primary CERs generated through the Kyoto Protocol's Clean Development Mechanism (CDM). Given the price differences between EUAs and sCERs, financial and industrial operators may benefit from arbitrage strategies by buying sCERs and selling EUAs (i.e. selling the EUAsCER spread) to cover their compliance position as industrial operators are allowed to use sCERs towards compliance with their emissions cap within the European system up to 13.4%. Our central results show that the spread is mainly driven by EUA prices and market microstructure variables and less importantly, as we would expect, by emissions-related fundamental drivers. This might be justified by the fact that the EU ETS remains the greatest source of CER demand to date. |
| Keywords: | EUA-sCER Spread; Arbitrage; Emissions Markets; |
| JEL: | Q58 Q57 Q48 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ner:dauphi:urn:hdl:123456789/5109&r=eur |
| By: | Alessia LO TURCO (Universita' Politecnica delle Marche, Dipartimento di Economia); Aleksandra PARTEKA (Universita' Politecnica delle Marche, Dipartimento di Economia) |
| Abstract: | We analyse the consequences of trade integration in Europe (1995-2005) detecting how the labor costs in partner countries affects the demand for domestic high- and low-skilled labor in the EU-15 and five new member states. In general, independently on the skill level, the results hint at complementarity between domestic and foreign labor. However, the demand for the high skilled in New EU members' low skill intensive sectors is boosted by the increase of the average labor cost in Old EU members, thus hinting for these sectors at the high skilled in New member countries substituting for labor in Old EU. |
| Keywords: | EU integration, labor markets, trade |
| JEL: | F15 F16 J31 |
| Date: | 2010–09 |
| URL: | http://d.repec.org/n?u=RePEc:anc:wpaper:348&r=eur |
| By: | Umber, Marc P.; Grote, Michael H.; Frey, Rainer |
| Abstract: | National borders are still strong barriers for mergers and acquisitions in Europe. We estimate a gravity equation model based on NUTS 2-regions and find that the restraining impact of national borders decreased by about a third between 1990 and 2007. However, there has been no significant change since 1997, i.e., two years before the introduction of the Euro. To benchmark our results we run a corresponding analysis within the United States using the ten federal OMB regions as country equivalents. The 'quasi border'-effect in the US is weaker than in the EU and even declines more during the same time period. We conclude that European integration policy has little effect on fostering cross-border transactions. -- |
| Keywords: | European integration,corporate control,border effects |
| JEL: | F21 G34 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fsfmwp:150&r=eur |
| By: | Nadine Heitmann; Christine Bertram; Daiju Narita |
| Abstract: | Carbon dioxide capture and storage (CCS) has recently been receiving increasing recognition in policy debates. Various aspects of possible regulatory frameworks for its implementation are beginning to be discussed in Europe. One of the issues associated with the wide use of CCS is that it requires the establishment of a carbon dioxide (CO2) transport network, which could result in the spatial restructuring of power generation and transmission systems. This poses a significant coordination problem necessitating public planning and regulation. This paper reviews the recent literature on energy system modeling pertaining to the problem of installing CCS-related infrastructure throughout Europe and also discusses the policy issues that need to be addressed for a potential wide implementation of CCS in the next decades |
| Keywords: | CCS (carbon dioxide capture and storage), the European Union, climate policy, energy system models, cost effectiveness |
| JEL: | Q41 Q48 Q52 Q54 |
| Date: | 2010–11 |
| URL: | http://d.repec.org/n?u=RePEc:kie:kieliw:1657&r=eur |
| By: | Chevallier, Julien |
| Abstract: | This article investigates the presence of outliers in the volatility of carbon prices. We compute three different measures of volatility for European Union Allowances, based on daily data (EGARCH model), option prices (implied volatility), and intraday data (realized volatility). Based on the methodology developed by Zeileis et al. (2003) and Zeileis (2006), we detect instability in the volatility of carbon prices based on two kinds of tests: retrospective tests (OLS-/Recursive-based CUSUM processes, F-statistics, and residual sum of squares), and forward-looking tests (by monitoring structural changes recursively or with moving estimates). We show evidence of strong shifts mainly for the EGARCH and IV models during the time period. Overall, we suggest that yearly compliance events, and growing uncertainties in post-Kyoto international agreements, may explain the instability in the volatility of carbon prices. |
| Keywords: | Instability test; EGARCH; Implied volatility; Realized volatility; EU ETS; Carbon price; |
| JEL: | C1 G1 Q5 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ner:dauphi:urn:hdl:123456789/5110&r=eur |
| By: | Lundgren, Tommy (CERE); Marklund, Per-Olov (CERE) |
| Abstract: | As widely recognized, human mankind stands before the most challenging problem of preventing anthropogenic climate change. As a response to this, the European Union advocates an ambitious climate policy mix. However, there is no consensus concerning the impact of stringent environmental policy on firms’ competitiveness and profitability. From the traditional ‘static’ point of view there are productivity losses to be expected. On the other hand, the so called Porter hypothesis suggests the opposite; i.e., due to ‘dynamic’ effects, ambitious climate and energy policies within the EU could actually be beneficial to firms in terms of enhanced profitability and competitiveness. Based on Sweden’s manufacturing industry, our main purpose is to specifically assess the impact of the CO2 tax scheme of Sweden on firms’ profit efficiency. The empirical methodology is based on stochastic frontier estimations and, in general, the results suggest we can neither reject nor confirm the Porter hypothesis across industry sectors. Therefore, we do not generally confirm the argument of stringent environmental policies having positive dynamic effects that potentially offset costs related to environmental policy. |
| Keywords: | CO2 tax; efficiency; stochastic frontier analysis; Swedish industry |
| JEL: | D20 H23 Q52 Q55 |
| Date: | 2010–06–02 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:slucer:2010_011&r=eur |
| By: | Benjamin Bureau (CERNA - Centre d'économie industrielle - Mines ParisTech) |
| Abstract: | This paper analyses the distributional effects of alternative scenarios of carbon taxes on car fuels using disaggregated French panel data from 2003 to 2006. It incorporates household price responsiveness that differs across income groups into a consumer surplus measure of tax burden. Carbon taxation is regressive before revenue recycling. However, taking into account the benefits from congestion reduction induced by the tax mitigates regressivity. We show also that recycling additional revenues from the carbon tax either in equal amounts to each household or according to household size makes poorest households better off. |
| Keywords: | carbon tax; distributional effects |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-00530054_v2&r=eur |
| By: | Alessia LO TURCO (Universita' Politecnica delle Marche, Dipartimento di Economia); Daniela MAGGIONI (Universita' Politecnica delle Marche, Dipartimento di Economia) |
| Abstract: | Making use of an original data set we investigate the effects of imports of intermediates from high and low income countries on the conditional labour demand of a panel of Italian manufacturing firms. We estimate a dynamic panel data model by means of System GMM allowing for the endogeneity of our right hand side regressors, especially our offshoring measures. Our results bear a negative offshoring effect which is attributable exclusively to imports of intermediates from low income trading partners and mainly concerns firms operating in Traditional sectors. No statistically significant effect is estimated for imports from high income countries. These findings are robust to the different measures of offshoring and to the inclusion of further controls. |
| Keywords: | dynamic panel data model, employment, offshoring |
| JEL: | F14 F16 J23 L23 |
| Date: | 2010–11 |
| URL: | http://d.repec.org/n?u=RePEc:anc:wpaper:350&r=eur |
| By: | Ville Kaitila |
| Abstract: | We propose a new way to measure the extent to which countries compete in their exports. We augment the similarity index proposed by Finger and Kreinin (1979) with product quality. Quality is measured using unit export prices in the tradition of the horizontal/vertical intra-industry trade literature. We analyse the EU27 countries’ export structures using 1) overall similarity à la Finger and Kreinin, 2) same-quality similarity, and 3) quality-adjusted similarity that combines the first two measures. We find that the similarity of the export structures of the new member countries and the cohesion countries vis-à-vis the non-cohesion EU15 countries has increased, but that there remains a divide between them especially in terms of same-quality exports. |
| Keywords: | exports, similarity, quality |
| JEL: | F14 F15 |
| Date: | 2010–11–15 |
| URL: | http://d.repec.org/n?u=RePEc:rif:dpaper:1227&r=eur |
| By: | Andrea Bassanini; Thomas Breda; Eve Caroli; Antoine Rebérioux |
| Abstract: | We study the compensation package offered by family firms. Using matched employer-employee data for a sample of French establishments in the 2000s, we first show that family firms pay on average lower wages to their workers. This family/non-family wage gap is robust to controlling for several establishment and individual characteristics and does not appear to be due either to the differential of productivity between family and non-family firms or to unobserved establishment and individual heterogeneity. Moreover, it is relatively homogeneous across workers with different gende, educational attainment and age. By contrast, the family/non-family wage gap is found to be larger for clerks and bluecollar workers than for managers, supervisors and technicians, for whom we find no significant wage gap. As a second step, we investigate why workers stay in family firms while being paid less. We show that these firms offer greater job security. We find evidence that the rate of dismissal is lower in family than in non-family firms. We also show that family firms rely less on dismissals and more on hiring reductions when they downsize. These results are confirmed by subjective data: the perceived risk of dismissal is significantly lower in family firms than in non-family ones. We speculate that our results can be explained either by a compensating wage differential story or by a model in which workers sort in different firms according to their preferences. |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:pse:psecon:2010-40&r=eur |
| By: | Grund, Christian (University of Würzburg); Martin, Johannes (University of Würzburg) |
| Abstract: | Based on a German representative sample of employees we explore the relevance and development of further training in private sector firms. We focus on formal training and explore possible individual and job-based determinants of its incidence. We also show changes over time during a 20 year observation period from 1989 to 2008. Most hypotheses are supported by the empirical evidence. Job status and firm size are the most relevant characteristics for training participation. Furthermore, our analyses reveal a general trend of rising training rates from 1989 to 2008 indicating an increased importance in the German labor market. |
| Keywords: | further training, GSOEP, human capital, panel data |
| JEL: | M53 |
| Date: | 2010–11 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp5315&r=eur |
| By: | Sergio Destefanis (Università di Salerno, CELPE and CSEF); Giuseppe Mastromatteo (Università Cattolica di Milano.) |
| Abstract: | We assess the impact on employment growth of the Lisbon Strategy, examining long-run trends in total, female and old-age employment rates from 1994 to 2009. We find that the Strategy had some favourable (but weak) impact, especially for old-age workers. However, no improvement ensued from its mid-term reassessment. |
| Keywords: | European Employment Strategy, difference-in-difference, employment policies |
| JEL: | E24 J08 E65 |
| Date: | 2010–11–18 |
| URL: | http://d.repec.org/n?u=RePEc:sef:csefwp:264&r=eur |
| By: | Stephen Martin |
| Abstract: | In this paper, I compare economic arguments in U.S. Supreme Court antitrust and EU Court of Justice competition policy decisions on four topics: refusal to deal, predation, vertical contracts, and hor- izontal interfirm relations. |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:pur:prukra:1257&r=eur |
| By: | Sakellaris, Kostis; Perrakis, Kostis; Angelidis, George |
| Abstract: | The Greek Regulatory Authority for Energy (RAE), in view of the initiation of the new wholesale electricity market on January 1st 2009 as a Day-Ahead mandatory pool, undertook the design and implementation of a simulator for the market. The simulator consists of several interacting modules representing all key market operations and dynamics including day-ahead scheduling, natural gas system constraints, unplanned variability of loads and available capacity driven either by uncertain stochastic outcomes or deliberate participant schedule deviations, real time dispatch, and financial settlement of day ahead and real-time schedule differences. The modules are integrated into one software package. The intended use of the simulator is to elaborate on and allow RAE to investigate the impact of participant decision strategies on market outcomes. The ultimate purpose is to evaluate the effectiveness of Market Rules, whether existing or contemplated, in providing incentives for competitive behaviour and in discouraging gaming and market manipulation. In this paper the simulator is used to analyze market design aspects and rules concerning the co-optimization of energy and reserves in the Day-Ahead energy market and the efficiency of the imbalance settlement procedure compared to real-time pricing. |
| Keywords: | Electricity Market Design; Market Simulation; Regulation; Unit Commitment |
| JEL: | Q48 C61 |
| Date: | 2010–11–08 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:26719&r=eur |
| By: | Cristina Vilaplana; Sergi Jiménez Martín |
| Abstract: | This paper analyses the effect of unmet formal care needs on informal care giving hours in Spain using the two waves of the Informal Support Survey (1994, 2004). Testing for double sample selection from formal care receipt and the emergence of unmet needs provides evidence that the omission of either one of these two variables would cause an underestimation of the number of informal care giving hours. After controlling for these two factors the number of care giving hours increases with the degree of dependency and in the case of unmet needs. This growth is even greater when some formal care is received, thus refuting the substitution model. For the same combination of formal care and unmet needs, informal care giving hours increased between 1994 and 2004. Finally, in the model for 2004, the selection term associated with the unmet needs equation is larger than that of the formal care equation, suggesting the existence of inefficiencies in the formal care allocation process. |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:fda:fdaddt:2010-25&r=eur |