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on Regulation |
| By: | Timilsina, Govinda R.; Landis, Florian |
| Abstract: | Morocco has set an ambitious target of supplying 42 percent of electricity through renewable sources, 14 percent each through hydro, wind, and solar, by 2020. To analyze the economic and environmental implications of implementing this target, this study uses a dynamic computable general equilibrium model with foresight that includes explicit representation of various electricity generation technologies. Two types of policy instruments, a production subsidy financed through fossil fuel taxation and a renewable energy mandate financed through increased electricity prices, have been considered to attract investment in renewable energy. The study shows that meeting the renewable target would achieve up to 15 percent reduction of national greenhouse gas emissions in 2020 compared with a situation in the absence of the target, or the baseline. However, meeting the target would decrease household consumption of goods and services, thereby worsening household welfare. The study also shows that the renewable production subsidy financed through fossil fuel taxation is superior to the mandate policy to meet the renewable energy target in Morocco, as the former would cause a lower loss in economic welfare and a larger reduction of greenhouse gas emissions than the latter. |
| Keywords: | Energy Production and Transportation,Climate Change Mitigation and Green House Gases,Energy Demand,Environment and Energy Efficiency,Energy and Environment |
| Date: | 2014–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:6940&r=reg |
| By: | Monica Correa Lopez; Rafael Domenech |
| Abstract: | In a panel study of firm-level data from Spanish manufacturers, we show that reducing anti-competitive regulation in the provision of upstream services has a positive and sizeable effect on the volume of exports of downstream firms. Our estimates indicate that deregulation is very beneficial for the export performance of large corporations, especially if they are foreign-owned multinationals, while the evidence for SMEs is much weaker. Hence, firm characteristics matter for the connection between regulation and exports. Simulation exercises suggest that large firms increased their volume of exports by an average of 49% as a result of deregulation, such that the industries that benefited the most were typically more dependent on service inputs. The improvements in the regulatory framework of transportation services and energy provision that took place over the 1990s and 2000s in Spain had particularly strong effects on the volume of foreign sales. |
| Keywords: | Exports, Service regulation, Margins of trade, Firm size |
| JEL: | F14 L43 F23 D24 |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:bbv:wpaper:1413&r=reg |
| By: | Aurelie Slechten |
| Abstract: | In a two-period general equilibrium model, I study the effects of intertemporal emission permit trading in a cap-and-trade scheme when firms' investments in abatement have long-term effects. To meet their caps, firms optimally choose levels of trading and investment in each period by equalizing the marginal benefit of abatement to the marginal cost of abatement in each period. The fact that investments have long-term effects introduces new effects: investments in period 1 have both an additional benefit (the reduction of emissions in period 2) and an additional cost (the decrease in abatement opportunities in period 2). This changes the standard condition of equalization of marginal costs across periods for cost-effectiveness. Without intertemporal trading, some investments in period 1 are entirely driven by second-period abatement needs. In that case, allowing intertemporal trading may reduce investment in period 1 as some long-term investments are substituted by intertemporal permit trading. Descriptive evidence from the EU Emissions Trading System (ETS) illustrates this potential effect. © 2013 Elsevier Inc. |
| Keywords: | Abatements; Banking; Borrowing; Cap-and-trade schemes; Emission trading; Investment |
| Date: | 2013–09 |
| URL: | http://d.repec.org/n?u=RePEc:ulb:ulbeco:2013/169007&r=reg |
| By: | Hornuf, Lars; Schwienbacher, Armin |
| Abstract: | In this paper, we show that too strong investor protection may harm small firms and, thus, entrepreneurial initiatives. This situation is particularly relevant in crowdinvesting, which refers to a recent financial innovation originating on the Internet. In general, securities regulation offers exemptions to prospectus and registration requirements. From an analysis of selected countries, we offer first evidence that portals shape the securities contracts they provide to startups based on these exemptions. This, in turn, can limit the amount of capital raised by the firms as well as the type of investors participating in the campaigns. Finally, we offer a ‘law and finance’ analysis of recent reforms of securities regulation in different countries that have been initiated as a means to encourage crowdinvesting. |
| Keywords: | crowdinvesting; crowdfunding; securities regulation; investor protection |
| JEL: | G20 G18 G38 K22 |
| Date: | 2014–03–20 |
| URL: | http://d.repec.org/n?u=RePEc:lmu:muenec:20975&r=reg |
| By: | Avner, Paolo; Rentschler, Jun; Hallegatte, Stephane |
| Abstract: | This paper investigates the effect of carbon or gasoline taxes on commuting-related CO2 emissions in an urban context. To assess the impact of public transport on the efficiency of the tax, the paper investigates two exogenous scenarios using a dynamic urban model (NEDUM-2D) calibrated for the urban area of Paris: (i) a scenario with the current dense public transport infrastructure, and (ii) a scenario without. It is shown that the price elasticity of CO2 emissions is twice as high in the short run if public transport options exist. Reducing commuting-related emissions thus requires lower (and more acceptable) tax levels in the presence of dense public transportation. If the goal of a carbon or gasoline tax is to change behaviors and reduce energy consumption and CO2 emissions (not to raise revenues), then there is an incentive to increase the price elasticity through complementary policies such as public transport development. The emission elasticity also depends on the baseline scenario and is larger when population growth and income growth are high. In the longer run, elasticities are higher and similar in the scenarios with and without public transport, because of larger urban reconfiguration in the latter scenario. These results are policy relevant, especially for fast-growing cities in developing countries. Even for cities where emission reductions are not a priority today, there is an option value attached to a dense public transport network, since it makes it possible to reduce emissions at a lower cost in the future. |
| Keywords: | Transport Economics Policy&Planning,Climate Change Mitigation and Green House Gases,Climate Change Economics,Transport in Urban Areas,Transport and Environment |
| Date: | 2014–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:6941&r=reg |
| By: | David Lucca; Amit Seru; Francesco Trebbi |
| Abstract: | This paper traces career transitions of federal and state U.S. banking regulators from a large sample of publicly available curricula vitae, and provides basic facts on worker flows between the regulatory and private sector resulting from the revolving door. We find strong countercyclical net worker flows into regulatory jobs, driven largely by higher gross outflows into the private sector during booms. These worker flows are also driven by state-specific banking conditions as measured by local banks’ profitability, asset quality and failure rates. The regulatory sector seems to experience a retention challenge over time, with shorter regulatory spells for workers, and especially those with higher education. Evidence from cross-state enforcement actions of regulators shows gross inflows into regulation and gross outflows from regulation are both higher during periods of intense enforcement, though gross outflows are significantly smaller in magnitude. These results appear inconsistent with a "quid-pro-quo" explanation of the revolving door, but consistent with a "regulatory schooling" hypothesis. |
| JEL: | G21 G28 |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:20241&r=reg |
| By: | Antimiani Alessandro (Istituto Nazionale di Economia Agraria (INEA), Roma (Italy).); Valeria Costantini (Department of Economics, Roma Tre University, Roma (Italy).); Anil Markandya (Basque Centre for Climate Change (BC3), Spain.); Chiara Martini (Agenzia nazionale per le nuove tecnologie, l’energia e lo sviluppo economico sostenibile (ENEA), Italy.); Alessandro Palma (Department of Economics, Roma Tre University, Roma (Italy).); Maria Cristina Tommasino (Agenzia nazionale per le nuove tecnologie, l’energia e lo sviluppo economico sostenibile (ENEA), Italy.) |
| Abstract: | We investigate the trade-offs between economic growth and low carbon targets for developing and developed countries in the period up to 2035. Policy options are evaluated with an original version of the dynamic CGE model GDynE. Abatement costs appear to be strongly detrimental to conomic growth for developing countries. We investigate options for reducing these costs that are consistent with a green growth strategy. We show that Green Climate Fund financed through a levy on carbon taxation can benefit all parties, and larger benefits are associated with investment of the Green Climate Fund to foster energy efficiency in developing countries. |
| Keywords: | Climate Change Policies, Green Growth, Developing Countries, Dynamic CGE Energy Model, Green Climate Fund. |
| JEL: | C68 H23 O44 Q54 |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:srt:wpaper:1614&r=reg |
| By: | Gabriela López Noria |
| Abstract: | This paper analyzes the effect of the North American Free Trade Agreement (NAFTA) on Mexican manufacturing price cost margins (PCMs) for the period 1994-2003. Taking into account the sensitivity of each industry to the speed of the tariff reductions under NAFTA, the results show that PCMs immediately decreased once the second round of trade liberalization in Mexico had commenced in 1994. However, in subsequent years, no clear pattern emerges for these PCMs. Additionally, the paper accounts for the sensitivity of each industry to the initial level of its tariff and presents evidence showing that while NAFTA had an effect on the PCMs of the group of industries that liberalized in 10 years, no robust effect was found for the group of industries that liberalized in 5 years. The results on the group of industries that liberalized in 10 years suggest that NAFTA sharpened competition and exerted market discipline by forcing firms with market power to set prices closer to marginal costs. The findings on the group of industries that liberalized in 5 years suggest that additional factors may be also playing a role in the containment of their market power. |
| Keywords: | PCMs, Trade Liberalization, NAFTA |
| JEL: | F13 F15 L11 |
| Date: | 2013–08 |
| URL: | http://d.repec.org/n?u=RePEc:bdm:wpaper:2013-10&r=reg |
| By: | Jeffrey Milyo (Department of Economics, University of Missouri-Columbia); Adriana Cordis |
| Abstract: | Previous research using data on convictions for corruption-related crimes from the Public Integrity Section (PIN) of the Department of Justice points to a positive correlation between the amount of corruption in a state and the amount of federal funds provided to the state for natural disaster relief. We take a closer look at the relation between public corruption and disaster assistance using more detailed data on corruption convictions for an expanded time period. Our analysis provides little support for the hypothesis that the provision of federal disaster aid increases public corruption. It suggests instead that prior evidence of such a linkage arises from an unexplained correlation during the 1990's between disaster aid and convictions of postal employees for crimes such as stealing mail. Convictions for postal service crimes appear to account for a large fraction of the total federal convictions reported by PIN, which could have far reaching implications given that the PIN data have been used so extensively in the corruption literature. |
| Keywords: | corruption, disaster assistance, FEMA |
| JEL: | H5 D7 |
| Date: | 2013–12–20 |
| URL: | http://d.repec.org/n?u=RePEc:umc:wpaper:1321&r=reg |
| By: | Francesco Silvestri (Dipartimento di Economia e Management, Università di Ferrara.) |
| Abstract: | The article focuses on the European Union Municipal Waste (MW) industry, exploring the effects of the conjoint implementation of Self Sufficiency Principle and of Proximity Principle (SSP/PP), that force local community to divert MW in the same district where it is generated. Since the num-ber of disposing facilities allowed to operate in a district is regulated by (regional) public planning, forbidding through SSP/PP the opportunity to divert MW outside the district reduces the degree of competition in the whole sector. The rationale for a rule that denies a pillar of EU thinking such as competition policy seems to be to limit the end-of-the-pipe disposal of MW, and to favour the alternative strategy of selected collection and reuse-recycling. Setting an Industrial Organization model and solving it through backward induction, we show that in facts any increased competition in the industry leads to higher environmental externality, but even that the a compensation scheme from gainers to losers would be for effective than SSP/PP. This is true for any consistent value of the relevant variables, apart the case when the marginal external cost is over a specific threshold; in that unique case, the use of SSP/PP as a command and control environmental standard is justified. |
| Keywords: | EU Regulation, solid waste, oligopoly, environmental externalities. |
| JEL: | D21 H41 O33 Q53 |
| Date: | 2014–05 |
| URL: | http://d.repec.org/n?u=RePEc:srt:wpaper:1114&r=reg |
| By: | Skidmore, Mark |
| Abstract: | Over the last two decades, New Zealand experienced a threefold increase in housing prices. The largest surge in prices in recent years occurred between 1998 and 2007, a period of housing price growth in many developed economies. Since 2007, housing price growth remained flat until 2011, and then prices once again embarked on an upward trend. However, recent housing price growth has been concentrated in Auckland and Christchurch. The purpose of this report is to compare and contrast New Zealand housing trends and policies with those of United States. The report summarizes lessons learned from the United States and highlights data needs and research questions that may require further consideration in order to better understand housing markets in New Zealand. |
| Keywords: | Housing, Land use regulation, Economic development, |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:vuw:vuwcpf:3422&r=reg |
| By: | Agarwal, Vikas; Mullally, Kevin Andrew; Tang, Yuehua; Yang, Baozhong |
| Abstract: | We examine the impact of mandatory portfolio disclosure by mutual funds on stock liquidity and fund performance. We develop a model of informed trading with disclosure and test its predictions using the SEC regulation in May 2004 requiring more frequent disclosure. Stocks with higher fund ownership, especially those held by more informed funds or subject to greater information asymmetry, experience larger increases in liquidity after the regulation change. More informed funds, especially those holding stocks with greater information asymmetry, experience greater performance deterioration after the regulation change. Overall, mandatory disclosure improves stock liquidity but imposes costs on informed investors. -- |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:cfrwps:1304r&r=reg |
| By: | Dollani, Nada |
| Abstract: | The liability for defective products was for the first time introduced in 1994 by the new Civil Code. It widely reflects the liability regime provided by Directive 85/374 on product liability. In order to analyse the Albanian system on product liability as a special regime of extra-contractual liability, one should look at the Product Liability Directive, which is the source of inspiration for the Albanian regulation. Before the adoption of the Civil Code in 1994, no special regime of liability existed for the defective products due to the special features of economic and social order, based on centralised economy, on state property on the means of production, social and health insurance for all citizens and medical services provided by the state. The new regulation incorporated into the torts chapter of the Civil Code is not a full transposition of Product Liability Directive. However, it is considered as sufficient for the transposition duties of Albania under Stabilization and Association Agreement. When the Albanian legislator transposed a series of European directives on consumer protection, by adopting a separated legal act, Consumer Protection Law, it was assumed that this special area of tort did not need any amendment to bring it into consistency with the new regime of consumer protection and fully compatible with the Product Liability Directive. Considering the difficulties of law enforcement in South East European countries, this discussion paper aims at drawing a comparison between the European regime and the Albanian one so as to explain the specific features of the objective liability regime and identify the deficiencies in transposition, considering that the Product Liability Directive requires maximum harmonisation. -- |
| Keywords: | consumer expectation test,defective product,producer,risk development defence,strict liability |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ekhdps:214&r=reg |
| By: | Jing Cheng (Université de Strasbourg (BETA), CNRS); Meixing Dai (Université de Strasbourg (BETA), CNRS); Frédéric Dufourt (Aix-Marseille UniversitÈ (Aix-Marseille School of Economics), CNRS-GREQAM & EHESS and Institut Universitaire de France) |
| Abstract: | We analyze the conditions of emergence of a twin banking and sovereign debt crisis within a monetary union in which: (i) the central bank is not allowed to provide direct financial support to stressed member states or to play the role of lender of last resort in sovereign bond markets, and (ii) the responsibility of fighting against large scale bank runs, ascribed to domestic governments, is ensured through the implementation of a financial safety net (banking regulation and government deposit guarantee). We show that this broad institutional architecture, typical of the Eurozone at the onset of the financial crisis, is not always able to prevent the occurrence of a twin banking and sovereign debt crisis triggered by pessimistic investors' expectations. Without significant backstop by the central bank, the financial safety net may actually aggravate, instead of improve, the financial situation of banks and of the government. |
| Keywords: | banking crisis, sovereign debt crisis, bank runs, financial safety net, liquidity regulation, government deposit guarantee, self-fulfilling propheties |
| JEL: | E32 E44 F3 F4 G01 G28 |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:aim:wpaimx:1428&r=reg |
| By: | Jeffrey Milyo (Department of Economics, University of Missouri-Columbia); Dick Carpenter |
| Abstract: | We review the arguments and evidence for compelled financial disclosure by groups engaged in grassroots issue advocacy or active in ballot measures elections. There is no anti-corruption rationale for disclosure requirements, since these activities do not directly affect candidates for elective office. That leaves only an informational rationale for disclosure in non-candidate contexts. However, there is little evidence that the public utilizes information disclosed by such regulations, or even that disclosure adds to the stock of more readily available and salient information. In contrast, a growing literature documents that there are non-trivial costs of compliance to these regulations, especially for newer or informal citizen coalitions. We conclude with a discussion of the lessons from the social science literature for practical reforms. |
| Keywords: | public corruption, campaign finance, regulation |
| JEL: | D72 D78 |
| Date: | 2013–09–05 |
| URL: | http://d.repec.org/n?u=RePEc:umc:wpaper:1312&r=reg |
| By: | Noack, Tim; Cremers, Heinz; Mala, Julia |
| Abstract: | -- The Basel III framework represents the response to the regulation deficits of the financial cri-sis and the immense losses of many banks in years 2007/2008. The aim of the framework is to increase the level of capital in financial institutions and to improve the loss absorption and risk coverage of capital. With its' implementation in the European Union in form of a Regulation, which came into force in January 2014, the framework will cause massive capital short-falls, forcing banks to rethink their capital structure and improve their capital management. Furthermore the Basel III implementation will have noticeable effects on banks' profitability, their costs of capital as well as their business models. This Working Paper presents the measures of the new regulatory framework and discusses potential impacts on the overall bank management. |
| Keywords: | Basel III,CRR,own funds,Leverage Ratio,Liquidity Coverage Ratio,Net Stable Funding Ratio,Monitoring Tools,CVA Charge,Central Counterparty,Counterparty Credit Risk,basel committee on banking supervision,EPE models,capital requirements,capital conservation buffer,additional capital buffers,additional capital buffers for G-SIFIS,transitional arrangement,consequences on solvability,consequences on liquidity,consequences Leverage Ratio |
| JEL: | G00 G01 G18 G28 G29 F33 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fsfmwp:212&r=reg |
| By: | Claudia Parisi (European Commission – JRC - IPTS); Mauro Vigani (European Commission – JRC - IPTS); Emilio Rodríguez Cerezo (European Commission – JRC - IPTS) |
| Abstract: | Innovation is at the centre of the EU's growth strategy for the coming decade (EU2020). New technologies and their adoption by EU farmers are essential in maintaining European agriculture competitive in a global world. Within this context, nanotechnology represents an innovative technology with great potentials in many areas of applications as diverse as medicine, biotechnology, electronics, materials science and energy technologies. Furthermore, nanotechnology is showing a great potential in the agricultural sector, in particular for the development of more precise and effective methods for disease diagnosis and treatment in crop plants. The purpose of the workshop "Workshop on nanotechnology for the agricultural sector: from research to the field", held at JRC-IPTS (Seville) on 21st and 22nd November 2013, is to review the state-of-the-art of R&D of nanotechnology for the agricultural sector and to analyse possible markets and commercial pipeline of products. The scope is on nanotech-based products with applications in crop production (e.g. applications in plant protection products, fertilisation, soil structure, nano-sensors for biotic and abiotic stresses). This workshop brought together leading scientists, key stakeholders and experts, in order to promote the presentation of research and industry results and the discussion of experiences. |
| Keywords: | Nanotechnology, Agriculture, Bioeconomy, Risk assessment, Regulation, Food security, Innovation |
| JEL: | O13 O31 O34 Q13 Q16 Q18 |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc89736&r=reg |