Who Wins from Emissions Trading? Evidence from California

Researchers and environmental policy advocates have raised questions regarding the distributional impacts of emissions trading programs, a.k.a. “cap-and-trade”. While previous research has been careful to identify the causal effect of emissions trading on emissions reductions (Fowlie et al. in Am Econ Rev 102(2):965–993, 2012, hereafter FHM), we argue that existing estimates of differential impacts on demographic groups have relied on unrealistic assumptions regarding pollution dispersion. In this paper, we estimate the emissions reduction due to the RECLAIM cap-and-trade program in Southern California following the identification strategy of FHM, but we relax the assumption of uniform dispersion surrounding point sources. We model the transport of effluents using a state-of-the-science dispersion model to determine the areas impacted by emissions from each source. Importantly, conditional on race and ethnicity, we find that higher income areas receive larger reductions in pollution under cap-and-trade. Furthermore, conditional on income (or poverty rates), we find that Blacks benefit while Hispanics lose relative to whites under RECLAIM.     

Why is China different from Eastern Europe? Perspectives from organization theory

We draw from recent work in organization theory to explain the differences in reform strategies between China and Eastern Europe. An experimentation approach was adopted in China whereas a big bang approach was more favored in Eastern Europe. The explanation is based on differences in the organizational structure of central planning: U-form in Eastern Europe and M-form in China. The M-form is more flexible because it makes local experiments possible, contrary to the U-form where this would give rise to major complications in coordination.     

Does China really lose from RMB revaluation? Evidence from some export industries

This study attempts to examine the impacts of Real Exchange Rate (RER) misalignment on China's export performance. Using the SUR methodology coupled with disaggregate panel export data, it shows that China's export sector may not necessarily lose from the Central Government's decision to revalue its RMB against the US dollar because the negative impact of the RER appreciation on Chinese exports may be diluted by the positive impacts attributing to a reduction in the RER misalignment.     

Who benefits most from property assessment taxes? Evidence from Los Angeles County

Assessment caps on property taxes are often assumed to benefit affluent homeowners the most with little gains for low-income households. Quantile regression results for Los Angeles County show that on average effective property tax rates decrease by $1994 per year due to length of ownership in the 50th percentile because of California’s Proposition 13 assessment cap. There is evidence of both horizontal and vertical inequity across the entire sample. Low-income households do benefit from California’s assessment cap as they are typically infrequent movers but their effective tax rates decrease over time. However, the most affluent households by market value do not gain the most and there is no evidence of horizontal inequity for these homeowners. There is also no evidence of horizontal inequity for middle-income households. Property tax savings vary between $18,000 and $40,000, depending on the assessed value decile and percentage quantile.     

Message from the Managing Editor

Once again Christmas is coming to us and anotheryear is about to depart. On behalf of all the members ofthe Editorial Office, I＇d like to express our appreciationsto authors, readers and others concerned for EcologicalEconomy for your great support and encouragement. Withthe coming of the New Year, please accept our sinceregreetings and best wishes. In the past year, whether youread and contributed or made criticism and proposals forus, we are grateful for your active participation. Specially,I would like to take this opportunity to thank interna-tional friends：     

Message from the Chief Editor

On the first anniversary of the first issue of Ecological Economy, please accept our sincere greetings and best wishes for the New Year. In the past year, whether you read and contributed to Ecological Economyor made criticism and proposals for us, we are grateful for your active participation. On behalf of all the members of the editorial office, I＇d like to express our heartfelt thanks to you for your great support and encouragement, and your concern for Ecological Economy, Specially,     

Message from Lord Mayor of Newcastle

TheCityofNewcastleistheRegionalcapitaloftheHunter,oneofAustralia'smostvaluableregions.TheHuntergeneratesmorethan4.5percentoftheGrossNationalproductandyetitrepresentsonlythreepercentofthepopulation.TheHunterproducesmorethan15percentofthisState'sexportincomewithonlyeightpercentofthepopulationandgenerates100percentoftheState'saluminium,80percentoftheelectricity,70percentofthecoaland40percentofportcargomovements.TheCityofNewcast1ehasapopulation0f132,00O;thatiswithinthelocalgoyern-mentboundar…     

Deviations from optimal corporate cash holdings and the valuation from a shareholder’s perspective

The trade-off theory of corporate cash holdings predicts that there is an optimal level of cash. We test the trade-off theory by investigating the relation between deviations from optimal cash holdings and the valuation of cash from a shareholder’s perspective. We decompose corporate cash holdings into the optimal level of cash and the deviations from the optimum. We find that the marginal value of cash for shareholders is higher when a change in cash moves corporate cash holdings towards the optimal level and that this relationship holds for both the above-optimal deviations and the below-optimal deviations. We conclude that the results are consistent with the prediction of the trade-off theory of corporate cash holdings.     

Circular economy： from an institutional perspective

Circular economy （CE） has been put fonvard as an important environmental and resource strategy in China.Aiming at the high utilization rate of resources and reduction of pollutants,CE means to realize a shift of fundamental paradigm.With the mode of production and consumption from linear to recycling model,the promotion requires transdisciplinary researches which integrate technological,ecological,social-cultural and other sciences.The present study focuses on the implementation of circular economy from an institutional perspective.Institution acts as a crucial factor by providing incentives for technical innovation,leading investment orientation and determining policy effectiveness,etc.This paper mainly discusses about： firstly,the feature of institution,institutional changes and institutional innovation is articulated,together with eco-industrial park strategy,extended producer＇s responsibility and dematerialization principle as innovative institutional arrangements; secondly,as policy plays great role on institutional changing process,the mechanism of policy implementation is needed to be related; as a result,coevolution of institutions and policies is thus presented; at last,a pilot attempt is made to find out some operational avenues in accomplishment of CE through both theoretical and practical methodology,special resolutions are put forward after some projecting difficulties and dilemmas in China are described.     

Can information and counseling help students from poor rural areas go to high school? Evidence from China

Recent studies have shown that only about two-thirds of the students from poor, rural areas in China finish junior high school and enter high school. One factor that may be behind the low rates of high school attendance is that students may be misinformed about the returns to schooling or lack career planning skills. We therefore conduct a cluster-randomized controlled trial (RCT) using a sample of 131 junior high schools and more than 12,000 students to test the effects of providing information on returns or career planning skills on student dropout, academic achievement and plans to go to high school. Contrary to previous studies, we find that information does not have significant effects on student outcomes. Unlike information, counseling does have an effect. However, the effect is somewhat surprising. Our findings suggest that counseling increases dropouts and seems to lower academic achievement. In our analysis of the causal chain, we conclude that financial constraints and the poor quality of education in junior high schools in poor, rural areas (the venue of the study) may be contributing to the absence of positive impacts on student outcomes from information and counseling. The negative effects of counseling on dropout may also be due to the high and growing wages for unskilled labor (high opportunity costs) in China’s transitioning economy. It is possible that when our counseling curriculum informed the students about the reality of how difficult were the requirements for entering academic high school, it may have induced them to revise their benefit-cost calculations and come to the realization that they are better off dropping out and/or working less hard in school.     

Environment investment： transition from end-investment to multi-investment

Environmental investment must change its direction from end-investment to multi-investment, such as ecological construction, recycling economy and environmental protection. Only it can meet the needs of breaking the bottleneck of resources and environment for Chinese sustainable development. And the transition can hero us realize low-ost and highspeedy increasing of economy, as well as the construction of ecological health, beautiful environment economic development and harmonious new society. Material recycling in ecosystem can run well by self-organization and self-regulation by nature with low-cost and even non-cost. So, the environmental investment in ecological construction should be the profits maximum investment. But it needs country＇s support in financial policy on ecological or environmental compensation. Recycling economy is a brand-new pattern of economic growth, which formed gradually in the course of mankind exploring and practicing sustainable development. Fountainhead prevention, reducing and whole processing control are its significant characteristics, which are digerent from any former economic and environmental protection system. Investing in technology development and relevant industry of recycling economy should be the other major field of environment investment in China in the future.     

Overviews to organizational model from Chinese traditional philosophy

This paper reviews the literatures of the traditional and the modem organizational model to generalize their categories, features and faults. Based on the unification of the Chinese traditional culture and the “YIN and YANG” principles, it discusses how to understand the hypotheses of the organizational models, analyzes the traditional and the leading models, and puts forward two hypotheses, the fixed structure and the flexible structure of organizations.     

Economic Analysis of Microfinance： Evidence from China

China＇s evolutionary reform brought China economy enormous progress, which also subsided the poverty phenomenon. But the present anti-poverty task is still very arduous for China today. Peasant household＇s microfinance is a kind of important tool which contributes to the poverty alleviation. The sustainable development of microfinance has become a serous problem at present. This text analyses the sustainable development of microfinance through setting up the income model of microfinance, then puts forward the way to solve.     

Healthier when retiring earlier? Evidence from France

This paper contributes to the literature on the health-retirement relationship by looking at the effect of retiring before legal age on health in later life in France. To account for the endogeneity of the early retirement decision, our identification strategy relies on eligibility rules to a long-career early retirement scheme introduced in France in 2004 that substantially increased the proportion of older workers leaving their last job before the legal age of 60 years. We find a positive correlation between early retirement and health problems among male retirees. However, we fail to find any significant causal effect of early retirement on poor health once we account for the endogeneity of the decision to retire before the legal age. Controlling for working conditions does not influence the effect of retirement and occupying a demanding job is harmful to health after retirement regardless of the retirement date. Similar results are found for female retirees.     

Are banks public utilities? Evidence from Europe

The regulatory response to the global financial crisis has been to instal a myriad of new rules in order to improve bank capital and liquidity, as well as to reduce systemic risks through structural reform. All these new rules place a straightjacket around banker’s activities and inhibit their operational freedom. This new environment has made European banks look less like private free-wheeling profit-maximising firms and more like public utilities. The utility services banks provide to society means that they should be overseen even more heavily. This includes greater regulatory oversight of bank pricing, profitability and service provision.