TRADE LIBERALIZATION AND THE MANUFACTURING SECTOR: THE CASE OF THE SMALL DEVELOPING COUNTRY

Historically, the lack of competition in developing countries has resulted in highly concentrated domestic industries that suffer from diseconomies of scale but prosper behind high walls of protection. Liberalization is expected to reverse this trend but at what cost? This article utilizes an import demand framework to examine the potential impact of trade liberalization on the manufacturing sector in the Caribbean using the case of Barbados. The results indicate that the manufacturing industry could encounter tremendous price competition, which could compromise the future survival of these industries. The study recommends that industries reorganize production processes to increase efficiency, which will allow them to compete effectively in the new global trading environment. These results may also be applicable to the wider Caribbean.     

Climate Change Taxes and Energy Efficiency in Japan

In 2003 Japan proposed a Climate Change Tax to reduce its CO₂ emissions to the level required by the Kyoto Protocol. If implemented, the tax would be levied on fossil fuel use and the revenue distributed to encourage the purchase of energy efficient equipment. Analysis using the MIT Emissions Prediction and Policy Analysis (EPPA) model shows that this policy is unlikely to bring Japan into compliance with its Kyoto target unless the subsidy encourages improvement in energy intensity well beyond Japan’s recent historical experience. Similar demand-management programs in the US, where there has been extensive experience, have not been nearly as effective as they would need to be to achieve energy efficiency goals of the proposal. The Tax proposal also calls for limits on international emission trading. We find that this limit substantially affects costs of compliance. The welfare loss with full emissions trading is 1/6 that when Japan meets its target though domestic actions only, the carbon price is lower, and there is a smaller loss of energy-intensive exports. Japan can achieve substantial savings from emissions trading even under cases where, for example, the full amount of the Russian allowance is not available in international markets.     

Productivity and computers in Canadian banking

Canadian banks have invested millions in computer systems in the last two decades. Yet the banks and outside observers have been uncertain that these investments have had net benefits. In this paper, unique data collected directly from a bank is used to investigate the impact of these investments on bank output, input and productivity. Using data from 1974–1987, a translog cost model is estimated. Both capital and labor are divided into information and noninformation inputs. The results are generally consistent with economic theory. The attempt to separate technical change from possible scale effects is very sensitive to alternative specification. Overall there has been some productivity growth associated with the changing computer technology. However, many of the benefits seem to have accrued to the customer and have not directly lead to gains for the bank.     

Fatou property,representations, and extensions of law-invariant risk measures on general Orlicz spaces

We provide a variety of results for quasiconvex, law-invariant functionals defined on a general Orlicz space, which extend well-known results from the setting of bounded random variables. First, we show that Delbaen’s representation of convex functionals with the Fatou property, which fails in a general Orlicz space, can always be achieved under the assumption of law-invariance. Second, we identify the class of Orlicz spaces where the characterization of the Fatou property in terms of norm-lower semicontinuity by Jouini, Schachermayer and Touzi continues to hold. Third, we extend Kusuoka’s representation to a general Orlicz space. Finally, we prove a version of the extension result by Filipovi? and Svindland by replacing norm-lower semicontinuity with the (generally non-equivalent) Fatou property. Our results have natural applications to the theory of risk measures.     

Money,Comfort or Environment? Priorities and Determinants of Energy Efficiency Investments in Irish Households

Energy efficiency is an effective strategy to reduce household energy consumption. Investments in energy efficiency measures (EEMs) result in reduced energy bills and increased comfort for households, while also contributing to national environmental targets. This article examines an energy efficiency scheme in Ireland and investigates the factors that determine investments in energy efficiency measures and the motivations of Irish households to participate in energy saving programs and adopt EEMs. The paper investigates three key research questions: the determination of investments in EEMs, with special focus on motivations and their relative importance; the consistency of motivations over the course of the decision-making process; and the consistency of determinants and motivations for investments in EEMs across different measures. The paper studies the implementation of seven energy efficiency measures in residential houses throughout Ireland. Results indicate that the decision to ultimately apply and invest in EEMs is mainly driven by monetary or economic factors such as gains in energy savings and the private cost of the measures. Comfort gains are found to be a secondary factor and environmental benefits of EEMs are found to be of little concern when making investment decisions. Finally, we suggest focusing on providing information about the benefits of the EEMs on energy savings and improvements in comfort in order to increase the adoption of EEMs by households in Ireland.     

Scoping the Extent of Tourist Road Safety: Motor Vehicle Transport Accidents in New Zealand 1982-1996

There is a growing interest in tourism safety within the travel medicine and safety management literature. From this body of research, motor vehicle traffic accidents (MVTA) are identified as a leading cause of tourist morbidity and mortality. There is, however, a dearth of tourist road safety literature where the tourism context is taken into account. This paper examines the extent of overseas visitor MVTA in New Zealand, based on data collected by the New Zealand Health Information Service for the 15-year period 1982–1996. Some 1604 MVTA cases were recorded in the NZHIS database for non-New Zealand residents, representing 27.4% of all non-resident injuries resulting in hospitalisation during the period of the study. The majority of these incidents involved collisions between vehicles, with 1121 (70% of MVTA cases) involving a car. Highest counts of MVTA were found for males and females in the 20–39 years age range. Largest proportions of MVTA were observed for the Auckland, Otago and Southland regions, although highest incidence rates (based on visitor numbers in each region for the year 1995/6) were found for the Taranaki, Northland, Marlborough, Hawkes Bay and Southland regions. The paper discusses possible reasons for patterns and trends in the MVTA data, drawing on comparisons with existing international studies from the travel medicine and safety management literature.     

Long-term Energy Cost Labelling for Appliances: Evidence from a Randomised Controlled Trial in Ireland

Journal of Consumer Policy - Given the longevity of investments in energy-consuming products (such as household appliances, vehicles, and properties), underinvestment in energy efficiency can have...     

Over-Allocation or Abatement? A Preliminary Analysis of the EU ETS Based on the 2005–06 Emissions Data

This paper provides an initial analysis of the EU ETS based on the installation-level data for verified emissions and allowance allocations in the first 2 years of the first trading period. These data reveal that CO₂ emissions were about 3% lower than the allocated allowances. The main objective of the paper is to shed light on the extent to which over-allocation and abatement have taken place in 2005 and 2006, when a significant CO₂ price was observed. We propose a measure by which over-allocation can be judged and provide estimates of abatement based on emissions data and indicators of economic activity as well as trends in energy and carbon intensity. Finally, we discuss the insights and implications that emerge from this tentative assessment. The ideas expressed in this paper are those of the authors and do not necessarily represent views of the International Energy Agency or its Member Countries.     

Transformation,meaning-making and identity creation through folklore tourism: the case of the Robin Hood Festival

Folklore tourism is often regarded as a subset of heritage tourism, although it has received less attention than comparable heritage events based on documented historic events such as civil war re-enactments and living history sites. Although the ‘theming’ of landscapes and the journeying to places based on their literary association enjoys a long tradition, this paper focuses on the relationship between tourism and folklorism. It explores how folklore events appropriate contemporary and social interpretations of stories to entertain whilst also outlining how legendary historical personalities can play a role in generating tourism. In 2013, a constructivist methodology was employed using 20 in-depth interviews and participant observations to generate qualitative data at the Robin Hood Festival in Nottinghamshire, UK. Numerous themes emerged after coding including the way folklore events blend historic fact and fiction, the power of the imagination to create spaces, and the importance of natural settings and spaces to transform people and places. However, three dominant themes emerged which are specifically presented in this paper, these are: (a) a sense of freedom and escape felt by participants, (b) camaraderie and inter-personal social authenticity and (c) the transformation of self and creation of alternative (additional) social identities.     

Arbitrage Values Generally Depend On A Parametric Rate of Return

Let X denote a positive Markov stochastic integral, and let S ( t , μ) = exp(μ t ) X ( t ) represent the price of a security at time t with infinitesimal rate of return μ. Contingent claim (option) pricing formulas typically do not depend on μ. We show that if a contingent claim is not equivalent to a call option having exercise price equal to zero, then security prices having this property—option prices do not depend on μ—must satisfy: for some V (0, T ), In( S ( t , μ) X ( V )) is Gaussian on a time interval [ V, T ], and hence S ( t , μ) has independent observed returns. With more assumptions, V = 0, and there exist equivalent martingale measures.