Consistency and optimality in a dynamic game of pollution control I: Competition

I model the interaction between a regulator and polluting firms as a Stackelberg differential game in which the regulator leads. The firms create pollution, which results in a stock extermality. I analyze the intertemporal effects of alternate pollution control measures in a competitive industry. The principal issue here concerns the dynamic inconsistency of the optimal solution. Inter alia, I compare the steady state levels of pollution under optimal and under time consistent policies.     

Simulating the Effect of Regulatory Systems in a Fishery, An Application to the French Driftnet Albacore Fleet

With a thin economic component, most bio-economic models of fisheries failto assess the effects of the regulation systems on firms. In order to analysethe short term consequences of different management schemes, a simulationmodel is applied to the French driftnet albacore fleet: licence allocation withdriftnet regulation, individual quotas, and individual transferable quotaswithout any input control. Vessel technology is estimated by using the datacollected, and groups of vessels are distinguished according to criteria ofperformance. We present the adjustment within firms and between groupsunder different scenarios (limited entry with and without driftnetregulation, individual quotas and individual transferable quotas allocation),and we compare their results in terms of quasi-rent value and otherindicators such as hake harvests or dolphin by-catches.     

需求与资源双重约束下的畜牧业生产结构调整——基于灰色关联模型

论述了畜牧业生产结构调整的两个重要影响因素——需求和资源,并在这两个方面分别选取相应指标,采用灰色关联模型,对畜牧业生产结构(主要是畜种结构)未来发展进行优先排序,在此基础上对我国畜牧业生产结构调整提出了几点建议。     

Applying Geographical Information Systems (GIS) to Environmental and Resource Economics

Many of the analyses undertaken byenvironmental and resource economics areintimately concerned with spatial variations.This article examines the contribution whichGeographical Information Systems (GIS) mayprovide in incorporating the complexities ofthe spatial dimension within such analyses. Thepaper introduces the reader to the types ofdata handled by a GIS and overviews thepractical functionality offered by suchsystems. A brief literature review issupplemented by a number of more detailedapplications illustrating various GIStechniques which may be of use to the appliedenvironmental or resource economist.     

竞争政策的法与经济学分析

随着市场经济的快速发展,世界各国对竞争政策、竞争法的关心度也明显提高.作者力图通过法与经济学的相关理论,对竞争政策、竞争法的目的、规制对象、规制的设定方法等诸问题进行解剖、分析,以阐明竞争政策、竞争法律规制的理论基础与发展趋势.     

Market and underground activities in a two-sector dynamic equilibrium model

Summary. In this paper a two sector dynamic general equilibrium model is developed in order to evaluate the implications of the underground economy from a business cycle perspective. There are three main results. First, introducing an underground sector improves the fit of the model to the data, especially along several important labor market dimensions. Second, the model produces substantial internal propagation of temporary shocks. Third, it is shown that underground activities offer risk sharing opportunities by allowing households to smooth income through a proper labor allocation between the two sectors.Received: 17 June 2002, Revised: 25 April 2003, JEL Classification Numbers: E320, E260, J22, H200.We have benefited from the comments and suggestions of John Donaldson. We would also like to thank Paolo Siconolfi, Jean Pierre Danthine, Fausto Gozzi, Edmund Phelps, Gustavo Piga, Domenico Tosato, and the participants in the seminars at various universities, David Giles and Stefano Pisani for providing useful information on the underground data, Francesca Caponi for the comments and the information concerning the legal and fiscal aspects involved in the calibration, and Glenn Williams for the research assistance. Finally, we thank two anonymous referees for helpful comments on this and on earlier versions of the paper. Chiarini acknowledges financial support from the Ateneo Research fund of the University of Rome, La Sapienza, Dinamiche dell'integrazione europea e scelta di politica economica. All errors are ours. Correspondence to: F. Busato     

Information Structure and the Tragedy of the Commons in Resource Extraction

Synopsis This paper considers the well-known Levhari-Mirman discrete-time model of resource extraction, and investigates the effects of the information structure of the dynamic game – open-loop, Markovian or history-dependent – on the equilibrium consumption path and the overall utility of the agents. Due to the special structure of the model, the open-loop regime yields a Pareto-optimal outcome. The Markovian regime leads to the most pronounced version of the tragedy of the commons. History-dependent behavior yields an outcome set that is intermediate between the other two cases, and that may include the Pareto-optimal outcome in some cases. The level of efficiency of equilibrium behaviour is thus U-shaped as a function of the level of information the agents’ extraction strategies are based on. The analysis suggests that in environments characterized by a dynamic (and no market) externality, forcing agents to commit to open-loop behavior would constitute welfare-improving regulation.     

Costs and Benefits of Bycatch Reduction Devices in European Brown Shrimp Trawl Fisheries

Discarding of juvenile fish is a wellrecognised problem in shrimp fisheries. In manycases, these fish are commercial species that,if not caught, could increase the productivityof other fisheries. In January 2003, Europeanlegislation was implemented by Member Statesrequiring all vessels fishing for brown shrimpto use selective trawls in order to minimisethe bycatch of other commercial species. Incomplying with the regulations, however, thecatch rate of the target species (the shrimp)is likely to be reduced. In this paper, we usea bioeconomic model to assess the impact ofbycatch reduction devices on fishing effort,catch and profitability in the European Crangon fisheries. The potential benefits (interms of higher future yields and consequentlyhigher profits) to the white-fish fisheries arealso estimated. From the model results, theregulation is expected to result in a netreduction in the profitability of the shrimpfishers. However, the benefits to thewhite-fish fishers is expected to more thanoffset this cost, resulting in an overall netbenefit.     

Environmental regulation and trade pattern：a case of China

As a growing number of countries, including both developed and developing countries, have in recent yearstaken environmental regulation at different levels, a question of great concern has been raised： can the regulation alterthe existing trade volume and trade pattern, and ultimately drive pollution-intensive industries to countries with low-levelregulations or even those without regulations at all？ Starting from the three different propositions concerning therelationship between environmental regulation and trade pattern, this paper applies cointegration analysis and errorcorrection model to empirically testing the relationship between environmental regulation and trade in China during theperiod of 1985-2005. Our empirical results indicate that in the short run the collection of pollution discharge fees bearsa positive impact on the export share of clean products of total exports. Thus, higher pollution discharge fees raise theratio of clean products exports to total exports. This further indicates that more stringent environmental regulationpromotes the exports of clean products. In the long run pollution discharge fees are positively correlated with the exportshare of clean products but negatively associated with their import share. Such correlations imply that environmentalregulation tends to facilitate the international specialization in line with comparative advantages.     

Regulation and the cost of childcare

Female labour market choices depend on the availability, affordability and quality of childcare. In this article, we evaluate different regulatory measures and their effect on both the quality and the cost of childcare. First, we analyse data on regulations and costs to estimate the effect of regulatory measures on the cost of childcare. Next, we summarize the existing literature on the effect of regulation on childcare quality. We find that regulation intended to improve quality often focuses on easily observable measures of the care environment that do not necessarily affect the quality of care but that do increase the cost. Thus, we find that the regulatory environment could be improved by eliminating costly measures that do not affect quality of care.     

市场和政府共同作用下的城市地价——中国城市的实证研究

本文根据单中心城市模型和中国城市土地市场若干特点建立了城市地价检验模型,并对中国地级以及以上城市地价进行了截面分析.计量估计表明,城市人口和收入是地价的重要决定因素,郊区土地价值和城市交通条件也影响城市地价;估计还表明政府通过控制城市土地供给和选择不同交易方式对城市地价有直接和间接的影响,而特定交易方式的影响犹为显著.分析结果还显示地价上涨最大的推动力是旺盛的需求.Robust回归方程估计表明上述统计检验结果是稳健的.     

Dynamic and Comparative Static Analysis of Imperfectly Competitive International Fishery

A dynamic system for change of fish stock is formulated assuming that two asymmetric rival countries harvest fish from a common fishing ground and sell it in an imperfectly competitive market. The existence of a unique stable steady state is examined based on the dynamic system. Comparative static analysis is conducted in relation to changes in national fishing management policies to explore, among other things, rent-shifting from one country to another.     

Teaching Regressions with a Lagged Dependent Variable and Autocorrelated Disturbances

The author attempts to rectify the unsatisfactory textbook treatment of the finite-sample properties of estimators of regression models with a lagged dependent variable and autocorrelated disturbances. He contends that the bias of the OLS estimator of a regression model with a lagged dependent variable and autocorrelated disturbances is determined by two effects, the dynamic effect and the correlation effect, which may be reinforcing or offsetting. The implications of these two effects are explored within a theoretical and a Monte Carlo framework.     

Institutional Resource Regimes: Towards sustainability through the combination of property-rights theory and policy analysis

Although the concept of sustainable development is gaining increasing political acknowledgement, despite the implementation of environmental policies specifically intended to solve problems in this area, environmental degradation resulting from the recurrent problems associated with the over-exploitation of natural resources remains an important concern for most countries. How can this situation be explained? This article postulates that a combination of approaches from the political sciences (in particular policy analysis) and institutional economics would enable the identification of the most relevant regulatory dimensions which can explain the (un)sustainable uses of resources. Based on this starting point, it develops an innovative theoretical framework, i.e. that of the Institutional Resource Regime (IRR).The adopted approach facilitates the analysis of the regulatory measures and resource management practices associated with complex and competitive heterogeneous use situations from a perspective of sustainability. Indeed, the two dimensions of “extent” and “coherence” enable the definition and categorization of the IRR of a given resource. The extent of an IRR refers to the total number of goods and services in use that are actually regulated by the regime at a given time, while the coherence measures the degree of coordination of the various user-actors within the regime. One of the major contributions of the IRR framework is its ability to describe the different configurations of regimes, both theoretically and empirically, and to predict their effect on the sustainability of a resource based on the hypothesis that high levels of regime extent and coherence are necessary preconditions for sustainability.By doing this, the IRR framework also enables the analysis of the actual use rights to the goods and services provided by resources as the result of the political strategies of actors who mobilize different legal provisions, which stem either from formal property rights to resources or from policies that regulate the use and protection of these resources.Having developed the central research hypotheses and the empirical research procedure, we present the lessons drawn from the first campaign of field research which was mainly conducted in Switzerland from 1999. Based on the evidence from these initial findings, it is suggested that the scope of the IRR framework could be far broader than evidenced by its application in the case of Switzerland where it was initially developed.     

Consistency and optimality in a dynamic game of pollution control II: Monopoly

This paper continues a line of research begun in Batabyal (1995a). I model the interaction between a regulator and a monopolistic, polluting firm as a Stackelberg differential game in which the regulator leads. The firm creates pollution, which results in a stock externality. I analyze the intertemporal effects of alternate pollution control measures. The principal issue here concerns the dynamic inconsistency of the optimal solution. Inter alia, I compare the steady state levels of pollution under optimal and under dynamically consistent policies.     

Job Creation and Job Destruction in a Regulated Labor Market: The Case of Austria

We study Austrian job reallocation in the period of 1978 to 1998, using a large administrative dataset where we correct for spurious entries and exits of firms. We find that on average 9 out of 100 randomly selected jobs were created within the last year, and that about 9 out of randomly selected 100 jobs were destroyed within the next year. Hence, the magnitude of Austrian job flows seems to be comparable to other countries, similar to the well-known results of Davis et al. (1996) for the United States. Job reallocation appears to be driven primarily by idiosyncratic shocks. However, job creation increases significantly during cyclical upswings whereas job destruction rises in downturns. We also find substantial persistence of job creation and destruction. The pronounced pattern of job reallocation rates falling with firm size and age continues to hold when we use a set of controls. Finally, we show that – controlling for sector and firm size composition – Austrian job reallocation rates are only half the rates for the U.S. This result is not surprising given the impact of tighter regulation and labor law in Austria.     

科学认识和正确处理市场机制与宏观调控的关系

建立完善的社会主义市场经济体制,在理论上必须科学认识市场机制与宏观调控的关系,在实践中必须正确处理市场机制与宏观调控的关系.市场机制对资源配置的基础性作用和国家对经济的宏观调控相辅相成,相互促进,共同作用于社会主义市场经济发展的全过程;处理好两者关系的关键是科学地实施宏观调控;改善宏观调控要在目标、重点、方式、时机、力度五个方面下工夫.     

Resource and Waste Taxation in the Theory of the Firm with Recycling Activities

The management of solid waste has become an urgent problem in nations with a great population density. Accordingly, waste reduction through source reduction and recycling has become increasingly important. Our purpose is to show how prevention, recycling and disposal of waste could be part of a theory of the firm. We first derive efficient production functions from production processes with waste as a by-product. Waste obtained as new scrap can partially be recycled by using additional inputs in order to cut back the purchase of virgin material. Waste not completely recyclable will leave the firm as disposal which also entails cost to the firm. We use the dual cost function approach to develop a theory of the firm under solid residual management.Since the producer does not bear the full cost of disposal, there will be a bias toward virgin materials and away from recycling. The goal of the government is to stimulate the firms to recycle with respect to the preservation of exhaustible resources. An incentive to recycle is a tax on resources or on waste. In order to determine the tax levels the government maximizes welfare subject to the dynamic constraint for decumulation of land fill for waste deposits. This gives the user cost and its time profile for taxing waste disposal or virgin material.In a comparative statics analysis we compare the effect of taxes on waste vs. virgin material on effort to produce in a resource saving manner, on the quantity of recycled material, on output, and on the reduction of waste. Since the impact of environmental regulation on employment is important, our model detects seven effects on labor demand as part of resource conservation policy. We finally carry out a comparative statics analysis of waste intensive firms operating in different market structures. Of interest is the impact of a resource or waste taxation on market volume, on the number of firms, on resource saving effort, and on profit.     

我国海洋渔业资源利用中个体理性与集体理性的矛盾及其协调

本文论述了海洋渔业资源中个体理性与集体理性矛盾产生的根源，指出并分析了协调这些矛盾的措施：一是限制渔船的数量，二是采取各种措施恢复海洋渔业资源，三是实施配额捕捞制度。在前述分析的基础上作者提出了完善这些措施的对策和建议。     

水资源利用市场化下的水权及其类型化探讨

水资源利用市场化的前提是建立水权制度。水权是单位或个人对一定之水的使用收益权。水资源具有多用性,对水资源利用的目的和方式不同,水权内容也就存在差异。水权类型化不仅便于明确各类水权主体的权利和义务,而且便于国家对水资源开发利用的管理,促进水资源的合理利用。