The sustainability and transition of economic growth in China：from a perspective of factor structure

After more than 20 years＇ high speed growth, the sustainable growth of Chinese economy faces serious limitation of resources and factors now and in the future. In order to maintain the economic growth. China has to trans-form the way of economic growth, Based on the analysis on the related theories of economic growth and the structural transformation in factors of production, this paper proposes that the transformation of the economic growth way has to impel the optimization and the promotion of the utilization structure of factors of production. Finall.v, based on the analysis of the necessity to change the pattern of economic growth, this paper proposes＇ the strategic measures to promote the continuous economic growth and the transformation of patterns of economic growth.     

Do increases in energy efficiency improve environmental quality and sustainability?

Governments world-wide increasingly see energy efficiency as an important aspect of sustainability. However, there is a debate in the literature as to whether the impact of improved energy efficiency on reducing energy use might be partially, or more than wholly, offset through “rebound” and “backfire” effects. This paper clarifies the theoretical conditions under which such effects would occur and explores their likely significance using a computable general equilibrium (CGE) model of the Scottish economy. We find that for Scotland a general improvement in energy efficiency in the production sectors of the economy initially produces rebound effects that eventually grow into backfire. Energy use ultimately increases in response to an efficiency gain and the ratio of GDP to CO₂ emissions falls. The economic factors underpinning rebound effects are straightforward: energy efficiency improvements result in an effective cut in energy prices, which produces output, substitution, competitiveness and income effects that stimulate energy demands. However, the presence of strong rebound or even backfire does not mean that efficiency-enhancing policies are irrelevant: rather it suggests that such policies operating alone are insufficient to generate environmental improvements. The implication is that a co-ordinated portfolio of energy policies is required.     

Are international environmental policies effective? The case of the Rotterdam and the Stockholm Conventions

This is the first paper to show that participation in an international environmental agreement has some effectiveness. Our identification strategy consists of applying difference-in-differences techniques in a panel data framework to various levels of data aggregation. We find that ratification of the Rotterdam Convention (RC) and the Stockholm Convention (SC) leads to a reduction in trade of hazardous substances from OECD to non-OECD countries. In particular, we find that when the exporter ratifies the RC, there is a reduction in the import of hazardous chemicals of about 7 percent. In the case of the SC, the results show significant reductions of around 16 percent in trade shipments of persistent organic pollutants. This reduction is more than double the effect found for the RC, which was expected due to a more restricted obligation imposed by the SC convention.     

Are remittances good for economic growth? The role of political institutions

Within a sample of 109 developing countries for the period 1975–2014 and controlling for country and time-fixed effects, this article presents evidence that workers’ remittances are more effective in promoting growth in developing countries with strong democratic institutions. The evidence is robust to alternative samples and different measures of democratic institutions.     

Are regional systems greening the economy? Local spillovers,green innovations and firms’ economic performances

The adoption and diffusion of environmental innovations (EIs) is crucial to greening the economy and achieving win–win environmental/economic gains. A large and increasing literature has focused on the levers underlying EIs that are external to the firm, such as stakeholder and policy pressures. Little attention, however, has been devoted to the possible role of local spillovers of a sector/geographical nature as a factor that correlates with EIs and economic performances. A rich data set that covers the innovative activities and economic performances of firms in the Emilia-Romagna region in Italy, an area dense in manufacturing districts, is analysed. EIs’ drivers and effects on firms’ performance are investigated through a two-step procedure. First, we examine the relevance of spatial levers, namely, whether high rates of eco-innovators in a given local area induce the adoption of EIs in firms located in the same local area. The role of the ‘agglomeration lever’ turns out to be fairly local in nature: we find that spillovers are significantly inducing innovation within municipal boundaries. Second, we test whether EIs adoptions have significantly increased firms’ economic performances and find that some firms’ productivity performances are positively related to EI adoption.     

The appeal of voluntary environmental programs: which firms participate and why?

Why do firms participate in the EPA's voluntary environmental programs? Possible reasons include: (1) to appeal to consumers who demand ‘green’ products; (2) to preempt government regulation; (3) to seek regulatory relief from the agency; and (4) to gain a competitive advantage over competitors. This article examines the determinants of participation in voluntary environmental programs, focusing on testing hypotheses 1 and 3. To test 2, a different approach is used than in previous literature. The focus is on a specified universe of firms (manufacturing firms in the Standard & Poor 500), and their participation in each of three EPA voluntary programs (33/50, Green Lights, and WasteWi$) referring to differently regulated pollutants is analyzed. Our empirical analyses reveal that (1) publicity is an important component of participation; (2) the worse the environmental track record of the firm, the more likely the firm is to participate, but only in programs directly related to highly regulated pollutants; and (3) firms that scrutinize their environmental performance more carefully are wary of newer programs with uncertain reach of the public and uncertain benefits. Firms appear to value the information/technology transfer aspect of joining a program.     

Are emotions to blame? — The impact of non-analytical information processing on decision-making and implications for fostering sustainability

Policy advice based on a rationalist perspective to foster sustainable behaviour has approached its limits; and gaps in the established models are becoming more and more obvious. To better understand how unsustainable choices are made, and to foster sustainable decision-making, alternatives to the rationalist models of human decision-making need to be investigated. Such alternative models have already demonstrated their usefulness in other fields than ecological economics. The paper begins with a presentation of conventional models of human behaviour, as well as their advances and limitations in ecological and behavioural economics. In most of these models, the dominance of analytical thinking still prevails. I identify this as problematic given the evidence for the influence of emotion and intuition in decision-making. To offer a perspective on human behaviour that acknowledges this influence, dual-process models are presented. Established applications of these models are then used to propose four basic types of explanations for unsustainable behaviour. Based on these explanations preliminary ideas to promote sustainable decision-making are developed. These ideas are considerably different from policy implications of the established economic model.     

Analysis on the disparity in economic growth and consumption between urban sector and rural sector of China: 1978–2008

This paper designs a theoretical model of excess per-capita income growth and brings forward such indices as excess per-capita income, per-capita base consumption and decreasing factor as well as the corresponding measurement methods. It studies from a brand new aspect the disparity between the economic growth in urban sector and rural sector of China in the past 30 years after the reform and opening-up, together with the disparity between the effects of such growth on consumption. The research results show that: At present the problem of the duality of urban and rural sector of China is still serious; the impaired amount of economic growth in urban sector is larger than that in rural sector while the impairing strength in rural sector is higher than that in urban sector; and it is vital to increase the excess per-capita investment in rural sector in order to effectively strengthen consumption related policies. Therefore, promoting urbanization but reasonably controlling the urbanization progress while strengthening the infrastructure construction in rural areas would be the efficient approach to reduce the impairing strength over the economic growth, to build up consumption market, to improve the duality of economy and to realize sustainable development.     

What is in a surname? The role of ethnicity in economic decision making

This article reports results from two experiments that investigate possible incidence of discrimination against people with foreign backgrounds in Sweden. In the first experiment, participants played the trust game and the dictator game with co-players of different ethnic affiliation. The family name of the players was exposed to their co-players. Results for the trust game showed no significant discrimination against co-players with foreign backgrounds. On the other hand, the results for the dictator game showed a statistically significant discriminatory behaviour by men against co-players with non-European backgrounds. The discriminatory behaviour was solely a male phenomenon. In the second experiment, the dictator game was replicated to check the stability of the results in the first experiment. The second experiment also examined whether people with foreign backgrounds discriminate against other people with foreign backgrounds; that is, the purpose was to discover whether discrimination is systematic. The observations in the second experiment underlined the results found in the first experiment: foreign co-players are discriminated against by Swedish players. However, we did not find that people with foreign backgrounds discriminated against other people with foreign backgrounds.     

Special issue on economic policy in Portugal: innovation,competitiveness, and internationalisation. Editors’ introduction

Portuguese Economic Journal -     

Geopolitica: The ‘Geographical and Imperial Consciousness’ of Fascist Italy

Very few contributions have been published in English on the Italian geopolitical tradition of the interwar years. This is rather surprising, given the fact that, after Geopolitik, Italian geopolitics was one of the largest and most significant in Europe. This article aims to fill this void, by offering a detailed and critical investigation into this intellectual production. Although the article traces the origins of Italian geopolitics back to the 1920s, its main focus is on Geopolitica (1939–1942), the journal which, more than any others, embodied the attempts to give Italy its own geopolitics. Despite its ambitious proposal to become the ‘imperial-geographical consciousness’ of the Fascist regime, Geopolitica remained largely confined within the circle of academic geography and ultimately also failed to influence the development of Italian geographical tradition.     

The condition of the Turking class: Are online employers fair and honest?

Critics of online labor markets claim that employer abuses are endemic in these markets. Surveying a sample of workers, I find that, on average, workers perceive online employers to be slightly fairer and more honest than offline employers.     

Does economic growth benefit the poor? The role of institutions and religions

This paper seeks to explain the difference across countries of the impact of national growth on the growth of the income of the poor. Traditionally, studies attempting to explain such differences investigate only the impact of some additional variables on the income level of the poor. Here, we introduce interaction terms to explain the change in the elasticity of income of the poor to national income. We focus on the role of formal and informal institutions and religions; variables which have rarely been considered in this context. The results show that only formal institutions (i.e., Resistance to corruption) and, to some extent, informal institutions (i.e., Trust all) explain the differences. Religion has no impact. The findings also show that improvements in the Resistance to corruption benefits the extremely poor more than the poor.     

Jeux de mots,narrative and economic writing: The rhetoric of anti-physiocracy in French economic periodicals (1764–1769)

Abstract

This article analyses the extensive debate that took place from 1764 to 1769 between, on the one hand, François Quesnay and the Physiocrats and, on the other hand, a group of authors led by François Véron de Forbonnais. In this article, we argue that these exchanges have, to a large extent, structured the anti-physiocratic rhetoric.     

The real exchange rate and economic growth: are developing countries different?

Recent research has found a positive relationship between real exchange rate (RER) undervaluation and economic growth. Different rationales for this association have been offered, but they all imply that the mechanisms involved should be stronger in developing countries. Rodrik (2008 Rodrik, D. 2008. The real exchange rate and economic growth. Brookings Papers on Economic Activity, 2: 365–412.  [Google Scholar]) explicitly analyzed and found evidence that the RER–growth relationship is more prevalent in developing countries. We show that his finding is sensitive to the criterion used to divide the sample between developed and developing countries. Using alternative classification criteria and empirical strategies to evaluate the existence of asymmetries between groups of countries, we find that the effect of currency undervaluation on growth is indeed larger and more robust for developing economies. However, the relationship between RER undervaluation and per capita GDP is non-monotonic, and is limited largely to the least developed and richest countries. This discontinuity constitutes a puzzle that calls for closer analysis.     

Inequality: The original economic sin of capitalism? An Evaluation of Thomas Piketty's Capital in the twenty-first century

This is a review article of Thomas Piketty's book “Capital in the twenty-first century”. Piketty promotes the old theme that, under capitalism, the rich tend to become richer and the poor become poorer, at least in relative terms. We consider whether the data really shows that wealth and income are becoming more concentrated; the role of income transfers (Piketty's data is for pre-tax and pre-transfer income) and other influences on inequality such as real estate prices; the implications of social and economic mobility; the role of the state in fostering inequality; and the determination of socially acceptable inequality. We conclude that Piketty has not succeeded in showing that the inequality r > g (the rate of return is greater than the rate of growth) is the principal determinant of inequality. Piketty offers neither an accompanying theory of social justice nor a theoretical framework to support his case. In particular, lacking is a revealed appreciation of the effects of high marginal tax rates on growth and efficiency.     

Urban–rural income polarization and economic growth in China: evidence from the analysis of a dynamic panel data model

Using a dynamic panel data model and the system GMM, this article examines the relationship between urban–rural income polarization and economic growth at the provincial level in the period 1995 to 2010 in China. The estimated results and significant tests indicate that a certain degree of urban–rural income polarization is beneficial to economic growth at the provincial level in both stages for China as a whole, though the contribution of urban–rural income polarization to economic growth is relatively small. Aggravating urban–rural income polarization has a negative impact on economic growth in China. Based on a cluster analysis of regional economic growth at the provincial level, the authors carried out the same analysis separately for two categories of regions too. The results for those two categories of regions show that positive correlations also exist between urban–rural income polarization and economic growth in both stages, which are very similar to the analysis for the whole of China. In addition, a meaningful finding can be derived that the contribution of consumption growth rate to economic growth rate in the second stage is smaller than that in the first stage obviously.