Effects of permitted effluent limits on environmental compliance levels

This paper empirically analyzes the effects of permitted effluent limits on compliance levels - discharges relative to limits - at individual polluting facilities. In particular, it constructs and employs effluent limit-related regressors that measure the differences between the actual effluent limit level imposed on a particular facility for a given month and three benchmarks: federally-mandated standard for effluent limit level, a particular facility's average effluent limit level over a specified period (e.g., entire sample period), and preceding monthly limit at a particular facility (i.e., transition to new limit). By examining the effects of effluent limit levels as measured relative to these three benchmarks, this paper explores whether limit stringency affects compliance level choices (e.g., more stringent limits undermine compliance), whether adjustments to treatment are non-smooth (“lumpy”), and whether quick adjustments are difficult. Evidence of these possibilities would have meaningful implications for environmental protection policies.     

The Structure and Composition of India’s Exports and Industrial Transformation (1980–2000)

Abstract

This paper analyses structural change in Indian manufactured exports empirically for 143 (mainly manufacturing) industrial groupings. Trade indices such as Balassa’s revealed comparative advantage (RCA) index and variants are used. Detailed econometric analysis is employed to examine structural change. The stability and the process of the intertemporal evolution of the RCA indices is considered. Three technology categories (high technology, medium technology and low technology) are analysed individually. Our results point towards substantial industrial restructuring in manufactured exports. We find evidence of despecialisation within India’s manufactured exports for the time period studied, which is consistent with increasing specialisation in a subset of manufactured exports.     

The impact of introducing seven-day-trading on the Austrian electricity market

This paper analyses the impacts of the new daily green electricity production forecasting policy by the Austrian Green Electricity Settlement Agency (OEMAG) and the newly introduced seven-day electricity trading mechanism by the European Energy Exchange (EEX) on the Austrian electricity market. By treating these two market policy alterations as natural experiments and applying statistical and econometric methods to a unique data set, it is investigated whether thereby (i) a reduction of the green electricity production forecasting uncertainties and (ii) a generally more efficient electricity market with accompanying lower net costs is attained. Furthermore, we analyse whether (iii) seven-day-trading helps to mitigate the Friday-Monday effect that is often observed on stock and other exchanges markets. Finally, we investigate whether or not (iv) the underlying market design might tempt OEMAG to systematically overstate its forecasts on green power generation.     

Ukrainian gas transit game

This paper investigates the origins and reasons for the termination of the Russian natural gas flow from Russia to Europe through Ukraine in January 2009. It discusses the strategic interaction of the three players (Russia, Ukraine and the European Union) based on the dynamics of losses from confrontation. The objective is to interpret the situation in a stylized way and to derive outcomes using calibrated parameters for costs and benefits of the players. We show that the stakes are high for both Russia and Ukraine in choosing to follow their preferred strategies, as both countries would sustain moderate losses during the initial period of conflict. Meanwhile, Europe’s lack of reserves makes it less prepared for the energy deficit than Ukraine and Russia, causing wider and earlier suffering for European countries dependent on Russian gas. Therefore, the European Union has a strong incentive to intervene in the conflict. Its actions during the January confrontation between Ukraine and Russia included extortion and bribery, all of which affected the outcome of the conflict.     

Effects of foreign direct investment in developing countries

The effects of direct investments and multinational corporations remain a highly contentious issue. The author traces here the reasons for the large number of diverging statements and comments on this issue and considers what political conclusions should be drawn from this wide variety of views.