Impacts of an EC carbon/energy tax and deregulating thermal power supply on CO2, SO2 and NOx emissions

Emission of CO₂, SO₂ and NO_x are all closely linked to the burning of fossil fuels. Here we report on simulations done by linking a Sectoral European Energy Model (SEEM), covering energy demand in nine Western European countries, with the emission-transport-deposition model RAINS developed by IIASA. The study analyses emissions of CO₂, SO₂ and NO_x, deposition of sulphur and nitrogen and the extent of areas where the critical load for sulphur is exceeded in year 2000 under four different energy scenarios. Two different sets of future behavioural patterns for the thermal electric power production sector are considered. In one regime, called the plan-efficient regime, the sector is assumed to follow official plans with regard to investment in new capacity. In the other regime, called the cost-efficient regime, the thermal power sector is assumed to behave in a cost minimizing manner. The effects of the proposed EC carbon/energy tax are studied under both regimes, giving rise to altogether four scenarios.In both regimes the effect of the EC tax is to reduce emissions by between 6 and 10 per cent in year 2000 relative to the scenarios without the tax. A change of regime, from the regulated, plan-efficient regime to the market-based, cost-efficient regime, will, by itself, reduce emissions of CO₂ and NO_x by approximately 3 per cent, while SO₂ emissions are reduced by 13 per cent. The EC tax will reduce sulphur deposition by more than 5 per cent in the nine model countries under the plan-efficient regime. A change of regime further reduces the total deposition by 9 per cent. The area where depositions exceed the critical load is reduced by approximately 6 per cent in year 2000 by the tax in both regimes. Changing from the plan-efficient to the cost-efficient regime has a similar impact.Although the emission reductions due to the EC tax may seem modest, they are shown to have a sizeable effect on the technological abatement costs of reaching targets like those prescribed in the Sofia protocol on the stabilisation of NO_x emissions, and the Helsinki protocol on SO₂ emission reductions. This is part of what can be considered to be secondary benefits of the EC carbon/energy tax.     

Sequencing and the Adding-up Property in Contingent Valuation of Endangered Species: Are Contingent Non-Use Values Economic Values?

This paper presents tests of the theoretical validity of the contingent valuation (CV) method. The validity of CV is especially a concern when involving environmental goods with a predominant non-use value. One test of theoretical validity is the adding-up property that implies that a specific good should be equally valued irrespectively of it is being valued directly or built-up sequentially. In this CV study four independent sub-samples stated willingness to pay for the same composite good, or package, using different sequences. One sub-sample valued the composite good directly, while two sub-samples faced built-up sequences valuing first subsets of this composite good. A fourth sub-sample valued the composite good from a dividing-out approach, facing first the valuation of a larger multi-package. Theoretically expected sequencing effects were observed; the subset goods obtained higher values earlier in a sequence, and the dividing-out approach decreased the stated value for the composite good. Most importantly, these CV data did pass the tests of the adding-up property.     

Environmental quality indicators: Background,principles and examples from Norway

The need for a simple and general overview of the development in the state of the environment has led to work on environmental indicators in several countries and international organizations. Except for the basic common requirement of providing an overview, the works vary a great deal with regard to final aim, target groups, classification and, hence, choice of indicators. This paper gives an overview of the work carried out in the Central Bureau of Statistics of Norway within this field, with emphasis on the basic principles behind the choice of indicators. A hierarchical system of indicator sets is proposed, and examples of indicators are presented. Also, a brief overview of work carried out elsewhere is included.     

A taxonomy of standards in the service sector: Theoretical discussion and empirical test

Based on the peculiarities of services the different typologies of service standards are discussed. Against this background, a survey among European service companies addressed the question of in which service-related categories formal and informal standards are implemented. In total 364 European service companies responded to the on-line survey. Relying on the assessment of the importance of the various service-related standardisation aspects, it was possible to identify a taxonomy of service standards containing five clusters of service standards ‘Service Management’, ‘Service Employee’, ‘Service Delivery’, ‘Customer Interaction’, and ‘Data Flows and Security’, which correspond very closely to the ex ante applied typology derived from the literature.     

Equilibrium in Marine Mutual Insurance Markets with Convex Operating Costs

The article analyzes the possibility of reaching an equilibrium in a market of marine mutual insurance syndicates, called Protection and Indemnity Clubs, or P&I Clubs for short, displaying economies of scale. Our analysis rationalizes some empirically documented findings, and points out an interesting future scenario. We find an equilibrium in a market of mutual marine insurers, in which some smaller clubs, having operating costs above average, may grow larger relative to the other clubs in order to become more cost effective, and where medium to larger cost‐efficient clubs may stay unchanged or some even downsize relative to the others. Some of the very large clubs suffering from diseconomies of scale may have a motive to further increase relative to the other clubs. According to observations, most clubs have, during the last decade, expanded significantly in size measured by gross tonnage of entered ships, some clubs have merged, but very few seem to have decreased their underwriting activity, in particular none of the really large ones. The analysis points to the following future scenario: The small and the medium to large clubs converge in size, while there is a possibility for some very large clubs to be present as well.     

Unemployment insurance and incentives

In this paper we present a partial economic equilibrium model of the labor market in which we maximize the workers' expected discounted utility level, while implying a zero expected profit for the firms. The model we use for the labor market takes into consideration transitions between the various states of employment and the time periods spent in each state. The probability distribution of these time periods may be arbitrary, not restricted to being exponential, as is the case for ordinary time-continuous Markov processes. The basic principles and difficulties arising from monitoring problems and moral hazard are discussed. In order to analyze unemployment insurance schemes that include incentives for workers to avoid unemployment, we depart from the simplest form of the principle of equivalence in insurance. Several different alternatives are discussed, all giving rise to partial insurance and thus incentives. We also analyze the effects that early retirement have on unemployment. Here, we include social security benefits in the economic model. Finally, we show that the optimal solutions entail quantity rationing.     

State support to small stores: A Nordic form of consumer policy

From the early 1970s, the Governments of Finland, Norway, and Sweden have shown considerable concern for the plight of rural consumers consequent on the closure of small stores in sparsely populated areas. In each country, special commissions were established to consider the consequences of retail concentration and legislation has been introduced to provide aid to small retail business in rural areas. The paper examines the background to this legislation and compares and contrasts the measures adopted in each of the three countries. While the policies attempt to improve the viability of rural small stores, it is argued that the measures are essentially a special type of consumer policy and that not only is there a need for more research into the effectiveness of the policies, but that perhaps the measures ought to be extended somewhat, particularly to protect the interests of consumers in urban areas.

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Staatliche Unterstützung des kleinen Einzelhandels: eine skandinavische Form von Verbraucherpolitik

Zusammenfassung Die Regierungen Finnlands, Norwegen und Schwedens befassen sich seit etwa zhen Jahren mit der Situation von Verbrauchern in dünn besiedelten ländlichen Gebieten, die sich durch das Verschwinden kleiner Ladengeschäfte verschlechtert. Es wurden Kommissionen zur Untersuchung der Auswirkungen der Konzentration im Einzelhandel gebildet und Gesetze zur Förderung des kleinen Einzelhandels in ländlichen Gebieten erlassen. Dieser Beitrag behandelt den Hintergrund dieser Entwicklung und vergleicht die in den drei Ländern angewendeten staatlichen Maßnahmen, die in ihrem Kern als eine spezielle Form von Verbraucherpolitik betrachtet werden.Der Hintergrund für solche Stützungsmaßnahmen ist gekennzeichnet durch strukturelle Veränderungen im Einzelhandel seit dem 2. Weltkrieg. Seit den 50er Jahren und verstärkt in den Jahren zwischen 1960 und 1973 ging die Zahl der traditionellen Gemischtwarenläden um bis zu 50% zurück. Die Konzentration hat dazu geführt, daß der Kolonialwarenhandel von drei bis vier Ladenketten bestimmt wird und viele ländliche Gemeinden gar keinen oder nur noch einen einzigen örtlichen Laden besitzen.Um dieser Entwicklung entgegenzuwirken, bieten alle drei Staaten Investitionszulagen für die Modernisierung und Vergrößerung von Ladengeschäften. Norwegen und Schweden gewährt darüber hinaus auch Zuschüsse zu den laufenden Kosten. Abbildung 1 (S. 200) gibt einen Überblick über die Unterschiede, die zwischen den drei Ländern bestehen, jeweils im Bereich der staatlichen Maßnahmen, der Voraussetzungen, an die die staatliche Unterstützung geknüpft sind, und der verwaltungstechnischen Abwicklung.Die Betrachtung der Auswirkungen der Unterstützungsprogramme ergibt, daß in Norwegen nahezu 50% der infragekommenden Geschäfte eine Unterstützung erhielten und das Ladensterben im Laufe der Jahre von jährlich etwa 650 auf jetzt etwa jährlich 300 verringert werden konnte. In Finnland wurden bis Ende 1977 109 Geschäfte unterstützt; außerdem richtete die Regierung 10 neue Läden ein und kaufte zusätzlich 113 mobile Verkaufsstellen. In Schweden bekamen in den ersten vier Jahren 97 Läden eine Unterstützung, durch die für 20 000 Verbraucher in ländlichen Gegenden und weitere 5000 Feriengäste die Möglichkeit notwendiger Einkäufe gesichert werden konnte.Der Beitrag plädiert für eine Erweiterung der bisherigen Maßnahmen, um auch die tieferen Probleme des kleinen Einzelhandels angehen zu können. Er stellt dabei die wichtige soziale und wirtschaftliche Rolle heraus, die der kleine Laden im ländlichen und im städtischen Bereich übernimmt. Insofern wird der skandinavischen Gesetzgebung Modellcharakter auch für andere moderne Volkswirtschaften zugesprochen.Der Beitrag schließt ab mit einigen Vorschlägen für künftige Forschung und stellt dabei vor allem heraus (a) die Kosten-Nutzen-Analyse der staatlichen Maßnahmen, (b) die Untersuchung der Reaktionen der Händler auf die Förderungsprogramme und der Auswirkungen auf die geförderten Geschäfte und (c) die Analyse der Einstellungen und des Verhaltens der Verbraucher gegenüber kleineren Geschäften, um zu ermitteln, ob diese Geschäfte den Ansprüchen und den Bedürfnissen der örtlichen Kundschaft tatsächlich besser entsprechen. Darüber hinaus richtet sich ein eher theoretisches Interesse auf die Eigenschaften, die eine Volkswirtschaft aufweisen sollte, wenn die Unterstützung des kleinen Einzelhandels zugleich ein erfolgreiches verbraucherpolitisches Instrument sein soll.

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Knut Ekhaugen is Head of Department for Economic Research, Norwegian Productivity Institute, Akersgt. 64, Oslo 1, Norway. Sigmund Grønmo is Research Director, Norwegian Fund for Market and Distribution Research, Fredensborgveien 24, Oslo 1, Norway; and Associate Professor of Sociology, University of Oslo, Blindern, Oslo 3, Norway. David Kirby is Senior Lecturer in Geography and Director of the Small Shops Research Unit at St. David's University College, University of Wales, Lampeter. Currently he is a Visiting Research Fellow at the Norwegian Fund for Market and Distribution Research, Oslo.     

Cooperation and Competition in the Context of Organic and Mechanic Worldviews – A Theoretical and Case based Discussion

In this study we argue that there is an interconnection between; the mechanistic worldview and competition, and the organic worldview and cooperation. To illustrate our main thesis we introduce two cases; first, Max Havelaar, a paradigmatic case of how business might function in an economy based upon solidarity and sustainability. Second, TINE, a Norwegian grocery corporation engaged in collusion in order to force a small competitor out of the market. On the one hand, in order to encourage market behaviour that integrates economic, societal and environmental values we find that transparent cooperation within a context of an organic worldview takes care of important intrinsic as well as instrumental values. On the other hand, we find evidence for asserting that cooperation based upon a mechanistic worldview, typically leads to group egotistical consequences undermining the long term common good.     

V Chemnitz East Forum 21–23 March 2001 "Human Resource Management in Transition"

Call for Papers

V Chemnitz East Forum 21–23 March 2001 "Human Resource Management in Transition"