Constructing Indonesian Social Accounting Matrix for Distributional Analysis in the CGE Modelling Framework

The distributional impact of policies analyzed in the CGE modelling framework have been constrained in part by the absence of a Social Accounting Matrix (SAM) with disaggregated households. Since Indonesian official SAM does not distinguish households by income or expenditure size, it has prevented accurate assesment for the distributional impact, such as calculation of inequality or poverty incidence. This paper describes how the Indonesian SAM for the year 2003, with 181 industries, 181 commodities, and 200 households (100 urban and 100 rural households grouped by expenditure per capita centiles) was constructed. The SAM (with the size of 768x768 accounts) constitutes the the most disaggregated SAM for Indonesia at both the sectoral and household level. SAM Construction is an essential part of CGE modeling, and this documentation provides greater transparency as well as replicability for further improvement.Social Accounting Matrix, Computable General Equilibrium, Indonesia

Constructing Indonesian Social Accounting Matrix for Distributional Analysis in the CGE Modelling Framework

The distributional impact of policies analyzed in the CGE modelling framework have been constrained in part by the absence of a Social Accounting Matrix (SAM) with disaggregated households. Since Indonesian official SAM does not distinguish households by income or expenditure size, it has prevented accurate assesment for the distributional impact, such as calculation of inequality or poverty incidence. This paper describes how the Indonesian SAM for the year 2003, with 181 industries, 181 commodities, and 200 households (100 urban and 100 rural households grouped by expenditure per capita centiles) was constructed. The SAM (with the size of 768x768 accounts) constitutes the the most disaggregated SAM for Indonesia at both the sectoral and household level. SAM Construction is an essential part of CGE modeling, and this documentation provides greater transparency as well as replicability for further improvement.Social Accounting Matrix; Computable General Equilibrium; Indonesia

Gross job flows and institutions in Europe

We examine job flows in the 1990s for a sample of 13 European countries. By using a dataset of continuing firms that covers all sectors, we find firm characteristics to be important determinants of job flows, with smaller and younger firms within services typically having a larger degree of job turnover. Once controlled for firm and sectoral effects, the role of institutions in the dynamics of job creation and destruction is examined. As expected, employment protection is found to reduce job flows. Similarly, countries with higher unemployment benefits and more coordinated wage bargaining systems are characterised by lower job flows. JEL Classification: J23, J60Gross Job Flows, labour market institutions

Hydrogen and fuel cell technologies for heating: A review

The debate on low-carbon heat in Europe has become focused on a narrow range of technological options and has largely neglected hydrogen and fuel cell technologies, despite these receiving strong support towards commercialisation in Asia. This review examines the potential benefits of these technologies across different markets, particularly the current state of development and performance of fuel cell micro-CHP. Fuel cells offer some important benefits over other low-carbon heating technologies, and steady cost reductions through innovation are bringing fuel cells close to commercialisation in several countries. Moreover, fuel cells offer wider energy system benefits for high-latitude countries with peak electricity demands in winter. Hydrogen is a zero-carbon alternative to natural gas, which could be particularly valuable for those countries with extensive natural gas distribution networks, but many national energy system models examine neither hydrogen nor fuel cells for heating. There is a need to include hydrogen and fuel cell heating technologies in future scenario analyses, and for policymakers to take into account the full value of the potential contribution of hydrogen and fuel cells to low-carbon energy systems

Technology roadmap: solar photovoltaic energy - 2014 edition

Solar power enhances energy diversity and hedges against price volatility of fossil fuels, thus stabilising costs of electricity generation in the long term, argues this report. Overview Solar energy is widely available throughout the world and can contribute to reduced dependence on energy imports. As it entails no fuel price risk or constraints, it also improves security of supply. Solar power enhances energy diversity and hedges against price volatility of fossil fuels, thus stabilising costs of electricity generation in the long term. Solar PV entails no greenhouse gas (GHG) emissions during operation and does not emit other pollutants (such as oxides of sulphur and nitrogen); additionally, it consumes no or little water. As local air pollution and extensive use of fresh water for cooling of thermal power plants are becoming serious concerns in hot or dry regions, these benefits of solar PV become increasingly important. Key findings: Since 2010, the world has added more solar photovoltaic (PV) capacity than in the previous four decades. Total global capacity overtook 150 gigawatts (GW) in early 2014 The geographical pattern of deployment is rapidly changing. While a few European countries, led by Germany and Italy, initiated large-scale PV development, since 2013, the People’s Republic of China has led the global PV market, followed by Japan and the United States PV system prices have been divided by three in six years in most markets, while module prices have been divided by five This roadmap envisions PV’s share of global electricity reaching 16% by 2050, a significant increase from the 11% goal in the 2010 roadmap Achieving this roadmap’s vision of 4 600 GW of installed PV capacity by 2050 would avoid the emission of up to 4 gigatonnes (Gt) of carbon dioxide (CO2) annually This roadmap assumes that the costs of electricity from PV in different parts of the world will converge as markets develop, with an average cost reduction of 25% by 2020, 45% by 2030, and 65% by 2050, leading to a range of USD 40 to 160/MWh, assuming a cost of capital of 8% To achieve the vision in this roadmap, the total PV capacity installed each year needs to rise from 36 GW in 2013 to 124 GW per year on average, with a peak of 200 GW per year between 2025 and 2040 The variability of the solar resource is a challenge. All flexibility options – including interconnections, demand-side response, flexible generation, and storage –need to be developed to meet this challenge Appropriate regulatory frameworks – and well-designed electricity markets, in particular – will be critical to achieve the vision in this roadmap Levelised cost of electricity from new-built PV systems and generation by sector

An empirical model of sunk costs and the decision to export

Exports respond unpredictably to a change in real exchange rates, suggests evidence from the 1980s. Recent theoretical work explains this as a consequence of the sunk costs associated with breaking into foreign markets. Sunk costs include the cost of packaging, upgrading product quality, establishing marketing channels, and accumulating information on demand sources. The authors use micro panel data to estimate a dynamic discrete-choice model of participation in export markets, a model derived from the Krugman-Baldwin sunk-cost hysteresis framework. Applying the model to data on manufacturing plants in Colombia (1981-89), they test for the presence of sunk entry costs and quantify the importance of those costs in explaining export patterns. The econometric results reject the hypothesis that sunk costs are zero. The results, which control for both observed and unobserved sources of plant heterogeneity, indicate that prior export market experience has a substantial effect on the probability of exporting, but its effect depreciates fairly quickly. The reentry costs of plants that have been out of the export market for a year are substantially lower than the costs of a first-time exporter. After a year out of the export market, however, the reentry costs are not significantly different from the entry costs. Plant characteristics are also associated with export behavior: large old plants owned by corporations are more likely to export than other plants. Variations in plant-level cost and demand conditions have much less effect on the profitability of exporting than variations in macroeconomic conditions and sunk costs do. It appears especially difficult to break into foreign markets during periods of world recession.Economic Theory&Research,Markets and Market Access,Environmental Economics&Policies,Decentralization,Water Conservation,Environmental Economics&Policies,Economic Theory&Research,TF054105-DONOR FUNDED OPERATION ADMINISTRATION FEE INCOME AND EXPENSE ACCOUNT,Markets and Market Access,Access to Markets