A Theoretical Model of Optimal Compliance Decisions under Different Penalty Designs in Emissions Trading Markets

This paper employs a theoretical model to examine compliance incentives and market efficiency under three penalty types: the fixed penalty rate, which uses a constant marginal financial penalty; the make-good provision (quantity penalty), where each missing permit in the current period is to be offset with a ratio (restoration rate) in the following period; and a mixed penalty, which combines the two penalty types. Using a simple two-period model of firm's profit maximisation, we analyse compliance decisions and the efficient penalty level under each penalty type. Firms‟ compliance strategies are modelled as an irreversible investment in abatement measures and permit buying in the market. Our findings indicate that the penalty type does not affect compliance decisions provided that the efficient penalty level is applied. Market efficiency is retained regardless of penalty types. Nevertheless, the mixed penalty design provides the strongest compliance incentives. Hence this finding supports the practice in which this penalty design is widely used in the existing and the proposed trading schemes. Furthermore, we discuss the policy implications of the findings with regard to permit price discovery process and the Australian proposal of tying the penalty level to the permit priceemissions trading, penalty design, compliance, Environmental Economics and Policy, Resource /Energy Economics and Policy,

Robust Dropping Criteria for F-norm Minimization Based Sparse Approximate Inverse Preconditioning

Dropping tolerance criteria play a central role in Sparse Approximate Inverse preconditioning. Such criteria have received, however, little attention and have been treated heuristically in the following manner: If the size of an entry is below some empirically small positive quantity, then it is set to zero. The meaning of "small" is vague and has not been considered rigorously. It has not been clear how dropping tolerances affect the quality and effectiveness of a preconditioner $M$. In this paper, we focus on the adaptive Power Sparse Approximate Inverse algorithm and establish a mathematical theory on robust selection criteria for dropping tolerances. Using the theory, we derive an adaptive dropping criterion that is used to drop entries of small magnitude dynamically during the setup process of $M$. The proposed criterion enables us to make $M$ both as sparse as possible as well as to be of comparable quality to the potentially denser matrix which is obtained without dropping. As a byproduct, the theory applies to static F-norm minimization based preconditioning procedures, and a similar dropping criterion is given that can be used to sparsify a matrix after it has been computed by a static sparse approximate inverse procedure. In contrast to the adaptive procedure, dropping in the static procedure does not reduce the setup time of the matrix but makes the application of the sparser $M$ for Krylov iterations cheaper. Numerical experiments reported confirm the theory and illustrate the robustness and effectiveness of the dropping criteria.Comment: 27 pages, 2 figure

What Difference Does Quantity Make? On the Epistemology of Big Data Biology

publication-status: Acceptedtypes: ArticleIs Big Data science a whole new way of doing research? And what difference does data quantity make to knowledge production strategies and their outputs? I argue that the novelty of Big Data science does not lie in the sheer quantity of data involved, but rather in (1) the prominence and status acquired by data as commodity and recognised output, both within and outside of the scientific community and (2) the methods, infrastructures, technologies, skills and knowledge developed to handle data. These developments generate the impression that data-intensive research is a new mode of doing science, with its own epistemology and norms. To assess this claim, one needs to consider the ways in which data are actually disseminated and used to generate knowledge. Accordingly, this article reviews the development of sophisticated ways to disseminate, integrate and re-use data acquired on model organisms over the last three decades of work in experimental biology. I focus on online databases as prominent infrastructures set up to organise and interpret such data and examine the wealth and diversity of expertise, resources and conceptual scaffolding that such databases draw upon. This illuminates some of the conditions under which Big Data needs to be curated to support processes of discovery across biological subfields, which in turn highlights the difficulties caused by the lack of adequate curation for the vast majority of data in the life sciences. In closing, I reflect on the difference that data quantity is making to contemporary biology, the methodological and epistemic challenges of identifying and analysing data given these developments, and the opportunities and worries associated with Big Data discourse and methods.Economic and Social Research CouncilES/F028180/1Leverhulme TrustRPG-2013-153European Union’s Seventh Framework Programme (FP7/2007-2013ERC grant agreement number 335925

Student Participation in the Governing Bodies of Spanish Universities

Spanish universities are making considerable democratic efforts in their various governing and administrative bodies. This article analyses the role that students play in these in aiding the development of a society where democratic values prevail. To achieve this, documentary analysis is used to explore the different laws and statutes of the universities in terms of student participation, as well as the methodology characteristic of Comparative Education. The first phase tackles the problem of student participation in Spanish universities. Following this, student participation in these bodies is analysed, observing differences and similarities taken from a sample of different Spanish universities. Based on the results obtained, student participation does not quite reach the levels desired. Once the problem is identified a series of proposals are made to increase the quantity and quality of this participation, most importantly increasing the relevance of the student sector in governing bodies, expediting and simplifying electoral processes, supporting the right to association by creating space and providing the necessary training for students to make full use of their rights