The Theorem of Proportionality in Mainstream Capital Theory: An Assessment of its Applicability

This paper surveys and assesses the empirical literature that bears on the applicability of the theorem of proportionality, which asserts that depreciation is proportional to the outstanding capital stock. All available evidence shows that: a) the rates of depreciation and retirements vary from year to year in response to changes in conventional economic forces like utilization, maintenance and repair, the prices of new capital goods, etc., and b) while the approximation of the distribution of depreciation rates by a single parameter may be characterized by simplicity and ease of use, at the same time it thwarts the advances that can be achieved by returning to a general equilibrium model centered on the time structure of capital and the useful lives of its components. For this reason, it is concluded that, the sooner this theorem is replaced by an endogenous theory of depreciation and replacement, the better for economic theory and policy.Capital longevity, replacement, depreciation, scrappage, maintenance, utilization, obsolescence

Ending the Energy Stalemate: A Bipartisan Strategy to Meet America's Energy Challenges

Provides detailed policy recommendations for addressing oil security, climate change, natural gas supply, the future of nuclear energy, and other long-term challenges

Political Shaping Of Transitions To Biofuels In Europe, Brazil And The USA

Faced with major challenges of global climate change, declining fossil fuel reserves, and competition between alternative uses of land, the transition to renewable transport fuels has been marked by new modes of political economic governance and the strategic direction of innovation. In this paper, we compare the different trajectories to the development and uptake of biofuels in Europe, Brazil and the USA. In terms of the timing, direction, and development of biofuels for road transport, the early lead taken by Brazil in sugarcane based ethanol and flex-fuel cars, the USA drive to corn-to-ethanol, and the European domination of biodiesel from rapeseed, manifest significant contrasts at many levels. Adopting a neo-Polanyian ?instituted economic process? approach we argue that the contrasting trajectories exemplify the different modes of politically instituting markets. We analyse the contrasting weight and impact of different drivers in each case (energy security, climate change mitigation, rural economy development, and market opportunity) in the context of diverse initial conditions and resource endowments. We explore the ?politics of markets? that arise from the different modes of instituting markets for ecologically sustainable economic growth, including the role of NGOs, the scientific controversies over land-use change, and the contrasting political institutions in our case studies. We also place our analysis in the historical perspective of other major carbon energy transitions (charcoal to coal, coal to petrochemicals). In so doing, we explore the idea of the emergence of new modes of governance of contemporary capitalist political economies, and the significance of politically directed innovation. The research is based on an extensive primary research programme of in-depth interviews with strategic players in each of the geographic regions, qualitative institutional analysis, a scenario workshop, and secondary data analysis

The Economics of Fuel Economy Standards

This paper discusses several rationales for the Corporate Average Fuel Economy (CAFE) program, including reduced oil dependence, reduced greenhouse gas emissions, and the possibility that fuel saving benefits from higher standards might exceed added vehicle costs. We then summarize what can be said about the welfare effects of tightening standards, accounting for prior fuel taxes, and perverse effects on congestion and traffic accidents through the impact of improved fuel economy on the incentive to drive. Implications of CAFE on local air pollution, and the controversy over CAFE, vehicle weight, and road safety, are also discussed. Finally, we describe ways in which the existing CAFE program could be substantially improved and identify a variety of alternative, and much superior, policy approaches.

Aspects Regarding the Impact of the "Rabla" Program and the "Casa Verde" Program on the Ecological Consumption in Romania

The modern consumer behavior has been very complex in the recent context of budgetary restrictions occurred after the global crisis, but it has also been changed and influenced by different selections of strategies in order to purchase and use the products/ services. The supply results have also been changed, according to a better response to consumer needs, specific to the new consumption cycle. The consumer reaction to the green products/ services has been highly influenced by the economic consequences. A new role of experience and adaptability of consumers could be seen as completed by anticipation strength. A more aggressive response related to the quality of products/ services on their entire life cycle, but yet quasi-ignorance in the aspects of environmental consequences it still result. The main objective of the paper consists in offering a better understanding of the new philosophy of Romanian consumers based on different simple models of replacing generalized durable goods (GDGs) in a simple, but intuitive analytical framework. The impact of Rabla programs over the eco-friendly products consumption within the proposed hypothesis has been strongly limited by the economic component (by the costs associated to maintenance, the energetic products consumption and the environmental taxes).consumer’s behavior, environment, consumer’s decision, generalized durable goods (GDGs)

A risk management system for sustainable fleet replacement.

This article analyzes the fleet management problem faced by a firm when deciding which vehicles to add to its fleet. Such a decision depends not only on the expected mileage and tasks to be assigned to the vehicle but also on the evolution of fuel and CO2 emission prices and on fuel efficiency. This article contributes to the literature on fleet replacement and sustainable operations by proposing a general decision support system for the fleet replacement problem using stochastic programming and conditional value at risk (CVaR) to account for uncertainty in the decision process. The article analyzes how the CVaR associated with different types of vehicle is affected by the parameters in the model by reporting on the results of a real-world case study

Ten lessons on the resilience of the EU common fisheries policy towards climate change and fuel efficiency - A call for adaptive, flexible and wellinformed fisheries management

To effectively future-proof the management of the European Union fishing fleets we have explored a suite of case studies encompassing the northeast and tropical Atlantic, the Mediterranean, Baltic and Black Seas. This study shows that European Union (EU) fisheries are likely resilient to climate-driven short-term stresses, but may be negatively impacted by long-term trends in climate change. However, fisheries’ long-term stock resilience can be improved (and therefore be more resilient to increasing changes in climate) by adopting robust and adaptive fisheries management, provided such measures are based on sound scientific advice which includes uncertainty. Such management requires regular updates of biological reference points. Such updates will delineate safe biological limits for exploitation, providing both high long-term yields with reduced risk of stock collapse when affected by short-term stresses, and enhanced compliance with advice to avoid higher than intended fishing mortality. However, high resilience of the exploited ecosystem does not necessarily lead to the resilience of the economy of EU fisheries from suffering shocks associated with reduced yields, neither to a reduced carbon footprint if fuel use increases from lower stock abundances. Fuel consumption is impacted by stock development, but also by changes in vessel and gear technologies, as well as fishing techniques. In this respect, energy-efficient fishing technologies already exist within the EU, though implementing them would require improving the uptake of innovations and demonstrating to stakeholders the potential for both reduced fuel costs and increased catch rates. A transition towards reducing fuel consumption and costs would need to be supported by the setup of EU regulatory instruments. Overall, to effectively manage EU fisheries within a changing climate, flexible, adaptive, well-informed and well-enforced management is needed, with incentives provided for innovations and ocean literacy to cope with the changing conditions, while also reducing the dependency of the capture fishing industry on fossil fuels. To support such management, we provide 10 lessons to characterize ‘win-win’ fishing strategies for the European Union, which develop leverages in which fishing effort deployed corresponds to Maximum Sustainable Yield targets and Common Fisheries Policy minimal effects objectives. In these strategies, higher catch is obtained in the long run, less fuel is spent to attain the catch, and the fisheries have a higher resistance and resilience to shock and long-term factors to face climate-induced stressesEn prens

Ten lessons on the resilience of the EU common fisheries policy towards climate change and fuel efficiency - A call for adaptive, flexible and well-informed fisheries management

To effectively future-proof the management of the European Union fishing fleets we have explored a suite of case studies encompassing the northeast and tropical Atlantic, the Mediterranean, Baltic and Black Seas. This study shows that European Union (EU) fisheries are likely resilient to climate-driven short-term stresses, but may be negatively impacted by long-term trends in climate change. However, fisheries' long-term stock resilience can be improved (and therefore be more resilient to increasing changes in climate) by adopting robust and adaptive fisheries management, provided such measures are based on sound scientific advice which includes uncertainty. Such management requires regular updates of biological reference points. Such updates will delineate safe biological limits for exploitation, providing both high long-term yields with reduced risk of stock collapse when affected by short-term stresses, and enhanced compliance with advice to avoid higher than intended fishing mortality. However, high resilience of the exploited ecosystem does not necessarily lead to the resilience of the economy of EU fisheries from suffering shocks associated with reduced yields, neither to a reduced carbon footprint if fuel use increases from lower stock abundances. Fuel consumption is impacted by stock development, but also by changes in vessel and gear technologies, as well as fishing techniques. In this respect, energy-efficient fishing technologies already exist within the EU, though implementing them would require improving the uptake of innovations and demonstrating to stakeholders the potential for both reduced fuel costs and increased catch rates. A transition towards reducing fuel consumption and costs would need to be supported by the setup of EU regulatory instruments. Overall, to effectively manage EU fisheries within a changing climate, flexible, adaptive, well-informed and well-enforced management is needed, with incentives provided for innovations and ocean literacy to cope with the changing conditions, while also reducing the dependency of the capture fishing industry on fossil fuels. To support such management, we provide 10 lessons to characterize 'win-win' fishing strategies for the European Union, which develop leverages in which fishing effort deployed corresponds to Maximum Sustainable Yield targets and Common Fisheries Policy minimal effects objectives. In these strategies, higher catch is obtained in the long run, less fuel is spent to attain the catch, and the fisheries have a higher resistance and resilience to shock and long-term factors to face climate-induced stresses

Technology, organisation and productivity performance in services : lessons from Britain and the United States since 1870

This paper documents the comparative productivity performance of the United States and Britain since 1870, showing the importance of developments in services. We identify the transition in market services from customised, low-volume, high-margin business organised on a network basis to standardised, high-volume, low-margin business with hierarchical management, as a key factor. A model of the interaction between technology, organisation and economic performance is then provided, focusing on the transition from networks to hierarchies. Four general lessons are drawn: (1) developments in services must be analysed if the major changes in comparative productivity performance among nations are to be understood fully; (2) different technologies and organisational forms can co-exist efficiently; (3) technological change can cause difficulties of adjustment in technology-using sectors if it is not suited to the social capabilities of the society; (4) reversal of technological trends can lead to reversal of comparative productivity performance